CBOE, CBoT suit prompted by merger talks breakdown

In the aftermath of the Chicago Board of Trade (CBoT) lawsuit recently filed against Chicago Board Options Exchange (CBOE) over exercise rights, it was revealed last week that the two exchanges had been discussing the possibilities of merging.

Details of the proposed merger were disclosed in a CBOE letter to members concerning the lawsuit. The letter explained that the suit had been filed following the collapse of those merger discussions.

A merger remained the best way to resolve the issue of exercise rights, according...