This year the Kansas City Board of Trade (“KCBT”) is celebrating its 150- year anniversary. As a part of this celebration, we wish to express our deep appreciation to our market users, both domestic and international, for your confidence and participation over the many years. The KCBT has always prided itself on its mission to provide a marketplace based on the cornerstones of integrity, transparency, liquidity and customer service. We consider your increased participation, resulting in our tremendous growth over the years, a testament to our reputation for fairness, efficiency and service.
In 1856, a group of Kansas City merchants organized the KCBT on the banks of the Missouri River to develop a method for buying and selling grain and promote area trade, the latter a function similar to a chamber of commerce. The KCBT was formally chartered twenty years later in 1876, the year that wheat futures trading first began.
Today, the Kansas City Board of Trade is the world’s largest marketplace for the trading of hard red winter (HRW) wheat futures and options contracts. HRW wheat is the world’s predominant bread wheat, making the wheat futures contract traded at the KCBT the world benchmark for bread wheat.
During our record volume year last year, nearly 20 billion bushels of wheat changed hands at the exchange in the form of futures and options contracts traded. 2005 was our 10th annual wheat futures volume record in the last 12 years. Wheat futures trading volume this year is up 52% over last year and open interest is up 87%.
While wheat futures remains KCBT’s flagship product, we remain mindful of the fact that the KCBT developed and in February 1982 launched one of the most innovative financial products ever offered - the world’s first stock index futures contract based on the Value Line® Stock Index. Today the Value Line futures contract is enjoying continued growth on the exchange’s electronic trading system.
During 2006, as we reflect on our rich 150-year history and look ahead to our future, the KCBT remains committed to its mission and to responding to the needs of the marketplace. Thank you again for your support!
Regards,
Daniel L. GibsonChairman of the Board
Jeff C. Borchardt
President & CEO
