Chicago is My Home

02
Jun

CME, CBOE Suspend Seat Sales, Near New Settlement in Ownership Dispute

Author: Adam Fendelman, Category: Business

CHICAGO – The CME Group’s Chicago Board of Trade and the Chicago Board Options Exchange (CBOE) both suspended sales of trading memberships on Monday as the two sides met to hammer out a settlement in their two-year legal dispute.

Members of the Chicago Board of Trade, which was bought by CME in 2007, have been arguing in Delaware court for nearly two years that they have ownership rights to the CBOE, which is an options market they helped found in 1973.

A key hearing on the case is scheduled in Delaware on Wednesday. A settlement could be announced as early as this week, the Chicago Tribune and Crain’s Chicago Business reported on Monday.

The suspension of purchase and sale transactions in transferable memberships will last no longer than Monday, according to a note circulated at CBOE. Negotiations have been ongoing for months with potential settlement deals ranging from $900 million to $1.3 billion.

By Megan O’Neil