SAN FRANCISCO May 8 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
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.