This morning, the Securities and Exchange Commission (SEC) ruled in favor of the Chicago Board Options Exchange (CBOE) in their plea to eliminate former Chicago Board of Trade (CBOT) member's CBOE exercise rights. The CBOE/former CBOT members fight will now move on to a Delaware court, where CBOT members have filed suit against the CBOE on the equity issue. At a luncheon for journalists in Chicago yesterday, CBOE Chairman William Brodsky called the SEC ruling the next-to-last stop to the end of the line for the CBOE’s demutualization process. Interestingly, both the CBOE and CME Group said they’re happy about today’s development. Shortly after the SEC ruling, CME Group released a statement saying “We are pleased that the SEC agrees with CME Group that the merits of our claims reside in the Delaware courts. The ruling clearly emphasizes that the state court's decision takes precedent in preserving the exercise and property rights of CBOT members.” In CBOE’s statement on the news, Brodsky said, “CBOE applauds the Commission for addressing the exercise right issues with certainty, clarity, and specificity.” It’s funny that both sides are cheering the ruling and declaring victory.