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MINNEAPOLIS
GRAIN EXCHANGE ANNOUNCES ELECTRONIC TRADING HOSTING ARRANGEMENT
WITH CHICAGO BOARD OF TRADE - August 17, 2004
MINNEAPOLIS– The Minneapolis Grain Exchange (MGEX) announced
today that the Chicago Board of Trade (CBOT) will host electronic
trading of MGEX’s financially settled agricultural futures
and options on e-cbot ® powered by LIFFE CONNECT ® . The
tentative launch date for the products under this new arrangement
is December 2004.
MGEX will list National Corn Index (NCI), National Soybean Index
(NSI), Hard Red Winter Wheat Index (HRWI), Soft Red Winter Wheat
Index (SRWI) and Hard Red Spring Wheat Index (HRSI) futures and
options on e-cbot ® powered by LIFFE CONNECT ® . Contract
rules for SRWI and HRSI contracts were approved June 1 by MGEX ownership.
“e-cbot ® powered by LIFFE CONNECT ® is an excellent
trading venue for our financially settled agricultural futures and
options,” said Kent Horsager, MGEX president and chief executive
officer. “MGEX customers will benefit from the system’s
trading functionality, wide distribution and simple access alternatives.”
"These financially settled index futures and options and their
deliverable counterparts complement each other by offering traders
and hedgers many new opportunities for basis and spread trading,"
said Ray Lottie, chairman of the MGEX board of directors and manager
of cereal and eastern grain operations for General Mills.
MGEX’s agricultural index contracts settle financially each
calendar month to a three-day average of the corresponding spot
index. Data Transmission Network (DTN) collects elevator bids daily
for corn, soybeans, soft red winter wheat, hard red winter wheat
and spring wheat, to arrive at the spot indexes to which the futures
contracts settle at the end of each month. The contracts reflect
country-origin pricing, and, as there is no delivery alternative,
futures and options contracts expire simultaneously.
MGEX, established in 1881, is the only market for hard red spring
wheat, Hard Red Winter Wheat Index (HRWI), National Corn Index (NCI)
and National Soybean Index (NSI) futures and options. www.mgex.com
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