Minneapolis Grain Exchange Receives CFTC Approval For Electronic Trading

The Minneapolis Grain Exchange (MGEX) received approval yesterday from the Commodity Futures Trading Commission (CFTC) for the rules and regulations that support MGEXpress, the Exchange's electronic trading platform. The electronic trading rules and regulations were submitted to the CFTC under the 45-day approval track and were approved nearly two weeks prior to the end of that period. MGEXpress is scheduled to debut on February 15, 2002.

The MGEX board of directors has focused on developing an electronic trading strategy for the Exchange for approximately two and a half years with the effort intensifying over the past 18 months. OM Technology, based in Stockholm, Sweden, was chosen by MGEX in August 2001 as a partner for the development of MGEXpress. OM Technology is a leading provider of exchange technology to over 25 international exchanges and clearinghouses. It owns and operates exchanges in Stockholm, Calgary and London.

John Miller, chairman of the MGEX board of directors and president of Miller Milling, said, "The expediency with which the CFTC approved our trading rules and regulations for electronic trading at MGEX is a reflection of their confidence in our processes and also a tribute to the tremendous time and resources the MGEX board of directors and staff have expended on this project."

MGEXpress features an open-architecture application program interface (API), which allows users to interface with MGEXpress via front-end trading software designed by independent software vendors. Alternatively, users may interface with the MGEXpress trading engine using software written by OM Technology. To date, the majority of MGEX's Futures Commission Merchants (FCMs) have made commitments to connect to MGEXpress.

Cash-settled National Corn Index (NCI) and National Soybean Index (NSI) futures and options will be the first products to trade on MGEXpress. The settlement indexes for NCI and NSI futures are based on roughly 1,500 country elevator bids and are calculated daily by Data Transmission Network (DTN), an Omaha-based electronic commerce and information services company.

Kent Horsager, president and chief executive officer of MGEX, stated, "We have great faith in the partnerships and products we've developed with OM Technology and DTN. We're looking forward to February 15, 2002, with high expectations and great enthusiasm."

MGEX, established in 1881, is the only futures market for hard red spring wheat, white wheat, durum wheat, cottonseed, Twin Cities on- and off-peak electricity, black tiger shrimp and white shrimp. For more information on the Exchange, visit www.mgex.com.