CBOE Holdings (CBOE) has announced that certain officers of the company have established pre-arranged share disposition plans with a brokerage firm under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.
So what does this mean? According to CBOE’s press release, the plans established pursuant to Rule 10b5-1, allow a corporation’s insiders to sell shares over a “predetermined period of time, subject to predetermined volume and price parameters.” A plan can only be established when a participating insider does not possess “material non-public information.”
The individuals who have participated in the stock trading plans, will sell the following shares, enabling them to gradually diversify a portion of their holdings in an “orderly, prearranged manner.”
The following officers have elected to enter the following Rule 10b5-1 stock trading plans:
- William J. Brodsky, Executive Chairman of the Board – authorizes the sale of up to 50,000 shares over the next three months (approximately 14 percent of his total holdings)
- Edward T. Tilly, Chief Executive Officer – authorizes the sale of up to 25,000 shares over the next 12 months (approximately 14 percent of his total holdings)?
- David S. Reynolds, Chief Accounting Officer – authorizes the sale of up to 6,000 shares over the next three months.
Sales of shares pursuant to the stock trading plans will be reported through Form 4 filings with the Securities and Exchange Commission (SEC).?