News Release

CME to Enhance Electronic Trading Opportunities for Options on Futures

Wed Mar 21 2007

CHICAGO, March 21 /PRNewswire-FirstCall/ -- CME, the world's largest and most diverse financial exchange, today announced that it will launch new functionality for options on futures through a number of significant technology upgrades that will make it easier for customers to electronically trade CME options. Combined with additional trading incentive programs, the enhancements are intended to make it more attractive to electronically trade in the exchange's current 1.2 million contracts-a-day market across all of CME's major asset classes: interest rates, equities, foreign exchange (FX) and commodities.

Beginning March 25, 2007, the CME Globex® electronic trading platform will support user-defined spreads, which allow traders to create a spread if CME does not already offer it. This functionality upgrade will make it possible to create, request quotes on, and trade unique options spreads that are not pre-defined on CME Globex.

CME began the first phase of its user-defined spreads initiative in July 2006 when the exchange launched electronic functionality for "covered," or delta neutral spreads involving CME Eurodollar futures and options. Since then, more than 550,000 contracts have traded in covered transactions on CME Globex and that functionality has been extended to all product groups.

"We continue to add new functionality, broaden market access and increase the types of options products on CME Globex, such as American-style options for FX and electronic livestock, which were previously only floor traded," said Rick Redding, Managing Director, CME Products and Services. "All of our options now trade on the same system, making it easier than ever to trade multiple asset classes of options on the same platform. Last year CME electronic options volume averaged 123,000 contracts per day, up 167 percent from 2005 and now accounts for approximately 13 percent of our overall options volume. We believe the functionality enhancements and trading incentives that we intend to roll out this month will create additional electronic options trading opportunities in all of our product groups and attract new users to our markets."

CME also continues to improve electronic access to its options markets through CME EOS Trader™, the exchange's Internet-based trading application, which has been upgraded to fully support the new functionality. The system will offer credit controls as well as a shared order book, allowing multiple users to manage a single order book. CME EOS Trader enhancements will also be available through a pilot program for tablet PCs that will be available for CME Eurodollar options floor traders. CME has also worked with independent software vendors to ensure that their mutual customers will have enhanced electronic access to CME options markets.

In addition to improved trading functionality and broadened market access, beginning on May 1, 2007, CME will offer a variety of pricing incentives on transaction fees for options traded on CME Globex. These incentives will be in effect through the end of the year and will vary by product group.

CME experienced strong electronic options growth in 2006 with average daily volume in its three most actively traded electronic options contracts, CME Eurodollar options, CME E-mini S&P 500® options and CME E-mini Russell 2000® options, up 180 percent, 135 percent and 435 percent respectively over 2005.

For more information on CME options, including fee waiver and reduction details, please visit

CME ( is the world's largest and most diverse financial exchange. As an international marketplace, CME brings together buyers and sellers on the CME Globex® electronic trading platform and on its trading floors. CME offers futures and options on futures in these product areas: interest rates, stock indexes, foreign exchange, agricultural commodities, energy, and alternative investment products such as weather, real estate and economic derivatives. CME is a wholly-owned subsidiary of Chicago Mercantile Exchange Holdings Inc. (NYSE: CME)(NASDAQ: CME), which is part of the Russell 1000® Index and the S&P 500® Index.

Statements in this news release that are not historical facts are 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 our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, which can be obtained at its Web site at We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Chicago Mercantile Exchange, CME, the globe logo, CME Globex and E-mini are trademarks of Chicago Mercantile Exchange Inc. CLEARING 21 is a registered trademark of CME and New York Mercantile Exchange, Inc. S&P, S&P 500, NASDAQ-100, Nikkei 225, Russell 1000, Russell 2000, TRAKRS, Total Return Asset Contracts and other trade names, service marks, trademarks and registered trademarks that are not proprietary to Chicago Mercantile Exchange Inc. are the property of their respective owners, and are used herein under license. Further information about CME and its products is available on the CME Web site at



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