CHICAGO, January 8, 2002 - The Chicago Board of Trade (CBOT®) announced today it has renewed its contract with Dow Jones & Company enabling the CBOT to continue the trading of U.S. dollar denominated futures and futures-options contracts based on the Dow Jones related products at the exchange until the end of 2007. The complex includes futures and futures-options on the Dow Jones Industrial Averagesm, the most recognized stock index in the world, as well as the Dow Jones Transportation Averagesm, the Dow Jones Utility Averagesm, Dow Jones Composite Averagesm and the Dow Jones-AIG Commodity Indexsm.
CBOT Chairman Nicholas J. Neubauer said, "Since the CBOT won the right to trade futures and options on the Dow Jones indices in the U.S. in 1997, the exchange has worked aggressively to ensure the continued liquidity and growth of the complex. We also launched the mini-sized Dowsm contract, as well as futures on the Dow Jones-AIG Commodity Indexsm. We incorporated state-of-the-arttechnology in the Dow trading pit and on our electronic trading system for quick and accurate information to our customers. We look forward to working with Dow Jones & Company to further enhance the complex and provide additional trading opportunities for all types of investors."
Dow Jones & Company Chairman and CEO Peter R. Kann said, "The CBOT took the lead introducing futures and options based on the most recognized index in the world, the Dow Jones Industrial Average. Over the past four years, global volume in derivatives based on all Dow Jones indexes has increased substantially. We look forward to this trend continuing as exchanges join the CBOT in offering Dow Jones index-based products that are useful to investors worldwide."
Large and small investors have been taking advantage of the CBOT's DJIA contract as a way to manage their risk over the past years, especially during times of economic turmoil.
Through the use of the CBOT's DJIA futures contract, investors can;
- • protect and diversify their portfolios against adverse changes in the stock market
- • establish a price level today for a portfolio of stocks they plan to purchase or sell in the future
- • participate in the broad market by taking a position on the performance of the Dow Jones Industrial Average
- • participate in arbitrage opportunities
Since its inception on October 6, 1997, the Dow futures contract has traded 16,693,451 million contracts. In 2001, it traded a total of 4,901,949 million contracts, nearly 30% increase from the previous year.
For more information on the DJIA futures and futures options contracts and the CBOT Index Complex, please visit www.cbot.com.
About Chicago Board of Trade Providing a diverse mix of financial and commodity futures and options-on-futures products, the Chicago Board of Trade advances into the 21st Century on the strength of over 150 years of member-trader expertise, unparalleled liquidity, and market integrity. Via open outcry and screen-based trading, the CBOT provides premier customer service to risk managers and investors worldwide. Established in 1848, the CBOT was launched originally for agricultural producers to achieve price protection.
Today, CBOT members trade more than 60 different products, including futures and options-on-futures on U.S. Treasury bonds and notes, the Dow Jones Industrial Average and other Dow Jones indices, Agency debt, and a Municipal Bond index.