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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported)
October 10, 2003
CHICAGO MERCANTILE EXCHANGE HOLDINGS INC.
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(Exact Name of Registrant as Specified in Charter)
Delaware 001-31553 36-4459170
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
30 South Wacker Drive, Chicago, Illinois 60606
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(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number, including area code: (312) 930-1000
N/A
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(Former Name or Former Address, if Changed Since Last Report)
ITEM 9. Regulation FD Disclosure.
On October 10, 2003, Chicago Mercantile Exchange Inc., a wholly owned
subsidiary of the registrant, issued a joint press release with The Nasdaq Stock
Market, Inc. announcing that they have reached an agreement to expand the
relationship between the parties. A copy of the press release, dated October 10,
2003, is attached hereto as Exhibit 99.1.
EXHIBIT INDEX
Exhibit
Number Description
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99.1 Press Release, dated October 10, 2003.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
CHICAGO MERCANTILE EXCHANGE HOLDINGS INC.
Registrant
Date: October 10, 2003 By: /s/ Kathleen M. Cronin
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Kathleen M. Cronin
General Counsel & Corporate Secretary
Page 3
EXHIBIT 99.1
[Chicago Mercantile Exchange Logo] [NASDAQ Logo]
Anita Liskey, 312/466-4613 Wayne Lee
Maryellen Thielen, 312/930-3467 301-978-4875
news@cme.com wayne.d.lee@nasdaq.com
Investor Contact:
John Peschier, 312/930-8491
FOR IMMEDIATE RELEASE
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CME, NASDAQ Announce Expanded Partnership to Develop New Futures Products
E-mini NASDAQ Composite Index(R) Futures to launch October 27 on CME's
GLOBEX(R); Exclusive License for NASDAQ-100 Index(R) Futures Products Extended
to 2011
CHICAGO and NEW YORK, Oct. 10, 2003--Chicago Mercantile Exchange Inc.
(CME), the largest futures exchange in the U.S., and The Nasdaq Stock Market,
Inc. (NASDAQ(R)), the world's largest electronic stock market, today announced
an expanded partnership to develop new futures and options contracts, based on
the NASDAQ Composite Index(R). The two exchanges are expanding and extending
their exclusive joint agreement to offer NASDAQ-100 futures and options
contracts at CME through 2011. Additionally, they will launch new E-mini NASDAQ
Composite Index futures and options contracts on CME's GLOBEX(R)electronic
trading platform at 8:30 a.m. (Central Time) on Monday, Oct. 27, 2003.
Subject to attaining specified performance criteria, the NASDAQ Composite
Index futures products will be traded exclusively at CME and will be renewable
for two consecutive four-year terms. This represents the first time futures on
the benchmark NASDAQ Composite Index have been available for trading.
The NASDAQ Composite Index is a market capitalization-weighted index of all
the common stocks listed on the NASDAQ and is the broadest, most well
diversified real-time representation of the performance of NASDAQ-listed
companies. The NASDAQ-100 Index is a modified capitalization-weighted index of
the 100 largest non-financial stocks traded on NASDAQ. Investors may choose to
spread between the two products, for example, in order to increase or reduce
exposure to the large-cap stocks that predominate in the NASDAQ-100, or to
capture spread opportunities between the two indexes.
"Futures on the NASDAQ Composite Index are an important step in making the
entire basket of NASDAQ securities accessible to a larger segment of retail
investors, institutions and professional traders," said John L. Jacobs,
Executive Vice President of NASDAQ. "These new futures contracts can be powerful
tools for risk management and price discovery. With its remarkable track record
for supporting innovative financial instruments and its success in index
futures, Chicago Mercantile Exchange is well-suited to help us make the NASDAQ
Composite Index a beneficial tool for all types of investors."
"The NASDAQ Composite Index is one of the most widely recognized measures
for tracking U.S. market performance and serves as an important benchmark for
investors around the world," said CME Chairman Terry Duffy. "We are pleased to
partner with NASDAQ and offer these valuable new risk management tools to our
customers and to make them available nearly around the clock on our electronic
trading platform, GLOBEX."
"Since forging our initial partnership with NASDAQ eight years ago, we've
been extremely gratified to see the strong growth of our NASDAQ-100 futures
products," said Craig Donohue, who will become CME's CEO on Jan. 1, 2004. "CME's
E-mini NASDAQ-100 futures contracts have enjoyed a compound annual growth rate
of 171 percent since their launch and in September 2003 reached an all-time
record volume of more than 7 million contracts traded. I'm personally pleased to
once again be working with NASDAQ to further strengthen our partnership and
bring new futures and options contracts based on their benchmark NASDAQ
Composite Index to investors around the world."
CME E-mini NASDAQ Composite Index futures will be sized at $20 times the
NASDAQ Composite Index, or approximately $38,000 at current index levels, and
will have a tick size of 0.50 index points or $10.00. The index will trade on
CME's GLOBEX(R) electronic trading platform Monday through Thursday from 3:30
p.m. (Central time) to 4:30 p.m. and from 5:00 p.m. to 3:15 p.m. the following
day, and on Sunday from 5:30 p.m. to 3:15 p.m. the following day.
Jacobs added, "NASDAQ is pleased to count CME among the premier partners
associated with the launch of products tied to the NASDAQ Composite Index.
Financial products tied to the NASDAQ Composite Index will be a wonderful
complement to the highly successful suite of products that are already available
on the NASDAQ-100 Index and the NASDAQ Biotechnology Index."
Earlier this month an ETF (NASDAQ: ONEQ) was launched, marking the first
ETF based on the NASDAQ Composite Index, and in September, NASDAQ announced the
licensing of cash-settled options on the NASDAQ Composite Index to the
Philadelphia Stock Exchange.
Launched April 10, 1996, NASDAQ-100 futures traded an average of 2,000
contracts per day in its first year of launch, compared with an average of
23,000 contracts per day in September 2003. E-mini NASDAQ-100 futures, launched
on June 21, 1999, traded an average of 5,000 contracts per day in 1999.
Recently, average daily volume in E-mini NASDAQ-100 futures totaled nearly
337,000 contracts per day in September 2003.
NASDAQ is the world's largest electronic stock market. With approximately
3,400 companies, it lists more companies and, on average, trades more shares per
day than any other U.S. market. It is home to category-defining companies that
are leaders across all areas of business including technology, retail,
communications, financial services, media and biotechnology. For more
information about NASDAQ, visit the NASDAQ Web site at www.NASDAQ.com or the
NASDAQ NewsroomSM at www.NASDAQnews.com.
As an international marketplace, Chicago Mercantile Exchange Inc.
(www.cme.com) brings together buyers and sellers on its trading floors and
GLOBEX(R) electronic trading platform. CME offers futures and options on futures
primarily in four product areas: interest rates, stock indexes, foreign exchange
and commodities. The exchange moved about $1.5 billion per day in settlement
payments in the first nine months of 2003 and managed $29.6 billion in
collateral deposits at Sept. 30, 2003. CME is a wholly owned subsidiary of
Chicago Mercantile Exchange Holdings Inc. (NYSE: CME), which is part of the
Russell 1000(R) Index.
Chicago Mercantile Exchange, CME and GLOBEX are registered trademarks of Chicago
Mercantile Exchange Inc. E-mini is a service mark of CME. NASDAQ(R), NASDAQ
Composite Index(R) and NASDAQ-100 Index(R) are trademarks of The Nasdaq Stock
Market, Inc used under license. Further information about CME and its products
is available on the CME Web site at www.cme.com.
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