| NEW YORK, June 7
NEW YORK, June 7 CBOE Holdings Inc,
whose regulatory programs have been subject to a federal probe,
is not giving up the job of policing its own markets, nor is it
leaning toward splitting off its regulatory unit, the options
exchange's new CEO said Friday.
"We are first and foremost committed to our regulatory
functions as we are in them today, for the foreseeable future,"
Edward Tilly, CBOE's CEO since last month, said at an industry
conference sponsored by Sandler O'Neill.
CBOE has been in talks with regulators about potentially
splitting off its regulatory unit, either into a separate
regulator or by handing the reins to the Financial Industry
Regulatory Authority, or Finra, the Wall Street Journal reported
Tilly played down the possibility on Friday.
"I would never say never," Tilly said. "As you say, it might
be spun off, or we might look at something else, but for today
and for the foreseeable future, we are committed to being in the
The Securities and Exchange Commission has been
investigating the operator of the oldest U.S. stock-options
trading venue since at least early 2012 in connection with
conflicts of interest related to the exchange's role as a
front-line overseer of Chicago brokerage OptionsXpress, now
owned by Charles Schwab Corp.
CBOE expects to be fined as much as $10 million to resolve
the probe, and for any settlement to require it to beef up its
compliance and regulatory programs.
The exchange has already made some changes to its compliance
division in response to the probe and earlier this year said it
would remove board directors with ties to trading firms.