Cboe Holdings, Inc. (MM) (NASDAQ:CBOE)
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1 Year : From May 2012 to May 2013
The parent of the Chicago Board Options Exchange on Friday claimed victory over a rival stock-options market in a years-long battle over the right to offer contracts on major stock-market indexes.
The Illinois Appellate Court ruled in favor of CBOE Holdings Inc. (CBOE) and major index providers in a legal dispute with the International Securities Exchange, which has sought to list its own options linked to equity benchmarks such as the Standard & Poor's 500 and the Dow Jones Industrial Average.
"We are obviously gratified that the court has ruled in CBOE's favor," said William Brodsky, chairman and chief executive of CBOE, in a statement.
A spokeswoman for the ISE said the exchange would "evaluate all of the options to determine next steps," but declined further comment. The ISE is a unit of Germany-based exchange company Deutsche Boerse AG (DB1.XE, DBOEF).
At issue are options contracts on widely followed indexes that trade exclusively on CBOE's markets, thanks to licensing agreements between CBOE and index owners McGraw-Hill Cos. (MHP) and CME Group Inc. (CME).
The ISE launched a legal challenge to list its own versions of the contracts in late 2006, arguing that other exchanges should be able to list the contracts as well because the index values fall within the public domain.
CBOE won an important round in July 2010 when an Illinois Circuit Court ruled in the Chicago exchange's favor, a decision ISE quickly appealed.
The ISE had sought for the case to be handed back to a lower court and dismissed, opening the way for the contest to proceed in New York, where ISE long has argued the matter should be settled. The ISE has argued that an earlier legal fight over energy-market values makes that jurisdiction more suited to the index options dispute.
CBOE shares recently were off 0.8% at $25.20.
-By Jacob Bunge, Dow Jones Newswires; 312 750 4117; jacob.bunge@dowjones.com; Twitter: @jacobbunge
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