1. Futures Markets Update
Julie Winkler
March 25, 2009

2. Outline Background on CME Group and Product Development Process
Current Market Landscape
Developments in Commodity Markets
New Developing Markets - Emissions markets
Career Opportunities

3. CME Group Overview
#1 derivatives exchange in the U.S. and globally by 2008 volume
Founded in 1898
2008 Pro Forma(1) Revenue of $3.1bn
Strong record of growth, both organically and through acquisitions
CBOT Holdings (2007)
NYMEX Holdings (2008)
Deep liquidity in futures and options
Execution and clearing services for interest rates, equities, energy, commodities, FX, metals
Worldwide distribution through CME Globex
Proven CME Clearing
Listed futures and options
OTC products via CME ClearPort
In this presentation, pro forma results for CME Group assume the acquisitions of CBOT and NYMEX were completed as of the beginning of the period presented. See the CME Group Inc. Reconciliation of GAAP to Pro Forma Non-GAAP Measures available on our Web site under the Investor Relations section for detail related to the adjustments made to reach the pro forma results. 3 3

4. Diverse Customers Managing Risk
Diverse Product Portfolio and Customer Base
Diverse Products
Diverse Customers Managing Risk
Customers, utilizing a wide range of trading goals and strategies for both hedging and speculating, include:
Q Pro Forma Revenue Mix
Foreign Exchange 4%
Commodities & Other 7%
Proprietary trading firms, primarily algorithmic
Equities
28%
34%
Proprietary trading of banks and investment banks
Energy
21%
16%
Notes and Bonds
10% 8%
Top 25 Hedge Funds
Other - includes smaller member firms and individual traders
22%
Metals 3%
Eurodollars 9%
Quote Fees
13%
Non-members, including:
Pension funds
Index funds
Long-only mutual funds
Insurance companies
Corporates
Active individual traders
Other Revenue 5%
20%
All five segments had a reduction in trading activity from Q308 to Q408, but the proportion of the segments remained relatively stable
Of the five segments, the non-member segment dropped the least and the hedge funds dropped the most from Q308 to Q408
Note: Customer segmentation percentages are Q408 estimates and reflect legacy CME and CBOT products only 4

5. Overview of CME Group Research & Product Development (RPD)
Historically CME Group’s primary product development efforts were for exchange listed products on CME Globex and floor
Changing marketplace has sparked need for innovation in clearing only offerings for the OTC market like Cleared Interest Rate Swaps and Credit Default Swaps
RPD Team has responsibility for global product development for all CME Group asset classes: Commodities, Energy, Metals, Interest Rates and Credit, Equity Indexes, FX, Alternative Products, and Environmental Products for Green Exchange
There are 30 RPD resources currently located in Chicago, New York, London, and Singapore to facilitate new product development, maintenance of our existing product suite, and general research and educational needs for our customers and employees

6. Overview of Product Development Process for Exchange Traded Offerings
New Product Idea
Comes from study of security, commodity and OTC market trends
Input received from members, customers, independent innovators, index providers, partners, other staff, anywhere
Stage 1: Product Assessment completed by RPD
If “Go”, then RPD completes Stage 2: Feasibility Study
If “Go”, then proceed with internal and external approval process (CFTC or other regulator, if required)
RPD and Sales business owners proceed with marketing launch and internal technical setup process for New Product
Launch of New Product
Post-launch marketing and product support/modification

7. Key Questions When Developing New Products
Product Design
Develop a design which addresses market characteristics, delivery and trading issues
Generally prefer deliverable contract to keep it “honest,” but do often resort to cash settlement
Identify clear industry standards already in use and mirror futures contract after these standards; this will help foster acceptance of product
Market Description
Ideally looking for a large, competitive cash market
Market size, in outstanding value or turnover, is obvious criteria albeit without hard standards
Positive trends in size and turnover of interest (growing market size with increasing turnover of interest)
Market structure broadly categorized as competitive, oligopolistic, monopolistic
Presence of many prospective natural buyers and sellers is ideal
Volatility produces speculative opportunity and need to hedge
Ideal market incorporates long-term trends and significant intra-day ranges

8. Key Questions (cont.) Product Alternatives Customer Evaluation
Identify related products that with high correlations that can be used as a cross-hedge
Basis risks, liquidity of alternate hedge vehicles
Customer Evaluation
Survey and assess customer demand by conducting trade calls with different types of potential customers (ideally 5-10 calls)
Standardize survey questions so everyone is making the inquiries in the same way
Document the research efforts so you can identify what participants have the most interest and are likely to be earlier adopters
Identify willing market makers to provide two-sided quotes
Strategic Positioning
Consider experience of other exchanges, OTC competition, etc. and how that impacts this product introduction
Evaluate if this new product supports an exchange strategic initiative

9. Current Market Landscape

10. Uncertain Macroeconomic Environment in 2009
ADV trending up so far in Q1 2009
CME Group Pro Forma ADV by Month
(round turns in millions)
Opportunities
Significant Treasury debt issuance
Stabilization in credit, mortgage and corporate debt markets
Redeployment of capital
High, but moderating volatility levels
Customer recognition of the value of CME Group services
10.8
To Date
Average daily volume across all product lines up from January 2009 to February 2009 to date
Interest Rates up 15%
E-mini Equities up 14%
Equity Standard up 14%
FX up 10%
Commodities/Alt. Inv. Up 21%
Energy/Metals up 10%

11. “ We were right then and we are right now.”
Current Perceptions
“ All markets need more transparency.”
“ Markets would be safer if they were all on a regulated exchange.”
“ OTC markets are opaque and risky.”
“ In 1994 we sounded a number of clear warnings …to assure this rapidly growing [OTC] market did not result in systemic problems for our economy.”
“ OTC markets have had dire consequences… in contrast our markets have been a net positive for the economy.”
“superiority”
“ OTC markets can be fixed with several key changes.”
There are many perceptions of us as nothing close to a true partner of our customers, particularly in the investment banking community.
Some of that perception is just that – perception
But some of it has been caused by our efforts to promote our markets above all else
Statements we’ve said or that have been attributed to us have created confusion at the very best and done significant harm at the very worst, particularly because these are the very people we’re trying to attract to our OTC initiatives today
“ We were right then and we are right now.”
“ Banks key to CDS delay”

12. Plain Vanilla Credit Default Swap (CDS)
Protection Buyer (PB) agrees to make quarterly payments to the Protection Seller (PS). In exchange for this quarterly “swap” payment, the PB establishes the right to sell the reference obligation (e.g., a bond or note) issued by a reference entity (e.g., a corporation or a sovereign entity) to the PS at the agreed upon notional value frequently established at par, if a credit event should occur.
PB is reducing or hedging the credit risk component of the reference bond by transferring the credit risk to the PS. The PB’s asset remains subject to non-credit related elements of market risk.

13. CDS Market is Contracting from $57T in mid-2008

14. Key Constituents in the Financial Markets
Many players which are part of the global financial eco-sphere, which are key to the trade facilitation process and functioning of our financial markets.
Prime
Brokers
Brokers/
IDBs
Bank, Dealer & Broker Execs
Trade Facilitators
Banks/
Dealers
Customers/
Hedgers
Execution
Venues
Regulators and
Central
Banks
Traders
FCMs/ Clearing Firms
Service
Bureaus
Back
Office

15. Market Demand for Clearing Services has Changed
Operational maturity and market dynamics developed considerably from
There wasn’t a core demand for central counterparty
CME used a platform approach to OTC (execution and clearing)
Central execution (CLOB) is not always the best place to quote markets
The nature and value of central counterparty has changed
Nationalization effects the risk taking and compensation for trading of the major Dealers – major deleveraging has taken place
Due to credit line reductions, mutualization of risk must occur in order to restore markets
Funds now concerned about their exposure to the banks and prime brokers
Opportunity to partner with sell-side to rebuild confidence in the markets, but still not easy

16. OTC Competitive Landscape
ICE
LCH
Euronext/ Liffe
Eurex
LME
CCX
ICDG
AgoraX
NASDAQ OMX
Credit FX IR
Environ.
Energy
Metals
Ags
Equities

17. OTC Clearing is Part of a 3-Pronged Offering
Primary venue is either liquid Central Limit Order Book on an electronic platform or open outcry
Blocks and EFPs facilitate alternative/OTC executions
S&P 500 Options
Eurodollar Futures
Corn futures
Standard Product
Products in cash terms, with futures market protections
Clearing of custom versions of core products
Longer and flexible dates
Flexible delivery points
User-Defined Swaps
EFP/EFS/EFR and SUB trade types
Flexible execution platform
Build on deep liquidity of base markets
Hybrid OTC / Futures
Swap Futures with “adjustable” coupon
Flexible Treasury Options
Energy on ClearPort
Messaging to PB/Dealers:
Some pure OTC markets are too exotic or bespoke and we do NOT plan on entering
Execution venue agnostic
Products in quoted & captured in cash terms
Clearing of bespoke products, broadly flexible
Flexible execution platform
Unique delivery/settlement mechanisms
Pure OTC
Credit Default Swaps
Gold Forwards

18. Creating OTC Customer Value
CME Group’s open clearing service provides the operational and risk management efficiencies of a central counterparty, offering a market driven solution for OTC customers which:
Virtually eliminate counterparty risk
CME Group acts as the central counterparty to all transactions
Market Expansion – Expands access to more OTC market participants, opening credit lines and creating potential trading opportunities
Decrease cost and increase operational efficiencies
Balance Sheet Efficiencies – Exchange-style daily marking of positions dramatically reduces the need to allocate balance sheet to cover bi-lateral counterparty limits
Cross Margin Efficiencies – Offset cleared OTC positions with Futures and Options positions
Reduction of Documentation – Eliminates costly and cumbersome ISDA documentation 
Access a full range of cleared OTC products

19. Vital OTC Systems to Integrate to Clearing House
Target Entity
IRS FX
Credit
Energy / Metals
Ags
Equities
Bank Trading Desks (Dealers)
Asset-specific Proprietary
Prime Brokers
IDBs
ICAP
TFS-ICAP, ICAP, etc
40+ Key Brokers
Key Brokers
Execution Platforms / Affirmation & STP
MarkitWire
Reuters, EBS
DTCC Deriv/SERV
ConfirmHub Pivot
Customers / Hedgers
Buy-Side / Corporates
Buy-Side / Props
Buy-Side
Commercial / Props
Commercial / Merchants / Props
Buy-Side / HFs / Props
Clearing Firms
No Support Yet
Options Support Needed
Limited Support
Today
Futures Service Bureaus
R&N, SunGard
Day 1 support today
Options & true notional support needed
Wag The Dog, No Support Yet

20. Regulatory and Central Banks Efforts
Many products require similar application with CFTC or other governing bodies
Approval Required
Review Desired
IRS
CFTC
SEC, FSA, FOA
Credit
CFTC, Fed, SEC
FSA, FOA FX
FSA, NY Fed, Bank of England, HKMA, Bank of Japan, BIS, many other foreign monetary bodies
Energy / Metals
Commodities
Equities

21. Commodity Markets

22. Fundamental Changes in Commodity Markets
Basic supply and demand principles in commodity markets are resulting in higher prices and greater price volatility:
Weather and disease limiting supply
Growing demand from developing countries
Falling U.S. dollar
Higher input costs related to increasing energy prices
Agricultural markets are undergoing tremendous change, development, and adjustment. Traditional risk management tools have been forward-looking 1-3 crop years.
Higher risk resulted in market participants looking toward additional price risk management tools and longer-term protection.
Hedging needs have also become more individualistic and are not as easily satisfied by standardized futures contracts where contract terms are standardized and liquidity is concentrated within the first couple of crop years.
Instead, some market participants have looked to specialized swap dealers in the over-the-counter (OTC) market.
Biofuel production increases
Limited additional farmland in the short run
Restrictive export policies from some major exporters

23. Agricultural Commodity Stocks Are Extremely Low
Current ratio versus the 10-year average ratio:
Corn at 13% vs. 21%
Wheat at 19% vs. 27%
Soybean at 21% vs. 21%
World
Stocks-to-Use Ratio
Soybean
Wheat
Corn
21%
19%
13%
Source:

24. Events Impacting Corn Prices Since June 2006
Global supply concerns increase, as consumption rises faster than production. World stocks-to-use ratio at historical low in 2007 at 14.2% and projected to decline further to 12.6% in 2008.
Prices stabilize due to largest planted crop since Over 93 million acres planted.
Battle for acreage due to increase in renewable fuels mandates.
Overall macro economic weakness has adversely affected commodity prices during the last half of 2008

25. Annual Volume Turnover for Exchange Traded Commodity Derivatives
Over Regulating US Commodity Markets Will Encourage Flow to the Already Active OTC Markets and Overseas Exchanges
112% growth in OTC commodities in two years while overseas exchange traded commodity market is now 57% of global annual volume
OTC commodity market is estimated at 5 times the size of the exchange traded commodity market
Amounts Outstanding of OTC “Other” Commodity Forwards, Swaps, and Options (including energy)
Annual Volume Turnover for Exchange Traded Commodity Derivatives
*Through September 2008
Source: BIS

26. Benefits of Ag OTC Products
Commodity forwards, swaps, and options are being transacted in the OTC space on a variety of enumerated commodities including corn, soybeans, wheat, dairy, and meat.
Since OTC swaps are not guaranteed by centralized clearing, these market participants can be at risk for default. One potential solution to this problem is to have centralized clearing for these OTC swaps.
Market participants are turning to CME Group and asking for central counterparty clearing for these types of OTC instruments in the agricultural sector.
Currently CFTC Rules prohibit exchanges from clearing agricultural OTC swaps. If the CFTC grants exemptions to exchanges to clear agricultural OTC swaps, these tools can be available to more market participants without the risk of counterparty default.
Introduction of cleared ag OTC products will provide market participants with new products to help them manage increasingly volatile basis risk, price exposure, and counterparty risk.

27. Definition of a Swap
A swap is an agreement between counterparties to exchange cash flows over some period of time. The oldest and most popular swaps are exchanges of interest rates.
A commodity swap is similar to an interest rate swap, but the parties are exchanging a fixed price for a commodity with a floating or variable price for the commodity.
Ethanol producer agrees to pay the farmer a fixed price of $5 per bushel for corn. In return, farmer agrees to pay ethanol producer a variable price for corn. For example, the price of CBOT Corn futures on the day the swap expires.
Assuming the swap expires on April 30, on that day the ethanol producer will pay the farmer $5 per bushel for corn and the farmer will pay the ethanol producer the settlement price on May CBOT Corn futures on April 30.
Commodity swaps are usually settled financially and there is no physical delivery.

28. Emissions Markets

29. Overview of the Emissions Markets
Term
Definition
Example
Emissions Trading
A market-based approach to control & reduce pollution.
The EPA NOx Trading Program requires electric power emitters to achieve a reduction on 10 million tons per year below 1980 emissions.
Cap- and-Trade
The central mechanism for emissions trading programs. Cap-and-trade programs set a pollution cap based on a prior year.
Since 1992, the EPA SO2Trading Program was the first Federal cap-and-trade emissions trading program.
Compliance and Voluntary
Emissions trading programs are either compliance or voluntary. Compliance programs account for the majority of emissions trading volume.
The world voluntary carbon market consists of the Chicago Climate Exchange (CCX) and the OTC market.

30. Current State of the Emissions Market
Largest multi-national, carbon trading program is the European Union Emission Trading Scheme (ETS), which began in 1995 under Kyoto. The second trading period began in Jan 2008 and will last until Dec 2012.
The ETS covers over 10,000 EU energy and industrial installations. These covered facilities account for an estimated 50% of CO2 and greenhouse gas EU emissions.
Covered emitters are allocated allowances by EU member states without charge. The total allowances provided to the states equal the allocated member state cap for the emitter. In addition, the emitter may purchase ETS allowances from others. Excess allowances can be sold to physical or financial market participants without restriction.
In the first nine months of 2008, over 2 billion ETS allowances transacted with a notional value of $69 billion.
Carbon-based futures/options, as well as OTC products, allow project developers to finance their efforts and hedge against price declines of the credits that will flow over multiple years. These products also aid emitters under compliance programs to manage their exposure to rising allowance and credit prices.

31. Global Emissions Market Performance
Currently, the global emissions trading is focused on carbon allowances, EUAs, with 72% of the market. Certified Emission Reductions (CER’s) make up the remaining 19%.
In 2009 as compared to 2008, there have been nearly 60% increases in Futures OTC (OTC cleared by Exchange) and in Futures Screen transactions (electronically traded & cleared by Exchange). Options activity has decreased over 40% YOY.
2008 Global Emissions Market Cleared Futures Volumes by Product
Source: CME Group. Note this data aggregates ECX, CCFE, BlueNext, Nord Pool and Green Exchange.

32. Competitive Landscape
Competitor
Overview
February 2009 Volume
Climate Exchange, PLC (CLE) includes: Chicago Climate Exchange (CCX), Chicago Climate Futures Exchange (CCFE), and European Climate Exchange (ECX).
CCX operates a voluntary cap and trade system.
CCFE is a CFTC regulated futures exchange focusing on U.S. based environmental contracts.
ECX operates the preeminent global emissions exchange focused on compliance certificates for the EU ETS and related markets.
CCX traded 74,079 CFI contracts*, up 124% over Jan.
CCFE traded 56,429 futures and options contracts, up 13% over Jan volume was up71% over 2007.
ECX traded 447,135 EUA and CER contracts, up 55% over Jan. Feb ADV was 22,357contracts.
BlueNext: An exchange created by NYSE Euronext and Caisse des Dépôt .
Primarily an European exchange, but plans to extend its business to Asia and North American in the near future.
Trades EUA and CER Spot and Futures
BN traded 228,637 EUA and CER contracts, up 74% over Jan.
The historical volume of BN is predominantly spot transactions.
Nord Pool: Owned by NASDAQ OMX Commodities.
Power exchange and clearing house which provides trading, clearing and delivery of EUA and CER contracts.
NP traded 5,800 CER and EUA contracts, up 222% over Jan. .
European Energy Exchange (EEX): Formed from merger of the Leipzig Power Exchange & European Energy Exchange in 2002.
Offers spot and derivatives trading on power, gas, emission allowances and coal.
Settlement ensured by an independent clearing house – ECC AG, an EEX subsidiary, and Eurex .
Specific volumes not available
* Note: All EUA and CER contracts are 1,000 metric tons of CO2, except for the CCX CFI contract is 100 metric tons of CO2.

33. Green Exchange Value Proposition and Objectives
Create an environmental product revenue stream by providing a compelling mix of industry-leading execution platforms and CME Group clearing in partnership with unparalleled liquidity providers and product experts
Strategic Objectives
Position CME Group to gain significant share of the rapidly growing environmental derivatives markets
Partner with a small group of leading institutions to drive liquidity and quality product design
Offer a compelling mix of platform, product and liquidity ready for the advent of U.S. compliance markets
Focus on European markets in 2008 to 2010
Initiate long-term U.S. market development activities
Informed industry observers believe the US carbon market could grow to 2-3 times the European market.

34. Green Exchange Overview (cont.)
Current Activity for 17 Products Listed
42,600 in total volume (3/17/08 – 3/3/09)
2,233 YTD volume for 2009
ADV for 2008 = 189; ADV for 2009 = 77
Green Exchange Key Offerings
Committed liquidity and order flow from core partners
Superior product design driven by industry feedback
Cross-margining with other CMEG energy products
Superior technology, distribution and clearing
Next Steps
Finalize documentation with 13 GX partners
Close partnership agreement with TBD European commercial participant
Executive Committee to work with management to finalize definitive agreements
Green Exchange will be a separate entity with a CFTC regulatory designation (DCM)

35. U.S. Legislative Strategy Overview
Objective
Ensure the near term enactment of a U.S. cap and trade bill that supports a healthy carbon derivatives market.
Challenge
Politics, public policy goals and the complexity of the issues associated with cap and trade are factors in the outcome of the legislative process.
Strategy
Work closely with Congress, the Administration, and influential NGOs and trade associations to ensure that features essential to the Green Exchange business model are incorporated.
We must operate as if a federal cap and trade bill
will be enacted in 2009

36. View of Optimal Cap & Trade Design Based on U. S
View of Optimal Cap & Trade Design Based on U.S. recent legislative proposals
Carbon Market Fundamentals
Broad Scope of Coverage
International Linkage of Trading Schemes
Adequate Banking of Allowances
Fair and Efficient Allowance Allocation
High Quality Offsets
Market-Friendly Cost Containment Provisions
Short Compliance Periods / Long-term Program Timetable
Third-Party Verification of Emissions Data
Effective Oversight by EPA & CFTC

37. Current U.S. Legislative Landscape
SENATE
Feinstein
FERC Oversight
Limited allowance of OTC trading
McCain-Lieberman
Strategic reserve to address price concerns
Large scale/upstream focus
Environment & Public Works (Boxer)
Large scale
Will “punt” on regulator
Agriculture
Role for farmers/USDA
Could push for separate Ag standards or carve outs
HOUSE
Energy & Commerce (Waxman)
Asserts that committee will have bill by Memorial day
Will give oversight to FERC
Agriculture (Peterson)
Current derivatives bill gives CFTC authority for carbon allowances and offsets and effectively requires that they trade on exchange
ADMINISTRATION
EPA
Threatens to use CAA authorities to regulate carbon
Administrator calling for economy-wide cap & trade
White House
Call for market-based cap
2010 Budget assumes 100% auction revenue
USDA Eco-Services
Role in Ag & forestry offsets

38. Career Opportunities in Financial Services

39. Various Opportunities in Financial Services based on Current Trends
Trading and Technology
Industry continues to be driven by technology
Chicago is a key to these developments given its rich history of risk takers resulting in a vibrant algorithmic trading community
Technology is over 50% of the Exchange staff at CME Group
Clearing, Risk Management, Audits, Investigations
Increased focused on regulation, market oversight, and integrity so many opportunities for positions which support these risk management functions within the financial services industry
Good background to learn about the industry without direct industry experience
Regulators – CFTC, SEC, NFA, FNRA
More funding expected for these regulatory agencies will lead to openings