CBOT to convert MidAm trading to a/c/e platform

CBOT to convert MidAm trading to a/c/e platform

The Chicago Board of Trade (CBOT) is to shut down the 133 year old MidAmerica Exchange and switch its eight most active contracts to the a/c/e system for trading electronically.

The MidAm's Treasury Bond, 10-Year Treasury Note, Eurodollar, Wheat, Corn, Soybean, New York Gold and New York Silver futures contracts will be converted to CBOT "mini" contracts and will be listed exclusively on the a/c/e platform. The contracts will continue to trade via the MidAm's open outcry markets until the conversion.

CBOT chairman Nickolas Neubauer says: "Our business strategy calls for the CBOT to provide the best open outcry and electronic markets and to allow our customers to decide where they want to put their business. However, the MidAm's volume trends and its revenue versus expense performance, along with relevant market research, all pointed to the need for a change in business direction."

The first phase of the CBOT's mini complex (Bonds, Notes and Eurodollars) is targeted for launch on September 30, 2001. The second phase, for the agricultural and metals mini contracts, is targeted for the fourth quarter of 2001. The launch of the agricultural mini contracts is subject to further developments in the CBOT's ongoing discussions with the Chicago Board Options Exchange (CBOE) regarding the CBOT/CBOE exercise right issue.

For the other MidAm contracts that will not be converted, all months with open interest would continue to trade in the MidAm's open outcry markets until expiration.

The MidAmerica Exchange was founded in 1868 and acquired by the CBOT in 1986

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