EFTA Document EFTA01393157

On page 81 of the Booklet, the second paragraph of the section headed "5." is amended to read: Exercise restrictions imposed by OCC and the options markets affecting cash-settled options generally cannot be continued in effect beyond the opening of business on the last trading day before their expiration. Such exercise restrictions affecting physical delivery options generally cannot be continued beyond the open- ing of business on the tenth business day before their expiration. Part V. Exemption of Standardized Options from 1933 Act Registration. Effective January 2, 2003. the SEC exempted stan- dardized options issued by a registered clearing agency and traded on a registered national securities exchange or association from the Securities Act of 1933. except for the antifraud provisions of Section 17 of that Act. Effec- tive January 10, 2003. the SEC approved an amendment to OCC's most recent registration statement under that Act terminating the registration of all unsold put and call options. As a result of these actions, the standardized options covered by this Booklet are no longer required to be registered under that Act: an OCC registration state- ment will no longer be available for inspection at OCC's office; and copies of an OCC prospectus for standard- ized options will no longer be available from OCC or the U.S. options markets. Part VI. Yield-Based Treasury Options. The second full paragraph on page 34 is replaced with the following paragraph: If the U.S. Department of the Treasury ceases to issue. or changes the terms or the schedule of issuance of, Treasury securities on which underlying yields are based, an adjustment panel has discretion to adjust the terms of the series by substituting other Treasury securi- ties or to make such other adjustment as the adjustment panel may determine. If the options market on which a particular yield-based option is traded should increase or decrease the multiplier for the option, the adjustment panel has discretion to adjust outstanding options affected by the change by proportionately consolidating or subdividing them or by taking other action. The paragraph numbered 9. on page 82 is replaced with the following: 9. If OCC determines that the exercise settlement value of the underlying yield for any series of yield-based options is unreported, inaocurare, unrekable, unavailable, or inappropriate for purposes of calculating the cash settle- ment amount of such series. OCC has the authority to sus- pend the settlement obligations of the exercising and assigned Clearing Members of options of such series or to fix the cash settlement amount for exercised options of such series or to do both. In the event of such a suspension, OCC 111 CONFIDENTIAL - PURSUANT TOEFEESEIMORM13596 P. 6(e) CONFIDENTIAL SDNY_GM_00244780 EFTA01393157