CBOT Launches Side-By-Side Trading of Full-Sized Metals Options

Discussion in 'Events' started by CBOT, Nov 8, 2006.

  1. CBOT


    Media Contact:
    Maria C. Gemskie

    CBOT Metals Complex Open Interest Continues to Grow

    CHICAGO, IL, November 7, 2006 – The Chicago Board of Trade (CBOT®) announced today that it successfully launched open auction trading of its options on Full-sized Gold (100 oz.) and Silver (5,000 oz.) futures contracts. The contracts now trade side-by-side on the Exchange’s electronic trading platform and open auction arena. On the first day of trading, Gold and Silver options open auction volume totaled 381 contracts.

    “We launched side-by-side trading of Full-sized Metals options to create additional opportunities for customers. This move encourages arbitrage between our electronic and open auction environments, generates more competitive bid/ask spreads, broadens distribution channels and enhances liquidity for the entire marketplace. Yesterday’s early volume showing on the inaugural day of side-by-side trading is an indication that our customers and our professional floor trading community are taking advantage of these trading opportunities,” said Robert Ray, Senior Vice President of Business Development for the CBOT.

    The Full-sized Metals options contracts trade in the open auction environment alongside the 30-Year Bond Options pit from 7:10 a.m. to 1:30 p.m. (Chicago Time) and electronically on the Exchange’s electronic platform, e-cbot® from 6:18 p.m. – 4:00 p.m. (Chicago Time) Monday – Friday. The CBOT has established market makers for both the open auction and electronic trading venues.

    On October 1, 2006, the CBOT waived all Exchange transaction fees for Metals options trading across all fee categories. The fee waiver will apply to Metals options transactions on both CBOT platforms and will remain in effect until June 30, 2007. The waiver does not apply to clearing fees.

    The CBOT’s all-electronic Metals futures complex continues to attract new market participants and achieve greater volume since the contracts were launched in October 2004. For the month of October, the Exchange’s Metals complex accounted for nearly 60 percent of listed Metals futures contracts traded in North America. Also in October, CBOT Full-sized Gold futures contracts captured 56 percent share of Gold futures listed in North America.

    In addition, open interest in the Exchange’s Metals complex continues to grow, setting records last week for both Full-sized Gold futures contracts as well as across the entire complex. The new open interest record for the CBOT Metals complex stands at 77,604 contracts, and the Full-sized Gold futures open interest record is now 54,289 contracts.

    The CBOT’s Metals complex consists of Full-sized Gold (100 oz.) futures and options contracts, mini-sized Gold (33 oz.) futures contracts, Full-sized Silver (5,000 oz.) futures and options contracts, and mini-sized Silver (1,000 oz.) futures contracts. To view the live book of bids, offers and quantities, or to obtain more information about the CBOT Metals complex, please visit the Exchange’s web site at www.cbot.com/metals.

    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. For more information, visit our website at www.cbot.com.

    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.