CBOE Wins Key Court Ruling (CBOE)

Shares of CBOE Holdings Inc. (NASDAQ: CBOE) are trading higher on the session by 2.46%, at $29.95. The stock is popping today on news that The Chicago Board Options Exchange has won a high-stakes legal battle against the International Securities Exchange.

The court battle has been on-going for the past four years and occurred over the CBOE’s exclusive rights to trade index-based options contracts on its exchange. An Illinois court has ruled today that CBOE will be able to maintain that exclusivity. The ISE, a unit of Frankfurt-based, Deutsche Boerse AG, quickly vowed to appeal the decision.

"We are obviously gratified that the Court has ruled in CBOE's favor," CBOE CEO William Brodsky said in a statement Thursday.

"We believe this result is incorrect based on the facts and the applicable law in this case, and we will proceed to appeal this decision," an ISE spokeswoman said Thursday.

CBOE Holdings, Inc. intends to operate as the holding company for Chicago Board Options Exchange, which operates as an organized marketplace for the trade of standardized, listed options on equity securities. CBOE trades of options on individual equities, market indexes, and exchange-traded funds. The company was founded in 1973 and is based in Chicago, Illinois.