At its annual press luncheon today, Chicago Board Options Exchange Chairman Bill Brodsky, Executive Vice Chairman Ed Tilly and Vice Chairman Brad Griffith reviewed the exchange’s triumphs in what has proven a very challenging year for all firms in the financial services industry, and the status of the ongoing scrum over exercise right privileges (ERP).
In regards to the longstanding ERP issue, in which former members of the Chicago Board of Trade have asserted their claim to an equity stake, Brodsky provided this: “There is light at the end of the tunnel,” adding that he had never said that before relating to the issue. The $300 million settlement with former CBOT members is currently before a chancellor in Delaware. Objections were heard on Dec. 16, mostly relating to eligibility issues related to the class action suit and not related to the fairness of the settlement. A ruling is expected in two to four weeks. Should the chancellor approve the deal, former CBOT members would have 30 days to file an appeal. While there is no telling how long an appeal could take, it likely would be less than a year. “An appeal would be the last hurdle,” Brodsky says, adding that the exchange has “no debt” and could pay the settlement with a check.
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