News Release

CBOT Binary Options on FOMC Target Rate Contracts Set New Volume Record

Mon Aug 21 2006

For Immediate Release

Media Contact:
Craig Grabiner
(312) 341-5758
news@cbot.com

CBOT BINARY OPTIONS ON FOMC TARGET RATE CONTRACTS SET NEW VOLUME RECORD AS TOTAL EXCEEDS 5,000 CONTRACTS FOR FIRST TIME
Open Interest Also Reaches New High Mark – 7,209 Contracts

CHICAGO, IL, August 21, 2006 – The Chicago Board of Trade (CBOT®) announced today that its Binary Options on the Federal Open Market Committee (FOMC) Target Rate contracts established a new volume record on Friday as trading surpassed the 5,000 contract mark for the first time.  The new record, 5,537 contracts, was nearly four times greater than the previous record – 1,426 contracts set on August 10, 2006.

In addition, open interest in the Binary Options on the FOMC Target Rate contracts reached a record 7,209 contracts on Friday.  The previous record, 5,529 contracts, was set on Thursday, August 17, 2006.  Open interest represents the number of trading positions that have not yet been offset and closed at the end of a trading day.

CBOT Senior Vice President of Business Development Robert D. Ray said, “We have been very pleased with the growth rate of this exciting new product, and the record-setting jump in both volume and open interest levels is further confirmation of strong customer acceptance.  We developed the contract at the request of our customers, and they are rapidly embracing the product as a valuable means to trading exposure in the Fed’s Target rate.”

The CBOT launched the electronically-traded Binary options on the FOMC Target Rate contracts on July 12, 2006.  The first contract settled on Tuesday, August 8 when the U.S. Federal Reserve elected to hold the Target Federal Funds Rate at 5.25 percent.

At expiration, Binary options on the FOMC Target Rate contracts have two possible outcomes – final settlement is either a fixed dollar amount or nothing at all.  When the options expire, “in the money” options pay $1,000 to option holders, while those that are “at the money” or “out of the money” pay holders zero.  Strike prices correspond to the Target Federal Funds rate using a formula of 100-minus the actual Target rate.  Options usually expire on the day following a regularly-scheduled FOMC meeting – they are cash-settled and based upon the most recent Target Rate level.

For more information, visit the Binary Options section on 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 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.

Corporate Communications

+1 312 930 3434
Email