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CBOT Launches First Agricultural Product Side-By-Side

May 16, 2006 9:35 AM

The Chicago Board of Trade (CBOT) announced it is set to begin the listing of Agricultural futures electronically during daytime hours, beginning with South American Soybean (SAB) futures on Monday, May 15.

CBOT is also extending the trading hours in the product by 30 minutes, with the electronic and open auction market for SAB futures opening a half hour earlier at 9:00 a.m. (Chicago Time) beginning on May 15.

“Our decision to first list the SAB contract electronically side-by-side was a strategic one and it leverages the global distribution and exceptional transparency of the E-CBOT platform. The move was also designed to spark new growth in the contract globally and to further develop liquidity,” says CBOT CEO Bernard W. Dan.

CBOT will have an electronic market maker for the May 15 opening. The electronic market maker will be instrumental in creating a competitive, two-sided market and dedicated to providing constant bids and offers on the SAB contract.

The CBOT launched its SAB contract as a means to provide a reliable and effective tool to meet the growing risk management needs of South American producers and international consumers of soybeans. South America supplies more than 50 percent of the world’s soybeans. With delivery points in the ports of Paranagua and Santos, Brazil, the contract is the CBOT’s first product with delivery outside the U.S. The contract, which was originally listed in the open auction environment in May 2005, has had successful deliveries in each of the past contract months.

As previously announced, CBOT plans to list its Ethanol futures contract electronically side-by-side beginning on May 31, 2006. CBOT intends to offer the remainder of its Agricultural futures contracts, including Corn, Soybean, Soybean Oil, Soybean Meal, Rough Rice, Wheat and Oat futures, on its electronic trading platform during daytime trading hours beginning August 1, 2006.

For more information on SAB futures, as well as CBOT’s Agricultural complex, please visit the CBOT’s website at www.cbot.com/ag. Market users can access live, real-time electronic bids and offers for the most active trading contract months for free at www.cbot.com.

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