CBOT Members Approve 3 Propositions in August 30 Ballot - CBOT® Members Approve 3 Propositions in August 30 Ballot Increasing Transaction Fee Rates and Establishing a Licensed Contract Fee and Block Trading Surcharge

Members of the Chicago Board of Trade in a vote conducted yesterday approved three propositions amending exchange rules that will increase member transaction fee rates, establish a new Licensed Contract Fee for non-member transactions in stock index and Municipal Bond Index contracts, and establish a new block trading surcharge.

In the first proposition, members approved increasing the current exchange transaction fee rates (per contract/per side) to 5 cents from 1.5 cents for members and member firms and from 2 cents for membership interest holders. In addition the cap on fees payable by members for trading for their own accounts and for trades executed as a floor broker for others will be increased to $25,000 from $10,000 per year. This proposition was approved 473 for, 108 4/6 against.

The second proposition approved by the membership established a rate of 25 cents per contract/per side for non-member transactions in Dow JonesSM and Municipal Bond Index contracts. This proposition was approved 491 2/6 for, 91 4/6 against.

The third proposition approved by the membership provides for general enabling provisions for block trading (subject to specified requirements and restrictions). In addition, the provision established a new block trading surcharge of 30 cents per contract/per side for all block trading transactions. A determination as to any contracts eligible for block trading would be made by the Board of Directors at a later date. This proposition was approved 424 3/6 for, 158 3/6 against.

The CBOT® intends to implement the fee changes as of September 1, 2000.