CBOE members greenlight demutualisation
24 May 2010 | 1959 views | 0
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."