Chicago Board Options Exchange (CBOE) and Chicago Board of
Trade (CBoT) rekindled talks last week to discuss a solution
for exercise rights, FO Week has learned. If an
agreement can be reached it could free up both exchanges to
pursue other business strategies.
Executives from both exchanges have stated in recent months
that they would like to reach an agreement on the rights, which
allow full CBoT members the right to trade on either CBoT or
CBOE. Such an agreement would allow a CBOE demutualisation to
move forward in full, potentially leading to an IPO. CBoT,
meanwhile, could more clearly pursue mergers or acquisitions
without being hampered by exercise right uncertainty.
Ray Cahnman, chairman of Transmarket Group and a former CBoT
board member, explained that the exercise rights issue could
stymie both exchanges if a compromise cannot be reached.
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