Chicago Board of Trade Receives Approval for Demutualization

The Chicago Board of Trade (CBOT) received approval from Canadian securities regulators for its demutualization on January 8, 2002. The demutualization will result in the creation of a stock for profit holding company and the distribution of shares to members of a new CBOT as well as a modernization of its corporate governance structure and the consolidation of its electronic trading business into a new wholly owned subsidiary formed for that purpose. The CBOT memberships have an aggregate market value equal to US$588,849,700.

Barbara Hendrickson and Adam Balinsky (securities) of Baker & McKenzie in Toronto were responsible for compliance, filing and discretionary relief applications in Canada for the demutualization. Dan Goelzer of Baker & McKenzie adivsed on U.S. legal matters.