Clearing Corporation To Guarantee Trades For Online Metals Market CMXchange; Market is Prime Procurement Site for Global Auto Industry

    CHICAGO--Nov. 29, 2001--The Board of Trade Clearing Corporation (the "Clearing Corporation") and Commodities Management Exchange Inc. ("CMXchange") today jointly announced that they have entered into an agreement under which the Clearing Corporation will process and administer a guarantee of certain OTC transactions listed on the CMXchange, a major metals procurement market serving the global motor vehicle industry.
    Representatives of two of the largest automakers, who participated in the announcement, applauded the initiative.
    The agreement, announced at the annual Futures & Options Expo of the Futures Industry Association, brings the online trading facilities managed by CMXchange together with the benefits of the Clearing Corporation, the oldest independent clearing organization in the futures industry and the only futures clearinghouse with a AAA credit rating.
    "As today's global commodity markets become increasingly complex and interrelated, traders and customers are demanding services that help reduce market and credit risk, while enhancing trading liquidity," said Dennis Dutterer, President and CEO of the Clearing Corporation. "Our long experience guaranteeing the trades of the often volatile futures and options markets made the Clearing Corporation a perfect fit for this relationship with CMXchange."
    Demetrius (Tony) Brown, Chairman and CEO of CMXchange, said: "Financial integrity and vision are essential to a successful marketplace. CMXchange chose the Clearing Corporation based not only on its clearing reputation and experience, but also on the creative commitment they share with CMXchange to bring unique, value added solutions to market."
    Initially, the Clearing Corporation will process CMXchange's OTC aluminum and other metal swaps. The Clearing Corporation will assume and manage the inherent clearing member risk associated with these swaps. Members will be able to generate greater profitability, reduce their capital requirements, and boost the efficiency of their collateral.
    CMXchange, whose customers include DaimlerChrysler, Ford and General Motors, currently offers Internet-based spot and forward trading in a number of base metals and other commodities, and will launch both standardized forwards and over-the-counter derivatives. Trading in these products will begin during Q1, 2002. The combination of CMXchange's commodities management expertise and exchange technology, together with the Clearing Corporation's financial clearing capabilities, delivers an efficient and effective method of assisting customers in their price risk management and FAS 133 compliance.
    Bob Adams, Director of Global Raw Materials Purchasing, Ford Motor Company (Stock Link), and Dan Bealko, Global Commodity Manager - Lightweight Metals, General Motors Corporation, participated in the announcement. Said Adams: "CMXchange has taken the time to listen and to understand the needs of the industry. This alliance with the Clearing Corporation delivers an innovative product that allows Purchasing and Treasury functions to fully integrate with commodity management solutions while reducing balance sheet risk."
    Bealko added: "GM's commodity decisions rely heavily on our ability to control future price risk and profitability. By thinking `outside the box', CMXchange and the Clearing Corporation are directly addressing two of our biggest concerns: price discovery and credit risk."
    For the Clearing Corporation, the agreement with CMXchange represents further opportunities for its clearing members and diversification of its customer base into the developing electronic and OTC derivatives markets. CMXchange joins the Clearing Corporation's growing customer list that includes the Chicago Board of Trade (CBOT), BrokerTec Clearing Company, the Merchants' Exchange of St. Louis, Opt4 Derivatives Inc. and Traiana Inc.

    About Board of Trade Clearing Corporation

    Board of Trade Clearing Corporation, a Delaware corporation, now in its 77th year of business, is the only derivatives clearing house that has a Standard & Poor's AAA rating and approximately $185 million in capital. The Clearing Corporation is owned by its clearing member stockholders and is the only active independent derivatives clearing house in the world. For more information, please visit www.botcc.com.

    About CMXchange

    Commodities Management Exchange Inc. (CMXchange) is a Northfield, IL-based commodity management services company and a neutral Internet exchange for the base metals industry. CMXchange operates non-ferrous, ferrous and platinum group metals e-commerce service platforms that are used by companies throughout the metals supply chain to facilitate the procurement and sale of physical materials. CMXchange is privately held by its management and is a certified Minority Business Enterprise. www.cmxchange.com