Pair-Off at Price Expiration

EXAMPLE 1

If today's price is better, a fee is charged (rate down).

• Take down a DC for $100,000 at a price of 1.00 premium
• Deliver $85,000
• The tolerance on this Xtra DC is between $90,000 and $110,000
• This delivery is out of tolerance by $15,000
• The fee will be based on the full amount the delivery commitment is under delivered - in this example, it would be $15,000.00
• Today's price is 1.50 premium (based on days remaining in the delivery commitment)
• Fee will be charged - based on the difference between the DC price and today's price because today's price is better
• $15,000.00 x .0050 = $75.00

Note: Had the price gone down by the same .50, MPF would credit your DDA $75.00