The Chicago Board Options Exchange (CBOE) announced on July 27, at a press conference in New York City, that it would be launching the CBOE Stock Exchange, LLC (CBSX), a new securities trading marketplace. In this venture it is partnering with Interactive Brokers Group, LLC; LaBranche & Co Inc.; Susquehanna International Group, LLP and VDM Specialists.
“We invest in exchanges not specifically for profit reasons but because we’re pushing that electronic envelop,” says Steve Sanders, managing director, marketing and business development at Interactive Brokers. “The CBOE Stock Exchange will help us offer a new venue for trading to our customers, and the more venues we can offer results in better price execution for our customers.”
The CBSX will feature a Hybrid market model that will combine elements of both screen and floor-based trading; and provide a new venue for the trading of New York Stock Exchange, NASDAQ Stock Market and American Stock Exchange listed securities. CBSX is expected to launch in early 2007, pending final regulatory approval from the Securities and Exchange Commission (SEC).
CBOE also announced its board of directors unanimously authorized the filing of an S-4 registration statement with the SEC. While CBOE Chariman and CEO William J. Brodsky says he it is not certain CBOE will go public, he says usually the process to an IPO follows certain steps the CBOE has already taken, such as converting from a not-for-profit company to a for-profit company and the filing of an S-4.
The CBOE also announced today that its board of directors has named Edward T. Tilly, currently member vice chairman, as executive vice chairman. The board appointed John Smollen, currently a CBOE floor director, to replace Tilly effective Aug. 7.
Tilly, who was in his final term as member vice chairman due to term limits, will terminate his status and affiliation as a CBOE member prior to assuming his duties as CBOE’s executive vice chairman, a position that was newly created as part CBOE’s ongoing transition to a for-profit company.
Link to CBOE press releases:
HYPERLINK "http://cboe.com/AboutCBOE/ShowDocument.aspx?DIR=ACNews&FILE=20060727.doc&CreateDate=27.07.2006" CHICAGO BOARD OPTIONS EXCHANGE TO ENTER STOCK TRADING; Partners With Four Firms In Launching CBOE Stock Exchange, LLC
HYPERLINK "http://cboe.com/AboutCBOE/ShowDocument.aspx?DIR=ACNews&FILE=20060727b.doc&CreateDate=27.07.2006" CBOE BOARD UNANIMOUSLY APPROVES FILING TO DEMUTUALIZE; CBOE REPORTS EARNINGS FOR FIRST SIX MONTHS OF 2006
HYPERLINK "http://cboe.com/AboutCBOE/ShowDocument.aspx?DIR=ACNews&FILE=20060727c.doc&CreateDate=27.07.2006" CBOE BOARD NAMES EDWARD TILLY AS CBOE EXECUTIVE VICE CHAIRMAN AND JOHN SMOLLEN AS CBOE MEMBER VICE CHAIRMAN
