(Reuters) — Members of the Chicago Board Options Exchange voted overwhelmingly on Wednesday to approve a legal settlement that would pave the way for the largest U.S. options exchange to go public or merge with another exchange.
CBOE members voted 779-70 to endorse the deal with CME Group Inc.'s Chicago Board of Trade full members, the CBOE said. There were 63 abstentions.
The settlement, finalized Aug. 20, gives some CBOT members an 18 percent stake in CBOE's demutualization plan to become a shareholder-owned company, plus a cash payment of $300 million.
In a statement, CBOE Chief Executive William Brodsky said: "(W)e have crossed one of two remaining major hurdles to the final resolution of this matter."
The Delaware Court of Chancery also needs to approve the settlement. CBOE said a hearing is scheduled for Dec. 16.
A separate hearing is also set for Sept. 29 to address "certain (CBOT) class members' objections to the eligibility requirements to participate in the settlement," CBOE said, adding "final approval" will come only after any appeals are resolved.
"If approved, the settlement will enable CBOE to act more rapidly to demutualize and to consider subsequent strategic transactions," Brodsky said.
Most market watchers expect CBOE to go for a public offering in order to establish a value, then negotiate with buyers.
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