ICE to CBOT: We Can Make That CBOE Problem Go Away

Posted by John Carney, May 30, 2007, 8:58am

IntercontinentalExchange poured a little extra honey on its bid for the Chicago Board of Trade today, throwing a settlement over a longstanding dispute with the Chicago Board Options Exchange on top of its bid. ICE has been locked in a bidding war with the Chicago Mercantile Exchange for the Board of Trade.

Since its first days in the Nixon administration, Board of Trade has been battling the CBOE over exchange rights that allow members of the Board of Trade to trade options at the CBOE without having to buy a membership. The CBOE has been threatening to attempt to terminate those rights if the Board of Trade is taken over.

In the settlement announced today, ICE would pay Board of Trade members a total of $666.6 million for the the rights. Needless to say, the settlement offer only applies if ICE succeeds in its bid for the Board of Trade.

ICE and CBOE reach deal on exercise rights [Reuters]

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Comments

Posted by SDH, May 30, 2007 9:55AM

Hey John where the hell is the Opening Bell?

Posted by Roman Totale, May 30, 2007 10:16AM

FYI, its's Chicago Board Options Exchange, not Chicago Board of Exchange.

Posted by John Carney, May 30, 2007 10:21AM

Apologies. The site was behaving weirdly this morning. We've got the problem under control now.

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