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Exercise right auction flops


Chicago Board Options Exchange (CBOE) ended its auction period for Chicago Board of Trade (CBoT) member exercise rights last Thursday while CBoT launched a new secondary market for them.

CBOE's modified Dutch auction was only able to draw about two dozen offers from a potential 1,402 full CBoT members during the 30-day auction period, sources told FO Week. The final count was not available by press time. A CBOE spokesperson told FO Week that is plans to buy some, but not necessarily all, of the exercise rights offered. CBOE also considers the auction...

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