CBOT Binary Options on Target Fed Funds Rate Exceed 10,000-Contract Milestone in Open Interest
08 9월 2006 - 2:45AM
PR Newswire (US)
CHICAGO, Sept. 7 /PRNewswire-FirstCall/ -- The Chicago Board of
Trade (CBOT(R)) today announced that open interest in its Binary
options on the Target Federal Funds Rate contract exceeded 10,000
contracts on Wednesday, September 6. The new open interest record,
10,243 contracts, tops the previous record of 9,643 contracts set
on August 31, 2006. Open interest represents the number of trading
positions that have not yet been offset and closed at the end of a
trading day and is considered by many to reflect the vibrancy of a
market. CBOT Senior Vice President of Business Development Robert
D. Ray said, "Surpassing the 10,000 contract mark in open interest
in less than two months is a rare occurrence -- another indicator
that customers have embraced the new Binary options on the Target
Fed Funds Rate. As open interest and daily volume continues to
expand at a consistent pace, it's clear that CBOT market
participants view Binary options on the Target Federal Funds Rate
as a complement to the Exchange's Federal Fund futures contracts
and an effective way to trade exposure to the Fed's Target Rate."
At expiration, Binary options have two possible outcomes -- final
settlement is either a fixed dollar amount or nothing at all. When
the options expire, "in the money" options pay $1,000 to option
holders, while those that are "at the money," or "out of the money"
pay holders zero. Strike prices correspond to the Target Federal
Funds rate using a formula of 100- minus the actual Target rate -
they are cash-settled and based upon the most recent Target rate
level. The Target Federal Funds Rate is set by the United States
Federal Reserve, typically at its Federal Open Market Committee
(FOMC) meetings. For more information, visit the Binary Options
section on http://cbot.com/ . About the CBOT As one of the leading
global derivative exchanges, the Chicago Board of Trade provides a
diverse mix of financial, equity and commodity futures and
options-on-futures products. Building on its 158-year history, the
CBOT continues to advance into the future using the strength of
deep liquidity, market integrity and member-trader expertise. Using
superior trading technology in both electronic and open-auction
trading platforms, the CBOT provides premier customer service to
risk managers and investors worldwide. For more information, visit
our website at http://www.cbot.com/ . Forward-Looking Statements
Certain statements in this press release may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and includes any use of
the words "may," "should," "could," "expects," "plans,"
"anticipates," "believes," "estimates," "predicts," "potential" or
"continue". These statements are based on management's current
expectations and involve assumptions that may be subject to change
or risks and uncertainties that could cause actual results to
differ materially from those set forth in the statements.
Accordingly, actual outcomes and results may differ materially from
what is expressed or implied in any forward-looking statement
contained in this press release. The factors that may affect our
performance may be found in the Annual Report on Form 10-K and
other periodic reports filed by CBOT Holdings, Inc. with the U.S.
Securities and Exchange Commission ("SEC"). These filings can be
obtained at the SEC's website at http://www.sec.gov/ . We undertake
no obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise.
DATASOURCE: Chicago Board of Trade CONTACT: Craig Grabiner of CBOT,
+1-312-341-5758, Web site: http://www.cbot.com/
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