These contracts would be listed exclusively on the CBOT®'s electronic trading platform, a/c/e, and would be available for trading by CBOT® members, and up to December 31, 2002, by MidAm trading privilege holders.
CBOT® Chairman Nickolas J. Neubauer said, "Our business strategy calls for the CBOT® to provide the best open outcry and electronic markets and to allow our customers to decide where they want to put their business. However, the MidAm's volume trends and its revenue versus expense performance, along with relevant market research, all pointed to the need for a change in business direction with respect to MidAm products. The Directors of both Exchanges concluded that this initiative represents the most reasonable and viable business plan."
The MidAm's Treasury Bond, 10-Year Treasury Note, Eurodollar, Wheat, Corn, Soybean, New York Gold and New York Silver futures contracts will continue their established cycle of contract month listings and will continue to trade via the MidAm's open outcry markets until the conversion. At that time, all MidAm open interest in the applicable contracts will become open interest in the new CBOT® mini contracts.
CBOT® President and CEO David Vitale said, "The most effective way to move forward with this initiative was to decommission the MidAmerica Exchange and convert its eight most active contracts to CBOT® mini contracts. The Treasury Bond and Note mini contracts correspond to our franchise contracts, the agricultural mini contracts correspond to the CBOT®'s primary markets and have an identifiable retail potential, the Eurodollar mini contract will readily facilitate the lengthy deferred month open interest, and the Metals mini contracts would provide more viable products in the metals complex."
The first phase of the CBOT®'s mini complex (Bonds, Notes and Eurodollars) is targeted for launch on September 30, 2001. The second phase, for the agricultural and metals mini contracts, is targeted for the fourth quarter of 2001. The launch of the agricultural mini contracts is subject to further developments in the CBOT®'s ongoing discussions with the Chicago Board Options Exchange (CBOE) regarding the CBOT®/CBOE exercise right issue.
For the other MidAm contracts that will not be converted, all months with open interest would continue to trade in the MidAm's open outcry markets until expiration. Trading authorization is being terminated for all months beyond the last month with open interest. No new trading months would be authorized.
The CBOT® will grant, to individuals who hold MidAm trading privileges as of September 1, 2001, temporary member privileges in the converted CBOT® mini contracts.
The MidAmerica Exchange was founded in 1868 and acquired by the CBOT® in 1986.
