The new EDS is an integral part of the CBOT/CME clearing agreement, which was fully implemented in January 2004. Setting the standard for the industry, CBOT and CME delivered cost reductions of $1.8 billion to users of both exchanges' markets through this historical agreement which included the creation of a single guarantee fund, lowered performance bond collateral requirements and other efficiencies.

With CBOT U.S. Treasury futures contracts eligible for delivery on a quarterly basis, March was the first delivery month the new system was implemented. Designed by both exchanges, the new EDS streamlines the physical delivery procedures for futures contracts held on the CBOT as well as increases the speed of the invoice process for clearing firms.

CBOT Chairman Charles P. Carey said, "Our customers wanted a faster, more efficient clearing system that would simplify the physical delivery process, and together with the Chicago Mercantile Exchange® we responded by creating the Common Clearing Link, which has exceeded expectations. We are extremely pleased with the flawless performance of the new Electronic Delivery System. The EDS highlights how cooperation between the CBOT and CME continues to drive value for market users at both exchanges."

CME Chairman Terry Duffy said, "Our clearing agreement with CBOT is already a proven success - providing $1.8 billion in savings to the users of both exchanges' that's about $400 million more than our original estimates. We are continuing to work with CBOT to provide enhanced clearing services for our customers. This new Electronic Delivery System is yet another feature that will add additional benefits."

In March, 85,077 contracts were tendered for delivery on the new system, representing a notional value of nearly $10.7 billion.

The new EDS increased for clearing firms the limit on the number of financial contracts each invoice can accommodate, raising the maximum to 99,999 contracts from 1,000. An example of this efficiency at work was evident in March, when one firm tendering more than 18,000 contracts to multiple clearing firms had the ability to invoice all 18,000 contracts in a single transaction. Previously, the same delivery obligation would have required a minimum of 18 different transactions to accomplish the same task.

Other efficiencies of the EDS include the ability to exchange banking information online, rather than via fax, and streamlined regulatory reporting. Additionally, firms now can see a real-time report that displays what they will be receiving on delivery, a particularly important development for the financial futures markets, as firms can now pass on important information to trading desks before the close of the cash market.