CME Group to Modify Trading Rules for Interest Rate Products

Mar 9, 2009

CME Group to Modify Trading Rules for Interest Rate Products 16.6 KB

CHICAGO, March 9, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- CME Group, the world's largest and most diverse derivatives exchange, today announced plans to modify its block trading thresholds and reporting time requirements for CME and CBOT interest rate futures and options, and also to extend CME Globex request-for-cross (RFC) functionality to all CBOT interest rate options. The changes take effect Monday, March 30, 2009. CME Group's interest rate products are listed with, and subject to, the rules of CME and CBOT.

In response to customer feedback, CME Group is making modifications to CME and CBOT rules for interest rate products that include the following:

    --  Modify Block Thresholds - Block thresholds for regular trading hours
        (RTH) have been modified for selected interest rate futures and options
        and block rules have been standardized where appropriate.  Block
        thresholds during European trading hours (12am-7am) will be half of
        regular trading hours (7am-4pm) and block thresholds during Asian
        trading hours (5pm-12am) will be one quarter of regular trading hours.
    --  Standardize Block Trade Reporting Time Requirements - For all interest
        rate products, block trade reporting time requirements will be 15
        minutes during European and Asian hours and five minutes during regular
        trading hours.
    --  Implement Request-for-Cross (RFC) - CME Group will extend the RFC
        functionality currently employed for CME options products to all CBOT
        interest rate options executed on CME Globex.  The associated rule will
        allow for pre-execution communications in connection with electronic
        trading of these products and ensures transparency and competitive
        execution by requiring solicitation of interest from all market
        participants via request-for-quote prior to submission of the cross
        request.

These changes are intended to enhance the execution options of market participants and result in more standardized trading rules across all interest rate products. For additional information about block trading thresholds and reporting time requirements, click here; and for information about RFC, click here.

CME Group (www.cmegroup.com) is the world's largest and most diverse derivatives exchange. Building on the heritage of CME, CBOT and NYMEX, CME Group serves the risk management needs of customers around the globe. As an international marketplace, CME Group brings buyers and sellers together on the CME Globex electronic trading platform and on trading floors in Chicago and New York. By acting as the buyer to every seller and the seller to every buyer, CME Clearing is designed to virtually eliminates counterparty credit risk. CME Clearing also offers financial safeguards to help mitigate systemic risk, providing the security and confidence market participants need to operate, invest and grow. CME Group offers the widest range of benchmark products available across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, and alternative investment products such as weather and real estate. CME Group is listed on NASDAQ under the symbol "CME."

The Globe logo, CME, Chicago Mercantile Exchange, CME Group, Globex, E-mini and CME ClearPort are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago. NYMEX and New York Mercantile Exchange are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other trademarks are the property of their respective owners. Further information about CME Group and its products can be found at www.cmegroup.com.

CME-G

SOURCE CME Group

http://www.cme.com