Posts Tagged ‘CBOE’

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Has CBOE/CBOT buried hatchet?

Monday, June 2nd, 2008

Early Monday morning we got word that the Executive Committee of the Chicago Board Options Exchange (CBOE) had suspended all purchase and sale transactions in CBOE memberships. The announcement could mean only one thing, that the long dispute over CBOE exercise right privileges (ERPs), currently being fought in a Delaware Chancery Court, could be near a settlement.

An attorney familiar with the industry told us this morning that when there is a halt on seat transactions it usually precedes an announcement that could affect the value of seats. “They don’t want anyone to have an advantage or disadvantage. History says there will be an announcement [that will involve the value of memberships],” said the attorney.

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CBOE's Bill Brodsky reponds to the regulatory blueprint

Monday, March 31st, 2008

Maybe because the Federal Reserve Bank took the day off from lowering interest rates an pumping liquidity into the market, Secretary Hank Paulson’s regulatory blueprint has gotten a ton of media attention today despite Paulson’s comments that a regulatory transformation wouldn’t begin until after the current market crisis are resolved. “Our first and most urgent priority is working through this capital market turmoil and housing downturn, and that will be our priority until this situation is resolved,” Paulson said. “With few exceptions, the recommendations in this Blueprint should not and will not be implemented until after the present market difficulties are past.”

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CBOE: You're getting warmer…

Tuesday, January 15th, 2008

Timing is everything, and today the Chicago Board Options Exchange (CBOE) found itself with a room full of journalists the day before what could prove to be a fateful moment in the future of the exchange. On Wednesday morning, the Securities and Exchange Commission (SEC) is expected to act on CBOE’s proposed rule change that would eliminate former Chicago Board of Trade (CBOT) member’s CBOE exercise rights, an issue that has been hotly contested for years and could be worth millions to everyone involved.

In December 2006 the CBOE board announced the rule filing, stating, “upon completion of CME Holdings’ acquisition of CBOT, CBOT members no longer would qualify to become or remain members of the CBOE through the exercise right.”

William Brodsky, chairman and CEO of the CBOE, said that the decision could be “the second to last stop,” on the road to demutualization of the exchange. Final decisions and details will be the responsibility of the Delaware court, where CBOT members have filed suit against the CBOE on the equity issue. The Delaware court has postponed the case until the SEC announced its decision on the rules change.

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