From: Terry Myron
I have been a member of the Chicago Board of Trade for 31 years, but before I bought my seat I was one of the original owners of the CBOE.Make no mistake about it, the CBOE was conceived, financed, and supported by CBOT members. The CBOE established a perpetual right to all CBOT members to trade at the CBOE. Now it seems the CBOE is trying to find a loophole to extinguish the exercise right held by CBOT members.
Over the last few years the CBOE and the CBOT have bargained in good faith to keep this exercise right. The two exchanges have agreed that CBOT members would participate if the CBOE went public. Then the CBOE tried, through the Dutch Auction, to buy any and all ERP's at $60,000 to $100,000. This tactic didn't work very well so the CBOE stated that "from time to time" it might buy ERP's in the market. This happened less than three weeks ago. It certainly seems that the CBOE acknowledges that there is some sort of merit to the CBOT's case. Why buy something that it contends is worthless?
I think the CBOE believes that it will lose in the Delaware court and it is trying this approach with the SEC. It knows that there is a lot of money at stake for its members. I think one can get lost in all the legal jargon involved but common sense says that the CBOE is no longer bargaining in good faith. Please you common sense in your decision.
Thank you for your consideration