Paris January 16, 1998 - Matif SA is to introduce a new milling wheat contract⁽¹⁾ on March 27, 1998.

Specifications were drawn up after in-depth consultation of professionals in all segments of the grain industry, as well as the MATIF expert committee on wheat.

The contract will be based on standard-quality wheat corresponding to intervention criteria. The only port of delivery will be Rouen and transfer will be through approved public silos. Simple in form, the contract reflects practice on the physical market and pricing will be immediately intelligible.

Major European trading houses will act as market-makers, offering buy and sell prices for minimum quantities at all times. Actively involved in the promotion of the new product, they will ensure the necessary market depth.

In this initiative, Matif SA is building on the experience acquired since the introduction in July 1996 of its first wheat contract. Political and economic developments relating to the Agenda 2000 program will increase the appeal of a futures market in this area.

Plans for an additional oilseed contract

Matif SA and ONIDOL ⁽²⁾ are continuing the cooperation which began in 1994 with the launch of a rapeseed future. Consideration is currently being given to new futures on a product such as rapeseed oilcakes, rapeseed oil or sunflower seeds. A decision on possible development will be taken once this examination is complete.

André Barbier, President of ONIDOL comments: " Our fruitful cooperation with Matif SA leads us to speak up again on behalf of the oilseed industry. Professionals on the physical market now appear to feel the need for an additional futures contract. A market survey and feasibility study will soon shed more light on this need. "
A flexible, high-performance trading system for a competitive market

Between May and June, Matif SA is to transfer commodity futures from the open outcry market to the NSC-VF ⁽³⁾ electronic trading system.

The NSC-VF system, developed by SBF-Paris Bourse and currently being adapted for use on the futures market, is set to become an industry standard following its adoption by Matif SA and the Chicago Mercantile Exchange.

Electronic trading now enjoys general support among market participants in view of its flexibility.

Gérard Pfauwadel, Chairman and CEO of Matif SA comments: " Coming in the wake of the launch of a 100 Icumsa ⁽⁴⁾ sugar contract and other adjustments to our range of sugar contracts in 1997, which also saw a 24% rise in trading in the rapeseed contract, these new developments reflect our commitment to the development of an international futures market in the agricultural sector. "

• ⁽¹⁾ Subject to required regulatory approval.
• ⁽²⁾ ONIDOL: Organisation Nationale Interprofessionnelle des Oléagineux, the professional association of the French oilseed industry.
• ⁽³⁾ NSC-VF -- for Nouveau Système de Cotation - Version Future - will also be used alongside open outcry for trading in MATIF interest-rate products as April 3, 1998.
• ⁽⁴⁾ Icumsa: rating measure the coloring of sugar and is an indication of quality.

Contact: Antoinette Bouvier-Darpy - Tel.: 33 1 40 28 83 89