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CBOE CELEBRATES 10 YEARS OF TRADING 'OEX' -- OPTIONS ON THE S&P 100 STOCK INDEX; WORLD'S FIRST AND MOST ACTIVE STOCK INDEX OPTION

 CHICAGO, March 10 /PRNewswire/ -- On Thursday, March 11, 1983, just 10 years after the first trades of stock options at the Chicago Board Options Exchange, a new contract was born that revolutionized the entire securities industry: options on the Standard & Poor's 100 Index, universally known by its ticker symbol, OEX. This was the first option on a broad-based stock index, and one that now has an average daily volume of nearly 300,000 contracts (295,174 contracts average year-to date) and annual volume of more than 62 million contracts. OEX trades only at the CBOE, the world's largest options exchange.
 "OEX has set the standard of achievement for equity derivative products," said CBOE Chairman and CEO Duke Chapman. "Its appeal and versatility are far-reaching, helping individual investors, institutions and market professionals to participate in, or protect themselves from, price changes in the U.S. equity markets. And it has a truly global audience, evidenced by the fact that approximately 20 percent of OEX open interest is held in customer accounts domiciled outside of the U.S."
 First-day volume of 4,827 contracts on March 11, 1983 was a harbinger of things to come. "Almost from its beginning, OEX was the most actively traded contract in the options industry and, in fact, the world," said CBOE Vice Chairman William Floersch. Before its first full year of trading had concluded, average daily volume in OEX had grown to more than 100,000 contracts.
 "It surprised many that OEX rose in popularity and utility so rapidly to become the number one securities option in the world, a status it has held for more than a decade, and to this day," Floersch said. "No other option has before or since matched this level of growth and success," he added.
 The underlying market value of a single day's trading in OEX is greater than the average value of shares traded daily at the NYSE, or roughly the equivalent of 300 million NYSE shares per day.
 More than five times as many OEX contracts are traded (68.2 million contracts a year) as the second most active product in the industry, S&P 500 stock options (SPX) -- also traded at CBOE (13.4 million contracts traded in 1992).
 February 1993 trading volume in OEX was 6,185,602 contracts (2,849,019 calls and 3,336,583 puts), an average of 325,558 contracts daily. Current open interest stands at 927,892 contracts (as of March 9).
 The S&P 100 stock index is based on 100 blue chip stocks from diverse industry groups, so it provides a measure of overall market performance. The index includes many of the most widely-held and actively traded stocks, such as IBM, Exxon, GE, General Motors, AT&T and Eastman Kodak. The capitalization-weighted S&P 100 stock index gives greater weight to stocks with greater market value -- the number of shares outstanding times the price per share.
 CBOE's current market share of the U.S. index options business is 93 percent. OEX market share is 77 percent. CBOE's options on the S&P 500 stock index (SPX), also a highly-liquid and very high volume market, are preferred by institutional investors, where OEX is popular with individuals and professionals alike.
 New OEX products have been added to capitalize on the success of the market: OEX LEAPS (long-term options with expirations as long as three years) were added in January 1991 and now have open interest of 84,301 contracts. Customized OEX contracts also trade as part of CBOE's new Flex Options system that began trading on Feb. 26, 1993.
 Statistical highlights of CBOE's OEX contract throughout the 10-year period it celebrates this week follow:
 -- single-day volume record: 1,455,862 contracts, Sept. 11, 1986
 -- record open interest: 1,919,290 contracts on Feb. 20, 1987
 -- monthly volume record: 11,940,609 contracts in September, 1986
 -- 1986 was highest annual volume, at 113,151,085 contracts
 -- total volume since March 11, 1983: 704 million contracts
 -- underlying dollar value based on volume since March 1983:
 $21 trillion
 -- underlying dollar value based on current open interest:
 $29 billion
 -- total premiums traded since March 11, 1983: $247 billion
 In addition to the two highest-volume index options worldwide, OEX and SPX (S&P 100 and S&P 500 stock index options), CBOE lists options on three other indexes: the Russell 2000(R) Index -- the industry benchmark for small-cap stocks, options on the FT-SE 100 Index -- the 100 largest U.K. stocks by market value, and options on the CBOE BioTech Index.
 CBOE also lists options on over 380 individual equities and on short and long-term interest rates. CBOE will celebrate the exchange's 20th anniversary on Monday, April 26.
 -0- 3/10/93
 /CONTACT: Patricia Campbell, 312-786-7927 or Bonnie Greenberg,


312-786-7393, both of CBOE/

CO: Chicago Board Options Exchange ST: Illinois IN: SU:

SH -- NY059 -- 4776 03/10/93 15:00 EST
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Date:Mar 10, 1993
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