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What is the US Dollar Index

A widely recognized benchmark that reflects the value of theUS dollar on global markets

A geometric average that tracks the value of the US dollar againsta basket of six currencies

The USDX is based upon the original US Dollar Index calculatedby the Federal Reserve Bank, base year of 1973

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The US Dollar Index Composition

CAD, 9.10%

GBP, 11.90%

JPY, 13.60%

EUR, 57.60%

CHF, 3.60%SEK, 4.20%

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NYBOT US Dollar Index basket formula50.14348112 times the product of all components raised to an exponent equal to the %weighting ( (EURUSD ^ 0.576) * (JPY ^ 0.136) * (GBP ^ 0.119) * (CAN ^ 0.091) * (SEK ^ 0.042) * (CHF^.036) )

50.14348112 % weight

EUR 57.6JPY 13.6

GBP 11.9

CAN 9.1SEK 4.2

CHF 3.6

The index is calculated using a geometric average. Where w is the weightof each currency and k is the multiplier as defined in the table above.

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Why trade and invest in the USDX? The US dollar is the most important world currency. The USdollar is on one side of 89% of all foreign exchange transactions.

The US dollar serves as the reserve currency for the globaleconomy.

Efficiently track international flow of capital** See Journal of Indexes, August/September 2004

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What is a fair Bid/Offer spread?

To account for forward risk and geometric averaging, a competitivespread for the US Dollar index in normal market conditions is:

US Dollars $1 - $10 million = .05 wideUS Dollars greater than $50 = .08 wide

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Cost Benefit of an Index Trade vs. Synthetic Recreation of the Index

$ 1,000,000.00ComponentExposure Exchange Rate Bid/Ask Basis Points

EUR 57.60% $ 576,000.00 1.2438 0.0002 1.61

JPY 13.60% $ 136,000.00 109.4 0.02 1.83

GBP 11.90% $ 119,000.00 1.815 0.0002 1.10

CAD 9.10% $ 91,000.00 1.1927 0.0003 2.52

SEK 4.20% $ 42,000.00 7.464 0.002 2.68

CHF 3.60% $ 36,000.00 1.2475 1.60

11.34

DXY 100% $ 1,000,000.00 86.94 0.05 5.75

$ 200,000,000.00 ComponentExposure Exchange Rate Bid/Ask Basis Points

EUR 57.60% $115,200,000.00 1.2438 0.0004 3.22

JPY 13.60% $ 27,200,000.00 109.4 0.04 3.66

GBP 11.90% $ 23,800,000.00 1.815 0.0004 2.20

CAD 9.10% $ 18,200,000.00 1.1927 0.0005 4.19SEK 4.20% $ 8,400,000.00 7.464 0.005 6.70

CHF 3.60% $ 7,200,000.00 1.2475 3.21

23.17

DXY 100% $200,000,000.00 86.94 0.07 8.05

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Hedging USDX Index Exposure*

Each DX contract is $1000 multiplied by the index value, $1000 x 87.05 = $ 87,050

For every 4 DX contracts hedge = 1 EU contractFor every 16 DX contracts hedge = 4 EU, 1 YY, 1 YPFor every 24 DX contracts hedge = 6 EU, 1 YY, 1 YP, 1 YDFor every 52 DX contracts hedge = 13 EU, 3 YY, 3 YP, 2 YD, 1 KU, 1 YF

$ 4,524,000.00 Component ExposureExchange

Rate Bid/AskBasisPoints

EUR 57.60% $ 2,605,824.00 1.2438 0.0002 1.61

JPY 13.60% $ 615,264.00 109.4 0.02 1.83

GBP 11.90% $ 538,356.00 1.815 0.0002 1.10

CAD 9.10% $ 411,684.00 1.1927 0.0003 2.52

SEK 4.20% $ 190,008.00 7.464 0.002 2.68

CHF 3.60% $ 162,864.00 1.2475 1.60

11.34

DXY 100% $ 4,524,000.00 86.94 0.05 5.75

0.0002

* This is a general example for hedging. Each investor may have a unique personal preferred hedging strategy.

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Correlation table USDX IndexYear to Date One Year

8/10/04-8/10/05

2 Years

8/10/03-8/10/05

Eur/USD EU -.996 -.996 -.993

JPY/USD YY .898 .922 .880

GBP/USD YP -.942 -.939 -.932

CAD/USD YD .128 .557 .770

SEK/USD KU .993 .971 .966

CHF/USD YF .995 .988 .981

GSCI .617 .288 -.558

Gold -.125 -.604 -.850

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Benefit of using NYBOT US Dollar Index

Draw-Down AnalysisThe average 30 day historical volatility for the US Dollar Indexis lower than the HVT of all its components

Approximately 3% less than SEK Approximately 2% less than JPY and CHF

We have examined the daily trading range of the USDX and all its componentsData was used from July 23, 2002 through August 12, 2005, a total of 913 days.

Setting stop loss limits at 2 standard deviations around the mean. EUR positions would have been stopped out 47% more often ( 53 vs. 36) GBP positions would have been stopped out 39% more often ( 50 vs. 36) JPY positions would have been stopped out 8% more often ( 39 vs. 36) SEK positions would have been stopped out 31% more often ( 47 vs. 36) CAD positions would have been stopped out 42% more often ( 42 vs. 36) CHF positions would have been stopped out 36% more often ( 36 vs. 36)

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NYBOT U.S. Dollar Index Futures Contract SpecificationsSYMBOL: DX

CONTRACT SIZE/VALUE: $1,000 euros the US Dollar Index.

TRADING MONTHS: March, June, September and December.

PRICE QUOTE: The US Dollar Index is quoted in index points,to two decimal places.

MINIMUM FLUCTUATION: .01 of a US Dollar Index point, or $10/contract.

TRADING HOURS: 7:00 pm to 10 pm 3:00 am to 3:00 pm (EST)

FINAL SETTLEMENT: Physical Delivery.

POSITION LIMITS: To be determined.

LAST TRADING DAY The second business day prior to the 3rd

Wednesday of the expiry month. Trading in theexpiring month ceases at 10:16 am on ltd.

The final settlement value will be calculated to 3 decimal places, spread trades can beexecuted at half-tick differentials.

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NYBOT U.S. Dollar Index Options Contract Specifications

SYMBOL: DX

CONTRACT SIZE/VALUE: One DX Index Futures Contract.

TRADING MONTHS March, June, September and December,plus two nearest calendar months.

PRICE QUOTE: Price quoted in index points, to two decimalplaces.

MINIMUM FLUCTUATION: .01 of a US Dollar Index point, or $10/contract.

STRIKE PRICE INCREMENTS: Intervals of 1 full Index Point, or 100 ticks.TRADING HOURS: 7:00 pm-10:00 pm; 3:00 am-3:00 pm (NY Time)

POSITION LIMITS: To be determined.

LAST TRADING DAY: Two Fridays prior to the 3rd Wednesdayof the contract month.

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Frequently asked questionsWhere is the NYBOT US Dollar Index traded?

At the New York Board of Trade

Who calculates the NYBOT US Dollar Index ?The cash NYBOT US Dollar Index is calculated by Reuterswhen foreign exchange markets are open.

How is the NYBOT US Dollar Index traded?

Open outcry on the NYBOT trading floor(NYBOT also accepts EFP trades)Open outcry is also supported by electronic order routing

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New York Clearing Corporation Member Clearing Firms

ABN-AMRO IncorporatedADM Investor Services, Inc.AG Edwards & Sons, Inc.Banc of America Futures, Inc.Bear Stearns Securities Corporation

Calyon Financial, Inc.Cargill Investor Services, Inc.Citigroup Global Markets, Inc.Cotton Balls LLCCredit Suisse First Boston LLCDeutsche Bank Securities, IncDunavant Commodity CorporationF.C. Stone, L.L.C.Fimat USA LLCGoldman Sachs & CompanyJ.P. Morgan Futures, Inc.Lehman Brothers, Incorporated

Man Financial Inc.MBF Clearing CorporationMerrill Lynch, Pierce, Fenner & Smith,IncMorgan Stanley & CompanyPrudential Financial Derivatives, LLC.

Rand Financial Services, Inc.Refco, L.L.C.Reinhardt & Merz, Incorporated Rosenthal Collins Group, L.L.C.SMW Trading Company, Inc.Sterling Commodities CorporationTerm Commodities, IncorporatedTimber Hill, L.L.C.4Triland USA Inc.3UBS Securities, L.L.C.