TO:	ALL CLEARING PARTICIPANTS
FROM:	CLIENT SERVICES AND SUPPORT
DATE:	September 19, 2007
SUBJECT:	USFE Morningstar Index Contracts

The US Futures Exchange, (USFE), an all electronic exchange, will launch the following Morningstar Index contracts. Contract specifications and trading information are detailed below.

Morningstar Large Cap Core Index
Exchange Code	03
Commodity Code	UN
Underlying:	Morningstar Large Cap Blend Index
Quotation:	Index Points
Contract Size:	$10.00 USD per index point
Minimum Tick Size:	0.50
Minimum Calendar Spread Tick Size:	0.10
Outright Tick Value:	$5.00
Block Trade	250 Contracts
Reportable Position	200 Contracts
Position Limits/Accountability	25,000 Contracts
Settlement	Cash Settled

Morningstar Large Cap Growth Index
Exchange Code	03
Commodity Code	UO
Underlying:	Morningstar Large Cap Growth Index
Quotation:	Index Points
Contract Size:	$10.00 USD per index point
Minimum Tick Size:	0.50
Minimum Calendar Spread Tick Size:	0.10
Outright Tick Value:	$5.00
Block Trade	250 Contracts
Reportable Position	200 Contracts
Position Limits/Accountability	25,000 Contracts
Settlement	Cash Settled

Morningstar Large Cap Value Index
Exchange Code	03
Commodity Code	UM
Underlying:	Morningstar Large Cap Value Index
Quotation:	Index Points
Contract Size:	$10.00 USD per index point
Minimum Tick Size:	0.50
Minimum Calendar Spread Tick Size:	0.10
Outright Tick Value:	$5.00
Block Trade	250 Contracts
Reportable Position	200 Contracts
Position Limits/Accountability	25,000 Contracts
Settlement	Cash Settled

Morningstar Medium Cap Core Index
Exchange Code	03
Commodity Code	UQ
Underlying:	Morningstar Medium Cap Blend Index
Quotation:	Index Points
Contract Size:	$10.00 USD per index point
Minimum Tick Size:	0.50
Minimum Calendar Spread Tick Size:	0.10
Outright Tick Value:	$5.00
Block Trade	250 Contracts
Reportable Position	200 Contracts
Position Limits/Accountability	25,000 Contracts
Settlement	Cash Settled

Morningstar Medium Cap Growth Index
Exchange Code	03
Commodity Code	UR
Underlying:	Morningstar Medium Cap Growth Index
Quotation:	Index Points
Contract Size:	$10.00 USD per index point
Minimum Tick Size:	0.50
Minimum Calendar Spread Tick Size:	0.10
Outright Tick Value:	$5.00
Block Trade	250 Contracts
Reportable Position	200 Contracts
Position Limits/Accountability	25,000 Contracts
Settlement	Cash Settled

Morningstar Medium Cap Value Index
Exchange Code	03
Commodity Code	UP
Underlying:	Morningstar Medium Cap Value Index
Quotation:	Index Points
Contract Size:	$10.00 USD per index point
Minimum Tick Size:	0.50
Minimum Calendar Spread Tick Size:	0.10
Outright Tick Value:	$5.00
Block Trade	250 Contracts
Reportable Position	200 Contracts
Position Limits/Accountability	25,000 Contracts
Settlement	Cash Settled

Morningstar Small Cap Core Index
Exchange Code	03
Commodity Code	UV
Underlying:	Morningstar Small Cap Blend Index
Quotation:	Index Points
Contract Size:	$10.00 USD per index point
Minimum Tick Size:	0.50
Minimum Calendar Spread Tick Size:	0.10
Outright Tick Value:	$5.00
Block Trade	250 Contracts
Reportable Position	200 Contracts
Position Limits/Accountability	25,000 Contracts
Settlement	Cash Settled

Morningstar Small Cap Growth Index
Exchange Code	03
Commodity Code	UX
Underlying:	Morningstar Small Cap Growth Index
Quotation:	Index Points
Contract Size:	$10.00 USD per index point
Minimum Tick Size:	0.50
Minimum Calendar Spread Tick Size:	0.10
Outright Tick Value:	$5.00
Block Trade	250 Contracts
Reportable Position	200 Contracts
Position Limits/Accountability	25,000 Contracts
Settlement	Cash Settled

Morningstar Small Cap Value Index
Exchange Code	03
Commodity Code	UT
Underlying:	Morningstar Small Cap Value Index
Quotation:	Index Points
Contract Size:	$10.00 USD per index point
Minimum Tick Size:	0.50
Minimum Calendar Spread Tick Size:	0.10
Outright Tick Value:	$5.00
Block Trade	250 Contracts
Reportable Position	200 Contracts
Position Limits/Accountability	25,000 Contracts
Settlement	Cash Settled

Additional specifications applicable to each Morningstar Index contract are as follows:

Daily Settlement Price:	Based on trading conditions at close or a fair value calculation
Final Settlement Price:	The final settlement price is based on the opening prices of the component stocks on the final settlement day as reported by the Morning Star Company.
Final Settlement Time:	8:30 am Chicago Time
Trading Hours (CT)	7:15 am to 4:00 pm Monday through Friday, Chicago Time
Fair Value Method:	On the last business day of the expiration month, the exchange will use a fair value calculation of the index futures as the settlement price of the next futures contract to expire instead of the normally calculated daily settlement price. The fair value calculation is based on closing values of the component stocks and accounts for both the remaining time to final futures settlement and expected dividends.
Delivery Months:	Four consecutive contracts on a March quarterly cycle. (March, June, September, and December)
Last Trading Day:	The third Friday of the month. Trading in the expiring contract ceases at 8:30 am.
EFP/EFS Details	EFP Available

Trade Management:

MQM add duplication messages will be sent to the Clearing Participants back office systems in the TREX record format. Clearing Participants may submit MQM change records to CCorp to change non-critical trade information, or mark a trade as a give-up. Clearing Participants can also mark trades as give ups via the CCorp Trade Management system. Current GAPI processing between CCorp and the Clearing Participant will be used.

Position Management:

Clearing Participants should submit open interest to CCorp, either by submitting an Open interest FTP file or using the web based Position Management System. Position Management also allows participants users to perform intra-day position adjustments and intra firm transfers. Listed below are the processes and availability.

Process	Application	Available	DUE
Final Open Interest File Due	FTP Put	Anytime during current business day	8:00 p.m.
Final Open Interest	Position Management	7:15 p.m.	8:00 p.m.
Online verification of final open interest	Position Management	7:15 p.m.	8:00 p.m.
Adjustments to final open interest	Position Management	After end of day final processing	10:00 a.m. next business day.
Position Adjustments	Position Management	10:15 a.m.	7:00 p.m.
Intra-firm position adjustments	Position management	After end of day final processing	7:00 p.m.

Validation of Final Open Interest:

Participants can only submit one final position record by origin for each valid contract that it is currently trading in and/or is holding positions in. CCorp will perform a maximum long and minimum long calculation for each final position reported. The calculation will be performed using the participant’s incoming prior day position, adjustments, current day’s buys, current day’s sells, transfers, exercises (if applicable), and deliveries (if applicable). If a participant’s submitted final position falls outside these calculated parameters, the final reported position will be in error. Participants have the opportunity to review and update errors prior to final processing, please refer to table above. If a firm fails to update an error, CCorp will adjust the final long position accordingly which will be as close as possible to the firm’s reported position using the current day’s activity. Furthermore, CCorp will assume any activity in a contract that a participant does not report a final position in to be adjusted as closing positions. Additionally, futures created form option assignments will also be considered closing positions.

Large Trader Reporting:

The Clearing Corporation (CCorp) will facilitate large trader reporting functionality for the US Futures Exchange.

Firms have the option of either submitting large trader information via an FTP put command, or entering their large trader data through the Exchange Reporting screens on the OTIS® system. Firms that will be submitting large trader positions via FTP should use the P6 record layout when reporting.

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