Mondo Visione Worldwide Financial Markets Intelligence

FTSE Mondo Visione Exchanges Index:

CBOT® U.S. Treasury Futures Become Eligible For Exchange-For-Swap Transactions Jan. 2

Date 23/12/2003

The Chicago Board of Trade (CBOT) today announced that on January 2, 2004, CBOT U.S.Treasury futures will become eligible for exchange-for-swap (EFS) transactions, allowing market participants to exchange over-the-counter interest rate swap agreements for CBOT U.S. Treasury Bond and U.S. Treasury Note futures contracts.

CBOT President and CEO Bernard W. Dan said, "EFS transactions allow CBOT market users to combine access to the most liquid U.S. Treasury futures market in the world with the $27 trillion interest rate swap market, increasing the flexibility of CBOT U.S. Treasury futures as a risk management tool. By offering EFS transactions, the CBOT is responding to our customers' need to conduct these trades in a secure and transparent marketplace. "

The CBOT's EFS transactions provide an efficient alternative for adjusting or unwinding existing positions, and initiating new positions, in either over-the-counter (OTC) interest rate swaps or CBOT U.S. Treasury futures. Additionally, market participants now will have another mechanism for establishing spread positions between CBOT U.S. Treasury futures contracts and OTC interest rate swaps.