CBOT President and CEO Bernard Dan said, "The CBOT's volume continues to expand at a rapid pace, with turnover at the exchange up 18 percent in the third quarter versus third quarter last year. In October, the CBOT surpassed its all-time annual trading volume record set in 2003, testimony to the value provided by the exchange's liquid and transparent markets and superior electronic trading platform. Further, the CBOT has significantly expanded access to the exchange via technology and other initiatives designed to facilitate global distribution of CBOT products."
Net income in the first nine months of 2004 also increased, rising 42 percent to $44.7 million from $31.6 million during the same period in 2003. Revenues during the first three quarters rose 5 percent from the same period in 2003.
Average daily trading volume in the third quarter of this year was up 18 percent to 2,366,716 contracts from 2,007,363 contracts in the same period of 2003. For the nine months ended September 30, 2004, average daily volume expanded 31 percent to 2,362,710 contracts from 1,804,552 contracts during the first nine months of 2003.
In October 2004, the CBOT Board of Directors unanimously approved the return of an assessment in the aggregate amount of $9.3 million that it levied on the CBOT's membership in January 2004. The purpose of the assessment was to provide the exchange with adequate funds to meet increased financial demands associated with anticipated competitive challenges. At this time, the Board of Directors has determined that the exchange no longer needs the assessed monies and will be returning such amounts to the individuals whom were originally billed. The assessment's return will be recorded in the fourth quarter of 2004.
Additionally, in September 2004, the Circuit Court of Cook County granted final approval to a settlement agreement in the Minority Member lawsuit, ending longstanding litigation over the previously proposed allocation of equity in the CBOT among CBOT member classes. The period for an appeal expired in October 2004, making the Court's decision final. Costs associated with the settlement of the lawsuit will be recorded in the fourth quarter of 2004.
