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To: PaulM who wrote (26518)	1/20/1999 2:27:00 AM
From: Bonnie Bear	Read Replies (2) \| Respond to of 116762

I wish I knew more too. I'm out digging for more truths about them. Lest I give you bad info, ask Michael Burke.

To: PaulM who wrote (26518)	1/20/1999 5:14:00 AM
From: IngotWeTrust	Read Replies (1) \| Respond to of 116762

Paul, take a peek at the following synopsis of Bankruptcy futures, and then take the lucid primer to heart...now you are ready to trade the bankruptcy futures contract. CME, Credit Industry Officials Ring Opening Bell For Trading In the CME Quarterly Bankruptcy Index November 3, 1998-Leaders from the consumer lending industry joined Chicago Mercantile Exchange (CME) officials today to ring the opening bell on trading in the CME Quarterly Bankruptcy Index (CME QBI). The contract is the first exchange-traded derivative designed specifically to address the growing default risk in the $1.3 trillion consumer credit market. Joining CME Chairman Scott Gordon at the bell ringing was David M. Willey, Treasurer of Capital One Financial Corp., one of the top ten credit card issuers worldwide with approximately 15 million customers. Also on hand was Blake Hogan, President and CEO of Hogan Information Services, the nation's leading provider of bankruptcy data. The CME QBI will give credit card issuers, banks and other consumer lenders the opportunity to reduce costs associated with repayment defaults stemming from personal bankruptcy filings which remain at record high levels in the United States. “The CME QBI will allow creditors like Capital One to better manage the financial exposure created by rising bankruptcy rates,” said Gordon. “In turn, this should provide them with the opportunity to lower consumer borrowing costs.” Noting the unique nature of the contract, Gordon said he expected usage of the contract to build gradually over time. The CME QBI is based on the number, in thousands, of new bankruptcy filings each quarter in U.S. bankruptcy courts. Futures contracts are sized at $1,000 times the CME QBI. The tick size is .025, equivalent to 25 bankruptcy filings and valued at $25. The contracts expire in the March quarterly cycle. “Despite the sharp increase in the number of bankruptcy cases in recent years, there have been few options for lenders to offset their associated financial risk,” said Fred Arditti, Senior Executive Vice President for Planning and Development. “The CME QBI now gives them a powerful new tool.” “Keeping with the innovative culture at Capital One, our treasury team is constantly seeking new tools to manage risk,” said Willey. “The CME Quarterly Bankruptcy Index will allow risk managers the ability to diversify their exposure.” Hogan Information Services, a business unit of First Data Corporation, is the leading provider of public record information. Hogan's proprietary software enables field collectors to gather accurate information from the courts and electronically submit it in the same day. Hogan also specializes in retrieving court information via the Federal Court PACER system (Public Access to Court Electronic Retrieval). “The growing importance of personal bankruptcy makes it critical to compile accurate and timely information,” Blake Hogan said. “Hogan brings to the CME QBI the highest quality of bankruptcy information available which is essential to the effectiveness of this product." Through the first half of 1998, the number of bankruptcy filings in U.S. courts again increased though at a slower growth rate than in recent years. Noting that the CME QBI is the first exchange-traded credit derivative product in the world, Gordon said the CME was continuing to research additional products to allow lenders to offset and better manage their financial risk. HOW TO TRADE/UTILIZE QBI FUTURES CONTRACT OPEN QUOTES: Matching CME Quarterly Bankruptcy Index Futures to Different Trading Horizons: A Primer Credit card defaults are a considerable economic risk to credit card issuers. Given the enormous size of the consumer debt market, the financial risk to lenders associated with bankruptcies and charge- offs is staggering. The Chicago Mercantile Exchange Quarterly Bankruptcy IndexTM (CME-QBITM) futures and options on futures are the first exchange-traded credit derivative products designed to manage the risks associated with consumer debt. This paper discusses stripping and stacking of CME-QBI futures to take positions with a time span longer than a single quarter. CLOSE QUOTES Quoted synopsis taken from: cme.com Warm regards O/49r