MEET ME IN MAY
CME Group's 2008 annual meeting of shareholders will be held at 10 a.m. CT, on Wednesday, May 7,
2008 at the University of Chicago Gleacher Center, located at 450 N. Cityfront Plaza Dr. in Chicago.
PUMP UP THE VOLUME
For the seventh consecutive year, CME Group
posted record volume in 2007, handling almost
2.8 billion contracts. CME Group's average daily
volume of 11 million contracts per day was a 28
percent jump from 2006.All major product lines
grewmore than 20 percent annually for the third
consecutive year.
Total electronic volume averaged 8.5 million contracts per day, up 41 percent from 2006. Electronic options volume averaged 288,000 contracts per day in 2007, up 46 percent.
January 2008 volume averaged 14.3 million
contracts per day, up 65 percent from January
2007, second only to August 2007 in terms of
highestmonthly average daily volume. Total volume
exceeded 300 million contracts for the
month, 79 percent ofwhichwas traded electronically.
Total electronic volume averaged 11.4 million
contracts per day, up 79 percent from
January 2007.
• E-mini equity index daily volume averaged
a record 3.9 million contracts per day in
January, up 126 percent compared with
January 2007.
• Interest rate volume averaged 8.7 million
contracts per day in January, up 57 percent
from January 2007, and represented the
second-highest monthly volume to date.
• Commodities and alternative investments
volume averaged 906,000 contracts per day in
January, up 17 percent compared with the
same period a year ago, the second-highest
monthly volume to date.
• Foreign exchange volume averaged 596,000
contracts per day in January, up 21 percent
from January 2007.
GET CONNECTED
First it was the New York Mercantile Exchange
(NYMEX). Now Kansas City and Minneapolis
have linked up with the CME Globex platformas
well. On January 13, contracts from the Kansas
City Board of Trade (KCBT) and Minneapolis
Grain Exchange (MGEX) migrated from e-cbot
to CME Globex.
The addition of the two exchanges to CME Globex further solidifies the platform's breadth of products, functionality, speed and reliability.
For the two exchanges, this transition is also convenient formembers andmarket users trading their agricultural products. It allows for exposure to a new and broader trading audience who want access to CME grains and complementary products onMGEX and KCBT.
KRX MARKS THE SPOT
CME Group continued its expansion into Asia
when it signed a non-binding letter of intent
with the Korea Exchange (KRX) to list the
KOSPI 200 futures contract on the CME
Globex trading platform last October.
CME Group and KRX plan to formally complete the agreement for the KOSPI 200 futures contract and begin listing the contract on Globex in the early part of this year. The proposed five-year agreement also includes the creation of a telecom hub in Seoul.
The proposed deal marks the first time KRX has embarked on a third-party agreement for its KOSPI 200 product. According to the preliminary plan, CME Group will make the contract available to CME Group members after KRX hours on the CME Globex platform from 2:00 a.m. to 3:00 p.m. CT. KRX will continue to clear and settle the contracts.
"Our proposed agreement with the Korea Exchange is a prime example of how CME Group is further extending its reach into the Asia marketplace," says Craig Donohue, CME Group CEO. "The Asia region is a vital area of long-term growth for both our products and transaction-processing services. We look forward to adding the KOSPI 200 futures to CME Globex, enabling this benchmark product to benefit from the speed, reliability and transparency of our industry-leading platform."
"Opening a night session with CME Group will help us greatly in globalizing the KRX," says KRX chairman and CEO Young-Tak Lee. "This proposed agreement will open up the prospect for our two exchanges to explore together the ocean of opportunities in Asia, as well as to lead the further advancement of global derivatives markets."
CME Group's gateway to Brazil
CME Group and the Brazilian Mercantile &
Futures Exchange (BM&F), the world's
fourth-largest futures exchange, completed
their cross investment agreements on
January 23.
CME Group purchased an approximately 10 percent equity stake in BM&F, while the Brazilian markets acquired approximately 1.19 million shares of CME Group common stock. Both also plan to connect their electronic trading platforms for order routing and electronic trading of products.
The deal marks a major step for CME Group into the Latin American market with BM&F, the region's largest derivatives exchange,whichwent public last November.
"Latin America represents a key market of opportunity for CME Group as we seek to expand the reach of our benchmark products to customers outside the United States. This agreement allows us to extend our products to potential new users in Brazil," says Terry Duffy, CME Group executive chairman.
"This agreement positions CME Group as the first global exchange to tap into the fast-growing Brazilian and Latin American markets," says Craig Donohue, CME Group CEO. "With Brazil's emergence as the world's tenth largest econo- my, its growing capital markets and its established commodity markets, we look forward to developing this link between our markets."
The two exchanges also have entered into a memorandum of understanding to explore additional commercial agreements, including: CME Group providing offshore collateral management services; BM&F becoming a "superclearing" member of CME Group to facilitate access to CME Group products on behalf of BM&F market participants that lack independent arrangements with CME Group clearing members; and joint product development.
Closing of the transaction is subject to BM&F shareholder approval and other customer closing conditions, including Brazilian regulatory approval.
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