CBOT To Launch 5-Year Agency Note Futures And Options Jan. 12

The Chicago Board of Trade announced today that it will launch its 5-year Agency Note futures and options contracts on Friday, January 12, 2001, starting at 9:00 a.m. (Chicago time) in open outcry. The contracts will begin trading on the electronic trading system, a/c/eSM, at 8:00 p.m. (Chicago time) on Monday, January 15, 2001.

These contracts--based on Fannie Mae“ Benchmark NotesSM and Freddie Mac Reference NotesSM--will complement the CBOT®’s existing 10-year Agency Note futures and options contracts by providing the financial community additional risk and portfolio management tools.

CBOT® Chairman David P. Brennan said, "The agency debt market is expected to continue to grow as U.S. Treasury issuance declines. Launching these new agency contracts is a natural evolution of the CBOT®’s diverse complex of financial products. It will strengthen our exchange’s position as the primary derivatives market for fixed-income risk and portfolio management."

CBOT® Interim President and CEO Dennis A. Dutterer said, "The market tells us there is great demand for these new contracts. Futures and options contracts on 5-year agency notes will provide our customers more choices as they continue to look to the CBOT® to address their risk management needs."

The CBOT®’s existing 10-year Agency note futures and options were launched earlier this year. Since inception on March 15, 10-year Agency note futures average daily volume has exceeded more than 6,100 contracts, with open interest reaching more than 62,000 contracts.