From the April 01, 2010 issue of Futures Magazine • Subscribe!


After years of legal wrangling related to its complex ownership status, CBOE Holdings, Inc. announced in March that it has filed a registration statement on Form S-1 with the SEC relating to a proposed initial public offering. CBOE Holdings intends for the proposed offering to take place concurrently with demutualization subject to a vote of the membership. Goldman, Sachs & Co. is the sole global coordinator of the offering, which is targeted to occur by the end of the second quarter.

A week earlier, CBOE and CME Group entered into a licensing agreement related to CBOE’s volatility franchise, leading some to speculate a larger deal between the two Chicago exchange operators could be in their repsective futures.

CBOE will apply its proprietary Volatility Index (VIX) methodology to up to five products to be listed at CME Group and create new volatility benchmark indexes that it will license for use to CME Group.
The agreement provides a worldwide license to CME Group to trade futures and options on futures products based on the new indexes.

CBOE and CME Group have tentatively agreed to base the first indexes on crude oil, corn, soybeans and gold and may add additional indexes per the agreement.

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