The board of directors of the CBOE on Dec. 12, submitted a rule filing with the SEC declaring that upon the closing of the proposed CME Holdings acquisition of the CBOT, the CBOE exercise rights will be terminated.
The exercise right was awarded to all 1,402 CBOT full members when the CBOT decided to split the CBOE off as a separate exchange and has been the subject of several legal actions between the two exchanges, including a pending suit by the CBOT, as the CBOT moved to a for profit company. The current CBOT suit is intended to ensure that CBOT exercise right holders who meet certain criteria participate equally in any distribution of CBOE stock as a result of the planned CBOE demutualization. The CBOT released this official comment: “We have not had an opportunity to fully review the filing, but it appears to be an effort by the CBOE to avoid the jurisdiction of the Delaware court in the pending case of the parties’ rights and obligations.”
CBOE also announced plans to file an S-4 registration statement concerning its proposed demutualization and will consider the timing of that filing at its January board meeting.