News Release

CME Group's Duffy to Appear at the House Financial Services Subcommittee on Capital Markets

Tue May 11 2010

CHICAGO, May 11 /PRNewswire-FirstCall/ -- CME Group, the world's leading and most diverse derivatives marketplace, announced that CME Group Executive Chairman Terry Duffy will appear before the U.S. House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises today to discuss the market events of Thursday, May 6. 

"CME Group futures markets functioned well on May 6, despite volatile financial market conditions and apparent pricing problems in selected individual securities markets.  Following our review, we found no evidence of improper trading activity or erroneous trades by CME Globex customers," said Terry Duffy, CME Group Executive Chairman. "During the steep market decline that occurred between approximately 1:41 and 1:45 pm (CT), liquidity and effective spreads in CME's E-mini S&P 500 futures contracts were significantly better than in the related SPDR ETFs.  While futures markets functioned properly, it is clear that opportunities exist to enhance the functioning of securities markets and to better coordinate across securities, futures and options markets during times of market stress.  Today, CME Group is recommending: (1) the implementation of harmonized, single stock 'circuit breakers' across all regulated securities exchanges and alternative execution venues in the securities markets; (2) the adoption of harmonized 'stop logic functionality' by each regulated securities exchange and alternative securities execution venue to prevent 'waterfall' events like those that occurred in 3M, P&G and Accenture stocks on May 6; and (3) re-evaluation of inter-market circuit breaker levels and mechanisms in order to ensure they reflect market structure shifts in the securities markets, as well as current market conditions."

The hearing is scheduled for 3:00 p.m. Eastern time in the Rayburn House Office Building. Mr. Duffy's written testimony also will be available at that time.  

As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk.  CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate.  CME Group brings buyers and sellers together through its CME Globex electronic trading platform and its trading facilities in New York and Chicago.  CME Group also operates CME Clearing, one of the largest central counterparty clearing services in the world, which provides clearing and settlement services for exchange-traded contracts, as well as for over-the-counter derivatives transactions through CME ClearPort.  These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk in both listed and over-the-counter derivatives markets. 

The Globe logo, CME, Chicago Mercantile Exchange, CME Group, Globex, E-mini and CME ClearPort are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago.  NYMEX and New York Mercantile Exchange are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc.  All other trademarks are the property of their respective owners.  Further information about CME Group (Nasdaq: CME) and its products can be found at www.cmegroup.com

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