VOLUME 23 – BULLETIN #154 Phase One Transition of CBOT Clearing Services to the CME

To facilitate our member firms and help ensure a smooth transition to the Chicago Mercantile Exchange (CME) for clearing services, The Clearing Corporation (CCorp) will adhere to the calendar below.

If your firm has not signed a Release and Indemnification Agreement (“Release"), please do so immediately and fax the document to CCorp at (312) 786-9171. Click here to access an agreement. The Release serves, in part, to terminate the counterparty obligations that currently exist between CCorp and your firm with respect to the CBOT’s contracts.

Importantly, the November 24, 2003 transition of your firm’s CBOT contracts and the associated release of your firm’s available collateral cannot be effected unless your firm has executed the Release.

The Chicago Board of Trade (CBOT) has indicated transitioning clearing services in two phases. The first phase starts on Monday, November 24, 2003. The second phase will begin at the end of December 2003. Detailed bulletins will be forth coming on phase two. Following is an overview regarding the first phase of the transfer of clearing services from CCorp to the CME.

• To give firms an estimate of the collateral and margin required to be on deposit with CCorp after the transfer of the products in phase one, we will produce the following reports:

CRA00001B	Span Original Margin Summary
OMR00044	CBOT Transition – Margin and Collateral Report

These reports will be available in Infopac starting on Monday, November 17, 2003 and will continue to be available through Friday, November 21, 2003 at approximately 12:00PM each day. Simulated report CRA00001B will reflect the margin that is required to be on deposit for the contracts that will continued to be cleared by CCorp after Friday, November 21, 2003. This margin calculation will be based using the firm’s final position in each post transition product from the respective business date the report is created. Simulated report OMR00044 will summarize a firms post transition requirement based on the respective business date the report is created. Please refer to the Saturday, November 22^nd section for additional detail on the OMR00044 report.

• Last day of trading for CBOT December option contracts. Expiration processing schedule will run as normal. Agricultural and Financial future and options contracts close at their normal times. To assist firms in clearing up unmatched transactions in preparation for transition of clearing services to the CME, the deadline for final trade submission will be extended to 9:00PM. Special unmatched trade reconciliation reports, Infopac ID CLR00005S, will be produced at 5:00PM, 6:00PM, 7:00PM and 8:00PM.

• Midday Variation, Pay Collect, and Original Margin will be called at their normal times. Clearing firms that wish to withdraw margin collateral will be required to provide written instructions by 10:30AM to CCorp to authorize the movement of funds.

• CCorp will process November Rough Rice delivery intent(s) submitted by firms. The deadline to tender rice will be 4:00PM. Assignment of rice deliveries will be available after final delivery processing at approximately at 9:00PM. Invoicing for rice deliveries will not be available through the OTIS Delivery System. Delivery transactions used to reduce future positions will be produced by the CME on Monday, November 24, 2003.

• To assist firms in clearing up unmatched transactions in preparation for transition of clearing services to the CME, the deadline for final trade submission will be extended to 9:00PM. Special unmatched trade reconciliation reports, Infopac ID CLR00005S, will be produced at 5:00PM, 6:00PM, 7:00PM and 8:00PM.

• Final versions of the Span Original Margin Summary (Report ID – CRA00001B) and CBOT Transition – Margin and Collateral Report (Report ID – OMR00044) will be available in Infopac at approximately 1:30PM. The CBOT Transition – Margin and Collateral Report will summarize a firm’s 6:40AM margin call for Monday 11/24/03, margin currently on deposit, total margin on deposit as of 6:40AM 11/24/03, post transition margin requirement, and excess collateral available. Firms that want to withdraw post transition excess collateral will need to fax a Clearing Corporation Margin Account Transfer/Withdrawal Authorization Form CCorp’s Treasury Operations department by 3:00PM Sunday, November 23, 2003. Click here to access the Margin Account Authorization form.

• Firms that want to withdraw post transition excess collateral are reminded to fax a 'Clearing Corporation Margin Account Transfer/Withdrawal Authorization Form' to CCorp’s Treasury Operations department at (312) 341-0293 by 3:00PM Sunday, November 23, 2003.

• The following CBOT future and option products will begin clearing at the CME.

• Firms should continue to submit future and option trade records for the remaining CBOT products to CCorp.

Interest Rate	Mini-sized 30 Year U.S. Treasury Bond
Thirty Year U.S. Treasury Bonds	Mini-sized 10 Year U.S. Treasury Note
Ten Year U.S. Treasury Notes	Mini-sized Eurodollar
Five Year U.S. Treasury Notes	Mini-sized Deferred Eurodollar
Two Year U.S. Treasury Notes	Metals
Ten Year Agency Notes	Mini-sized New York Gold
Five Year Agency Notes	Mini-sized New York Silver

• Firms should note, CCorp will continue to accept and process transactions that contain CBOT products that were assumed by the CME. However, these trades will appear in the OTIS Trade Entry System with an error status.

• Firms will be required to submit their agricultural and financial futures open interest file by 5:30AM. This file should reflect the business activity of Friday, November 21, 2003 as well as the option expiration activity from Saturday, November 22, 2003.

• Pay Collect, and Original Margin for all CBOT products will be called at 6:40AM.

• Security withdrawal request that were faxed to Treasury Operations by 3:00PM on Sunday, November 23^rd will be forwarded to financial institutions at 7:00AM.

• A special SWIFT process will occur at 10:00AM for Cash withdrawal request that were faxed to Treasury Operations by 3:00PM on Sunday, November 23^rd.

• Midday Variation for remaining CBOT products will be called at their normal times.

• ATOM processing will be discontinued for CBOT products that were assumed by the CME. Please see Volume 23 – Bulletin #135 for additional details.

• Offsetting transactions, which will remove remaining open positions at the previous days settlement price will be generated for CBOT products that were assumed by the CME and will appear on the trade register report and data file that is produced for Monday, November 24^th business. Firms should be aware that the register data file will contain a transaction type of ‘K’ for transactions that are used to remove remaining open positions. Also, it is important to note that all unmatched transactions detailed on Friday, November 21^st final clearing reports for products that transitioned to the CME will be omitted and not carried forward in future clearing cycles.

• Firms will no longer be required to submit large trader file due to the discontinuation of large trader processing.

• Firms will still be required to submit open interest data for contracts that continue to be cleared by CCorp. Firms, if they wish, can continue to include contracts in the open interest file that have been already been assumed by the CME. When these records are processed they will be invalidated and excluded from open interest processing.

• ATOM processing will be discontinued for remaining CBOT products. Please see Volume 23 – Bulletin #135 for additional details.

Should you have any questions, please call or e-mail one of the following Client Services and Support Representatives: