CBOT To Waive Fees For Dow Stock Index Prods. For 4th Quarter

The Chicago Board of Trade (CBOTÒ) today announced a fourth quarter 2002 exchange fee waiver for all participants in Dow Jones stock index products as well as pricing adjustments for 2003. These pricing adjustments play an integral role in the Exchange's ongoing efforts to develop the Dow Jones product complex. Volume in the complex to date is up more than 43% from 2001 levels.

Other key Dow Jones related efforts occurring in the near future include the introduction of a major media campaign, the rollout of an enhanced CBOT® Dow Jones portal as part of www.cbot.com, and the expansion of the Exchange's successful market maker program in the electronically traded $5 Mini-sized DowSM. Regarding the latter, starting in September 2002, there will be at least three firms actively making two-sided markets at multiple levels of bids and offers. The existing market maker program has helped to increase liquidity in the mini-sized Dow, which has seen average daily volume exceed 10,000 contracts since its recent launch in April 2002.

CBOT Chairman Nickolas J. Neubauer said, "These programs collectively are designed to support our dual trading platform strategy and to encourage additional volume growth in the CBOT's Dow product complex. The Chicago Board of Trade continues to experience solid volume growth along with a strong financial position. Given this level of performance and renewed confidence in the future of the exchange, the Board of Directors agreed to extend several fee waivers that would have expired at the end of the year."

The adjustments to the CBOT pricing structure for the Dow Jones complex as approved by the Board of Directors are as follows:

1. For the 4th quarter of 2002 only, waive exchange fees for all participants for open auction and electronic trades in the Dow Jones complex.
2. For calendar year 2003, waive the $0.20 per contract supplemental charge for member open auction transactions in Dow Jones stock index contracts.
3. For calendar year 2003, waive the $200 per month fee for IDEM badge holders who execute trades in the Dow Jones stock index products.

In all cases, the actions taken yesterday by the Board of Directors represent temporary waivers of established rates and fees. None of these changes would remain effective beyond its specified expiration date unless extended by a later Board action.

The CBOT Dow Jones complex includes futures and futures option contracts on the original DowSM Jones Industrial Average ($10 multiplier) and the recently introduced mini-sized Dow futures contract ($5 multiplier). Daily volume for the complex in 2002 has been averaging over 32,000 contracts with volume at times reaching over 84,000 contracts per day.