Mondo Visione Worldwide Financial Markets Intelligence

FTSE Mondo Visione Exchanges Index:

CBOT Renews Contract With Dow Jones To Trade Dow Jones Complex

Date 08/01/2002

The Chicago Board of Trade (CBOT®) announced today it has renewed its contract with DowSMJones & Company enabling the CBOT® to continue the trading of U.S. dollar denominated futures and futures-options contracts based on the DowSMJones related products at the exchange until the end of 2007. The complex includes futures and futures-options on the DowSMJones Industrial AverageSM, the most recognized stock index in the world, as well as the DowSMJones Transportation AverageSM, the DowSMJones Utility AverageSM, DowSMJones Composite AverageSM and the DowSMJones - AIG Commodity IndexSM.

CBOT® Chairman Nicholas J. Neubauer said, "Since the CBOT® won the right to trade futures and options on the DowSMJones indices in the U.S. in 1997, the exchange has worked aggressively to ensure the continued liquidity and growth of the complex. We also launched the mini-sized DowSMcontract, as well as futures on the DowSMJones-AIG Commodity IndexSM. We incorporated state-of-art-technology in the DowSMtrading pit and on our electronic trading system for quick and accurate information to our customers. We look forward to working with DowSMJones & Company to further enhance the complex and provide additional trading opportunities for all types of investors."

DowSMJones & Company Chairman and CEO Peter R. Kann said, "The CBOT® took the lead introducing futures and options based on the most recognized index in the world, the DowSMJones Industrial Average. Over the past four years, global volume in derivatives based on all DowSMJones indexes has increased substantially. We look forward to this trend continuing as exchanges join the CBOT® in offering DowSMJones index-based products that are useful to investors worldwide."

Large and small investors have been taking advantage of the CBOT®'s DJIASM contract as a way to manage their risk over the past years, especially during times of economic turmoil.

Through the use of the CBOT®'s DJIASM futures contract, investors can

  • protect and diversify their portfolios against adverse changes in the stock market
  • establish a price level today for a portfolio of stocks they plan to purchase or sell in the future
  • participate in the broad market by taking a position on the performance of the DowSMJones Industrial Average.
  • participate in arbitrage opportunities
Since its inception on October 6, 1997, the DowSMfutures contract has traded 16,693,451 million contracts. In 2001, it traded a total of 4,901,949 million contracts, nearly 30% increase from the previous year.

For more information on the DJIASM futures and futures options contracts and the CBOT® Index Complex, please visit www.cbot.com.