Cbot sues CBOE over member rights in restructuring

Cbot sues CBOE over member rights in restructuring

The Chicago Board of Trade (Cbot) has filed a lawsuit against the Chicago Board Options Exchange (CBOE), seeking to enforce the rights of its members to participate in the CBOE's restructuring.

The Board of Trade of the City of Chicago, a subsidiary of Cbot, was also a party to the lawsuit, which was filed by Cbot Holdings in the Delaware Court of Chancery.

The lawsuit seeks an injunction requiring the CBOE to allow members of the Cbot, who hold an exercise right and meet certain other requirements, to participate equally in any distribution of CBOE stock.

Besides Cbot Holdings, the plaintiffs include representatives of the class of Cbot full members. The CBOE's board of directors is also named as defendants.

The CBOE told reporters that it had not made any determination regarding the exercise right, but says its borad of directors has appointed a special committee to ensure that all CBOE members, including Cbot exercisors, are treated fairly.

In July the CBOE, which is the largest US options market, announced plans to launch a stock exchange early next year.

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