Chicago Mercantile Exchange Raises Daily Price Limits For Live Cattle Futures Contract

Chicago Mercantile Exchange Inc. (CME) today announced that effective Wednesday, Oct. 15, it will raise the daily price limits for its live cattle futures contract in response to the unprecedented price increase in the cash market for live cattle.

Currently, the daily price limit is $0.015 per pound above or below the previous day's settlement price. Under the new rules, this price limit stays in effect unless the following events occur:

• If either of the two contracts in the even month cycle nearest to expiration settles on the limit bid for two successive days or on the limit offer for two successive days, the price limit shall be raised to $0.030 per pound for all contract months.

• If the daily price limit is $0.030 and either of the two contracts in the even month cycle nearest to expiration settles on the limit bid for two successive days or on the limit offer for two successive days, then the price limit shall be raised to $0.050 per pound for all contract months.

• If the daily price limit is $0.050 and neither of the two contracts in the even month cycle nearest to expiration settles on the limit bid or limit offer, without regard to market direction, then the daily price limit for all contract months shall revert to $0.030 on the next business day.

• If the daily price limit is $0.030 and neither of the two contracts in the even month cycle nearest to expiration settles on the limit bid or limit offer, without regard to market direction, then the daily price limit for all contract months shall revert to $0.015 on the next business day.

When the policy goes into effect tomorrow, the $0.050 limit will apply to trading based on settlement prices for the previous six days.

Chicago Mercantile Exchange Inc. (www.cme.com) is the largest futures exchange in the United States. As an international marketplace, CME brings together buyers and sellers on its trading floors and GLOBEX® electronic trading platform. CME offers futures and options on futures primarily in four product areas: interest rates, stock indexes, foreign exchange and commodities. The exchange moved about $1.5 billion per day in settlement payments in the first half of 2003 and managed $29.1 billion in collateral deposits at June 30, 2003. CME is a wholly owned subsidiary of Chicago Mercantile Exchange Holdings Inc. (NYSE: CME), which is part of the Russell 1000® Index.