Illinois Supreme Court Rejects Ise Appeal of CBOE's Index Option Victory
Chicago, IL - September 27, 2012 - On September 26, 2012, the Illinois Supreme Court refused to hear International Securities Exchange's (ISE) appeal of the Appellate Court's May 25, 2012 decision that affirmed a permanent injunction prohibiting ISE from listing or providing an exchange market for trading in options on either the S&P 500® Index (S&P 500) or the Dow Jones Industrial AverageSM (DJIA). This injunction also forbids The Options Clearing Corporation (OCC) from clearing options on these indexes for ISE.
"In refusing to hear ISE's appeal, the Illinois Supreme Court has validated CBOE's position that neither ISE nor any other third party should be able to hijack proprietary index options that CBOE created and grew over the last 30 years," said CBOE Chairman and CEO William J. Brodsky. "Today's action further illustrates Illinois' ongoing and fundamental support for business growth and innovation."
By way of background, on November 15, 2006, CBOE, the McGraw-Hill Companies, Inc. and Dow Jones & Company, Inc. filed a lawsuit in Cook County, Illinois, against ISE and OCC to prevent ISE from listing or offering a market for trading in options based on the S&P 500 or DJIA and to prevent OCC from facilitating such trading. On July 8, 2010, the Circuit Court of Cook County entered the permanent injunction against ISE and OCC; this decision was affirmed by the Illinois Appellate Court on May 25, 2012.
CBOE, the largest U.S. options exchange and creator of listed options, continues to set the bar for options and volatility trading through product innovation, trading technology and investor education. CBOE offers equity, index and ETF options, including proprietary products, such as S&P 500 options (SPX), the most active U.S. index option, and options and futures on the CBOE Volatility Index (the VIX Index). Other products engineered by CBOE include equity options, security index options, LEAPS options, FLEX options, and benchmark products such as the CBOE S&P 500 BuyWrite Index (BXM). CBOE is home to the world-renowned Options Institute and www.cboe.com, the go-to place for options and volatility trading resources. CBOE is regulated by the Securities and Exchange Commission (SEC), with all trades cleared by the OCC.
CBOE®, Chicago Board Options Exchange®, FLEX®, LEAPS®, CBOE Volatility Index® and VIX® are registered trademarks, and BuyWriteSM, BXMSM, SPXSM, and The Options Institute are service marks of Chicago Board Options Exchange, Incorporated (CBOE). Standard & Poor's®, S&P® and S&P 500® are registered trademarks of Standard & Poor's Financial Services, LLC and have been licensed for use by CBOE. DJIA® and Dow Jones Industrial AverageSM are service marks of Dow Jones Trademark Holdings, LLC and have been licensed to CME Group Index Services, LLC and sublicensed for use for certain purposes by CBOE.