Based on data from the Futures Industry Association, the total number of futures and options on futures contracts traded worldwide on reporting derivatives exchanges grew from about 1.5 billion in 1999 to about 4.0 billion in 2004, representing a compound annual growth rate of about 22.5%. In the United States, the total number of futures and options on futures contracts traded on derivatives exchanges increased from about 592.9 million in 1999 to about 1.6 billion in 2004. In Europe, the total number of futures and options on futures contracts traded on derivatives exchanges grew from about 565.2 million in 1999 to about 1.3 billion in 2004, and in Asia this number grew from 206.5 million in 1999 to 607 million in 2004.

It is believed that the substantial recent growth in global futures and options on futures trading volume is attributable to a number of factors: increasing awareness of the importance of risk management; greater price volatility in key market sectors, such as in the fixed-income sector; greater access to futures and options on futures markets through technological innovation and the relaxation of regulatory barriers; and growing awareness of the opportunities to obtain or hedge market exposure through the use of futures and options on futures contracts at a lower cost than the cost of obtaining or hedging comparable market exposure by purchasing or selling the underlying financial instrument or commodity.

Globalization, increasingly sophisticated market participants, deregulation, recent advances in technology and consolidation are changing the way both the futures and broader commodities and derivatives exchange markets operate.

The Company’s interest rate product line includes thirty-year U.S. Treasury bond futures and options on futures, ten-year, five-year and two-year U.S. Treasury note futures and options on futures, Fed Funds futures and options on futures and interest rate swap futures. In addition, in April 2004, the Company began to offer markets for contracts on German debt instruments, including Bund, Bobl and Schatz futures.

Agricultural products are the core product area from which the Company started. The Company has maintained a strong franchise in its agricultural products, including contracts based on soybeans, soybean oil and meal, corn, wheat, oats, rough rice and other agricultural commodities. The Company’s market users include agricultural producers, grain elevators, food processors and retail customers.

Market users of futures and options on futures contracts on stock market indices include public and private pension funds, investment companies, mutual funds, insurance companies and other financial services companies that benchmark their investment performance to different segments of the equity markets. The Company currently offers futures and options on futures contracts on the Dow Jones Industrial AverageSM. In addition, the Company also offers mini-sized futures and options contracts on the Dow Jones Industrial AverageSM.

The Company currently offers mini-size gold and silver futures contracts. Additionally, in October 2004, the Company began to offer full-size contracts on gold and silver futures on its electronic platform.

In March 2005, the Company launched its corn-based Denatured Fuel Ethanol futures contract as the first product in its energy category of products.

The Company provides a full range of clearing services for every contract traded through its exchange. In addition to clearing services, the Company provides processing for all clearing functions, including post-execution trade processing, position management, collateral management and settlement.

The Company’s markets generate valuable information regarding the prices of its products and the trading activity in those markets. The Company sells its market data, which includes bids, offers, trades and trade size, to vendors who redistribute the data to persons or entities that use its markets or that monitor general economic conditions.

Trading volume in the three months ended March 31, 2005, was $173.1 million contracts, a 27% increase from the 136.6 million contracts for the three months ended March 31, 2004.

Consolidated revenues for the three months ended March 31, 2005, were $116.5 million, a 15% increase from $100.9 million for the three months ended March 31, 2004.

Income from operations increased 34% to $36.0 million for the three months ended March 31, 2005.

Operating expenses totaled $80.5 million for the three months ended March 31, 2005, compared to $74.0 million for the three months ended March 31, 2004, a 9% increase.