International Securities Exchange (ISE) took its campaign to
end exclusive index licensing deals to another level last week
when it announced it was going to court in order to allow it to
offer Dow Jones and Standard & Poor's (S&P) index
ISE has asked a federal court to allow the exchange to offer
Dow Jones Industrial Index and S&P 500 Index options
without a licensing deal with the respective companies. Both
contracts were exclusively licensed to Chicago Board Options
Exchange (CBOE) and represented a large portion of the
The move came after four years of no action taken on the
matter by Securities Exchange Commission.
ISE executives have long argued that exclusive licenses such
as the Dow and S&P 500 index options are bad for markets
because there is no competition among exchanges on the
contracts, which could lead to tighter spreads and better
prices for customers.
This article is available exclusively to subscribers
Please log in to continue reading.
Not yet a subscriber?
Click here to take a free trial.
Already have an account? |
Please fill in your details below and a customer service representative will contact you.