The Chicago Board Options Exchange (CBOE) today issued the following statement from CBOE Chairman and CEO William J. Brodsky regarding the SEC emergency order banning short sales:
"The need for the policy intervention notwithstanding, it is difficult to comprehend the merits of a draconian measure that will result in the sudden and severe removal of liquidity from the marketplace at the same time that the government is taking unprecedented steps to preserve it. Investors rely on a deep and liquid options marketplace in which to safely hedge and to transfer risk in times of market turmoil, yet this action will severely compromise the ability of market makers to make markets. Liquidity in the affected stocks will suffer to the extent that market makers are hampered, and -- absent relief -- market makers will be hamstrung. The lack of relief for options market makers will have serious ramifications for the reliability of the options market and for the efficiency of our capital markets overall. We are especially concerned with the collateral damage to our customers, which, while unintended, will be no less serious," said William J. Brodsky, CBOE Chairman and CEO.
CBOE, the largest U.S. options marketplace and the creator of listed options, is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, visit the CBOE website at: HYPERLINK "http://www.cboe.com" www.cboe.com.
Press contacts:
Gail OstenGary Compton
(312) 786-7123(312) 786-7612
osten@cboe.com comptong@cboe.com
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In connection with the proposed restructuring transaction, CBOE Holdings, Inc. (“CBOE Holdings”) has filed certain relevant materials with the United States Securities and Exchange Commission (SEC), including a registration statement on Form S-4. Members are encouraged to read the registration statement, including the proxy statement/prospectus that are a part of the registration statement, because it contains important information about the proposed transaction. Members are able to obtain a free copy of the proxy statement/prospectus, as well as the other filings containing information about CBOE Holdings and the Chicago Board Options Exchange, Incorporated (“CBOE”), without charge, at the SEC’s Web site, http://www.sec.gov, and the companies’ website, www.CBOE.com. In addition, CBOE members may obtain free copies of the proxy statement/prospectus and other documents filed by CBOE Holdings or the CBOE from CBOE Holdings by directing a request to the Office of the Secretary, CBOE Holdings, Inc., 400 South LaSalle Street, Chicago, Illinois 60605.
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