From: Jay Homan
My name is Jay Homan and I have been a member of the Chicago Board of Trade ( CBOT) since 1973. I was at the CBOT when the Chicago Board of Options Exchange (CBOE) was formed.
I remember clearly the discussion about whether to create the CBOE as a division of the CBOT much like the International Money Market (IMM) at the Chicago Mercantile Exchange.
The reason that the CBOE was created as a separate entity was to avoid a jurisdictional conflict between the SEC and the CFTC. At all times the intent was to give founding CBOT members an equity stake, either through trading rights or equity distribution.