Summary
CME Group Inc. (CME) filed an 8-K on October 18, 2004, reporting a material definitive agreement. The core of this filing is an amendment to an existing lease agreement for trading floor space at its Chicago headquarters. This amendment extends the lease term for the 70,000 square feet of space, pushing the initial term expiration from October 31, 2005, to October 31, 2009, and adjusting the subsequent extended term. This lease amendment is significant as it secures the company's primary operational space for an additional period. While the financial impact is not detailed, the extension suggests operational stability and continued reliance on physical trading floors, which was a key aspect of CME's business model at the time. The filing also provides context on the lessor, the Chicago Mercantile Exchange Trust, a non-profit entity established to assist customers of insolvent clearing firms, funded historically by CME, with its trustees overlapping with CME's Board of Directors.
Key Highlights
- 1CME Group Inc. amended its lease for 70,000 square feet of trading floor space at its Chicago headquarters.
- 2The amendment extends the initial lease term from October 31, 2005, to October 31, 2009.
- 3A second extended term has also been amended, now set to run from November 1, 2009, to October 31, 2012.
- 4If CME does not exercise its option for the second extended term, a termination fee of $171,000 will be due to the CME Trust.
- 5The lessor is the Chicago Mercantile Exchange Trust, an entity established to assist customers of insolvent clearing firms.
- 6The CME Trust was historically funded by CME through tax-deductible contributions.
- 7Trustees of the CME Trust are also members of CME's and CME Holdings' Board of Directors.