Sep 25, 2006
JADE BEGINS TRADING WITH TSR 20 RUBBER FUTURES CONTRACT
--Market Makers established to build liquidity for Rubber contract--
Chicago, IL, Singapore, September 25, 2006 – Singapore Exchange and Chicago Board of Trade (CBOT®) are pleased to commence the first day of trade for the Joint Asian Derivatives Exchange (JADE) today. JADE, a market division of SGX Derivatives Trading Ltd, launches its debut in commodities futures trading with TSR 20 Rubber Futures Contract.
Commodities have increasingly become a key growth area for Asia. The formation of JADE was in response to demand from international customers for a more accessible and transparent platform to participate in Asia’s booming but fragmented commodity markets. The superior functionality of the CBOT’s e-cbot® electronic trading platform, coupled with SGX’s globally recognized clearing system, enables JADE to offer customers access to a fair and transparent trading platform for price discovery. JADE is supported by a network of global clearing members, and its markets participants can also use SGX derivatives clearing house to clear their trade efficiently and cost-effectively.
“The launch of JADE and its first TSR 20 Rubber Futures Contract signifies an important milestone for SGX as we introduce a new commodity derivatives market for Asian based commodities. JADE offers market participants new trading opportunities in commodity derivatives through CBOT’s global e-cbot electronic trading platform, and the reliable clearing infrastructure of SGX. Customers can look forward to improved efficiencies and faster time-to-market by trading and clearing through the JADE marketplace. We believe that JADE’s presence and participation will contribute toward and reinforce the overall development of a dynamic commodity landscape in Asia,” said Mr Seck Wai Kwong, Senior Executive Vice President and Head of Strategy & Business Development of SGX.
CBOT President and CEO Bernard W. Dan said, “The CBOT and SGX share a common goal – to launch an all-electronic, Asian-based commodity exchange that will create new trading opportunities for global market participants. Our customers have displayed a great deal of enthusiasm for the JADE product offering, particularly the secure connection offered by the CBOT's electronic trading platform, and SGX’s clearing system. We believe JADE represents a new gateway to arbitrage opportunities in Asia and is a welcomed addition as a price risk management tool for commodities in the region.”
JADE also announced that it has established three electronic market makers to provide liquidity and generate market activity for the Rubber contract.
By the end of 2006, following the launch of TSR 20 Rubber Futures Contract, JADE aims to introduce its next contract, crude palm oil (CPO). JADE will continue to explore and develop its next suite of Asian-based commodities which may include other agricultural products, metals and energy.
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About the Joint Asian Derivatives Exchange (JADE)
The Joint Asian Derivatives Exchange (JADE) is a Singapore-based, electronic commodity derivatives market developed by Joint Asian Derivatives Pte. Ltd., a joint venture of CBOT Holdings, Inc. and the Singapore Exchange. JADE commences operations on 25 September 2006 and leverages the CBOT's infrastructure, connectivity and global market participants and SGX's position as a leading Asian derivatives exchange.
The joint venture company will develop commodity contracts to be traded on JADE. The new products will be hosted on the CBOT electronic trading platform, powered by LIFFECONNECT®. All trades will be cleared by the SGX derivatives clearing house. As a result of the CBOT's recent extension of their telecommunications network into Singapore, the new market will leverage the infrastructure and connectivity of the CBOT's global market participants in addition to those connected to Singapore Exchange Derivatives Trading Limited (SGX-DT). JADE is operated by SGX-DT under its existing licence granted by the Monetary Authority of Singapore (MAS).
Forward Looking Statement
In this release, our use of the words "may," "will," "should," "could," "expects," "plans," "anticipates," believes," "estimates," "predicts," "potential," or "continue" or other comparable terminology is intended to identify forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements. More detailed information about factors that may affect our performance may be found in filings made by CBOT Holdings, Inc. with the U.S. Securities and Exchange Commission, which can be obtained at its web site at www.sec.gov We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.