Cboe, CBSX, & CFE Press Releases


CBOE FUTURES EXCHANGE (CFE) OPEN INTEREST HITS NEW HIGH; Surpasses 50,000 Contracts Benchmark For First Time, CFE Prepping For Launch Of Futures On The CBOE S&P 500 BuyWrite Index

CHICAGO, September 14, 2006 - The CBOE Futures Exchange, LLC (CFE) announced that total exchange open interest reached a new high mark of 50,100 contracts at CFE this morning, surpassing the benchmark of 50,000 contracts for the first time ever. Open interest refers to the number of outstanding contracts in the exchange market or in a particular contract.

"2006 has become a watershed year for CFE as volume is growing, the number of market participants is increasing, and liquidity in the marketplace is building significantly over the previous year," said Patrick Fay, Managing Director, CBOE Futures Exchange. "More investors are beginning to understand how to manage volatility as an asset class and are utilizing CFE's suite of volatility products, and futures on the CBOE Volatility Index in particular, to effectively meet their portfolio needs. CFE is becoming the world's primary marketplace for trading volatility-based instruments."

In 2006, open interest at CFE has risen 133% to date, from 21,510 contracts at the end of January, up to 50,100 contracts earlier today. At the end of August, open interest stood at 47,883 contracts, a record month-end high at CFE.Through the end of August, CFE's total year-to-date volume of 270,121 contracts traded is 104% ahead of August 2005's trading activity. May, June, July and August 2006 have been the busiest months at CFE since its launch in 2004.

CFE currently offers futures on six different contracts, including: the CBOE Volatility Index, CBOE S&P 500 Three-Month and Twelve-Month Variance, CBOE DJIA Volatility Index, CBOE China Index, and six "Gas at the Pump" contracts.

And beginning October 2, 2006, CFE intends to begin trading futures on the CBOE S&P 500 BuyWrite Index, "BXM," pending regulatory approval. The CBOE S&P 500 BuyWrite Index (BXM) is a broad-based benchmark index that measures the performance of a hypothetical portfolio that sells S&P 500 Index (SPX) call options, generally on the third Friday of each month, against a long portfolio of stocks in the S&P 500 Index.

BXM futures will be cash-settled and will trade on the March expiration cycle, with initial expirations in November and December of 2006, and January, March, June, and September of 2007. The contract will be 100 times the value of the BXM, which is calculated and disseminated by the CBOE. Additional information on the CBOE S&P 500 BuyWrite Index is available at: http://www.cboe.com/BXM.

CFE, launched in March 2004, is a wholly-owned subsidiary of Chicago Board Options Exchange, Incorporated, offering an all-electronic, open access market model, with traders providing liquidity and making markets. CFE is regulated by the Commodity Futures Trading Commission (CFTC) and its trades are cleared by the triple-A rated Options Clearing Corporation (OCC). More information on CFE and its products, including contract specifications, can be found at: http://www.cboe.com/CFE.

Lynne Howard-Reed
(312) 786-7123

Gary Compton
(312) 786-7612

CBOE®, Chicago Board Options Exchange®, CBOEdirect®, CBOE Volatility Index®, and VIX® are registered trademarks of Chicago Board Options Exchange, Incorporated (CBOE). SPXSM and BXMSM are service marks of Chicago Board Options Exchange, Incorporated (CBOE). Gas At The Pump® is a registered trademark of CBOE Futures Exchange, LLC. DJIA and Dow Jones Industrial Average are trademarks of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by CBOE. Standard & Poor's®, S&P®, and S&P 500® are registered trademarks of The McGraw-Hill Companies, Inc. and are licensed for use by CBOE and CFE pursuant to a License Agreement. The methodology of the CBOE S&P 500 BuyWrite Index is owned by CBOE and may be covered by one or more patents or pending patent applications. CBOE's BuyWrite Indexes are designed to represent a proposed hypothetical buy-write strategy. Like many passive indexes, the BuyWrite Indexes do not take into account significant factors such as transaction costs and taxes and, because of factors such as these, many or most investors should be expected to underperform passive indexes. Investors attempting to replicate the BuyWrite Indexes should discuss with their brokers possible timing and liquidity issues. Transaction costs and taxes for buy-write strategies could be significantly higher than transaction costs for a passive strategy of buying-and-holding stocks. Past performance does not guarantee future results.

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