Cboe Global Markets, Inc.

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CBOE Holdings Inc.
CBOE Holdings.jpg
Founded 2010
Headquarters Chicago
Products Parent Company Of CBOE
Twitter @CBOE
Website ir.cboe.com>
Releases Company News

CBOE Holdings Inc. is the holding company for the Chicago Board Options Exchange (CBOE), C2 Options Exchange (C2), and CBOE Futures Exchange (CFE).

In 2012, total options volume on CBOE Holdings was 1.1 billion contracts, down 6.8 percent from the 2011 volume of 1.2 billion contracts. The Chicago Board Options Exchange contributed an annual volume of 1 billion contracts, down 8 percent from the previous year. The CFE contributed 23,892,203 contracts, up 98.4 percent from the previous year. C2 contributed 51,020,411 contracts, down 3.4 percent.[1]

In December 2009, CBOE directors approved plans to pursue an initial public offering (IPO) of common stock of CBOE Holdings Inc.[2] The CBOE launched its IPO on June 15, 2010.[3] The stock's IPO price was $29 a share.[4] That pricing of shares was at the top of the expected range, signaling investor demand in what has been a rocky market for new U.S. issues. The CBOE sold 11.7 million shares for $29 each, raising about $339 million. It had planned to sell 11.7 million shares for $27 to $29 each.[5]

Background

CBOE was founded as the first U.S. options exchange in 1973, and in 1980 the CBOE and the Midwest Stock Exchange consolidated business. In 1993, CBOE unveiled the CBOE Volatility Index (VIX). CBOE and the options industry celebrated its 25th anniversary in 1998, followed by the CBOE ADV surpassing one million contracts for the first time in 2000.[6]

Ten years later, in a Form S-4 filing with the U.S. Securities and Exchange Commission (SEC), CBOE said it intended to change its organizational structure from a non-stock corporation owned by its members to become a wholly-owned subsidiary of a new holding company, CBOE Holdings, Inc., organized as a stock corporation owned by its stockholders.[7]

Regulatory filings for the stock sale said the CBOE expected to use proceeds from the offering for general corporate purposes, but they also acknowledged that nearly all the proceeds could be returned to exchange members in two special tender offers after the IPO. CBOE also planned to let members, who would become shareholders, sell stock during the offering.[8]

In February 2012, CBOE Holdings announced its reorganization and the appointment of new officers.[9]

After the restructuring, the CBOE continued to function as a self-regulatory organization (SRO) and to operate its options exchange business. The following entitles became wholly-owned subsidiaries of CBOE Holdings: CBOE Futures Exchange, LLC, Chicago Options Exchange Building Corporation, CBOE, LLC, DerivaTech Corporation, Market Data Express, LLC, The Options Exchange, Incorporated. CBOE Stock Exchange, LLC (CBSX) remained a partially-owned facility of the CBOE.[10]

Contract Volume

Year Total Annual Volume* Percent Change World Ranking
2012 1,134,316,703 (-) 6.8% 7
2011 1,216,922,087 (+) 8.3% 8
2010 1,123,505,008 (-) 1.1% 7
2009 1,135,920,178 -- --

2012

Exchange Volume Percent Change
Chicago Board Options Exchange 1,059,404,089 (-) 8.0%
C2 Exchange 51,020,411 (-) 3.4%
CBOE Futures Exchange 23,892,203 (+) 98.4%
CBOE Group 1,134,316,703 (-) 6.8%

Key People

Business Development

Corporate Communications

Executive

Finance & Administration

Legal

Regulatory Services

Research

Systems

Resources

References

  1. FIA Annual Volume Survey: Trading Falls 15.3% in 2012. Futures Industry Magazine.
  2. CBOE Board Approves IPO. RTT News.
  3. CBOE Holdings Shares Jump as IPO Raises $339 Million. Businessweek.
  4. CBOE Up More Than 13%. Fox Business.
  5. CBOE IPO prices at top of range, seen rising. Reuters.
  6. CBOE History. CBOE.
  7. CBOE Board Backs Initial Public Offering. ForexYard/Reuters.
  8. CBOE's IPO Made For Members?. Crain's Chicago Business.
  9. CBOE Holdings, Inc. Announces Reorganization and Names New Officers. CBOE Holdings.
  10. Prospectus. CBOE.