CBOE Futures Exchange (CFE) To Launch "Gas At The Pump" Futures

The CBOE Futures Exchange (CFE) today announced that it will launch "Gas At The PumpSM" futures. "Gas At The Pump" futures (ticker symbol "GP") are designed to track the retail price for regular gasoline that consumers pay at the pump.Gas At The Pump futures are expected to begin trading on October 28, 2005, pending regulatory approval.

CFE will launch six different GP contracts: one based on the average U.S. price for gasoline resulting from a survey of 800 stations across the country, and five others based on the average price of their respective geographic regions, known as Petroleum Administration for Defense Districts ("PADD"), within the United States. The contracts will be settled monthly based on the survey of retail gasoline outlets conducted by the Energy Information Administration (EIA), an independent statistical and analytical agency within the U.S. Department of Energy.

"The ability to trade on or hedge against price moves in the increasingly volatile consumer gas market was previously the domain of large institutional investors, but the launch of "Gas At The Pump" contracts will allow a broader range of investors to participate in this important market. The relatively small size of GP futures and their easily recognizable 'at the pump' gas prices make them very user-friendly. Retail investors especially will appreciate the cash-settled features of the contracts, as well as the ability to trade them electronically," said CFE Managing Director Patrick Fay.

GP futures will be traded electronically, via CBOEdirect, and will be cleared through the triple-A rated Options Clearing Corporation (OCC). At expiration, GP futures contracts will be cash-settled, meaning settlement will result in the delivery of a cash amount based on the final settlement price, determined by the surveys conducted by the EIA.

Initial contract months for GP futures will be December, January, March and June. In general, there will be two near-tem contract months plus two additional contract months on the March quarterly cycle. Price quotations will reflect the expected U.S. cost, in dollars and cents, per gallon of gas. For example, a retail gas price of $2.98 per gallon would equate to a price quotation of 298.00.The last trading day will be the third Friday of the expiring month. Trading hours are 8:30 a.m. to 3:15 p.m., central time. For more details and contract specifications, go to: http://cfe.cboe.com/Gas .

The CBOE Futures Exchange is a wholly-owned subsidiary of Chicago Board Options Exchange, Incorporated, offering an all-electronic exchange, open access market model, with traders providing liquidity and making markets. CFE is regulated by the Commodity Futures Trading Commission (CFTC). More information on CFE and its products, including contract specifications, can be found at: http://cfe.cboe.com/.

CBOE, the world's largest options marketplace and the creator of listed options, is regulated by the SEC. For additional information about the CBOE and its products, access the CBOE website at: http://www.cboe.com/