CME E-mini S&P Asia 50 Futures

CME Equity Products

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1CME E-mini S&P Asia 50 Futures

PAGE

ABOUT CME E-MINI S&P ASIA 50 FUTURES 2

WHY TRADE CME E-MINI S&P ASIA 50 FUTURES? 3

ABOUT THE UNDERLYING INDEX 4

Correlations to Key Benchmark Indexes 5

Performance Comparisons to the Nikkei 225 and S&P 500 Indexes 6

CONTRACT SPECIFICATIONS 7

TRADING EXAMPLE 1 – Global Asset Allocation 8

TRADING EXAMPLE 2 – Spread Trading 9

GETTING STARTED IN CME E-MINI S&P ASIA 50 FUTURES 10

CME EQUITY PRODUCT LISTING 11

Table of Contents

2 cme.com

CME, the world leader of stock-index futures trading,

is at the forefront in providing innovative derivatives

products. Now CME is the first exchange to offer futures

on a Pan-Asian Index – CME E-mini S&P Asia 50 futures.

The contracts are based on Standard & Poor's Asia 50

Index, a broad-based index comprised of some of the

largest, most liquid blue-chip issues in four major Asian

markets: Korea, Hong Kong, Taiwan, and Singapore.

Markets such as these have demonstrated high gross

domestic product (GDP) growth, savings rates exceeding

25%–30%, and tremendous infrastructure investment,

attracting the attention and capital of equity investors

from around the world.

While derivatives on specific indexes such as the Hang

Seng, KOSPI, and Nikkei 225 have become popular with

traders and institutional investors, until now there has not

been a futures contract available that tracks the region as

a whole. CME E-mini S&P Asia 50 futures give investors

an ideal benchmark derivatives product for Asia.

The CME E-mini S&P Asia 50 futures contracts employ

the time-tested, electronically traded CME E-mini design

pioneered by the exchange and made popular with

individual and institutional investors alike. Like all

CME E-mini products, CME E-mini S&P Asia 50 futures

are designed to trade exclusively on the CME Globex

electronic trading platform, where investors will have

virtually 24-hour access to the benefits offered by

these products.

About CME E-mini S&P Asia 50 Futures

3CME E-mini S&P Asia 50 Futures

CME E-mini S&P Asia 50 futures offer versatile investment

and risk management tools that provide users with several

benefits:

Regional Exposure

CME E-mini S&P Asia 50 futures enable customers to

quickly gain exposure to top Asian markets without having

to select individual issues from multiple regions.

Trading Opportunities

As with all of our index futures contracts, CME E-mini S&P

Asia 50 futures tend to closely track the price movements

of the underlying cash index. That makes the futures

contracts attractive to investors such as hedge funds,

proprietary traders and portfolio managers who can use

these futures to hedge financial risks associated with

movements in the region's equity markets, as well as to

take advantage of investing opportunities in the markets.

Cost Efficiency

CME E-mini S&P Asia 50 futures are dollar-denominated,

eliminating foreign exchange risk for U.S. users,

particularly those engaging in global asset allocation.

Also, since these products require only a comparatively

small upfront performance bond deposit, they offer

exposure to this fast-growing region without the need to

incur the high transaction costs, taxes and custodial fees

inherent in overseas equity markets.

Electronic Access/Ease of Trading

CME E-mini S&P Asia 50 futures trade on the CME Globex

electronic trading platform virtually around the clock,

allowing customers to initiate positions quickly and efficiently

in all time zones. Customers currently access the platform

through 800 direct connections in over 36 countries

around the world, as well as through telecommunications

hubs – in London, Amsterdam, Dublin, Frankfurt, Gibraltar,

Milan, Paris and Singapore – that provide reduced

connectivity costs, increased accessibility, and fast, efficient

trading of CME products.

Market Integrity/Fully Integrated Clearing

At CME, we operate our own clearing house that matches

and settles all trades and guarantees the creditworthiness

of every transaction that takes place in our markets. Our

integrated clearing function ensures the safety and

soundness of our markets and helps differentiate us from

our competitors. With CME Clearing serving as the

counterparty to every trade, credit risk is greatly reduced.

Why Trade CME E-mini S&P Asia 50 Futures?

4 cme.com

About the Underlying Index

The S&P Asia 50 Index is constructed of 50 large blue-

chip stocks traded in Korea, Hong Kong, Taiwan, and

Singapore. It was designed to expose institutional

investors and traders to the biggest names in those four

regions, and to represent the most liquid, investable

markets in Asia. Stocks are selected for inclusion in the

Index on the basis of size, liquidity, sector and regional

representation.

For example: Samsung Electronics is the largest stock

in the S&P Asia 50 and is the largest company in Korea;

another component, Taiwan Semiconductor, is the largest

company in Taiwan.

Figures 1–5 on pages 4–6 provide additional information

about the underlying Index as of December 31, 2005,

including representations of the four markets in the

underlying Index, sector and individual component

weightings, correlations of returns compared to

individual regional benchmarks, and performance of the

Index versus the S&P 500 Index and Nikkei 225 Index.

Figure 1: Market Weightingin the Underlying S&P Asia 50 Index*

Number

Market of Stocks Weight

Hong Kong 18 30.3%

Taiwan 14 26.1%

Korea 10 33.7%

Singapore 8 9.9%

*Data as of Dec. 31, 2005

Source: Standard & Poors.

Figure 2: Sector Weightingin the Underlying S&P Asia 50 Index*

Sector Weight

Information Technology 30.2%

Financials 28.8%

Materials 8.3%

Consumer Discretionary 8.0%

Telecommunication Services 7.9%

Industrials 7.3%

Utilities 4.3%

Energy 4.1%

Consumer Staples 1.1%

*Data as of Dec. 31, 2005

Source: Standard & Poors.

Figure 3: Top Componentsin the Underlying S&P Asia 50 Index*

Float Adj Index

Market Company Cap USD Weight

Korea Samsung Electronics $84.4 bil. 15.9%

Taiwan Taiwan Semiconductor $38.4 bil. 6.9%

Korea Kookmin Bank $25.6 bil. 4.6%

Hong Kong China Mobile $23.0 bil. 4.1%

Hong Kong Hutchison Whampoa Ltd $20.3 bil. 3.6%

Korea POSCO $17.6 bil. 3.1%

Hong Kong Hon Hai $17.5 bil. 3.1%

Korea Hyundai $17.0 bil. 3.0%

Hong Kong PetroChina $15.0 bil. 2.7%

Hong Kong Cheung Kong Ltd. $15.0 bil. 2.7%

*Data as of Dec. 31, 2005

Source: Standard & Poors.

5CME E-mini S&P Asia 50 Futures

Figure 4: Correlations of the Underlying S&P Asia 50 Index versus Key Benchmark Indexes

Calendar Year 2005

SPAS50 100.00

SPX 5.71 100.00

NKY 53.52 3.67 100.00

HSI 74.49 6.19 51.21 100.00

TWSE 69.11 3.84 44.14 46.02 100.00

Calendar Year 2004

SPAS50 100.00

SPX 20.63 100.00

NKY 62.98 16.50 100.00

HSI 79.43 13.20 47.95 100.00

TWSE 73.36 16.02 43.65 45.96 100.00

Calendar Year 2003

SPAS50 100.00

SPX 11.73 100.00

NKY 56.98 4.44 100.00

HSI 83.52 10.10 49.84 100.00

TWSE 77.74 9.59 47.22 56.58 100.00

Calendar Year 2002

SPAS50 100.00

SPX 10.20 100.00

NKY 53.22 16.18 100.00

HSI 77.63 14.15 48.01 100.00

TWSE 71.16 13.95 38.79 44.16 100.00

Source: CME Equity Products and Bloomberg.

About the Underlying Index – Correlations

S&P Asia 50

Index (SPAS50)S&P 500

Index (SPX)

Nikkei 225

Stock Index

(NKY)

Hang Seng

Index (HSI)

Taiwan Stock

Index (TWSE)

6 cme.com

About the Underlying Index — Performance Comparisons

Figure 5: Comparing the Daily Performance of the Underlying S&P Asia 50 Index to the Nikkei 225 and S&P 500 Indexes

January 2002 – December 2005

Base = 100.

Source: CME Equity Products and Bloomberg

Jan

-02

Feb-0

2

Apr-

02

Jun

-02

Jul-0

2

Sep

-02

Oct

-02

Dec

-03

Feb-0

3

Apr-

03

May

-03

Jul-0

3

Sep

-03

Oct

-03

Dec

-03

Jan

-04

Mar

-04

May

-04

Jun

-04

Aug

-04

Oct

-04

Nov-

04

Jan

-05

Mar

-05

Apr-

05

Jun

-05

Aug

-05

Sep

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05

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-05

60

80

100

120

140

160

180

60

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180

S&P Asia 50 Index S&P 500 Index Nikkei 225

7CME E-mini S&P Asia 50 Futures

Following are the contract specifications for the CME E-mini S&P Asia 50 futures contract.

Contract Size $25.00 x the CME E-mini S&P Asia 50 futures index level (Notional value as of 1/19/06:

$25.00 x 2411.00 = $60,275)

Contract Months Two months out in March Quarterly Cycle

Ticker Symbol SP5

CME Globex Trading Hours Mon - Thur: 15:30 - 15:15

Sunday/holiday: 17:00 - 15:15

Shutdown nightly between 16:30 - 17:00

Minimum Price

Fluctuation (Tick) 0.50 index points or $12.50

Price Limits Index level 0 < 2,000 100 index points

Index level 2,000 to < 3,000 150 index points

Index level 3,000 to < 4,000 200 index points

Index level 4,000 + 250 index points

Position Limits 25,000 contracts net long or short

Final Settlement Normally the third Friday of the contract month

Last Trading Day Futures trading shall terminate at the close of trading on the business day

immediately preceding the day of determination of the final settlement price

Final Settlement Price The final settlement price shall be the special opening quotation of the S&P Asia 50

Index as calculated by S&P. This value usually will be based on the opening of the third

Friday of the contract month.

All matters pertaining to rules and specifications herein are made subject to and are superseded by official CME rules. Current CME rules should be consulted in all

cases concerning contract specifications.

CME E-mini S&P Asia 50 Futures Contract Specifications

8 cme.com

Trading Example 1:

Global Asset Allocation Using CME E-mini S&P Asia 50 Futures

Situation

A U.S.- based money manager with $100 million in assets under management (AUM) decides to increase his Asian equity

allocation from 10% to 20%. Approximately $10 million is earmarked to be invested in several major Asian markets.

Possible Strategies

» Buy a basket of Asian equities in different markets with various foreign exchange (FX) exposures

» Buy $10,000,000 notional amount of CME E-mini S&P Asia 50 futures contracts to gain regional exposure

Currency Risk

CME E-mini S&P Asia 50 futures are dollar-denominated; for a USD- based money manager with dollar-based assets,

there is no direct currency risk.

Number of Futures Contracts

= USD notional amount to be allocated / Contract notional value

= $10,000,000/2411 x $25.00

= $10,000,000/$60,275

= 166 futures contracts

The money manager will need to purchase 166 CME E-mini S&P Asia 50 futures contracts to take his global asset

allocation in the Asian region to 20%. Futures contracts offer several advantages over buying individual issues:

» It is simpler and more efficient to buy one futures contract than to buy individual equities across four different

markets with four different currency exchange rates.

» Futures contracts are commonly the lower cost alternative in terms of execution costs – especially in certain

emerging international markets.

» The around-the-clock access of the CME Globex electronic trading platform allows fast and efficient order execution.

Trading CME E-mini S&P Asia 50 Futures

9CME E-mini S&P Asia 50 Futures

Trading Example 2:

Spread Trading Using CME E-mini S&P Asia 50 Index Futures

Situation

A U.S.- based hedge fund manager believes that the 2004 – 05 outperformance of Asian emerging markets relative to the

S&P 500 has run its course and that U.S. large-cap equities will begin to outperform Asian markets (ex-Japan).

Possible Strategies

» Go long a basket of large-cap equities in the United States; simultaneously sell short a basket of securities in Asian

emerging markets such as Taiwan, Korea, Singapore and Hong Kong.

» Go long CME E-mini S&P 500 futures contracts and simultaneously short CME E-mini S&P Asia 50 futures contracts

Additional Considerations

The notional value of the CME E-mini S&P Asia 50 futures contract at the time of this writing is $60,275; the notional

value of the CME E-mini S&P 500 is $62,000. A 1:1 ratio would have the trader long $62,000 worth of U.S. equities and

short $60,275 worth of Asian stocks. Because paired strategies such as this are commonly done in “dollar neutral” terms,

a ratio should be employed. The exact ratio is up to the trader and the capital (performance bond) constraints of the fund.

Advantages of Spread Strategy

» Using futures precludes the need to transact costly baskets of stocks across several times zones.

» The CME E-mini S&P Asia 50 futures contract is dollar-denominated, removing the need to contend with foreign

exchange currency fluctuations in the markets involved.

» Spreads allow the fund the potential to profit in rising or falling equity markets. As long as large-cap U.S. stocks

outperform the S&P Asia 50 index, the strategy should be profitable without regard to bull or bear market conditions.

Other Strategies

The preceding trading examples are only a small sample of the many strategies available to a knowledgeable investor. In

addition to hedging and spreading, institutional investors can use CME E-mini S&P Asia 50 futures for a host of strategies,

such as:

Trading CME E-mini S&P Asia 50 Futures

» Enhanced Indexing

» Strategic/Tactical Global Asset Allocation

» Cash Equitization

» Portfolio Hedging

10

For additional information to help you get started trading CME E-mini S&P Asia 50 futures, please visit our web site

at www.cme.com/equities. You will be able to access a number of other brochures, online seminars and marketing

and education materials that can answer your questions or help you to begin trading these and other CME products.

Also, if you would like to talk to a CME representative, please call our Customer Service line at 1-800-331-3332 or

contact your broker.

CME Publications

» CME E-mini Stock Index Futures and Options on Futures Brochure

» CME Equity Index Futures and Options Information Guide

» CME Nikkei 225 Futures and Options Brochure

Web Sites:

» www.cme.com

» www.cme.com/emini

» www.cme.com/equities

» www.cme.com/equotes

» www.cme.com/eminioptions

Getting Started in CME E-mini S&P Asia 50 Futures

cme.com

11

» CME NASDAQ-100

» CME E-mini NASDAQ-100

» CME E-mini NASDAQ Composite

» CME E-mini NASDAQ Biotechnology

» CME E-mini MSCI EAFE

» CME Russell 2000

» CME E-mini Russell 2000

» CME E-mini Russell 1000

» CME Nikkei 225

» CME Futures on ETFs

» CME S&P 500

» CME E-mini S&P 500

» CME E-mini S&P Asia 50

» CME S&P MidCap 400

» CME E-mini S&P MidCap 400

» CME S&P SmallCap 600

» CME SPCTR Futures

» CME Goldman Sachs Commodity Index (GSCI)

» CME X-Funds

» TRAKRS (Total Return Asset Contracts)

CME Equity Product Listing

CME E-mini S&P Asia 50 Futures

For more information on these products, visit www.cme.com.

CME offers a complete range of futures and options products based on a variety of different indexes, including:

Futures trading is not suitable for all investors, and involves the risk of loss. Futures are a leveraged investment, and because only a percentage of a contract's value

is required to trade, it is possible to lose more than the amount of money initially deposited for a futures position. Therefore, traders should only use funds that they

can afford to lose without affecting their lifestyles. And only a portion of those funds should be devoted to any one trade because a trader cannot expect to profit

on every trade.

All references to options in this brochure refer to options on futures.

“Standard & Poor's®”, “S&P®”, “S&P 500®”, “S&P Asia 50®”, “Standard & Poor's 500®”, “Standard & Poor's Depositary Receipts®”, “S&P SmallCap 600®”,

and “S&P MidCap 400®” are trademarks of The McGraw-Hill Companies, Inc., and have been licensed for use by PDR Services LLC and the American Stock

Exchange LLC in connection with the listing and trading of SPDRs, on the Amex. These products are not sponsored, sold or endorsed by S&P, a division of The

McGraw-Hill Companies, Inc., and S&P makes no representation regarding the advisability of investing in them. iShares® is a service mark of Barclays Global

Investors. The Russell 1000® Index, Russell 2000® Index and iShares Russell 2000 Index Fund™ are registered trademarks of Frank Russell Company. Frank Russell

Company assumes no liability in connection with the trading of any contract based on the Russell 1000 or Russell 2000 Indexes. NASDAQ®, NASDAQ-100®,

NASDAQ Composite®, NASDAQ Biotechnology Index® are trademarks of The Nasdaq Stock Market, Inc. used under license. Nikkei and Nikkei 225 are trademarks

of Nihon Keizai Shimbun Inc. and have been licensed for use by CME in connection with the trading of Futures and Futures Options (Products) based on the Nikkei

Stock Average (Nikkei 225). The Nikkei Stock Average or Nikkei 225, as it is called sometimes, is owned by and the property of Nihon Keizai Shimbun Inc. The

products are not issued, endorsed, sold or promoted by Nihon Keizai Shimbun Inc. or its subsidiaries. NIHON KEIZAI SHIMBUN INC. AND ITS SUBSIDIARIES MAKE

NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO SUCH PRODUCTS. “GSCI®” is a registered trademark of GS&Co. and has been licensed for use by

CME.

The Globe Logo, Globex®, CME®, SPCTR® and E-mini® are trademarks of CME. All other trademarks are the property of their respective owners. The information

within this brochure has been compiled by CME for general purposes only. CME assumes no responsibility for any errors or omissions. Additionally, all examples in

this brochure are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market

experience. All matters pertaining to rules and specifications herein are made subject to and are superseded by official CME rules. Current CME rules should be

consulted in all cases concerning contract specifications.

Copyright © 2006 CME. All rights reserved.

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