CBOE Settles Exercise Right Settlement Appeal??
Christine Birkner and Daniel P. Collins
Published 1/1/2010
The last link in the complex interconnected relationship between the Chicago Board Options Exchange (CBOE) and Chicago Board of Trade (CBOT) was finally severed and the path to a demutualized CBOE with all that entails is finally clear after the last obstacle ? a final appeal to the exercise rights settlement between CBOE and CBOT members ? was knocked down on Nov. 30 with a settlement of the appeal. The Delaware Supreme Court dismissed all appeals a week later.
Speculation on what it all means ? including a possible unification of sorts with the CBOT through CME Group ? kicked into high gear after the announcement.
Mark Longo of TheOptionsInsider says CBOE makes an excellent complement to CME Group. ?If you look at CME Group on a pie chart, there is a significant piece missing. That piece lies within the equity and index options space. The CBOE fits that gap perfectly. The decline in CME Group?s stock price complicates any acquisition plans, but a CBOE acquisition would make CME Group an instant leader in the options space.?