Membership approves CBOE's demutualization - Restructuring transaction approved by vote of 96.2% of memberships voted

Membership approves CBOE's demutualization - Restructuring transaction approved by vote of 96.2% of memberships voted

21/05/10

The Chicago Board Options Exchange (CBOE) today announced that the Exchange's membership has overwhelmingly approved CBOE's planned demutualization.  In a special meeting of the membership held today, there were 870 votes cast in favor of the proposed restructuring transaction, with 34 votes against the proposal and no abstentions.  As a result, the demutualization was approved by 96.2% of the CBOE memberships voted, which represents 89.6% of the CBOE memberships entitled to vote.  Approval by a majority of the outstanding memberships entitled to vote was required to approve the demutualization.

The membership's approval of the demutualization proposal will allow for the restructuring of the Chicago Board Options Exchange, Incorporated in which the CBOE will convert from a non-stock corporation owned by its members to a stock corporation that will be a wholly-owned subsidiary of CBOE Holdings, Inc. 

"We are gratified by the membership's overwhelming endorsement to transform our business model and to chart a new course for CBOE," said CBOE Chairman and CEO, William J. Brodsky. "Achieving this milestone has been a collective effort and, with this vote, CBOE members and staff may now look forward to writing the next great chapter in CBOE's history.  Changing the Exchange's corporate structure will provide CBOE with additional agility and flexibility in an evolving and increasingly competitive environment.  As we move forward, we do so knowing that CBOE will be well-positioned to meet the challenges that lie ahead."  

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 S&P 500 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 (OCC).