CME Group, the world’s largest and most diverse exchange, issued the following statement in response to the SEC’s ruling on Chicago Board Options Exchange’s (CBOE) "rule interpretation" terminating exercise rights and creating a temporary trading permit program:
"We are pleased that the SEC agrees with CME Group that the merits of our claims reside in the Delaware courts. The ruling clearly emphasizes that the state court’s decision takes precedent in preserving the exercise and property rights of CBOT members.
We are confident that the merger of CBOT Holdings and CME Holdings Inc. did not impair the exercise rights of CBOT B-1 members under the terms of the 1992 Agreement and the CBOE Charter. The CBOE’s efforts to avoid its contractual obligations to the CBOT B-1 members by means of a unilateral ‘interpretation’ of the CBOE charter, violates Delaware law. That issue is currently before the Delaware court, and the SEC has now agreed that the court, and not the SEC, has the authority to make the final decision. The SEC also made it clear that its approval of the CBOE’s interpretation was subject to further review pending the Delaware court’s decision.
We will continue our efforts to preserve the rights of CBOT members to become or remain exercise members of the CBOE pursuant to the exercise right and to share equally in any CBOE demutualization."