News Release

CBOT August Volume Reaches Second Highest Monthly Total

Fri Sep 01 2006

For Immediate Release

 

Media Contact:                                                                                 Investor Contact:
Craig Grabiner                                                                                  Deborah Koopman
(312) 341-5758                                                                                (312) 789-8532
news@cbot.com                                                                               investorrelations@cbot.com

 

CBOT AUGUST VOLUME REACHES SECOND HIGHEST MONTHLY TOTAL IN EXCHANGE HISTORY; AVERAGE DAILY VOLUME UP 23 PERCENT OVER AUGUST 2005
Exchange’s Gold Complex Achieved 53 Percent Market Share of Listed North American Gold Futures Traded in August

CHICAGO, IL, September 1, 2006 – The Chicago Board of Trade (CBOT®), one of the world’s leading derivatives exchanges, today announced that average daily volume (ADV) reached 3,341,170 contracts in August, an increase of 23 percent compared with August 2005.  Total volume for the month was 76,846,908 contracts – the second highest monthly volume total in CBOT history.  The monthly record, 79,828,143 contracts, was set in May 2006.

ADV on the CBOT’s electronic trading platform reached 2,348,970 contracts in August, up 32 percent over August 2005.  Electronic trading represented 70 percent of total August Exchange volume compared with 65 percent during the same month a year earlier.

CBOT Gold Drives Metals Complex Volume Increase; Monthly Market Share Exceeds 50 Percent for the First Time
August marked the first month that the Exchange averaged greater than 50 percent share of the North American listed Gold futures market.  For the month, CBOT Gold futures had 53 percent market share of listed Gold futures traded in North America.  August 2006 ADV for CBOT Gold futures was 39,956 contracts, a 14-fold increase compared with August of 2005.

The continued growth of CBOT Gold futures contributed to ADV increases across the Exchange’s electronically traded Metals complex.  ADV for the Metals complex was 47,592 contracts in August, 12 times greater than August 2005.  In August, the Metals complex had 46 percent of listed Gold and Silver futures in North America.

The CBOT Silver complex also grew in August, as ADV reached a record 7,232 contracts, seven times greater than the same month in 2005.  During August, the CBOT Silver complex had approximately 27 percent of listed Silver futures traded in North America. 

Agricultural Complex Volume Up 28 Percent After One Month of Side-By-Side Trading
On August 1, the CBOT launched daytime electronic trading of Agricultural futures contracts side-by-side with the open auction environment.  And with one month of trading complete, the Exchange reported volume growth across the Agricultural complex – both electronically and overall.  In August, total ADV was 481,087 futures and options contracts, a 28 percent increase over August 2005.

ADV gains in Corn and Wheat futures and options played a role in the improved CBOT Agricultural volume totals.  In August, the Corn (223,873 contracts) and Wheat (82,487 contracts) complexes grew by 36 percent and 61 percent, respectively, compared with the same month in 2005.  The Exchange also saw year-over-year ADV increases in its Oat futures and options (27 percent), and Rough Rice futures and options (85 percent).

Interest Rate Complex ADV Up 21 Percent; Continues Growth at Both Ends of Yield Curve
ADV in the CBOT Interest Rate complex was 2,722,879 contracts in August, 21 percent greater than August 2005.  Volume increases at both the short and long ends of the yield curve drove growth in the complex.  At the short end of the curve (30-Day Federal Funds futures and options, Two-Year U.S. Treasury Note futures and options), August ADV was 317,379 contracts, an 88 percent increase over August 2005.  And at the long end of the curve (30-Year U.S. Treasury Bond futures and options, 10-Year Treasury Note futures and options), ADV reached 1,781,639 contracts, up 22 percent compared with last August.  At the middle of the curve, the Exchange's 5-Year Treasury Note futures contracts set a monthly record as volume reached 13,347,518 contracts.  The previous record, 12,971,876 contracts, was set in May 2006.

Electronic trading of Interest Rate options contracts also contributed to August’s ADV growth in the CBOT Interest Rate complex.  In August, an average of 62,208 Interest Rate options were traded electronically each day – 115 percent greater than the same month in 2005.  Of the 8,892,802 Interest Rate options trades executed at the CBOT in August, 16 percent were executed electronically.

The Exchange’s new Binary options on the Target Federal Funds Rate contracts, launched in July, completed its first full month of trading with an ADV of 781 contracts and open interest exceeding 9,500 contracts.  August’s ADV for the Binary options contracts was more than three times greater than July 2006, and open interest at month’s end was five times greater than it was at the end of July.

In July, new market makers Citigroup and Goldman Sachs began to provide liquidity in the CBOT Interest Rate Swap complex.  On August 30, open interest in the Swap complex was 41,267 contracts (approximately $4.1 billion notional value) – up 20 percent compared with the end of July 2006.  Meanwhile, Swap complex ADV was 3,131 contracts ($313 million notional value), an increase of eight percent over July 2006. 

CBOT Average Daily Volume

 

Product Group

August

2006

August

2005

Percent Change

YTD

2006

YTD

2005

Percent Change

Agricultural

481,087

375,516

28.1%

476,250

388,523

22.6%

Financial

2,722,879

2,243,314

21.4%

2,541,741

2,282,177

11.4%

Equity Indices

89,538

98,894

-9.5%

118,015

106,767

10.5%

Metals, Energy and Other

47,677

3,887

1,126.5%

42,069

3,352

1,155.0%

TOTAL

3,341,170

2,721,612

22.8%

3,178,075

2,780,815

14.3%

CBOT Rate Per Contract

The following chart depicts the Exchange’s July 2006 three-month rolling average rate per contract (in dollars), and the two preceding three-month periods’ average rates per contract.  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

 

July 31, 2006

June 30, 2006

May 31, 2006

Product Group

 

 

 

Interest Rate

0.528

0.523

0.531

Agriculture

0.680

0.680

0.674

Equity Indices

0.708

0.712

0.764

Metals, Energy & Other

0.984

0.986

1.012

Overall Avg. Rate per Contract

0.568

0.564

0.566

Venue

 

 

 

 Open-Auction

0.519

0.515

0.510

 Electronic

0.507

0.503

0.514

 Off-Exchange

2.733

2.564

2.429

Total Avg. Rate per Contract

0.568

0.564

0.566

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.  

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