CBOE’s Brodsky Testifies Before U.S. House Committee on Financial Services

CBOE’s Brodsky Testifies Before U.S. House Committee on Financial Services  

CHICAGO, July 17, 2009 – William J. Brodsky, Chairman and CEO of the Chicago Board Options Exchange (CBOE), today testifies before the U.S. House of Representatives Committee on Financial Services regarding the Obama Administration’s Financial Regulatory Reform Proposal. 

Brodsky is one of just seven financial industry spokespersons and the only exchange official to testify before the Committee today. 

In his testimony, Brodsky “heartily endorses” the Administration’s recommendations as “important and necessary first steps toward comprehensive regulatory reform.” Additionally, he expresses the following views: 

  • CBOE supports the Reform Proposal’s recommendation for the creation of a Financial Regulatory Oversight Council (FSOC), chaired by Treasury, to resolve potential disputes between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).  
  • CBOE supports the Administration’s recommendation for harmonization of SEC and CFTC rules and urges Congress to adopt it.      
  • CBOE believes that while the Reform Proposal outlines interim steps that can be taken to dampen some ill effects of divided jurisdiction, eventual consolidation of the agencies is the only true comprehensive solution. 
  • CBOE agrees with the Reform Proposal’s recommendation that a single authority, such as the Federal Reserve Board, should supervise all firms that could pose a risk to financial stability. 
  • CBOE agrees with the Reform Proposal that greater regulatory oversight is needed for over-the-counter derivatives. 
  • Given the competitive disadvantages of unnecessary delays, CBOE applauds the Proposal’s recommendation that the SEC should overhaul its process for reviewing proposed rule changes by self-regulatory organizations (SRO) to allow more SRO rule filings to become effective on filing. 

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Chicago Board Options Exchange (CBOE), the largest U.S. options exchange and creator of listed options, continues to set the bar for options trading through product innovation, trading technology and investor education. CBOE offers equity, index and ETF options, including proprietary products, such as S&P 500 options (SPX), the most active U.S. index option, and options on the CBOE Volatility Index (VIX), the world’s barometer for market volatility. Other groundbreaking products engineered by CBOE include equity options, security index options, LEAPS, FLEX options, and benchmark products, such as the CBOE BuyWrite Index (BXM). CBOE’s Hybrid Trading System incorporates electronic and open-outcry trading, enabling customers to choose their trading method. CBOE’s Hybrid is powered by CBOEdirect, a proprietary, state-of-the-art electronic platform that also supports the CBOE Futures Exchange (CFE), CBOE Stock Exchange (CBSX) and OneChicago. CBOE is home to the world-renowned Options Institute and www.cboe.com, named “Best of the Web” for options information and education.

 

CBOE is regulated by the Securities and Exchange Commission (SEC), with all trades cleared by the AAA-rated Options Clearing Corporation. 

 

Media Contacts:

Gail Osten                           Gary Compton                                                   

(312) 786-7123                   (312) 786-7612                                                 

osten@cboe.com               comptong@cboe.com                                        

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In connection with the proposed restructuring transaction, CBOE Holdings, Inc. ("CBOE Holdings") has filed certain relevant materials with the United States Securities and Exchange Commission (SEC), including a registration statement on Form S-4. Members are encouraged to read the registration statement, including the proxy statement/prospectus that are a part of the registration statement, because it contains important information about the proposed transaction. Members are able to obtain a free copy of the proxy statement/prospectus, as well as the other filings containing information about CBOE Holdings and the Chicago Board Options Exchange, Incorporated ("CBOE"), without charge, at the SEC's website, http://www.sec.gov/, and the companies' website, http://www.cboe.com/. In addition, CBOE members may obtain free copies of the proxy statement/prospectus and other documents filed by CBOE Holdings or the CBOE from CBOE Holdings by directing a request to the Office of the Secretary, CBOE Holdings, Inc., 400 South LaSalle Street, Chicago, Illinois 60605.
 
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