CBOT Launches Electronic Trading of Ag Futures During Daytime Hours

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  1. CBOT

    CBOT

    For Immediate Release

    Contact:
    Jennifer Rook
    (312) 435-3625
    news@cbot.com

    CBOT Successfully Launches Electronic Trading of Agricultural Futures During Daytime Hours
    New State-of-the-Art Technology Supports a Single Pool of Liquidity

    CHICAGO, IL, August 1, 2006 - The Chicago Board of Trade (CBOT®), one of the world’s leading derivatives exchanges, today successfully launched its Agricultural futures contracts on the e-cbot® electronic trading platform side-by-side its open-auction platform during daytime trading hours. Providing greater access to the CBOT’s benchmark Agricultural markets, the expanded electronic trading schedule also creates increased trading opportunities for new and existing CBOT customers worldwide. Previously, CBOT’s Agricultural futures contracts traded electronically only after hours, which enabled the CBOT to expand its distribution of its Agricultural products globally to the Asian and European sectors.

    CBOT Chairman Charles P. Carey said, “This initiative pairs two of the CBOT’s greatest assets – the longstanding expertise of our floor traders and our premier electronic trading platform – to further enhance the deep, liquid CBOT Agricultural markets. As with so many projects that we introduce, our liquidity providers are the Exchange’s partner, and I would like to thank the members for helping us reach this important landmark for the CBOT.”

    CBOT President and Chief Executive Officer Bernard W. Dan said, “Our mission behind this action is to create greater opportunities for the entire marketplace, increase access to CBOT commodity products and aggressively work to create a single, centralized pool of liquidity between the floor and screens. This initiative also is an important element of our global expansion strategy. All together, these efforts underscore the CBOT’s role as the pricing benchmark within the world of agriculture.”

    The CBOT first extended the electronic trading hours of its South American Soybean futures contract and its Ethanol futures contracts in May. Since then, the CBOT Ethanol futures surpassed the 1,000-contract mark in open interest, setting a new all-time record of 1,068 contracts on July 10.

    The electronic trading hours for the CBOT’s Agricultural futures complex, which includes Corn, Wheat, Soybean, Soybean Oil, Soybean Meal, Rough Rice and Oat contracts are during daytime trading from 9:30 a.m. to 1:15 p.m. (Chicago Time) and resume from 6:30 p.m. to 6:00 a.m.

    CBOT Chief Operating Officer Bryan T. Durkin said, “We are committed to maintaining our hybrid trading model and are utilizing technology that equally supports our electronic and open auction trading platforms. While deploying this technology is critical, we’re very aware that in order to be successful, even the best technology needs to be seamlessly integrated into the CBOT trading environment. These efforts are geared toward tapping into one of the Exchange’s greatest assets – our liquidity providers.”

    In preparation for the launch, the CBOT has made the following technical enhancements to the Agricultural trading floor:

    Added 190 handheld technology devices (called e-HHTs) on the floor. e-HHTs will allow open auction traders to access Ag futures on e-cbot® from the floor on August 1. All new users will have gone through training prior to the e-HHTs going live.
    Added more than 200 new headsets, which will facilitate efficient communication between open auction traders and their counterparts who can be trading on the screens, off the floor.
    Implemented wireless technology for the e-HHTs and headsets, a feature which is expected to facilitate the efficient and rapid flow of floor trading to continue uninterrupted.
    Added 40 plasma screens around the trading pits on the Ag floor. These screens will display the e-cbot live book, which shows the depth of the market.
    There has been heightened interest in attaining booth space on the trading floor post the announcement of the side-by-side initiative. As a result, 30 additional floor booths have been allocated to market participants to facilitate access to both the electronic and open auction trading platforms.
    Aside from differing ticker symbols, the contract specifications for the electronically-traded Agricultural products are the same as those traded on the open auction platform. The contracts are fully fungible regardless of trading platform. To learn more about this initiative, please visit the Exchange’s website, 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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