JUNE 5, 2017

BUTTERFLY SPREAD MARGINS FOR AGRICULTURAL PRODUCTS

New York, NY (June 5, 2017) – Effective Monday, June 5, 2017, ICE Clear U.S. and the Exchange will implement butterfly spread margin rates for agricultural futures spread positions. In many cases the new rate schedule will result in significantly lower margin rates for portfolios where butterfly spread positions involving three futures contract months can be formed, as described below.

The new margin rate schedule may be found at the end of this Notice.

As a reminder, ICE Clear U.S. sets a single margin rate that it applies to positions in a particular futures contract, regardless of whether the positions held at a Clearing Member firm are held by Hedge or Speculative trading accounts. The Exchange then sets minimum Initial and Maintenance margin rates that Clearing Member firms must charge their customers, with one set of rates for Hedge positions and another set for Speculative positions. Clearing members are required to charge their customers at least the minimum margin rates determined by the Exchange as follows:

Hedge Initial Margin – 100% of the Clearing Margin Rate Hedge Maintenance Margin – 100% of the Clearing Margin Rate Spec Initial Margin – 110% of the Clearing Margin Rate Spec Maintenance Margin – 100% of the Clearing Margin Rate

Note all Exchange margin rates including the rates cited here are subject to change.

Butterfly Spread Margins:

*T1 represents the front month, T2 represents the next contract month, T3 and the rest of the tiers represent subsequent months. **Butterfly Spreads - 1 long vs. 2 short vs. 1 long or 1 short vs. 2 long vs. 1 short. T123 represents 1 long the first month, vs. 2 short the next contract month, vs. 1 long the following contract month. JUNE 5, 2017

Cocoa (CC) Butterfly Spreads

Speculative Speculative Hedge Hedge Tiers Maintenance Initial Maintenance Initial T123 350 385 350 350 T234 100 110 100 100 T345 50 55 50 50 T456 50 55 50 50 T567 50 55 50 50 T678 50 55 50 50 T789 50 55 50 50 T8910 150 165 150 150

Cotton (CT) Butterfly Spreads

Speculative Speculative Hedge Hedge Tiers Maintenance Initial Maintenance Initial T123 1,500 1,650 1,500 1,500 T234 1,050 1,155 1,050 1,050 T345 550 605 550 550 T456 450 495 450 450 T567 400 440 400 400 T678 250 275 250 250 T789 350 385 350 350 T8910 150 165 150 150 T91011 150 165 150 150 T101112 150 165 150 150 T111213 50 55 50 50 T121314 50 55 50 50 T131415 50 55 50 50 JUNE 5, 2017

Sugar#11 (SB) Butterfly Spreads

Speculative Speculative Hedge Hedge Tiers Maintenance Initial Maintenance Initial T123 150 165 150 150 T234 100 110 100 100 T345 100 110 100 100 T456 100 110 100 100 T567 100 110 100 100 T678 100 110 100 100 T789 100 110 100 100 T8910 100 110 100 100

Coffee (KC) Butterfly Spreads

Speculative Speculative Hedge Hedge Tiers Maintenance Initial Maintenance Initial T123 300 330 300 300 T234 100 110 100 100 T345 100 110 100 100 T456 100 110 100 100 T567 100 110 100 100 T678 100 110 100 100 T789 100 110 100 100 T8910 100 110 100 100 T91011 150 165 150 150 T101112 150 165 150 150 T111213 150 165 150 150 T121314 200 220 200 200 T131415 250 275 250 250 JUNE 5, 2017

FCOJ (OJ) Butterfly Spreads

Speculative Speculative Hedge Hedge Tiers Maintenance Initial Maintenance Initial T123 750 825 750 750 T234 200 220 200 200 T345 200 220 200 200 T456 300 330 300 300 T567 400 440 400 400 T678 350 385 350 350 T789 50 55 50 50 T8910 50 55 50 50 T91011 50 55 50 50 T101112 50 55 50 50 T111213 50 55 50 50 T121314 50 55 50 50 T131415 50 55 50 50 T141516 50 55 50 50 T151617 50 55 50 50 T161718 50 55 50 50

A complete grid of margin rates for all ICE Futures U.S. Agricultural and Financial Products is available on our web page @ www.theice.com

FOR MORE INFORMATION: ICE Clear U.S. [email protected] (212) 748-4001 (312) 836-6777

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