Chicago Board of Trade (CBoT)'s ongoing feud with Chicago Board Options Exchange (CBOE) ended up in court after CBoT filed a lawsuit over equity rights in the latter's demutualisation which could hand a proportion of control to CBoT. The court case could be a protracted one given the complicated nature of the issue and could stall CBOE's plans to demutualise.
CBoT's suit charges that its full members should be allowed to participate in CBOE's restructuring. The suit adds that CBoT members who hold an exercise right should also participate equally in any distribution of CBOE stock, therefore benefiting from any profits made when it eventually enters an IPO. CBoT said it believed such claims were carried within CBOE's own Certificate of Incorporation and other subsequent agreements between the two exchanges.
The lawsuit was filed on 23...