CBOT to Offer Side-By-Side Trading of Full-Sized Metals Options Contracts

Discussion in 'Events' started by CBOT, Oct 30, 2006.

  1. CBOT


    For Immediate Release

    Media Contact:
    Jennifer Rook

    CBOT to Offer Side-By-Side Trading of Full-Sized Metals Options Contracts by Introducing Open Auction Trading on November 6
    --Transaction fee waiver in effect until June 30, 2007; Contracts to trade alongside the 30-Year Bond Options Pit --

    CHICAGO, IL – The Chicago Board of Trade (CBOT®) announced that beginning on November 6, it will offer its options on Full-sized Gold (100 oz.) and Silver (5,000 oz.) futures contracts via open auction trading, listing them “side-by-side” electronic trading in the contracts. Currently, the CBOT’s Metals options contracts are only available for trading via the Exchange’s e-cbot® electronic trading platform.

    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.

    “We expect that offering our customers Full-sized Metal options contracts side-by-side via open auction and electronically will encourage arbitrage opportunities, generate more competitive bid/ask spreads, and enhance liquidity for the entire marketplace,“ said Robert Ray, Senior Vice President of Business Development for the CBOT.

    The Full-sized Metals options contracts will trade alongside the 30-Year Bond Options pit in the CBOT Financial Trading Room from 7:10 a.m. to 1:30 p.m. (Chicago Time) Monday – Friday. The CBOT will have market makers in place on the first day of pit trading. In addition to trading Metals options on e-cbot, customers will be able to submit Gold and Silver options trades via the CBOT’s electronic order entry system.

    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 September, the Exchange’s Metals complex accounted for 52 percent of listed Metals futures contracts in North America. CBOT Full-sized Gold futures contracts captured 54 percent market share of all gold futures listed in North America for the same time period.

    Recently, strong customer demand led the CBOT to make several efficiency enhancements to its Metals complex. Since the launch of the CBOT’s directed fungibility program on September 1, more than 100 futures transactions have been executed. The CBOT plans to implement an electronic warehouse receipt delivery process in the fourth quarter of 2006.

    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.