News Release

CBOT 2005 Volume Surpasses 674 Million Contracts

Tue Jan 03 2006

Jennifer Rook  
312.435.3625
news@cbot.com

CBOT 2005 Volume Surpasses 674 Million Contracts and Marks Fourth Consecutive Year of Growth

The Exchange reports a 12.9 percent increase in 2005 average daily volume from 2004 and an overall 25.8 percent increase in electronic trading volume during that same period 

CHICAGO, January 3, 2006 — The Chicago Board of Trade (CBOT®) today announced the Exchange achieved the highest yearly total volume recorded in its history, with more than 674 million contracts traded in 2005. Total annual volume rose 12.4 percent over the prior year, making 2005 the fourth consecutive record-breaking year for the CBOT. The Exchange’s average daily volume (ADV) also increased 12.9 percent to 2.7 million contracts from 2.4 million contracts reported in 2004, setting a new record for the year.

The CBOT also reported that December ADV was 2.0 million contracts, compared to the ADV of 2.1 million contracts traded in December 2004. Average daily volume in the fourth quarter was 2.4 million contracts, which was equivalent to the fourth quarter ADV in the same period last year.

CBOT’s Electronic Volume Continues to Gain Momentum

  • The CBOT also experienced an increase in the percentage of its volume that is electronic, with electronic volume representing 65 percent of total Exchange volume for the year, up from 58 percent in 2004. Further, electronic ADV grew 24 percent to 1.7 million contracts from 1.4 million contracts reported in 2004.
  • The number of the CBOT’s Financial options that traded electronically surged by 180 percent for the year. For all of 2005, more than 7 percent of Financial options traded electronically at the CBOT with more than 10 percent traded electronically during December 2005.
  • The CBOT’s 100 percent electronic Precious Metals complex also gained traction in 2005, with repeat monthly and daily volume and open interest records achieved for the overall product group and within the Gold complex. Average daily volume for the complex rose 73.5 percent in 2005, with ADV for the 100 oz. Gold complex showing an increase of 61.8 percent YTD.
  • Electronic trading of the Agricultural complex rose 59.7 percent from 2004; the increased activity was generated during the Asian and European time zones. The total volume in the Agricultural complex increased 7.9 percent to a record annual volume of 91.8 million contracts.                                               
     

Product Highlights During 2005

  • Precious Metals – After celebrating the one-year anniversary of launching its Precious Metals complex electronically, the CBOT marked another major milestone, with its Gold contracts (100 oz. and mini-sized futures) capturing a 15 percent market share of gold futures traded in North America based on volume for the month of December. Daily volume for the overall complex reached a record in December, surpassing 20,000 contracts in a single session.
  • Interest Rates – Open interest for CBOT Fed Fund options surpassed one million contracts in June, hitting an all-time high record since the contract launched in 2003. The contract’s ADV also rose 39 percent in 2005 to 26,138 contracts. Additionally in 2005, the CBOT’s Two-Year Treasury Note futures contract also grew 125 percent in ADV to 84,821 contracts and set repeat daily and monthly volume records throughout 2005. Further, the CBOT announced a new electronic market maker program for its Two-Year options product in November.
  • Equities – Open interest for CBOT $5 mini-sized DowSM futures surpassed 100,000 contracts seven times in 2005 and set a new all-time record of 121,015 contracts in December. Average daily volume for the contract rose 21 percent to 98,779 contracts in 2005.
  • Commodities – The CBOT’s Ethanol futures contract continues to gain momentum in open interest and attract recognition as a reference price in an emerging industry since the contract launched in March 2005. The contract’s current open interest stands at 781 contracts.

CBOT President and CEO Bernard W. Dan said, “We will remember 2005 as the year we achieved unprecedented milestones in the Exchange’s history and reinforced our position as a global leader in this growing industry. On top of our successful IPO launch in October, the Exchange enhanced its technological presence by implementing a major upgrade to its electronic platform, increasing the availability of our electronic trading platform to 22 hours per day, and relocating our electronic trading platform host to Chicago from London. We also made important progress on our global expansion strategy that included reaching a landmark agreement with the Singapore Exchange to launch a new electronic exchange in 2006, instituting a new telecom hub in Singapore, and launching new working relationships with other Pan-Asian exchanges such as the Sydney Futures Exchange and the Dubai Gold Commodities Exchange to expand our product reach.”

“We experienced strong volume growth in 2005 and are extremely pleased with the performance of our electronically traded contracts. We plan to stay focused on expanding the capabilities of our electronic platform in 2006 and making our liquid markets even more accessible to our global customer base while expanding our product line across different sectors.”

 

CBOT Achieves 30 ADV Records for the Year (contract volume listed through 12/30/05), including:

  • Total Exchange                                                                               2,677,188
  • Financial Futures & Options                                                            2,216,364
  • Treasury Futures                                                                             1,292,970
  • 10-Year Treasury Note Futures                                                         860,496
  • 5-Year Treasury Note Futures                                                           487,635
  • 5-Year Treasury Note Options                                                            70,766
  • 2-Year Treasury Note Futures                                                             84,821
  • 30-Day Fed Fund Options                                                                   26,138
  • Agricultural Futures                                                                            299,675
  • Agricultural Futures & Options                                                           364,572
  • Corn Futures                                                                                     110,972
  • Mini-sized Corn Futures                                                                           406
  • Soybean Futures                                                                                  80,223
  • Soybean Options                                                                                 27,054
  • Mini-sized Soybean Futures                                                                   1,966
  • Soybean Oil Futures                                                                            30,461
  • Wheat Futures                                                                                     40,135
  • Mini-sized Wheat Futures                                                                         128
  • Ethanol Futures                                                                                           14
  • Equity Futures                                                                                   105,872
  • Equity Futures & Options                                                                  108,762
  • $5 mini-sized Dow Jones Futures                                                         98,779
  • Metal Complex                                                                                      5,045
  • 100 oz. Gold Futures                                                                             2,498
  • 5,000 oz. Silver Futures                                                                            343

 

CBOT’s Average Rate per Contract

The Exchange’s November 2005 three-month rolling average rate per contract rose to $0.541 from $0.516 in October 2005, due mainly to Exchange fee increases implemented October 1, 2005.

 

Three-Month Rolling Average Rate Per Contract (in dollars)

 

Average rate per contract represents total exchange and clearing revenue divided by total reported trading volume.  Average rates per contract can be affected by exchange and clearing fee price levels, and the customer, product, venue and transaction mix.

 

THREE-MONTH PERIOD ENDING

 

November 30, 2005

October 31, 2005

September 30, 2005

PRODUCT:

 

 

 

Interest Rate

0.513

0.485

0.469

Agriculture

0.646

0.645

0.631

Market Indices

0.728

0.701

0.672

Metals, Energy & Other

1.506

1.424

1.360

   Overall average rate per contract

0.541

0.516

0.501

VENUE:

 

 

 

 Open-Auction

0.491

0.493

0.485

 Electronic

0.471

0.433

0.411

 Off-Exchange

2.153

2.087

2.117

 Overall average rate per contract

0.541

0.516

0.501

 

For more information on CBOT, to view all of the Exchange’s daily and monthly volume and open interest records and details on ADV and volume for December, visit the Exchange’s web site at www.cbot.com

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