CME Sets Deutsche Mark Transfer to GLOBEX2 for August 9

The Chicago Mercantile Exchange (CME) Board of Directors has set August 9 as the start date for Regular Trading Hour trading of Deutsche mark futures on the GLOBEX®2 electronic trading system. The transfer of the Deutsche mark to GLOBEX2 is part of the exchange's evolving strategy to accommodate changes created by European Economic and Monetary Union (EMU). The transition to EMU commenced at the beginning of 1999 and will completely merge the currencies of 11 participating nations, including Germany, into the new euro currency by July 1, 2002. The CME began trading Euro FX futures and options on January 4 in the same trading pits as contracts on the Deutsche mark - the most heavily traded currency being folded into the euro. Over the last few months, the Euro FX contract has increasingly absorbed much of the Deutsche mark contract's trading volume and open interest, reflecting the growing acceptance and dominance of the euro in world financial markets. When Deutsche mark futures trading on GLOBEX2 begins, expirations ranging from September 1999 to March 2000 will be available. In an effort to help facilitate customers, firms and local traders who wish to convert Deutsche mark futures positions into Euro FX positions may continue to execute intercommodity spread transactions by open outcry on a "call market" basis in the Euro FX pit. The move of Deutsche mark futures to GLOBEX2 was authorised through a June referendum vote in which Exchange members overwhelmingly approved the measure. The CME will make its GALAX-C hand-held trading devices available to members in the pit enabling them to electronically trade both Deutsche mark futures as well as the cash euro and Deutsche mark markets. Deutsche mark options will continue to be traded via open outcry during Regular Trading Hours. The CME's Euro FX contract is sized at EUR125,000 and has roughly twice the notional value of the CME's Deutsche mark futures contract. The CME also trades three Euro FX cross-rate contracts against the Japanese yen, the Swiss franc and the British pound.