VOLUME 22 - BULLETIN #045
TO:
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ALL CLEARING MEMBERS
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FROM:
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BUSINESS SYSTEMS GROUP
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DATE:
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March 8, 2002
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SUBJECT:
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Quarterly Expiration of the CBOT Dow Jones Industrial Average™ Index Futures Options Contract
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Thursday, March 14, 2002 is the last day of trading in the March CBOT® Dow Jones Industrial AverageSM Futures and Futures Options contracts. Firms should be aware of the following procedures:
• The cash settlement value for the futures contract is determined on the morning of Friday, March 15, 2002. In-the-money option positions will be determined using this cash settlement value.
• In-the-money option positions will be automatically exercised during the 7:00 p.m. final reconciliation beginning on March 15, 2002. Unmatched option trades can be resolved anytime prior to March 28, 2002, with in-the-money option trades for the March contract automatically exercising during the final reconciliation on the day that they clear. Between Friday, March 15, 2002 and Thursday, March 28, 2002, out-of-the-money option trades will expire during the final reconciliation on the day that they clear.
• Cleared futures positions will be cash settled beginning with the final reconciliation on Friday evening, March 15, 2002. Unmatched futures trades can be resolved anytime prior to March 28, 2002 and will be automatically cash settled on the day that they clear.
As firms have until the end of the month to resolve unmatched futures and options trades for the March contract, no special expiration reports will be produced.
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“Dow JonesSM”, “The DowSM”, “Dow Jones Industrial AverageSM” and “DJIASM” are service marks of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by the Board of Trade of the City of Chicago (“CBOT”). The CBOT’s futures and futures options contracts based on the Dow Jones Industrial AverageSM are not sponsored, endorsed, sold or promoted by Dow JonesSM, and Dow JonesSM makes no representation regarding the advisability of trading such product(s).
CBOT is a registered trademark of the Board of Trade of the City of Chicago.
Should you have any questions, please call or e-mail one of the following Business Systems Analysts:
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