CBOT Agency Contract Generates Strong, Steady Growth In 1st Year

The Chicago Board of Trade said on March 15 that its 10-Year Agency Note futures contract, launched exactly a year ago, has achieved strong and steady growth, trading 1,669,683 contracts during its first year. Average daily trading volume in the contract, based on Fannie Mae‚ Benchmark NotesSM and Freddie Mac Reference NotesSM, is 6,652 contracts. Over the last year record daily trading volume was 42,093 contracts, set on November 30, 2000, and highest daily open interest was 63,639 contracts, set on December 4, 2000.

CBOT® Chairman Nickolas J. Neubauer said, "The unmatched liquidity provided by our members and traders, the integrity of our markets, and the synergies between the Treasury and Agency markets led to a successful first year of trading for 10-Year Agency Note contracts. I look forward to seeing the same synergies in our new Mortgage futures contracts, based on Fannie Mae‚ and Freddie MacSM 30-Year Mortgage Backed Securities, which we will be launched next week."

On January 12, 2001, the CBOT® launched 5-Year Agency Note futures and options based on Fannie Mae‚ Benchmark NotesSM and Freddie Mac Reference NotesSM. These new contracts illustrate the CBOT®’s commitment to satisfying the increasing customer demand for fixed income products. The Agency debt market is rapidly growing, with issuance exceeding that of the Treasury market in recent years.