News Release

CBOT Sets Annual Records For Total Volume and Average Daily Volume

Tue Jan 02 2007

For Immediate Release

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

CBOT SETS ANNUAL RECORDS FOR TOTAL VOLUME AND AVERAGE DAILY VOLUME; ALL FOUR EXCHANGE PRODUCT GROUPS ACHIEVE RECORD VOLUME TOTALS
--Total Exchange December ADV Up 40 Percent Compared With December 2005
--CBOT Fourth Quarter ADV Increases 36 Percent Over Fourth Quarter 2005

CHICAGO, IL, January 2, 2007 – The Chicago Board of Trade (CBOT®), one of the world’s leading derivatives exchanges, today announced that it set a new record for annual trading volume, with 805,884,413 contracts traded in 2006.  Total annual volume increased by 19.5 percent compared with the total from 2005, marking the fifth consecutive record-breaking year for the CBOT.  Exchange average daily volume (ADV) reached 3,210,695 contracts in 2006, up 20 percent over 2005.  ADV on the e-cbot® electronic trading platform was a record 2,240,262 contracts in 2006, an increase of 29 percent compared with the total from the prior year.

The Exchange also experienced volume increases for both the month of December and the fourth quarter of 2006.  CBOT volume for December 2006 reached 55,344,340 contracts, an increase of 33 percent compared with December 2005.  December’s ADV was 2,767,217 contracts, up 40 percent over the same month in the prior year.  For the fourth quarter, total CBOT volume reached 205,916,117 contracts – 36 percent greater than the total from the 2005 fourth quarter.  Fourth quarter ADV was 3,268,510 contracts, a 36 percent increase compared with the same period a year earlier.

CBOT President and CEO Bernard W. Dan said, “The year 2006 was truly historic for the CBOT, as we improved access to the Exchange and launched several new and innovative products.  The extension of Agricultural futures to the CBOT electronic trading platform, side-by-side with open auction trading during daytime hours, combined with rising demand for Agricultural risk management tools, contributed to volume growth and expanded the Exchange’s global reach.  We are proud of our accomplishments of the last 12 months, and we appreciate the confidence our market participants have shown in our products and platforms.  We look forward to providing them with new trading opportunities in 2007.”

Ag Complex Volume Record Contributes to 40 Percent ADV Increase Over 2005
In 2006, the CBOT set new high marks for total Agricultural volume (128,177,090 contracts), Agricultural futures volume (106,511,215 contracts) and Agricultural options volume (21,665,875 contracts).  ADV for the Agricultural complex reached a record 510,666 contracts in 2006, up 40 percent compared with 2005.  Increased volume on the CBOT electronic trading platform, as well as the open auction environment, contributed to the record Agricultural volume totals in 2006.  For the year, electronic ADV in the CBOT Agricultural complex was 72,571 contracts, 10 times greater than the total from 2005.  Open auction Agricultural ADV was 420,745 contracts in 2006, 23 percent greater than 2005.

Record 2006 volume totals in CBOT Corn and Wheat futures and options contracts contributed to the overall growth across the Exchange’s Agricultural complex.  The new Corn complex record, 58,557,281 contracts traded in 2006, led to a 72 percent ADV increase compared with 2005.  The new Wheat complex record stands at 18,822,846 contracts, leading to a 58 percent increase in ADV over 2005.  The CBOT also experienced increases in its Soybean complex (7 percent), Oats complex (22 percent), and Rough Rice complex (42 percent) when comparing 2006 year-end ADV with year-end ADV from 2005.

Record Metals Complex ADV Nine Times Greater Than 2005
The CBOT Metals complex experienced considerable growth in 2006 – total CBOT Metals volume reached 12,398,522 contracts for the year, nine times greater than the total from 2005.  Total 2006 ADV in the Metals complex was 49,397 contracts, nine times greater than 2005’s final ADV total. 

During 2006, the Exchange’s Gold complex set an ADV record – 42,547 contracts, 10 times greater than the ADV from 2005.  In 2006, the CBOT also set ADV records for its Full-sized (100 oz.) and mini-sized (33 oz.) Gold futures contracts.  Total ADV for Full-sized Gold futures reached 33,675 contracts in 2006, a 12-fold increase compared with the prior year.  And total ADV for mini-sized Gold futures was 7,948 contracts – four times greater than 2005.

The CBOT Silver complex also set an ADV record in 2006, with 7,006 contracts traded each day, six times greater than the prior year.  The Exchange’s Full-sized (5,000 oz.) Silver futures contracts contributed to the new high mark in the Silver complex in 2006, as total year-end ADV reached a record 4,815 contracts, 13 times greater than 2005.  In December, the CBOT grew its Silver complex to 43 percent market share of the North American listed Sliver futures market.  A month earlier, the Exchange’s Silver complex accounted for 34 percent of the North American listed Silver futures market.

ADV in CBOT Financial Complex Sets Record; Up 15 Percent Compared With 2005
CBOT Financial complex ADV was 2,544,002 contracts in 2006, an increase of 15 percent compared with ADV from 2005.  Over the course of the year, volume in the Financial complex displayed growth at both the short end and long end of the yield curve.  At the short end of the curve (30-day Federal Funds futures and options, Two-year U.S. Treasury Note futures and options), total 2006 ADV was 264,119 contracts, a 68 percent increase over total 2005 ADV.  And on the long end of the curve (10-year U.S. Treasury Note futures and options, 30-year U.S. Treasury Bond futures and options), total 2006 ADV was 1,727,786 contracts, up 16 percent compared with the previous year.

Record monthly ADV totals for 10-year U.S. Treasury Note futures and options, 2-year U.S. Treasury Note futures and options, 5-year U.S. Treasury Note futures and 30-day Federal Funds futures contracts led to the annual ADV record for CBOT Financial futures – 2,123,162 contracts and a 16 percent increase compared with the total from 2005. 

Electronic trading volume of Financial options contracts continued to grow in 2006, contributing to the overall ADV growth throughout the Financial complex.  For the year, an average of 420,839 Financial options were traded each day – a 9 percent increase compared with 2005 and a new CBOT record.  In 2006, 17 percent of all Financial options trades at the CBOT were executed electronically.  2006’s ADV for electronically-traded Financial options was 72,150 contracts, more than double the total from 2005.

In the CBOT Interest Rate Swap complex, ADV has continued to increase since early July, when new market makers Citigroup and Goldman Sachs began to provide liquidity.  For the fourth quarter of 2006, CBOT Swap complex volume was 289,602 contracts – up 60 percent over the same quarter a year earlier.  The Exchange’s 5-year Interest Rate Swap contracts contributed to the success of the Swap complex in 2006, as ADV reached 1,091 contracts for the year, 35 percent greater than total ADV from 2005.

Equity Index Complex Sets New Volume Record; ADV Up 7 Percent Over 2005
Total ADV in the CBOT Equity Index complex reached a record 116,662 contracts in 2006, an increase of 7 percent compared with the prior year.  The Exchange’s $5 mini-sized Dow Jonessm futures contracts contributed to the success of the complex, as a record 106,743 contracts were traded each day during the year – an 8 percent increase compared with total year-end ADV from 2005.

CBOT Average Daily Volume

 

Product Group

Dec.

2006

Dec.

2005

Pct.

Chg

Q4

2006

Q4

2005

Pct.

Chg

Agricultural

440,193

324,179

35.8%

610,658

330,781

84.6%

Financial

2,158,390

1,544,798

39.7%

2,520,402

2,015,203

25.1%

Equity Indices

115,994

95,899

21.0%

112,165

112,378

-0.2%

Metals, Energy and Other

52,641

12,176

332.3%

65,291

9,276

603.9%

TOTAL

2,767,217

1,977,052

40.0%

3,268,510

2,403,663

36.0%

 

 

Product Group

YTD

2006

YTD

2005

Pct.

Chg

Agricultural

510,666

364,572

40.1%

Financial

2,544,002

2,216,364

14.8%

Equity Indices

116,662

108,762

7.3%

Metals, Energy and Other

49,501

5,101

869.9%

TOTAL

3,210,695

2,677,188

19.9%

CBOT Rate Per Contract

The following chart depicts the Exchange’s November 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

 

Nov. 30, 2006

Oct. 31, 2006

Sept. 30, 2006

Product Group

 

 

 

Interest Rate

0.565

0.571

0.568

Agriculture

0.909

0.871

0.790

Equity Indices

0.800

0.798

0.779

Metals, Energy & Other

1.052

1.053

1.048

Overall Avg. Rate per Contract

0.645

0.638

0.618

Venue

 

 

 

 Open-Auction

0.534

0.531

0.524

 Electronic

0.598

0.588

0.562

 Off-Exchange

3.180

3.149

3.172

Total Avg. Rate per Contract

0.645

0.638

0.618

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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