Deutsche Boerse Unit Spurned by Court on Index Options

A Deutsche Boerse AG (DB1) unit lost a U.S. Supreme Court appeal that sought the right to offer options based on the Standard & Poor’s 500 Index and the Dow Jones Industrial Average.

The justices today turned away an appeal by Deutsche Boerse’s International Securities Exchange LLC of a court order that barred the company from creating a market for the options without a license. Deutsche Boerse is the operator of the Frankfurt stock exchange.

The rebuff is a victory for McGraw-Hill Cos. (MHP), whose S&P Dow Jones unit maintains the indexes, and CBOE Holdings Inc. (CBOE), whose Chicago Board Options Exchange offers index options under an exclusive licensing agreement with S&P Dow Jones.

McGraw Hill and CBOE won an Illinois state court ruling barring International Securities Exchange from using the indexes to create an index-options market without a license.

At the Supreme Court, International Securities Exchange argued unsuccessfully that federal copyright law barred the claim by McGraw Hill and CBOE.

The case is International Securities Exchange v. Chicago Board of Options Exchange, 12-940.

To contact the reporter on this story: Greg Stohr in Washington at

To contact the editor responsible for this story: Steven Komarow at

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