For Release: August 10, 2000
Commission Approves Step One of Chicago Board of Trade Restructuring Plan
Washington -- On August 7, 2000, the Commodity Futures Trading Commission approved Chicago Board of Trade (CBOT) rules and procedures implementing Step One of CBOT's restructuring plan. Under Step One of the plan, CBOT would convert from an Illinois not-for-profit membership corporation into a Delaware not-for-profit membership company, the Board of Trade of the City of Chicago, Inc. (CBOT, Inc.). The MidAmerica Division of CBOT, a wholly-owned subsidiary of CBOT, would become a wholly-owned subsidiary of CBOT, Inc. The corporate structure of MidAmerica would remain the same. CBOT's proposal had been approved by its members on June 28, 2000.
Step One of CBOT’s restructuring plan is limited to the reincorporation of CBOT into a Delaware membership corporation and does not include the demutualization of membership equity interests. Before CBOT, Inc. could implement any demutualization step, it would need to make a further submission to the Commission for its review.
Concurrent with its approval letter, the Commission issued an order transferring all of CBOT’s current contract market designations to CBOT, Inc. The Commission’s approval and its issuance of the order transferring contract market designations are based upon certain representations of CBOT and CBOT, Inc. and upon the fulfillment of certain conditions intended to assure that the reincorporated exchange will satisfy the Commodity Exchange Act and the Commission's regulations.
Copies of the Commission’s Letter and Order are available by accessing the Commission’s website at www.cftc.gov/tm/tmcbtsteponeletter.htm and www.cftc.gov/tm/tmcbtsteponeorder.htm. For more information, see the Division of Trading and Markets' memorandum recommending approval of Step One of CBOT’s restructuring plan and transfer of all contract market designations from CBOT to CBOT, Inc. at www.cftc.gov/tm/tmcbtsteponememo.htm.