CME(R) To Modify Matching Algorithms To Enhance Electronic Trading Of CME Eurodollars

To further improve electronic trading of CME Eurodollar futures, CME will implement the following modifications to its allocation matching algorithms on CME Globex®. The algorithm enhancement will provide CME Eurodollar traders with a number of benefits including:

• Reduce the number of fills distributed and streamline the market data traffic;
• Reward traders for supplying market depth and liquidity;
• Provide small and medium sized traders with the greater possibility of being filled;
• Improve overall efficiency of the system by reducing the number of orders that must be analyzed during the allocation process.

The allocation matching algorithm change will be implemented in early 2005 along with an upgrade to provide a Market Maker capability on the implied spread trading functionality for Eurodollar futures.