News Release

CBOT Binary Options on Target Fed Funds Rate Exceed 10,000-Contract Mark

Thu Sep 07 2006

For Immediate Release

Media Contact:
Craig Grabiner
(312) 341-5758


CHICAGO, IL, September 7, 2006 – The Chicago Board of Trade (CBOT®) today announced that open interest in its Binary options on the Target Federal Funds Rate contract exceeded 10,000 contracts on Wednesday, September 6.  The new open interest record, 10,243 contracts, tops the previous record of 9,643 contracts set on August 31, 2006.

Open interest represents the number of trading positions that have not yet been offset and closed at the end of a trading day and is considered by many to reflect the vibrancy of a market.

CBOT Senior Vice President of Business Development Robert D. Ray said, “Surpassing the 10,000 contract mark in open interest in less than two months is a rare occurrence – another indicator that customers have embraced the new Binary options on the Target Fed Funds Rate.  As open interest and daily volume continues to expand at a consistent pace, it’s clear that CBOT market participants view Binary options on the Target Federal Funds Rate as a complement to the Exchange’s Federal Fund futures contracts and an effective way to trade exposure to the Fed’s Target Rate.” 

At expiration, Binary options have two possible outcomes – final settlement is either a fixed dollar amount or nothing at all.  When the options expire, “in the money” options pay $1,000 to option holders, while those that are “at the money,” or “out of the money” pay holders zero.  Strike prices correspond to the Target Federal Funds rate using a formula of 100-minus the actual Target rate – they are cash-settled and based upon the most recent Target rate level.

The Target Federal Funds Rate is set by the United States Federal Reserve, typically at its Federal Open Market Committee (FOMC) meetings.

For more information, visit the Binary Options section on

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

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  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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