CBOT Holdings, Inc. and the Board of Trade of the City of Chicago, Inc. (“CBOT”) today filed a motion for partial summary judgment in the Delaware Court of Chancery against the Chicago Board Options Exchange (“CBOE”) and its Board. A class of Exercise Right holders joined in the filing. In the filing, the CBOT and the class argue that the undisputed facts of the case entitle them to a judgment in their favor.
Specifically, the motion seeks:
- A declaration from the court that the CBOE's charter and one of the contracts with CBOT bar CBOE from issuing any stock to CBOE members without allowing Exercise Right holders to participate equally in that distribution.
- A declaration that the CBOE breached its charter and a number of its agreements with the CBOT by seeking to unilaterally extinguish the Exercise Right.
- A declaration that the CBOE's directors breached their fiduciary duties to the Exercise Right holders by attempting to extinguish their rights.
The CBOT created the CBOE. Since the CBOE’s creation, its charter has provided that CBOT members have the right to become members of the CBOE. Nevertheless, the CBOE is now attempting to unilaterally terminate the Exercise Right.. The CBOT has committed to protect the Exercise Rights of qualifying CBOT members and prevent the confiscation of those members’ economic interests.
About the CBOT
As one of the leading global derivative exchanges, the Chicago Board of Trade provides a diverse mix of financial, equity, and commodity futures and options-on-futures products. Building on its 158-year history, the CBOT continues to advance into the future using the strength of deep liquidity, market integrity and member-trader expertise.
Using superior trading technology in both electronic and open-auction trading platforms, the CBOT provides premier customer service to risk managers and investors worldwide. For more information visit our website at www.cbot.com.
