Chicago Board of Trade and the Chicago Board Options Exchange seem to have a fight brewing, because of the CBOT’s restructuring plan. In a letter to CBOT Chairman David Brennan,
CBOE Chairman William Brodsky said the plan — through which the CBOT would split into two for-profit exchanges, one with electronic trading only and the other with open-outcry trading —
would violate the terms of the 1992 agreement between the exchanges for continuation of CBOT members’ ‘‘exercise right’’ to trade at the CBOE.
Mr. Brennan sent a letter to CBOT members that says the CBOT’s legal advisers believe the plan does protect the CBOE exercise right. Mr. Brodsky, in his letter, suggests that the CBOT and CBOE work to find a ‘‘fair and reasonable alternative to the exercise right.’’
