DATE: June 2, 2008
RECIPIENTS: Members and Independent Software Vendors
AUTHORIZED BY: Jeffrey S. Hersh
TITLE: Update on CBOT Metals Products
ACTION DATE: n/a RECOMMENDED FOR: All Departments
RELATED BULLETINS: n/a ATTACHMENT: n/a

SUMMARY: As you know NYSE Euronext has acquired from the CBOT their Precious Metals complex. The complex is comprised of the full-size (100 oz.) gold and (5,000 oz.) silver futures, options on the full-sized gold and silver futures and the mini-sized gold and silver futures (collectively “Metals”). NYSE Euronext is excited to welcome these contracts into its global exchange franchise and Metals will be the first products listed on NYSE Euronext’s new US futures exchange (“NYSE Liffe”).

NYSE Euronext anticipates that NYSE Liffe will receive approval and designation as a contract market from the CFTC in Q3 2008. Once designation is achieved we will communicate arrangements for the transition of CBOT Metals to NYSE Liffe. We expect the transition will be seamless for all users of the metals complex as NYSE Liffe will make use of the e-cbot platform which is powered by LIFFE CONNECT® technology.

We very much look forward to your continued participation in Metals and we are writing to explain the connectivity policy which shall apply from July 1, 2008.

The CBOT’s Minimum Volume Requirement (“MVR”), which governs connectivity charges to e-cbot for Metals trading, expires on June 30, 2008. NYSE Liffe has determined that connectivity charges to e-cbot from July 1 through December 31, 2008 will also be on the basis of a MVR.

The new MVR for the second half of 2008 will be 25,000 sides for each e-cbot installation. A firm that fails to satisfy their MVR will be charged a connectivity fee that is calculated as the percentage of the MVR that is unfulfilled multiplied by $10,000 for each e-cbot installation.

In the case of members with multiple installations the number of sides transacted across all installations will be aggregated such that a member with two installations to e-cbot will be deemed to have satisfied the MVR if 45,000 sides were transacted from one installation and 5,000 sides from the other.

For example, CBOT member firm A with two e-cbot installations will be assessed a MVR of 50,000 sides (25,000 sides for each of the two e-cbot installations – e.g. 25,000 sides multiplied by two). Assume that CBOT member firm A transacts 45,000 sides in Metals between July 1 and December 31, 2008. The 5,000 side shortfall represents 10% of the MVR resulting in a charge of $2,000 (0.1 x $20,000).

Long line connections to e-cbot will be subject to a separate connectivity policy and CBOT members with such connections will be contacted in the near future.

Service provider installations will be subject to a flat fee of $20,000 per connection for the period July 1 through December 31, 2008. Since NYSE Euronext anticipates receiving contract market designation for NYSE Liffe in the third quarter of the year, CBOT and NYSE Euronext have agreed that NYSE Liffe staff will administer the MVR policy for connectivity to e-cbot during the second half of 2008. Accordingly NYSE Liffe staff will be contacting you shortly with connectivity documentation.

If you have any questions, please contact:

NYSE Euronext: Lynn Martin (212) 656-4300
CME Group: Jeff Hersh (312) 930-2313