CBOT(R) To Launch 30-Year Swap Futures Contracts
13 February 2007 - 2:47AM
PR Newswire (US)
CHICAGO, Feb. 12 /PRNewswire-FirstCall/ -- The Chicago Board of
Trade (CBOT(R)) today announced plans to launch a new 30-year
Interest Rate Swap futures contract on March 19, 2007. CBOT 30-year
Swap futures contracts are designed to provide market participants
with a standardized approach to gaining swap rate exposure in a
centralized marketplace. The new futures contracts will offer
comparable price/yield characteristics to "plain-vanilla" swaps,
with the added benefits of an exchange-traded product. The CBOT
Swap futures complex, which also includes 5-Year and 10-Year Swap
futures contracts, saw volume increase by more than 50 percent
during the last six months of 2006, compared with the same period
in 2005. CBOT Senior Vice President of Business Development Robert
D. Ray said, "Expanding our Swap complex with 30-year Swap futures
will allow participants the opportunity to make capital-efficient
yield curve and spread trades between CBOT Treasury futures and
Swap futures. In addition, the 30-year Swap futures contract will
provide the swap market with a tradable reference point that was
previously non-existent at the long end of the swap curve." Michael
Conway, CFA, Senior Vice President and Senior Investment Officer at
Aon Corporation said, "We believe that CBOT 30-year Swap futures
will be a valuable tool for pension plans and others to control the
impact of interest rate volatility on reported financial results.
The opportunity to use price discovery as a tool, and maintain
strong counterparty exposure are the essence of what 30-year Swap
futures contracts can provide." The 30-year Swap futures will be
traded side-by-side, on both the CBOT electronic trading platform
and in open auction, providing market participants with the
opportunity to choose their preferred trading venue and to
facilitate curve and spread trades. The new contract will trade
from 7:20 a.m. - 4:00 p.m. CST under the ticker symbol NZ in the
open auction environment and QS on the Exchange's electronic
trading platform. The CBOT also intends to create a market maker
program to help ensure that a two-sided market will be readily
available for electronic trading. Interested parties should contact
the CBOT at 312-341-7955. For further information on the CBOT
Interest Rate Swap complex, please visit http://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. For more information, visit our website at
http://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 http://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. DATASOURCE: Chicago
Board of Trade CONTACT: Media, Craig Grabiner of CBOT,
+1-312-341-5758, Web site: http://www.cbot.com/
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