CBOE Announces Special Closing Procedures on December 31, 1999

The Chicago Board Options Exchange ("CBOE") announced closing times and special procedures that will apply to the close of trading in domestic broad-based index options on December 31, 1999. The closing procedures for the final day of trading of 1999 are set to coincide with the Chicago Mercantile Exchange (CME). On December 31, 1999 only, the CME will stop trading in domestic stock index products at 12:05 p.m. (CST). In order to make the CBOE's hours of trading in domestic broad-based index options on December 31, 1999, conform to the hours of trading in related futures and to assure that year-end values for the Exchange's domestic broad-based index options are also based on "fair value" in a manner consistent with the determination of related futures values, the Exchange is implementing special year-end closing procedures, as described below. Closing of Certain Index Options at 12:05 p.m: On December 31, 1999 trading in the following index options will cease at 12:05 p.m. (CST): S&P 500 Index (SPX), S&P 100 Index (OEX), Nasdaq-100 Index (NDX), Russell 2000 Index (RUT), S&P/Barra Growth Index (SGX), S&P/Barra Value Index (SVX), S&P SmallCap Index (SML), Morgan Stanley Multinational Company Index (NFT). This represents a change from the Exchange's previous determination to close trading in these options at 12:15 p.m. It reflects the fact that options traders and investors use futures and options contracts traded on CME to hedge their positions in the related index options traded on the CBOE. Special "Closing Rotations" in these Index Options In order to allow the CBOE's domestic broad-based index options to be valued on the same "fair value" basis as the related index futures at the CME, the Exchange has determined to deviate from the normal procedure for the conduct of closing rotations on December 31, 1999 only, for each of the index options listed above. Specifically, after the close of trading at 12:05 p.m. on that date, special "closing rotations" will be held for the sole purpose of determining theoretical fair values for the option contracts listed above. It should be noted that the option "fair values" determined during the special closing rotations may deviate from actual traded prices at the close. This action is being taken pursuant to authorization given to CBOE Floor Officials in consultation with the Order Book Officials under CBOE Rules 6.2 and 24.13 to deviate from ordinary rotation policies or procedures in the interest of a fair and orderly market. No orders, including orders resting in the Exchange's limit order book, will be allowed to be traded during these special closing rotations. For more information on closing times and these settlement procedures, please refer to CBOE Regulatory Circular RG99-233 or contact your broker. Closing Rotation in DJX: It should be noted trading in Options on the Dow Jones Industrial Average (DJX) will cease at 12:15 p.m. on December 31, 1999. At some time shortly after 12:15 p.m., a regular closing rotation will be held in DJX in which, unlike the closing rotations for other broad-based index options, orders may be traded consistent with past practice. Stock Option Closing Times: Stock option trading at CBOE will close at 12:02 p.m. CST on December 31, 1999. Regular business hours will be observed in all CBOE products on Monday, January 3, 2000. CBOE, the world's largest options marketplace and the creator of listed options, is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, access the CBOE site on the World Wide Web at http://www.cboe.com.