CHICAGO, Sept. 11, 2014 /PRNewswire/ -- CBOE Holdings, Inc. (NASDAQ: CBOE) today announced that Chicago Board Options Exchange (CBOE) and C2 Options Exchange (C2) are in discussions with the Financial Industry Regulatory Authority (FINRA) on a potential agreement for FINRA to provide certain regulatory services to the CBOE and C2 options markets.
Negotiations are ongoing, and there is no assurance of a final regulatory services agreement. If terms are reached, a regulatory services agreement could potentially be finalized within the next few months, after consultation with CBOE's regulator. The potential regulatory services agreement is not expected to have a significant impact on CBOE's financial results.
"CBOE is committed to maintaining the highest standards in market regulation," said CBOE Holdings CEO Edward T. Tilly. "Teaming with FINRA, the largest regulator in the securities industry, could enable us to continue to meet those standards and to optimally serve the investing public going forward. We believe that FINRA's independence and regulatory efficiency together with CBOE's regulatory oversight experience and options expertise could further strengthen the integrity of our markets and investor protection."
If CBOE and FINRA reach an agreement, it may include the transition to FINRA of certain staff in CBOE's Regulatory Services Division involved in the CBOE and C2 regulatory oversight process, as well as some staff in CBOE's Systems Development group, who support options surveillance. In that event, CBOE and C2 would still be responsible for the regulation of their markets and would maintain an in-house regulatory team to, at a minimum, manage CBOE and C2 regulatory oversight programs and oversee the FINRA regulatory services relationship. Regulation of the CBOE Futures Exchange (CFE) is not anticipated to be part of this agreement with FINRA.
About CBOE Holdings
CBOE Holdings, Inc. (NASDAQ: CBOE) is the holding company for Chicago Board Options Exchange (CBOE), the CBOE Futures Exchange (CFE), C2 Options Exchange (C2) and other subsidiaries. CBOE, the largest U.S. options exchange and creator of listed options, continues to set the bar for options and volatility trading through product innovation, trading technology and investor education. CBOE Holdings offers equity, index and ETP options, including proprietary products, such as S&P 500 options (SPX), the most active U.S. index option, and options and futures on the CBOE Volatility Index (the VIX Index). Other products engineered by CBOE include equity options, security index options, Weeklys options, LEAPS options, FLEX options, and benchmark products such as the CBOE S&P 500 BuyWrite Index (BXM). CBOE Holdings is home to the world-renowned Options Institute and www.cboe.com, the go-to place for options and volatility trading resources.
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CBOE®, Chicago Board Options Exchange®, CFE®, Execute Success®, FLEX®, LEAPS®, CBOE Volatility Index® and VIX® are registered trademarks, and BuyWrite(SM), CBOE Futures Exchange(SM), BXM(SM), SPX(SM) and The Options Institute(SM) are service marks of Chicago Board Options Exchange, Incorporated (CBOE). C2 and C2 Options Exchange are service marks of C2 Options Exchange, Incorporated (C2). Standard & Poor's®, S&P® and S&P 500® are registered trademarks of Standard & Poor's Financial Services, LLC and have been licensed for use by CBOE, CFE and C2.
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SOURCE CBOE Holdings, Inc.
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