CBOE Futures Exchange Announces Contract Specifications For Russell 1000 Index And Mini-Russell 2000 Index Futures - LaBranche Structured Products And Timber Hill Named DPMs

CBOE Futures Exchange, LLC (CFE) has announced that the exchange will list futures contracts on the Russell 1000 Index (ticker symbol RN) and the Mini-Russell 2000 Index (ticker symbol RT) for trading beginning Friday, February 4, 2005, pending final regulatory approval. CFE, which launched on March 26, 2004, is a new, all-electronic, futures exchange.

Futures contracts on both the full-size Russell 1000 Index and the mini-size Russell 2000 Index will trade electronically at CFE, via CBOEdirect, the exchange's screen-based trading system. The full-size Russell 1000 Index will have a contract multiplier of $500 per point, while the Mini-Russell 2000 Index will have a contract multiplier of $100 per point. Both contracts will be quoted in terms of the underlying index, have minimum price intervals of 0.05 of one index point, and will offer contract months of up to three near-term contracts months and five months in the March quarterly cycle. A more detailed listing of CFE's currently anticipated contract specifications for futures on the Russell 1000 and Mini-Russell 2000 Indexes follows.

LaBranche Structured Products, LLC has been named the Designated Primary Market Maker (DPM) in the Russell 1000 Index futures and Timber Hill, LLC has been named the DPM in the Mini-Russell 2000 Index futures.

"With expiration months that more closely align with options cycles, the ability to trade these futures contracts electronically through CBOEdirect, a state-of-the art trading system with spreading capabilities, and liquidity provided by experienced equity derivative market makers, investors will find that CFE is a natural home for trading Russell index futures," said Patrick Fay, Managing Director, CBOE Futures Exchange.
"Our agreement with the CFE will help create market efficiencies and reduce trading costs," said Kelly Haughton, strategic director for Russell indexes. "In addition to offering futures on the Russell 1000 Index, we are thrilled that the world's newest futures exchange has decided to list mini-contracts on the Russell 2000 Index, broadening the base of market participants by giving retail investors the opportunity to gain exposure using the leading small-cap benchmark. 2005 is clearly shaping up to be a landmark year in the further distribution and availability of futures and options products based on Russell's U.S. stock indexes."

Russell 1000 Index
The Russell 1000 Index is designed to measure the performance of the top 1,000 companies from a universe of the 3,000 largest stocks in the U.S. This index is capitalization-weighted and includes only common stocks belonging to corporations domiciled in the U.S. and its territories and traded on the NYSE, NASDAQ, or the AMEX. The Russell 1000 Index is adjusted once per year, in June, to reflect changes in rankings and shares outstanding.

CFE Russell 1000 Index Futures Contract Specifications: (currently anticipated)
-Ticker symbol: RN
-Trading hours: 8:30 a.m. to 3:15 p.m. CT (Chicago Time).
-Trading platform: electronic trading via CBOEdirect.
-Price quotation: quoted in terms of the underlying Russell 1000 Index.
-Contract size: contract multiplier is $500 per point. For example, at an Index level of 650.00, one Russell 1000 Index futures contract would have a value of $325,000.00.
-Contract months: up to three near-term contracts months and five months in the March quarterly cycle (March, June, September and December) may be listed.
-Minimum price intervals: 0.05 of one index point ($25.00 per contract). 0.01 of one index point for calendar spreads. Stated in decimals.
-Termination of trading: will ordinarily cease on the business day (usually a Thursday) preceding the day on which the final settlement value is calculated.
-Final settlement date: the third Friday of the expiring month.
-Final settlement price: the final settlement price for RN futures will be a Special Opening Quotation (SOQ) calculated using the first (opening) reported sales price in the primary market of each component security of the Index on the final settlement date.
-Delivery: cash settled on the business day immediately following the settlement date.

Russell 2000 Index
The Russell 2000 Index is designed to measure the performance of the bottom 2,000 companies from a universe of the 3,000 largest stocks in the U.S. This index is capitalization-weighted and includes only common stocks belonging to corporations domiciled in the U.S. and its territories and traded on the NYSE, NASDAQ, or the AMEX. The Russell 2000 Index is adjusted once per year, in June, to reflect changes in rankings and shares outstanding.

CFE Mini-Russell 2000 Index Futures Contract Specifications: (currently anticipated)
-Ticker symbol: RT
-Trading hours: 8:30 a.m. to 3:15 p.m. CT (Chicago Time).
-Trading platform: electronic trading via CBOEdirect.
-Price quotation: quoted in terms of the underlying Russell 2000 Index.
-Contract size: contract multiplier is $100 per point. For example, at an Index level of 650.00, one Mini-Russell 2000 Index futures contract would have a value of $65,000.00.
-Contract months: up to three near-term contract months and five months in the March quarterly cycle (March, June, September and December) may be listed.
-Minimum price intervals: 0.05 of one index point (equal to $5.00 per contract). 0.01 of one index point for calendar spreads. Stated in decimals.
-Termination of trading: will ordinarily cease on the business day (usually a Thursday) preceding the day on which final settlement value is calculated.
-Final settlement date: the third Friday of the expiring month.
-Final settlement price: the final settlement price for RT futures will be a Special Opening Quotation (SOQ) calculated using the first (opening) reported sales price in the primary market of each component security of the Index on the final settlement date.
-Delivery: cash settled on the business day immediately following the final settlement date.