CBOT: Statement On CBOE SEC Filing To Terminate CBOT Member Rights
Date 12/12/2006
The Chicago Board Options Exchange (CBOE) made a filing with the SEC today seeking to terminate the right of full members of the Board of Trade of the City of Chicago (CBOT) to become members of the CBOE pursuant to an Exercise Right granted to CBOT full members under the CBOE’s charter. The SEC filing appears to be an effort by the CBOE to circumvent the jurisdiction of the Delaware courts in the pending Delaware case involving the parties’ rights and obligations in connection with the Exercise Right. The filing seeks to terminate the Exercise Right in connection with the pending merger between CBOT Holdings and Chicago Mercantile Exchange Holdings. The CBOT intends to oppose the CBOE’s position and filing and vigorously defend the rights of CBOT full members to become exerciser members of the CBOE pursuant to the Exercise Right.
