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OCC to Clear Spot Gold Futures that Trade on NFX

March 9, 2012
The Options Clearing Corporation ("OCC") filed for immediate effectiveness a rule change that would permit OCC to clear and settle spot gold futures, which are proposed to be traded by Nasdaq OMX Futures Exchange, Inc. (“NFX”). A Spot Gold Future is a U.S. dollar-settled futures contract based on the value of gold with an additional daily cost of carry/interest payment feature (“Cost of Carry Payment”) reflecting the difference between the overnight lease rate for gold and the overnight interest rate for the U.S. dollar. The Cost of Carry Payment will be in addition to the daily variation payment and is designed to make the economic effect of buying or selling a Spot Gold Future equivalent to the purchase or sale of gold in the spot market. Spot Gold Futures would simulate a spot market transaction that is continually “rolled forward” to the maturity date of the future with the Cost of Carry Payment being similar to the payment exchanged between the buyer and seller in a spot transaction each day the transaction is rolled forward. For further details, go to:  [OCC Rule Filing 12-02, 2/7/12].