Date:	May 25, 2006
Recipients:	Members and Independent Software Vendors
Authorized by:	Jeffrey S. Hersh
Title:	Ethanol Futures: Side-by-Side Trading Begins Wednesday, May 31, 2006
Action Date:	May 31, 2006
Document Recommended for:	All Departments
Related Bulletins:	Bulletin #36/2006
Attachment:	n/a
SUMMARY:

CBOT^® Ethanol futures will begin trading side-by-side on Wednesday, May 31, 2006.  Please review and distribute the following product and clearing information to the appropriate staff at your firm.  Additionally, please make sure your Independent Software Vendor (ISV) and/or Member Developer has prepared your trading application for this product.

Trading Hours:

Beginning May 31, 2006, Ethanol futures will be available for trading on e-cbot with the ticker symbol ZE from 6:36 p.m. to 6:00 a.m. and 9:30 a.m. to 1:15 p.m. (Chicago time).  The open auction market will trade from 9:30 a.m. to 1:15 p.m. (Chicago time) using the ticker symbol AC.

The following list details the distinct market state time periods (Chicago time) for Ethanol futures traded on e-cbot:

Pre-Open         5:30 p.m.

Open                6:36 p.m.

Halt                  6:00 a.m. (Other Agricultural products will Close at this time)

2^nd Pre-Open   8:30 a.m.

Re-Open          9:30 a.m.

During the Halt period from 6:00 a.m. – 8:30 a.m. the following functions are permitted:

• All Day and Good-til-Canceled (GTC) orders remain in the book
• Orders can be pulled
• Order volume can be revised down
• Strategies can be created
• ITM Logon and logoff is permitted (logoff will cancel all day orders)

During the Halt period from 6:00 a.m. – 8:30 a.m., the following functions are not permitted:

• Revision of price
• Submission of orders
• Request for Quotes
• Revision of GTC date

Complete Product Information including Contract Specifications:

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1756+27329,00.html.

Margins:

http://www.cbot.com/cbot/pub/page/0,3181,1041,00.html

Error Trade Policy:

http://www.cbot.com/cbot/pub/page/0,3181,1174,00.html

Product Algorithm:

Ethanol futures will use the priority pro-rata algorithm with a minimum volume threshold of 1 contracts and a maximum volume cap of 100 contracts.  The priority pro-rata algorithm gives a priority flag to an order that betters the market and meets the minimum volume threshold.  The maximum volume cap means that the order with the priority flag assigned will only take all incoming volume orders up to the maximum volume. When the volume cap is reached, all remaining volume is divided among this order and any other orders at the same price by the pro-rata algorithm.

A complete list of algorithms for all CBOT products is available at:

http://www.cbot.com/cbot/pub/page/0,3181,2000,00.html

Clearing Code:

The Clearing Code is EH.

Minimum Reportable Position Level:

The Minimum Reportable Position Level is 25 contracts.

Position Limit:

Position Limits are listed in Appendix 4C of the Rulebook at the following link: http://www.cbot.com/cbot/pub/cont_detail/0,3206,931+35645,00.html

Questions:

Please contact the CBOT Commodity Group at 312-341-7955 if you have any questions about Ethanol futures.                                   

If you have any questions about this Bulletin, please contact your Key Account Manager.