TO:	ALL CLEARING PARTICIPANTS
FROM:	CLIENT SERVICES AND SUPPORT
DATE:	September 20, 2005
SUBJECT:	Centralized USD Settlement Program (CUSP)

As previously announced, Eurex US plans to trade FX futures contracts, scheduled to launch on September 23, 2005. Contracts will settle on a daily basis in USD (Dollars), JPY (Yen), CAD (Canadian Dollars), GBP(British Pounds), and CHF (Swiss Francs). Clearing Participants must establish specific settlement accounts at an approved Clearing corporation settlement bank or, Clearing Participants can utilize the Clearing Corporation’s Centralized USD Settlement Program (CUSP).

The CUSP program enables a Clearing Participant to clear the Eurex US settlement currencies without establishing a foreign currency settlement bank relationship. Instead, The Clearing Corporation will settle with the Clearing Participant in USD and convert, at the Clearing Participant’s expense, to the needed currency to meet the obligation.

Clearing Participants in the CUSP program can deposit currency as margin on deposit with the Clearing Corporation in the currencies they clear. On a daily basis the Clearing Corporation will calculate and process all pay/collect obligations. The pay/collect obligations will be linked to a Clearing Participant’s margin on deposit with its settlement obligations. All collect obligations in a specific currency will be credited to margin on deposit in that currency and all pay obligations will be debited from the margin on deposit in a specific currency. If a pay obligation in a specific currency exceeds the Clearing Participant’s margin on deposit in that currency, the Clearing Corporation will collect the equivalent USD on T+1 and purchase the currency needed for T+2 value.

Clearing Participants in the CUSP program will be able to reduce the amount of foreign currency held by requesting the Clearing Corporation to sell the specific currency for USD. All foreign currency released, will be valued on a T+1 basis. Release requests should be phoned into Clearing Corporation’s Treasury Department (312-786-5759) by 11:00 a.m. Chicago time to be valued on a T+1 basis. The Clearing Corporation will sell the requested currency by 11:30 a.m. Chicago time for value on T+1.

The CUSP program also applies to the FX delivery process. The specific currency to be delivered by a Clearing Participant will be debited from the margin on deposit in that specific currency. If the obligation in the specific currency exceeds the Clearing Participant’s margin on deposit in that currency, the Clearing Corporation will collect the equivalent USD on T+0 (Midday) on the last trading day of the deliverable currency and purchase the currency needed for delivery. The Clearing Corporation will use the specific currency for the delivery and receive the payment of another currency to complete the delivery. The currency received will be credited to margin on deposit in that currency and can be converted to USD and released as described in the preceding paragraph.

Participants that want to utilize the CUSP program should contact Client Services and Support, at The Clearing Corporation.

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