The Chicago Board Options Exchange is clearing out the last vestiges of its past as a mutually-owned operation. While it was A-OK to have traders running the place before it went public in 2010, it seems having them on the board is now a conflict of interest attracting unwanted attention.
CBOE Holdings Inc. plans to revamp its 15-member board by replacing three directors who also run trading firms with existing board members that have no direct ties to the options business, while adding several new directors….
People close to the CBOE said the boardroom shuffle is part of a broader response by the exchange to an ongoing investigation by the Securities and Exchange Commission into the CBOE's obligations as a market regulator, responsible for supervising the activities of financial firms trading its products. The CBOE disclosed the ongoing probe last year.
"This is being done to remove any sense of conflict," said a person familiar with the changes, which continue an ongoing shift away from traders in the makeup of CBOE's board.
CBOE Revamping Board to Drop Traders [WSJ]