CBOT® Enhances Liquidity In Agency Futures With Appointment Of Abn Amro As Market Maker

The Chicago Board of Trade (CBOT) today announced that it has appointed ABN AMRO Bank N.V. as the designated primary market maker for 10-year and 5-year Agency note futures. Under the terms of the market making agreement ABN AMRO will provide two-sided open auction markets, with a bid/offer spread no wider than 2/32nds on depth of at least 250 contracts, on a continuous basis during open outcry trading hours. The market maker program will commence on Friday, February 7, 2003. ABN AMRO is also the designated primary market maker for CBOT's interest rate swap futures and options.

CBOT Chairman Nickolas Neubauer said, "With the success of ABN AMRO as market maker in our swap contracts, I am excited about their new role in our Agency contracts, which should provide increased liquidity in the contract. The unmatched trading expertise of our members, the liquidity and integrity of our markets, the synergies among the Agency and Treasury and swap markets, and now the introduction of a market maker in Agency note futures, all combine to make the CBOT the ideal venue for trading these products."

( quote from ABN AMRO)"The CBOT has proven to be an excellent partner for ABN AMRO; we are confident that our expanded role as market maker for Agency futures will build on our proven successes, and it will enhance the liquidity in this important growing market" stated Pat Fay, North American Head of Financial Markets for ABN AMRO.

"We applaud ABN AMRO's continued commitment to agency securities, extending the liquidity they provide in the cash market to the futures market," said Louise Herrle, Vice President and Treasurer of Freddie Mac. "Having a committed market maker in agency futures will enhance liquidity for investors, traders, and other cash market makers."

The CBOT Agency complex comprises 10-Year and 5-Year Agency note futures and option contracts based on Fannie Maeâ Benchmark Notes and Freddie Mac Reference Notes.