News Release

CBOT To Launch Futures Contract Based on Dow Jones U.S. Real Estate Index

Tue Jan 09 2007

Contract to Provide Exposure to U.S. Commercial Real Estate Market

CHICAGO, IL, January 9, 2007 – The Chicago Board of Trade (CBOT®) today announced plans to launch a new stock index futures contract based on the Dow JonesSM U.S. Real Estate Index.  The electronically-traded Dow Jones U.S. Real Estate (DJUSRE) Index futures contract, to be launched during the first quarter of 2007, will allow market participants to capitalize on changes in the real estate sector of the stock market, and better manage commercial real estate exposure.

The new contract, to be launched under a licensing agreement between the CBOT and Dow Jones, will settle to the value of the Dow Jones U.S. Real Estate Index, an index comprised primarily of Real Estate Investment Trusts (REITs). REIT securities serve as an accurate proxy for the underlying U.S. commercial real estate market because lease rates, vacancies, development costs and property transaction values are all reflected in REIT share prices.

Robert D. Ray, Senior Vice President of Business Development at the CBOT said, “Commercial real estate remains one of the largest classes of tradable assets not currently served by an exchange-traded futures instrument. We developed this contract after researching the U.S. commercial real estate market and conducting various conversations with real estate portfolio managers and pension funds who seek new avenues for managing the risks associated with property ownership.  Moreover, since the underlying instrument is an equity index, it also provides investors with an efficient means to express their views on movements in the real estate market, with the added advantages of transparency, leverage, liquidity and the ability to more efficiently short the market.”

According to Michael A. Petronella, President, Dow Jones Indexes, “The Dow Jones U.S. Real Estate Index is a transparent and rules-based tool to measure the performance of a U.S.-based real estate equity portfolio. As a benchmark recognized by commercial real estate owners and foreign investors seeking exposure to U.S. real estate markets, this index is an ideal underlying for a futures contract."

The new DJUSRE Index futures contract will trade on the CBOT electronic trading platform from 6:15 p.m. – 4:00 p.m. CT (the following day), Sunday through Friday.  The contract, which will be settled in cash, has a value equal to $100 multiplied by the value of the DJUSRE Index.  The CBOT is also creating a market maker program for the new DJUSRE Index futures contract to ensure a two-sided market will be available to market participants.

For additional information on the DJUSRE Index futures contract, please click here.

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.

“Dow Jones,” and “Dow Jones U.S. Real Estate Index” are service marks of Dow Jones & Company, Inc., and have been licensed for use for certain purposes by CBOT.  CBOT’s DJUSRE Index futures contract based on the Dow Jones U.S. Real Estate IndexSM, is not sponsored, endorsed, sold or promoted by Dow Jones, or any of its subsidiaries or affiliates, and none of Dow Jones, or any of its respective subsidiaries or affiliates makes any representation regarding the advisability of investing in such contracts.

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