TO:	ALL CLEARING PARTICIPANTS
FROM:	CLIENT SERVICES AND SUPPORT
DATE:	February 9, 2005
SUBJECT:	Cross-Margining

The Clearing Corporation (CCorp) and The Options Clearing Corporation (OCC) have amended their cross-margining agreement, to allow joint or affiliated clearing participants to cross-margin non-proprietary market professional or proprietary Eurex US equity index futures with certain contracts with OCC.

To participate, clearing participants must execute cross-margining agreements and designate a clearing organization as its administrator with respect to its cross-margin account(s). If you are interested in participating in the cross-margin program, please contact Chip Chong at The Clearing Corporation at 312-786-5797.

Cross-margined positions will be maintained under a separate firm number. The CCorp and OCC will utilize controlled accounts at Harris Trust & Savings for the deposit of mark-to-market settlements, cash margins and government securities as original margin.

CCorp will calculate a midday variation for all Eurex US futures and options positions held in the cross-margin member firm. CCorp will apply its traditional holdback on all midday variation collects.

Customer cross-margin SPAN arrays will be available after 8:30 p.m. on each trading day. CCorp will have the expanded format available via FTP file, get command name CHPD.TR.UA.SPANXEUR. Margin requirements for joint or affiliated clearing participants cross margin positions will be determined using the OCC’s margin methodology known as the Theoretical Inter-Market Margin System (TIMS®). In addition, depending on the amount of risk margin required, incremental “Super Margins” may be imposed on cross-margin accounts.

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