Chicago Board Options Exchange (CBOE) and Chicago Board of Trade (CBoT) rekindled talks last week to discuss a solution for exercise rights, FO Week has learned. If an agreement can be reached it could free up both exchanges to pursue other business strategies.
Executives from both exchanges have stated in recent months that they would like to reach an agreement on the rights, which allow full CBoT members the right to trade on either CBoT or CBOE. Such an agreement would allow a CBOE demutualisation to move forward in full, potentially leading to an IPO. CBoT, meanwhile, could more clearly pursue mergers or acquisitions without being hampered by exercise right uncertainty.
Ray Cahnman, chairman of Transmarket Group and a former CBoT...