News Release

CME Targets European Market Users with Eurozone HICP Inflation Futures Contract

Tue Aug 02 2005

CHICAGO, Aug. 2, 2005 - CME, the largest U.S. futures exchange, today announced plans to launch a European inflation futures contract based on the Eurozone Harmonized Index of Consumer Prices ex Tobacco (HICP). When launched, this contract will complement CME’s existing U.S. inflation futures contract, which began trading in 2004. CME Eurozone HICP futures contracts are scheduled to begin trading on the CME® Globex® electronic trading platform on Monday, Sept. 19th, 2005. Trading hours will be from 8:00 a.m. to 4:00 p.m. London time; 2:00 a.m. to 10:00 a.m. Chicago. “With the most diverse line of derivatives products in the world, CME continues to expand its global reach,” said CME Chairman Terry Duffy. “The launch of our new Eurozone HICP futures contract will mark another significant step in our continued efforts to attract more European market users to CME.” “Our new Eurozone futures product is designed to track European inflation and demonstrates CME’s commitment to developing new products that appeal specifically to European market users,” said CME Chief Executive Officer Craig Donohue. “With this new futures contract, banks, hedge funds, pension funds and other institutional investors will now be able to hedge their exposure to inflation in the 12 European Union member states that have adopted the Euro as their common currency.” HICP measures the level of prices for market goods and services consumed by households in Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain. The Eurozone HICP is an aggregate of the member states’ HICPs and is targeted to cover nearly 100 percent of all Eurozone household consumption. Harmonization refers to the fact that the same categories and methodology are adopted for the price index in all 12 countries. CME HICP futures represent inflation on a notional value of €1 million for a period of 12 calendar months. Similar to the pricing of CME Eurodollar futures contracts, CME HICP futures will be quoted as 100 minus the annual inflation rate in the 12-month period preceding the contract month. “Our new contract fills a crucial gap in this market, which currently lacks short-term, inflation-linked instruments,” said Robin Ross, Managing Director, CME Interest Rate Products. “The contract’s monthly expiration will generate interest from inflation swap desks at major banks as well as asset managers and active traders like hedge funds looking for trading opportunities. An active short-term inflation hedge will allow dealers to free-up their capital to create more structured products of medium and longer term tenures, thus contributing to the further growth of the European inflation derivatives market.” CME is in the process of finalizing a market maker program and anticipates that it will have several market makers who will make continuous, transparent and competitive markets for this new futures contract. For the six months following the contract launch date, CME will offer a six-month fee waiver for CME Globex and clearing fees to all market participants. Following are the specifications for the contract: Ticker Symbol CME® Globex® = HC; Clearing = HC Contract Size Contract Valued at €10,000 times Reference HICP ex-Tobacco Futures Index Reference HICP Futures Index 100.00 - annual inflation rate in the twelve-month period preceding the contract month based on the Eurozone Harmonized Index of Consumer Prices excluding tobacco (“HICP”) published by the European Statistical Institute (“Eurostat”). Contract Months 12 consecutive calendar months Trading Venue and Hours Available for trading on CME Globex from 8:00 am to 4:00 pm (London time) on Mondays through Fridays[1]

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