CBOE expects to be fined by U.S. SEC for regulatory shortcomings
SAN FRANCISCO May 8 (Reuters) - CBOE Holdings Inc expects to be fined as much as $10 million to resolve a probe by federal authorities into its duties as a self-policing organization.
It also expects any settlement to require it to beef up its compliance and regulatory programs, CBOE said in its quarterly filing with the U.S. Securities and Exchange Commission.
The operator of the oldest U.S. stock-options trading venue previously said it was in talks with the SEC to settle the probe, which is centered on the exchange's role as a front-line overseer of Chicago brokerage OptionsXpress, now owned by Charles Schwab Corp.
"We believe that any resolution of this matter will include a monetary penalty and will require CBOE to make additional changes to its compliance and regulatory programs and procedures," CBOE said in the filing, dated Tuesday.
Any final settlement must be approved by SEC commissioners.
A CBOE spokeswoman declined to comment on the investigation.