Chicago Board Options Exchange (CBOE) has announced it will buy back exercise rights from Chicago Board of Trade members through a modified Dutch auction process over the next month. The purchase plan introduced last Wednesday has a price range of $60,000 to $100,000 for each "exercise right privilege," as opposed to the flat $100,000 fee previously proposed.
The voluntary buy-back plan allows CBoT full members to list their exercise right privilege for any price within that range. At the conclusion of the one-month offer period, CBOE will determine the clearing price and the number of exercise right privileges it will purchase.