CBOT Announces Y2K Readiness

The Chicago Board of Trade announced today that it has completed a comprehensive, four-year Y2K preparedness program. The exchange ensured market users that it is confident that all trading systems will operate without interruption during the turn of the century. CBOT President and CEO Thomas R. Donovan said, "At the direction of the Board of Directors, Y2K has been the exchange's number one initiative this year. A comprehensive battery of tests has been completed successfully with a variety of business partners, including members and member firms, over a period of several years. No stone has been unturned as we have tested and re-tested systems to ensure reliable, dependable performance. A dedicated team of staff members has worked around-the-clock to accomplish our goals, and we are confident in our ability to provide uninterrupted markets to the financial community." The CBOT began its Y2K work in 1995, when the first futures contract to expire in the year 2000 began trading on the MidAmerica Commodity Exchange, requiring Y2K software changes. Testing was conducted internally at the exchange, as well as through partnerships with the Futures Industry Association (FIA), Financial Information Forum (FIF), Commonwealth Edison and other vendors, the Commodity Futures Trading Commission (CFTC), CBOT members and member firms. Y2K testing will continue throughout 1999. Much of the CBOT's Y2K testing was completed in an on-site, state-of-the-art Y2K test lab. The lab enables all systems to be "time-warped" to the year 2000. Taking a holistic approach to Y2K, the exchange tested and re-tested all trading and facility systems in the lab, integrating changes into the overall trading network to ensure smooth operations. In addition to trading systems, the exchange tested building systems such as power supplies from Commonwealth Edison, elevators, fire alarms, security systems, internal sprinklers and heating/cooling systems. The exchange worked closely with vendors such as ComEd to ensure reliable Y2K service. Alan Ho, Commonwealth Edison's Corporate Manager for Y2K said, "As a result of extensive testing, multiple reviews by independent parties, and our own detailed, deliberate approach to achieving Y2K readiness, we are completely confident in our ability to provide the CBOT with safe and reliable electric service through the critical Y2K rollover period and beyond." Critical to the exchange's Y2K effort has been the development of a Y2K contingency plan. The plan includes a coordinated communications strategy to update the market community on CBOT activities during the Y2K weekend, a detailed 100 Hours Plan which provides a comprehensive checking system for all CBOT operations, and a "Follow-the-Sun-Plan," which monitors the millennium impact as it moves across the globe. Additional detailed information on the CBOT's Y2K activities is available on the Y2K section of the website at www.cbot.com. During the Y2K transition weekend, December 31, 1999, through January 3, 2000, CBOT market updates will be available through the exchange website at www.cbot.com, and the CBOT Y2K Hotline, 1-847-326-0926.