SOURCE: Chicago Board Options Exchange

March 16, 2005 15:30 ET

Chicago Board Options Exchange (CBOE) and Zhengzhou Commodity Exchange (ZCE) Sign Memorandum of Understanding

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

"We are very excited to have the opportunity to share our expertise on trading options with China's first futures exchange. Options can be used to reduce or manage risk, and can be an important tool as China's markets grow and mature," said CBOE Chairman and CEO William J. Brodsky. "We look forward to deepening our longstanding relationship with the Zhengzhou Commodity Exchange, continuing to share information, and continuing work on developing new markets."

"We are delighted to sign the MOU with the Chicago Board Options Exchange. It offers both Exchanges the opportunity for further cooperation," said Xianli Wang, the President and CEO of the Zhengzhou Commodity Exchange. "The ZCE launched its options research program in the 1990s and has been receiving generous help from the CBOE for many years. We would like to take this opportunity to convey our appreciation to CBOE, and we believe that the MOU will provide the ZCE with further assistance in listing our own options products. By signing this MOU we are also committed to helping the CBOE know the Chinese market better."

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. ZCE Executive Vice President Qingrong Tang, CBOE Chairman and CEO William Brodsky, and other Exchange officials finalized the MOU in a signing ceremony held today.

Established in October 12, 1990, the ZCE is the first futures marketplace in China. The exchange is regulated by the China Securities Regulatory Commission (CSRC). For additional information about the ZCE and its products details, please access the ZCE website at:

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:

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

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