CBOE's VIX Options Wins Award For Most Innovative Index Derivative Product - Third Award In Three Years At The Super Bowl Of Indexing Conference

The Chicago Board Options Exchange (CBOE) announced that options on the CBOE Volatility Index (VIX) was named the Most Innovative Index Derivative Product at the Super Bowl of Indexing Conference in Phoenix, Arizona.

The Super Bowl of Indexing Conference is an annual conference developed by Information Management Network (IMN) and sponsored by more than fifty investment banks, brokerages, exchanges and index providers from around the world. Now in its eleventh year, the event is attended by industry professionals and academics who seek in-depth information and analysis on a broad spectrum of financial instruments and concepts.

"For more than a decade, CBOE has been the pioneer in the volatility arena and has worked tirelessly to promote and develop this emerging new asset class. We are gratified that the hard work and investment in innovation made by CBOE is recognized and held in such high regard by our peers. Launched on February 24, 2006, trading volume in VIX options during its first nine months has been nearly 4.5 million contracts, making it arguably the most successful new product launch in CBOE history," said CBOE Chairman and Chief Executive Officer, William J. Brodsky.

"I would also like to acknowledge our partners for their work in making VIX options such a success," Brodsky added. "We thank Standard & Poor's for their partnership and continued support. We salute our colleagues at Goldman Sachs for their invaluable contributions as co-creators of the CBOE Volatility Index. We would also like to thank Group One Trading, L.P., the Designated Primary Market Maker (DPM) in VIX options at CBOE, for their commitment to the product and the tremendous liquidity they provide to the marketplace daily.We are proud to receive this award and honored to share this recognition with each of our partners."

VIX options were one of five products nominated in the Most Innovative Index Derivative Product category. The award was presented at the conference's award ceremony on Monday, December 4, 2006. This is the third award that CBOE has received at the Super Bowl of Indexing Conference during the last three years. In December 2004, the CBOE S&P 500 BuyWrite Index (BXM) was awarded the Most Innovative Benchmark Index distinction and the CBOE Volatility Index (VIX) futures product received the Most Innovative Index Derivative Product award.

The CBOE Volatility Index was created in 1993 as the first measure of volatility in the overall market. Derived from real-time S&P 500 Index (SPX) option prices, VIX is designed to reflect investors' consensus view of expected stock market volatility over the next 30 days. VIX is the widely disseminated benchmark index commonly referred to as the market's "fear gauge" and serves as a proxy for investor sentiment ? rising when
investors are anxious or uncertain about the market and falling during times of confidence or complacency. VIX is closely watched by active traders, financial analysts, and the media for insight into the possible future direction of the market.

VIX options offer investors the ability to make trades based on their view of future direction or movement of the VIX, and option buyers have the advantage of limited risk. VIX options also offer the opportunity to hedge volatility risk of a portfolio, distinct from price risk. CBOE has created a new section of its award-winning website, offering education on VIX trading strategies, historical price data on the VIX going back to 1986, charts, answers to frequently-asked questions, and a free options toolbox, at www.cboe.com/VIXOptions.

Futures on the CBOE Volatility Index (futures ticker symbol VX) were first launched in March 2004, are also available for trading on the all-electronic CBOE Futures Exchange (CFE). For additional information on the CBOE Futures Exchange, visit www.cboe.com/CFE.

CBOE, the largest options marketplace in the U.S. and the creator of listed options, is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, visit the CBOE website at: www.cboe.com.