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CBOT Chief Operating Officer Bryan T. Durkin said, “Remote clearing for CBOT products is a valuable tool for our market users in Europe as well as Asia. It provides customers with local processing and allows them to achieve significant cost savings as they trade the CBOT’s markets, such as our highly liquid U.S. Treasury futures and options. Through our clearing agreement with the CME, we seek to serve customers globally. Today’s announcement illustrates how cooperation with the CME continues to result in the best value for users of both exchanges.”
Managing Director and President, CME Clearing House Division Kimberly Taylor said, “When CME launched our transaction processing agreement with the CBOT we expected to provide significant improvements for customers around the world. Extending our ability to remotely clear transactions for European customers provides customers and clearing member partners with additional flexibility in structuring their business to be cost efficient. This remote clearing capability further demonstrates CME’s technology leadership capabilities and the benefits customers can realize from our cooperation with the CBOT.”
The CME/CBOT Common Clearing Link, which was fully implemented in January 2004, set the standard for the industry and is delivering capital requirement reductions of $1.7 billion to users of both exchanges' markets. The agreement included the creation of a single guarantee fund and lowered performance bond collateral requirements.
For more information about the CME/CBOT Common Clearing Link, visit www.cbot.com or www.cme.com.
Providing a diverse mix of financial, equity and commodity futures and options on futures products, the Chicago Board of Trade advances into the 21st century on the strength of more than 155 years of unparalleled liquidity, market integrity, and member-trader expertise. Using superior trading technology in both screen-based and open auction trading platforms, the CBOT provides premier customer service to risk managers and investors worldwide.
The CBOT was launched in 1848 originally for agricultural producers to achieve price protection. Today, more than 3,600 CBOT members trade 50 different products, including futures and options on futures contracts on our robust agricultural complex, U.S. Treasury bonds and notes, interest rate swaps, the CBOT Dow Complex which includes the DJIASM, an electronic CBOT mini-sized DowSM, and other Dow Jones Indices, and metals contracts. For more information about the CBOT’s markets and contracts, log onto the exchange’s web site at www.cbot.com.
Chicago Mercantile Exchange Inc. (www.cme.com) is the largest futures exchange in the United States. As an international marketplace, CME brings together buyers and sellers on its trading floors and GLOBEX® electronic trading platform. CME offers futures and options on futures primarily in four product areas: interest rates, stock indexes, foreign exchange and commodities. The exchange moved about $1.6 billion per day in settlement payments in the first half of 2004 and managed $39.1 billion in collateral as of June 30, 2004. CME is a wholly owned subsidiary of Chicago Mercantile Exchange Holdings Inc. (NYSE: CME), which is part of the Russell 1000® Index.
Chicago Mercantile Exchange, CME, the globe logo and GLOBEX are registered trademarks of Chicago Mercantile Exchange Inc.
