CBOT Enhances 10-Year Interest Rate Swap Futures With Appointment Of ABN Amro As Market Maker

Improving its ability to create new product opportunities, the Chicago Board of Trade (CBOT) today announced the implementation of a market maker program for its 10-Year Interest Rate Swap futures contract. ABN AMRO Bank N.V. has been appointed the market maker to enhance liquidity in the CBOT's open auction markets. ABN AMRO will provide a market no lower than 250 contracts with bid/offer spreads not to exceed 4/32 under the terms of the market making agreement. This market-making program is the first of its kind in the futures industry.

CBOT President and CEO David J. Vitale said, "We are addressing the competitive realities of the marketplace in a timely fashion with the implementation of a market maker program at the CBOT. ABN AMRO's participation in our new market maker program will provide increased liquidity, reduce exchange costs, and enhance business opportunities for our members and customers in the 10-Year Interest Rate Swap futures contracts.

"We will continue to move decisively to initiate market maker programs where we deem it necessary to preserve market share or to concentrate capital investment in support of new product initiatives. The CBOT will continue to be a product-driven organization and has aligned its infrastructure and capabilities to grow existing and develop new products that reflect an economic benefit to the customer."

ABN AMRO's Pat Fay, Head of Global Financial Markets, North America commented, "ABN AMRO is pleased to extend our global derivatives profile in a partnership with the CBOT, and to provide an alternative source of liquidity to our derivatives clients."

Paul Potocki, ABN AMRO's Head of North American Derivatives echoed, "As the CBOT's primary market maker for its 10-Year Interest Rate Swap futures contract, we have leveraged our existing trading capabilities and significantly enhanced our distribution furthering our reach to clients."

Allan Zavarro, Head of Global Futures, commented that ABN AMRO's participation in the market maker program further indicates ABN AMRO's commitment to the Chicago Board of Trade. ABN AMRO is a leading clearing broker on the Chicago Board of Trade.

In 2000, the CBOT Board of Directors and membership approved an enabling rule authorizing the CEO of the Exchange to approve the implementation of market maker programs for products in the municipal bond complex, the equity index complex, and all products launched after December 31, 1999. The designation of ABN AMRO as the market maker for the 10-Year Interest Rate Swap futures contracts is the first such action as a result of implementing this rule.