CBOE to drop traders from board following SEC probe - WSJ

Tue Jan 15, 2013 1:45am EST

Jan 15 (Reuters) - CBOE Holdings Inc, the biggest U.S. options exchange, will revamp its board by dropping directors who also run trading firms following a probe into the exchange's regulation of its members, the Wall Street Journal reported.

The move is part of a broader response by the exchange to an ongoing investigation by the Securities and Exchange Commission into its obligations as a market regulator, the newspaper said, citing people familiar with the matter.

CBOE plans to replace three directors on its 15-member board who also run trading firms with existing board members that have no direct ties to the options business, while adding several new directors, the newspaper said.

The move, which would bring CBOE in line with rivals such as NYSE Euronext, Nasdaq OMX Group Inc and IntercontinentalExchange Inc, was designed to "remove any sense of conflict," the newspaper said, citing a person familiar with the changes.

The three directors were expected to depart the board and join an existing advisory committee made up of brokerage executives that serves as a liaison between the CBOE and its customers, it said.

They are Benjamin Londergan, chief executive of Group One Trading LP, Paul Kepes, managing director at Chicago Trading Co, and Mark Duffy, managing member of Cornerstone Trading Group, would leave the board and join an existing advisory committee the newspaper said.

A CBOE spokeswoman confirmed the proposed shift by those directors to the Wall Street Journal. CBOE could not immediately be reached for comment by Reuters outside regular business hours.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.