CME Group plans to amend rules governing minimum listed range of option exercise prices for its livestock options contracts to reflect a percentage range relative to the options exercise values closest to the settlement price of the previous day's underlying futures contract, the exchange said on Thursday.
The new rule will be effective Dec. 18 for trade date on Monday Dec. 19, the CME said.
Exercise prices for all contract months shall be at intervals of 2 cents for options on Lean Hog Futures, Feeder Cattle Futures and Live Cattle Futures, the agency said.
All the option exercise prices will be listed prior to the opening of trading on the following business day. As new prices are added, existing values outside of the newly determined ranges without open interest may be delisted, the exchange said.