Reduced Share Requirements for CBOT Clearing & Equity Member Status

The Board of Directors of the Chicago Board of Trade (CBOT) have approved a reduction in the number of CBOT Holdings, Inc. Class A shares that are required to be a Clearing Member of the CBOT. Currently Clearing Members that are also registered FCMs are required to have 54,676 shares registered on behalf of the firm, while Non-FCM Clearing Members and Sole Proprietors qualify by registering 27,338 shares. The share reduction will take place in three increments starting June 1st, continuing on July 1st and ending August 1, 2007, at which time the new requirements for FCM Clearing Members will be 27,000 and Non-FCM Clearing Members will be 13,500. The chart below reflects the stepped down clearing requirements:

Shares held in excess of the revised clearing requirement and that are not otherwise restricted should be reflected by the firm as a current asset at the market value. If the shares are held at Computershare or in a bank safekeeping account, the value of the shares should be reflected on the 1-FR Line 3.A. - Securities at Market Value: Firm Owned. If the shares are held at a Broker-Dealer or another FCM, they should be reflected on the 1-FR Line 7.A. - Receivables from Registered FCMs, Net Liquidating Equity. For Broker-Dealers, the suggested reporting is on the FOCUS Line 7.E. Securities and Spot Commodities Owned, at Market Value, although other lines on the FOCUS may also be appropriate. The excess shares are subject to a securities haircut, currently 15% of the market value.

Since transaction fees for Equity Member Firms and Individual Equity Members are currently equal to those of Clearing Members, the Board of Directors also approved reductions in the share requirement for Equity Member transaction fees simultaneously, so that they will continue to mirror the share requirement of Clearing Members. Additionally, minor modifications have been made to the CBOT fee schedules for e-cbot member firms to adjust certain inconsistencies in previously established rates. These modifications will go into effect on June 1, 2007. The revised fee schedules can be viewed on www.cbot.com.

The reduction in the shares required to qualify for clearing status does not in any way modify the shares required to be an Exerciser Member at the CBOE.

Questions regarding the revised requirements can be directed to Nancy Dye at (312) 435-3484, Bruce Domash at (312) 341-5989 or Barbara Lorenzen at (312) 435-3683.

Paul J. Draths
Vice President and Secretary