CBOT To Re-Engineer Its Municipal Bond Contract

The Chicago Board of Trade (CBOT) today announced that, following extensive consultation with market professionals, it has decided to re-engineer its Municipal Bond Index contract to better reflect changes in the marketplace. The CBOT®currently is developing and testing new product ideas for tax-exempt securities and intends to launch a new contract for this market in the near future. September 2002 will be the last contract month listed for the current CBOT Municipal Bond Index futures and options contracts, which are based on the Bond Buyer 40 Index.

CBOT Chairman Nickolas J. Neubauer stated, "There have been significant innovations in the tax-exempt sector since 1985, when the original CBOT Muni-bond contract was launched, and after listening to our customers, we have concluded that our current contract is no longer fully meeting the needs of those who trade in the municipal bond market. As the CBOT is a product driven organization, we intend to elevate the quality and effectiveness of the exchange's offerings in the tax-exempt sector. It is our intention to launch a new contract that will be a more liquid and robust financial instrument that better represents today's market for tax-exempt securities."