VOLUME 28 – BULLETIN #022

TO:	ALL CLEARING PARTICIPANTS
FROM:	CLIENT SERVICES AND SUPPORT
DATE:	March 25, 2008
SUBJECT:	Expiration Processing and Open Interest Reporting

Participants are reminded that changes to open interest resulting from Thursday’s Option Expiration processing must be correctly reported prior to the Friday morning open interest reporting deadline. Participants can make adjustments to their open interest through Position Management prior to 10:00 a.m.

For example, if a participant is short a call option in Carbon Financial and is assigned during the expiration processing on Thursday, the short Carbon Financial futures position that resulted from the assignment must be correctly reflected as either an opening or an offsetting position to the participant's open interest. Generally, expiration transactions resulting from Option Expiration are not processed in participants' bookkeeping systems until the following business day. In these instances, participants are required to manually adjust their open interest. In the past, some participants have neglected to manually adjust futures open interest prior to the Friday morning reporting deadline. This has resulted in the public dissemination of inaccurate open interest data. As you are aware, open interest can be a significant factor in the decision to execute trades by market participants. For this reason, the importance of accurate, reliable and timely open interest reporting by clearing members cannot be overemphasized.

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