SOURCE: Chicago Board Options Exchange

March 16, 2005 15:30 ET

Chicago Board Options Exchange (CBOE) and Shanghai Futures Exchange (SHFE) Sign Memorandum of Understanding

BOCA RATON, FL and CHICAGO, IL -- (MARKET WIRE) -- March 16, 2005 --The Chicago Board Options Exchange (CBOE) and the Shanghai Futures Exchange (SHFE), 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 SHFE can lay the groundwork for future business relationships, including joint marketing efforts and potential product offerings.

"We are extremely pleased to start on a path of communication and cooperation with Shanghai Futures Exchange that will lead to future business relationships," said CBOE Chairman and CEO William J. Brodsky." CBOE created the stock options marketplace in the United States, and we look forward to the opportunity to share our expertise on this valuable risk management tool and collaborating with SHFE on educational efforts and the development of products."

"CBOE is the world's leading derivatives exchange for options products. Shanghai Futures Exchange has made great efforts in developing itself into a product-inclusive futures exchange, which mainly trades financial futures and options," said Dr. Peng Junheng, Shanghai Futures Exchange Deputy CEO. "We hope the partnership between SHFE and CBOE will provide both exchanges with more opportunities for growth."

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. SHFE Deputy CEO Peng Junheng, CBOE Chairman and CEO William J. Brodsky, and other Exchange officials finalized the MOU in a signing ceremony held today.

The Shanghai Futures Exchange, the largest one of China's three futures exchanges, is regulated by China's Securities Regulatory Commission. For further information about SHFE and its products, please visit SHFE website at: www.shfe.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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