Cantor Exchange Announces Market Maker Incentive Program Enabling Active Traders to Trade Free Until End of 2005.

NEW YORK--(BUSINESS WIRE)--Feb. 10, 1999--The Cantor Exchange (CX), the nation's first full-time electronic exchange for trading U.S. Treasury futures, today announced an extended incentive program for qualified market makers on CX. The program enables the most active market makers to potentially trade free until the end of year 2005.

Specifically, market makers who are approved on or before February 26, 1999 are eligible to trade free until the end of 2002. In addition, these market makers are eligible for an added incentive after the year 2002, whereby the top three market makers, each year, trade free for an additional year up to the end of 2005.

The incentive program is intended to encourage market makers to sign on and begin making markets early. Market makers who sign up before the end of February 1999, will trade free until the end of 2002, those who do so by the end of March, trade free until the end of 2001 and those who sign by the end of April, trade free until the end of 2000. Market makers who sign on after the end of April, trade free until the end of 1999.

To qualify as a CX market maker, a trader must have CX trading privileges and be willing to be on one or both sides of a two-sided market in one or more futures contracts for a minimum of ten contract per bid/offer - at pre-determined spreads. All market makers' trades must be cleared through a New York Board of Trade (NYBOT) Clearing Member.

"The changes in the futures marketplace over the past year are offering many new opportunities for market participants, in particular for market makers," said Howard Lutnick, Co-Chairman of the CX and President and CEO of Cantor Fitzgerald, L.P. "CX offers individuals and firms, who have a vision of the electronic future, the opportunity to lead the world into the electronic age," added Mr. Lutnick.

"The Cantor Exchange is committed to being at the forefront of electronic trading," said Albert Weiss, Co-Chairman of the CX and Chairman of the NYBOT. "CX market makers will be among the first to utilize these new markets, while shaping and developing the transition of the futures market to the electronic arena," added Mr. Weis.

The CX, owned by the NYBOT and its members, is the first electronic exchange for US Treasury futures contracts. CX is operated jointly by the NYBOT and Cantor Fitzgerald. The NYBOT is responsible for oversight and clearing of all trades executed on the CX. Cantor Fitzgerald operates the trading platform, utilizing the trading and distribution systems that have been perfected in Cantor Fitzgerald?s highly liquid U.S. Treasury cash market.

The NYBOT is the parent company of the Coffee, Sugar & Cocoa Exchange (CSCE) and the New York Cotton Exchange (NYCE). Founded in 1870, the NYCE is the oldest futures exchange in New York. With its Citrus Associates, FINEX and New York Futures Exchange (NYFE) affiliates, NYCE offers a wide variety of agricultural, financial and stock-index products to market participants. NYCE trades a number of products on its complimentary trading floor in Dublin.

Founded in 1882, the CSCE is the world?s leading marketplace for futures trading in coffee, sugar and cocoa and, since 1993, an innovator in futures and options trading in dairy products.

Cantor Fitzgerald provides a broad spectrum of institutional brokerage and execution services to global financial markets. It operates the world?s largest electronic marketplace for G-10 sovereign debt, emerging markets, and Eurobonds and is also one of the largest "third market" equity operations in the U.S.

Headquartered in New York City, Cantor Fitzgerald currently employs more than 2,200 people in offices throughout the U.S., Canada, Europe and Asia serving the world's largest banks and securities houses.