Court Won’t Hear ISE Options-Case Appeal
September 28, 2012
The Illinois Supreme Court refused to hear the International Securities Exchange’s (ISE) appeal of an appellate court injunction prohibiting ISE from listing and trading options based on the S&P 500 Index or on the Dow Jones industrial average.
"In refusing to hear ISE’s appeal, the Illinois Supreme Court has validated CBOE’s position that neither ISE nor any other third party should be able to hijack proprietary index options that CBOE created and grew over the last 30 years,” Chicago Board Options Exchange Chairman and Chief Executive William Brodsky said in a CBOE press release.
CBOE, the McGraw-Hill Companies, Inc. and Dow Jones & Company, Inc. filed a lawsuit in November 2006 in Cook County, Ill., against ISE and the Options Clearing Corp. to prevent ISE from listing or offering a market for trading in options based on the S&P 500 or Dow and to prevent OCC from facilitating such trading.
On July 8, 2010, the Circuit Court of Cook County entered the permanent injunction against ISE and OCC, and that was affirmed by the Illinois Appellate Court on May 25, 2012, CBOE said.
The injunction also forbids the OCC from clearing options on the two indexes for ISE.
The S&P 500 and the Dow Jones industrial average were united under the same ownership umbrella in a transaction that closed early last summer. The new entity, S&P/Dow Jones Indices, is 73 percent owned by S&P’s parent McGraw-Hill.