News Release

JADE Crude Palm Oil Futures Contract Receives Regulatory Approval

Thu Jan 04 2007

JADE Crude Palm Oil Futures Contract Receives Regulatory Approval and JADE Management Team Expands with Appointment of CEO

Singapore, January 4, 2007 – Joint Asian Derivatives Exchange (JADE) is pleased to announce the approval by the Monetary Authority of Singapore (MAS) of its second product, Crude Palm Oil (CPO) Futures Contract.  In consultation with market participants, the CPO futures contract is targeted for launch in the first quarter of 2007.  

JADE Crude Palm Oil Futures Contract is denominated in US dollar and will be a physically delivered contract at the ports of Belawan and Dumai, Indonesia. The contract will be traded from 10 am to 6 pm Singapore time followed by a special one hour session beginning from 9.30am Chicago time¹. During these trading hours, participants can enjoy the speed, transparency and privacy of entering orders directly and seamlessly into the e-cbot® electronic trading engine. Participants will also benefit from the reliable and efficient clearing infrastructure of the SGX Derivatives Clearing House.

The specifications of the Crude Palm Oil Futures Contract have been actively consulted with members of the palm oil trade and the contract is strongly supported by the Palm Oil Advisory Committee which comprises key industry players. Please refer to Appendix 1 for the CPO product specifications.  A full set of the CPO contract specifications will be available at www.jadeexchange.com from January 4, 2007 onwards. 

As it steps up efforts to develop the commodities market in 2007, JADE is also pleased to announce the expansion of its management team with the appointment of Benjamin Foo, Head of SGX Clearing and Commodities Business, as its Chief Executive Officer.  Benjamin will help drive this effort together with the Managing Director, Chong Kim Seng, and the JADE team. This move underscores the priority and importance that the CBOT-SGX joint venture Board for JADE places in building an Asian commodity derivatives market.

¹9.30 am Chicago Time – 11.30 pm Singapore Time (10.30pm Singapore Time during US Daylight Savings Time). Trades in this session will be valued and settled the next business day in Singapore.

~ End ~

For more information, please contact:

 

CBOT®

Debbie Baratz
Communications      
Tel : + (312) 435-3625
Email: dbaratz1@cbot.com

 

 

SGX

John Gollifer
Corporate Communications
Tel: +65 6236 8540
Email: johngollifer@sgx.com

Magdalyn Liew
Corporate Communications
Tel: +65 6236 8157
Email: magdalynliew@sgx.com

About the Joint Asian Derivatives Exchange (JADE)

The Joint Asian Derivatives Exchange (JADE) is a Singapore-based, electronic commodities derivatives market under development by Joint Asian Derivatives Pte. Ltd., a joint venture of CBOT Holdings, Inc. and the Singapore Exchange. JADE is expected to commence operations by end of September 2006 and leverage the CBOT's infrastructure, connectivity and global market participants and SGX's position as a leading Asian derivatives exchange.

The joint venture company will develop commodity contracts to be traded on JADE. The new products will be hosted on the CBOT electronic trading platform, powered by LIFFECONNECT®. All trades will be cleared by the SGX derivatives clearing house. As a result of the CBOT's recent extension of their telecommunications network into Singapore, the new market will leverage the infrastructure and connectivity of the CBOT's global market participants in addition to those connected to Singapore Exchange Derivatives Trading Limited (SGX-DT). JADE is operated by SGX-DT under its existing licence granted by the Monetary Authority of Singapore (MAS).

For more information of JADE, please visit www.jadeexchange.com

Forward Looking Statement

In this release, our use of the words “may,” “will,” “should,” “could,” “expects,” “plans,” “anticipates,” believes,” “estimates,” “predicts,” “potential,” or “continue” or other comparable terminology is intended to identify forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements. More detailed information about factors that may affect our performance may be found in filings made by CBOT Holdings, Inc. with the U.S. Securities and Exchange Commission, which can be obtained at its web site atwww.sec.gov. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Appendix 1

JADE Crude Palm Oil Futures Contract Specifications

 

Deliverable Grades               Crude Palm Oil (CPO)
                                                Free Fatty Acid (based on ship tank’s sample)          5.0% max
                                                        (based on shore tank’s sample)                         4.5% max
                                                Moisture and Impurities                                            0.5% max
                                                Deterioration of Bleachability Index (DOBI)              2.3 min

Trading Unit                           25 Metric Tons (1 lot)

Min. Deliverable Size           20 lots

Contract Months                   First 12/13 consecutive months (depending on list cycle) followed by 6
                                               additional months of the Feb, May, Aug, Nov cycle

Trading Hours                      10.00 to 18.00 Singapore Time followed by 23.30 to 00.30 Singapore Time
                                              (22.30 to 23.30 Singapore Time during US Daylight Savings Time)

Trading Hours on                 10.00 to 18.00 Singapore Time. Listing of new Contract Months

Last Trading Day                 will be at 10.00 Singapore Time on the next Trading Day

Tick Size                               US Dollars 0.25 per Ton (US$6.25 per Contract)    

Daily Price Limit                  +/- 10% from previous settlement price with a 15 Minutes Cooling Off Period
                                              to be followed with an expanded limit of +/- 15% and will apply from the
                                              session beginning at 23.30 hrs Singapore Time (22.30 hrs Singapore Time
                                              during US Daylight Savings Time) to the next session ending at 18.00 hrs
                                              Singapore Time

Last Trading Day                 The 10th calendar day of the month preceding the Delivery Month*

Exchange Delivery               Daily Settlement Price on the Last Trading Day
Settlement Price

Delivery Method                  FOB Port of Belawan, Indonesia (public berth);
                                              FOB Port of Dumai, Indonesia (public berth)

Position Limit                      6,500 lots net long or net short for all Contract Months Combined
                                             5,000 lots net long or net short for any individual Contract Month
                                                500 lots net long or net short in the Front Contract Month

Trading Platform                  e-CBOT

* If the 10th calendar day is a non Trading Day, then the Trading Day immediately preceding it.

Corporate Communications

+1 312 930 3434
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