News Release

CBOT Expands Exchange for Risk Transactions to Treasury Products

Wed Jul 19 2006

CBOT Contact:
Jennifer Rook


CBOT Expands Exchange for Risk Transactions to Treasury Products

CHICAGO, January 19, 2006 – The Chicago Board of Trade (CBOT®) announced today that it has expanded its Exchange for Risk (EFR) program to include interest rate futures. The move enables exchange customers and market participants to efficiently transfer risk between CBOT financial futures and the over-the-counter (OTC) interest rate option market by enhancing the financial integrity of delta-hedging programs for OTC option positions.

An EFR transaction involves the transfer of a futures position for an OTC option position.  The CBOT introduced EFR transactions in 2003 for its agricultural commodity futures.  Expanding this service to interest rate futures is expected to contribute to closer integration of CBOT’s financial futures markets with the OTC interest rate option market, as well as capitalize upon the deep and growing liquidity pool in the OTC interest rate option market.

CBOT contracts that are newly eligible for EFR transactions include U.S. 30-Year Treasury Bond futures, U.S. Treasury 10-Year, 5-Year, and 2-Year Note futures, 30-Day Fed Fund futures, 10-Year and 5-Year Interest Rate Swap futures, and Dow Jones AIG Commodity Index futures. 

CBOT Senior Vice President of Business Development Robert W. Ray said, “There are many benefits to EFR transactions.  They provide quick and efficient execution of futures transactions, and they enhance the financial integrity of delta-hedging programs for OTC option positions. This strategy is in line with the CBOT’s objective of providing more efficient risk management tools to the marketplace and responding to our customers’ demands.”

For more information about EFR transactions, please visit the Exchange’s web site at:

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 investors 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,” “anticipants,” “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 web site at Except for any obligation to disclose material information under Federal securities laws, 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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