VOLUME 23 – BULLETIN #170 Phase Two Transition of CBOT Clearing Services to the CME

To facilitate the needs of clearing participants and help ensure a smooth phase two transition of the remaining Chicago Board of Trade (CBOT) financial products to the Chicago Mercantile Exchange (CME) for clearing services, The Clearing Corporation (CCorp) will adhere to the calendar below.

• Last tender day for Thirty Year U.S. Treasury Bonds, Mini-sized U.S. Treasury Bonds, Ten Year U.S. Treasury Notes, Five Year U.S. Treasury Notes, Ten Year Agency Notes, Mini-sized New York Gold, and Mini-sized New York Silver.

• Last tender day for Two Year U.S. Treasury Notes, Last notice day for Thirty Year U.S. Treasury Bonds, Mini-sized U.S. Treasury Bonds, Ten Year U.S. Treasury Notes, Five Year U.S. Treasury Notes, Ten Year Agency Notes, Mini-sized New York Gold, and Mini-sized New York Silver.

• Last notice day for Two Year U.S. Treasury Notes. Last delivery day for Thirty Year U.S. Treasury Bonds, Mini-sized U.S. Treasury Bonds, Ten Year U.S. Treasury Notes, Five Year U.S. Treasury Notes, Ten Year Agency Notes, Mini-sized New York Gold, and Mini-sized New York Silver.

• Open outcry Financial contracts close at 12:00 noon. a/c/e Financial and Metal contracts close at 12:30 p.m. Overnight electronic trading is closed.

• Firms that want to withdraw post transition excess collateral will need to fax a Clearing Corporation Margin Account Transfer/Withdrawal Authorization Form to CCorp’s Treasury Operations department by 5:00PM. Click here to access the Margin Account Authorization form. Please refer to Margin Securities Held by Firm report, Infopac ID OMR00011, for a list securities currently pledged to CCorp.

• To assist firms in clearing up unmatched transactions in preparation for transition of clearing services to the CME, additional special unmatched trade reconciliation reports, Infopac ID CLR00005S, will be produced at 12:30PM, 5:30PM, and 6:30PM.

• The deadline for final trade submission will be 7:00PM.

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

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 financial futures open interest file for the final time by 5:30AM. This file should reflect the business activity of Wednesday, December 31, 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 5:00PM on Wednesday, December 31^st 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 5:00PM on Wednesday, December 31^st.

• Last delivery day for Two Year U.S. Treasury Notes.

• Due to January being the last processing cycle for remaining CBOT products through the GAINS system at CCorp, firms will not have the ability to carry disputed payments forward to February. To accommodate for payments not being carried forward, preliminary and final GAINS trade and adjustment data file records will contain an ‘E’ within the Expired/Carryover Indicator field, positions 166 and 151 respectively.

• 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 Friday, January 2^nd 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 Wednesday, December 31^st final clearing reports for products that transitioned to the CME will be deleted and will not be included as part of the net open position to be offset.

• Open interest processing will be discontinued therefore firms will no longer be required to submit daily financial open interest files.

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