The Chicago Board Options Exchange (CBOE) has settled an appeal to the exercise right litigation settlement that has been the holding up its efforts to demutualize. Under this settlement, CBOE would pay the appealing parties an aggregate amount of $4,171,243 and CME Group would reimburse CBOE half the settlement cost making the net cost to CBOE $2,085,621.50.
This is in addition to the already agreed to settlement funds. The Delaware Supreme Court must dismiss all appeals within two weeks, which the appealing parties have asked them to do.
A letter from the CBOE office of the chairman stated, “While we are quite comfortable that the appeals would not have been successful, we concluded that the settlement is in the best interest of CBOE and its seat owners because settlement of the appeals would eliminate all remaining litigation impediments to demutualization within days or weeks instead of months”
CBOE has suspended sales of seat memberships from 7 a.m. until 10 a.m. Tuesday while members are informed of this decision.