Chicago Board Options Exchange (CBOE) announced on 14 September that it will demutualise in 2006, a plan that appeared to line the exchange up for an IPO at some stage in the future.
CBOE said its board of directors approved the recommendation of the exchange's "business model task force" to begin the process of converting CBOE to a for-profit stock corporation. The exchange said its initial steps towards the conversion would start next year. It also planned to include a streamlined operating budget and changes to its governance and advisory committees.
The decision will require a member vote, although no specific timetable had been announced.
"It is imperative for CBOE to respond quickly and decisively to the rapid pace of change in today's marketplace," said exchange vice chairman Ed Tilly in a statement. "The...