From Richard Jaman
I purchased a CBOT membership as an investment in November of 2004 with significant market risk. At the time of purchase I believed this would include a CBOE exercise right. Now, because of the value of this rght, the CBOE wants to extinguish it to enrich themselves. In 2005, the CBOE offered to purchase rights back from CBOT members at $100,0000 each. Very few members did this because most believed it was extremely undervalued. Recently, the CBOE purchased a trading right for $127,000.
I believe there was a contract. The basic definition of a contract is a legally binding exchange of promises or agreements between parties. (A) Offer (B) Acceptance (C) Consideration.
This is a dispute of contract law and should be decided in a Delaware court. The mission as stated for the SEC is to protect investors and maintain fair markets. Do not allow the CBOE to change the rules in the middle of the game.
CBOT Member since Nov 2004