SOURCE: Chicago Board Options Exchange

March 16, 2005 15:30 ET

Chicago Board Options Exchange (CBOE) and Dalian Commodity Exchange (DCE) Sign Memorandum of Understanding

BOCA RATON, FL and CHICAGO, IL -- (MARKET WIRE) -- March 16, 2005 -- The Chicago Board Options Exchange (CBOE) and the Dalian Commodity Exchange (DCE), the largest futures exchange in The People's Republic of China, announced today that they signed a Memorandum of Understanding ("MOU") which lays the foundation for the sharing of information for the potential development of options and other derivatives products. The MOU also provides the opportunity for ongoing educational initiatives designed to enhance the understanding of one another's products, markets, technologies and regulation. Such collaborative efforts between CBOE and DCE can lay the groundwork for future business relationships, including joint marketing efforts and potential product offerings.

"The Dalian Commodity Exchange has seen explosive growth over the past several years and we are very happy to have the opportunity to cooperate with DCE to find potential ways to develop options business and facilitate communication between our exchanges," said CBOE Chairman and CEO William J. Brodsky. "We congratulate DCE on their development of China's futures market and we look forward to building a relationship with them that can lead to the development of new products, the expansion of markets and opportunities that may be mutually beneficial."

Dr. Yuchen Zhu, DCE President and CEO said: "The Chicago Board Options Exchange is the first Exchange to trade options and currently the largest options market in the world. Although there are no options trading in China at this time, we are very optimistic about the development of China's derivative markets. Signing the MOU will provide us with a good opportunity to learn from CBOE's successful experience of options development, trading and management, and to further solidify our friendly relationship. We do believe that not only our exchanges, but also the establishment of China's options market will benefit from our further cooperation on options with CBOE."

The MOU lays the foundation for the exchange of educational resources and information with respect to pursuing cooperation and potential joint business initiatives between the two exchanges with regard to options and other derivatives products. DCE President and CEO Dr. Yuchen Zhu, CBOE Chairman and CEO William Brodsky, and other Exchange officials finalized the MOU in a signing ceremony held today.

The Dalian Commodity Exchange, established on November 18, 1993, has been the largest futures exchange in China since 2000. In 2004, with a total volume of more than 88 million contracts, DCE held 58% of China's market share. For more information about the DCE and its products, please access the DCE website at: www.dce.com.cn

CBOE, the world's largest options marketplace and the creator of listed options, is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, access the CBOE website at: www.cboe.com.

CBOE® and Chicago Board Options Exchange® are registered trademarks of Chicago Board Options Exchange, Incorporated.

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