CBOT Launches DJ Total Market Futures

February 11, 2004

CBOT enjoyed the successful launch of futures trading based on the Dow Jones Total U.S. Market.

Chicago - 10 February 2003. The Chicago Board of Trade (CBOT) has launched futures based on the U.S. Dow Jones Total Market Index.

CBOT TMI futures will provide exposure to the total U.S. stock market, and now comprise the largest equity index contract to trade at the exchange.  Contract value is $500 x TMI index value, for a current value of approximately  $135,000.  The tick size is .05 or $25.

The new futures underscore the exchange's ongoing efforts to expand the CBOT's equity complex.

'While trading futures and options instruments based on the DJIA -the world's leading equity index-provide a watershed of trading opportunities, I am confident that these new CBOT Dow Jones futures and options contracts will provide additional risk management opportunities,' said Charles P. Carey, CBOT chairman.

The Dow Jones U.S. TMI is a broad-based free-float market-capitalization weighted index that represents 95 percent of the U.S. stock market.  CBOT said contracts will have a relatively large contract value specifically designed to meet the needs of institutional and professional market participants. 

CBOT mini-sized Dow futures now average more than 55,000 contracts per day with a monthly growth rate greater than 15 percent.  The contract provides customers significant cost, margin and leverage advantages over similar Dow-related exchange-traded funds (ETFs) and cash index options products.  

Options on mini-sized Dow futures and Dow Jones U.S. TMI futures will trade from 7:15 p.m. to 4:00 p.m. and 7:15 p.m. to 3:15 p.m. (Central Time) Sunday through Friday, respectively.

'We expect that the strong customer and professional trading demand that exists for Dow futures will carry over to the mini-sized Dow options, and TMI futures will have particular appeal to institutional users as a representative, rules-based benchmark of the overall U.S. equity market,' said CBOT president and CEO Bernard W. Dan.

Free streaming order book is available on CBOT website at this link.

Bloomberg users can find TMI fair value listed via the cash index or futures 'TNH4 FVD' or 'DJUS FVD'.

The CBOE Dow Jones Total Market Chartbook, which includes and abundance of historical data, as well as contract specifications are available online here.

As an added bonus, exchange fees are waived on all TMI trades for all participants through May 31, 2004

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