News Release

CBOT Reduces Tick Size in 10-Year Interest Rate Swap Futures

Fri Feb 03 2006


Contact: Jennifer Rook

CBOT Reduces Tick Size in 10-Year Interest Rate Swap Futures

CHICAGO, February 3, 2006 – The Chicago Board of Trade (CBOT®) announced today it will reduce the minimum trading increment, otherwise known as a contract’s “tick size,” of its 10-Year Interest Rate Swap futures contact from 1/32 of a price point to one half of 1/32. The change is expected to go into effect on February 12, 2006, for the trade date of February 13, 2006.

The reduced tick size better aligns the 10-Year Swap futures contract with the tick size of the CBOT’s 10-Year Treasury Note futures contract, as well as with the cash market for Treasury notes, by enabling finer price gradations in trading.  The move is also designed to help market participants facilitate tighter bid-offer spreads.  

CBOT Senior Vice President of Business Development Robert W. Ray said, “Adjusting the tick size of our Swap futures contract will help to boost its utility among interest rate swap dealer desks, institutional portfolio managers, and mortgage industry participants because it will enable them to quote a tighter market.  Offering a smaller tick size also enhances spread strategies and adds more flexibility for executing Exchange-for-Physical and Exchange-for-Swap transactions at the CBOT.”  

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 157-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 investor worldwide. For more information visit our web site at

Forward Looking Statements

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 Securities and Exchange Commission, which can be obtained at its website at 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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