From: Cary Chubin
Sent: February 25, 2007
Subject: File No. SR-CBOE-2006-106

Ladies and Gentlemen,

My name is Cary Chubin. I've been a member of the Chicago Board of Trade (CBOT) since 1978. I had several choices where to invest and build my career. I chose the CBOT because the agreement between the CBOT and CBOE allowed for CBOT members to freely access the CBOE. Simply, I thought the CBOT offered the most diversity in cyclical markets. This agreement has been in place from the time the CBOE was founded with CBOT equity, intellectual capital, and physical assistance. Indeed, the CBOE has acknowledged such in their filing with the SEC. Over these almost thirty years, while I've never traded my own account at the CBOE, I have frequently leased my membership to CBOE exercisers. The agreement has worked well for all parties and been re-affirmed while our industry has gone through many changes. The most recent agreement provided CBOT members who kept 27,338 shares, a CBOT membership, and an ERP would be considered CBOE members and share in any equity should the CBOE go public. I have dutifully done so.

The CBOE now seeks to unilaterally extinguish this long standing agreement under the assumption that the merger between the Chicago Board of Trade and the Chicago Mercantile Exchange will irreparably harm CBOE members and customers. This argument is weak, without merit, and unproven. The CME-CBOT merger will cause no change to either CBOE markets or CBOE membership dilution. Indeed, extinguishing this long standing contract will, at least in the short to intermediate term, cause harm in the markets as positions must be unwound and new relationships developed. CBOE insincerity is obvious when one considers the woeful planning they have done if this eventuality comes to pass. This is quite simply a grab for what rightfully belongs to another party.

I understand the role of the SEC to be “to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation“. . I hope you will see this in no way damages the market and you will decline to rule on this agreement and contract.

Respectfully Submitted,

Cary Chubin
Member, Chicago Board of Trade (1978)