CBOE Says SEC Probe Settlement May Cost As Much As $10 MillionLindsey Rupp
CBOE Holdings Inc.’s cost to settle a U.S. Securities and Exchange Commission investigation may be as much as $10 million, according to a regulatory filing.
The biggest U.S. options market by volume said a year ago that regulators were probing whether the company complied with its obligations as a self-regulatory organization. American exchanges are required to write rules for their markets, monitor trading and seek to ensure that they and their customers aren’t breaking securities laws.
“While an agreement has not been reached with the SEC staff, we believe that any resolution of this matter would include a monetary penalty and may require CBOE to make additional changes to its compliance programs and procedures,” the company wrote in the filing. CBOE said the likelihood of charge in excess of $10 million is “remote.”
CBOE said Feb. 8 it set aside $5 million to cover the resolution.
John Nester, a SEC spokesman declined to comment. Gail Osten, a spokeswoman for CBOE, did not immediately respond to messages requesting comment.