CBOT Announces New Enhancements to Metals Complex

Discussion in 'Events' started by CBOT, Aug 2, 2006.

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  1. CBOT


    Media Contact:
    Jennifer Rook

    CBOT Announces New Enhancements to Metals Complex
    --CBOT extends Transitory EFPs schedule and plans to offer direct fungibility program and electronic receipts--

    CHICAGO, IL, August 2, 2006 – The Chicago Board of Trade (CBOT®) today announced new process and delivery enhancements to its Metals complex that will generate increased opportunities and added efficiencies for all market participants.

    Effective immediately, the CBOT is expanding the hours of Transitory Exchange for Physical (EFPs) in its Full-sized Gold and Silver futures contracts to a 24-hour schedule. This will provide all physical gold and silver traders with the opportunity to swap into a CBOT metals futures position at any time of day which should create a more flexible and efficient trading and operational environment.

    The CBOT is also introducing a new directed fungibility program between the Full-sized and mini-sized metals contracts, with expected implementation planned for the third quarter of 2006. Directed fungibility enables market participants to request, through their clearing firm, the offset of opposite positions in the full and mini-sized contracts.This program will create an efficient mechanism for market participants to net out their exposures before the contract expiration.

    Leveraging the innovative systems and processes developed for its agricultural products, the CBOT will adopt its Electronic Warehouse Receipt system for its Metals complex. Designed to meet global user demand, the new system will enable firms to substantially eliminate the manual process of delivering paper receipts and will allow delivery payments to be managed through the current electronic pay-collect system and be available sooner. This new enhancement is targeted for completion in the fourth quarter of 2006.

    CBOT Senior Vice President of Business Development Robert D. Ray said, “The CBOT is committed to reducing operational and trading risk by injecting greater efficiency into the entire market place. This is critical in today’s volatile global trading environment. For instance, since our customer base tends to trade around the clock, it makes sense to align our Transitory EFP facilities and operations with these hours. We believe offering programs like directed fungibility and electronic delivery receipts complement the straight-through processing feature that our electronic trading platform already provides to the global marketplace and further reducing operational risk.”

    The CBOT Gold complex continues to attract more global market participation and for the month of July accounts for 41 percent of listed Gold futures traded in North America. Market share in the CBOT Gold futures complex has grown 25 percent since January 1, 2006.

    Currently, the CBOT’s Precious Metals complex consists of Full-sized (100 oz.) Gold futures, Full-sized Gold options, mini-sized (33 oz.) Gold futures, Full-sized (5,000 oz.) Silver futures, Full-sized Silver options and mini-sized (1,000 oz.) Silver futures contracts. For more information on the CBOT and to learn more about the CBOT Metals complex and new enhancements, please visit www.cbot.com.

    About the CBOT
    As one of the leading global derivative exchanges, the Chicago Board of Trade provides a diverse mix of financial, equity and commodity futures and options-on-futures products. Building on its 158-year history, the CBOT continues to advance into the future using the strength of deep liquidity, market integrity and member-trader expertise. Using superior trading technology in both electronic and open-auction trading platforms, the CBOT provides premier customer service to risk managers and investors worldwide.

    Forward Looking Statements
    Certain statements in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and includes any use of the words “may,” “should,” “could,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue.” These statements are based on management’s current expectations and involve assumptions that may be subject to change or risks and uncertainties that could cause actual results to differ materially from those set forth in the statements. Accordingly, actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statement contained in this press release. The factors that may affect our performance may be found in the Annual Report on Form 10-K and other periodic reports filed by CBOT Holdings, Inc. with the U.S. Securities and Exchange Commission (“SEC”). These filings can be obtained at the SEC’s website at www.sec.gov. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
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