Chicago Mercantile Exchange - Page 3




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               In 1981, petitioner approved the construction of a new                 
          complex/trading facility, the Chicago Mercantile Exchange Center            
          (CME Center), that would consist of a south tower, a north tower,           
          and two trading floors.  On May 11, 1981, petitioner agreed to              
          lease 100,000 square feet on the upper lobby level and the entire           
          2nd through 6th floors of the south tower.  This represented                
          approximately 10 percent of the total space available for lease             
          in the south tower when petitioner took possession of the                   
          premises in November 1983.  Petitioner’s total leased space                 
          increased to approximately 17 percent of the south tower space              
          available for lease.                                                        
               Also in 1981, petitioner became a 10-percent limited partner           
          in a partnership named CME Center Partnership (CCP);1 the other             
          partner (the general partner) was an entity that was unrelated to           
          petitioner.  CCP was formed to construct, own, and operate the              
          CME Center’s south tower and to construct and sell its trading              
          facility.  CCP owned indirectly the south tower, and a limited              
          partnership unrelated to petitioner owned indirectly the north              
          tower.                                                                      
               In addition to its corporate headquarters in Chicago,                  
          petitioner maintained four other offices to promote the use and             
          trading of financial futures contracts.  From 1979 through 1990,            



               1 Petitioner maintained that 10-percent interest until CCP             
          was dissolved in 1995.                                                      





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