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"One of the world's best-known large-cap stock indexes, the Russell 1000 is a widely used benchmark for investment managers - and is the basis for a CME futures contract," said CME Chairman Terry Duffy. "This and other Russell indexes are valuable tools for participants in the equity and futures markets. We are delighted to be included in the Russell 1000 stock index just six months after our initial public offering. In fact, CME was one of only six IPOs to join the Russell 1000 this year."
"Joining the Russell 1000 stock index on the basis of our market capitalization is an important achievement for CME," said President and Chief Executive Officer Jim McNulty. "Our exchange 'listed' Russell indexes in 1993, when we launched futures and options on futures on the Russell 2000® Index. Today, we also list E-mini Russell 2000 futures, and we just introduced Russell 1000 futures in April. Our product line allows CME to offer risk management exposure to the Russell 3000® universe of stocks, representing 98 percent of the investable U.S. equity market."
Together, CME's Russell-based products traded an average of more than 18,000 contracts a day in May 2003. The Russell 1000 and Russell 2000 indexes are subsets of the Russell 3000 Index, which measures the performance of the 3,000 largest U.S. companies based on total market capitalization covering approximately 98 percent of the investable U.S. equity market.
In 1984, Russell created the Russell family of stock indexes as part of a system for evaluating the performance of investment managers. Russell now maintains 21 U.S. stock indexes and has launched similar broad-market and style indexes in Japan. Today, more than $214 billion is invested in funds modeling Russell's U.S. indexes, and more than $1 trillion in funds is benchmarked against the global family of Russell indexes. During the second quarter of each year, Russell's U.S. indexes are adjusted to reflect current stock market capitalizations as of May 31. The annual reconstitution of Russell's 21 U.S. equity indexes captures the 3,000 largest U.S. stocks as of May 31, ranking them by market capitalization to create the broad market Russell 3000 Index. The largest 1,000 companies in the ranking comprise the large-cap Russell 1000 Index, while the remaining 2,000 companies comprise the small-cap Russell 2000 Index.
Chicago Mercantile Exchange Holdings Inc. is the parent company of Chicago Mercantile Exchange Inc. (www.cme.com), the largest futures exchange in the United States based on notional value, trading volume and open interest. On Dec. 6, 2002, CME became the first publicly traded U.S. financial exchange. As an international marketplace, CME brings together buyers and sellers on its trading floors and GLOBEX around-the-clock electronic trading platform. CME offers futures contracts and options on futures primarily in four product areas: interest rates, stock indexes, foreign exchange and commodities. The exchange moved about $1.5 billion per day in settlement payments in the first quarter of 2003 and managed $28.5 billion in collateral deposits at March 31, 2003
