CEO says CBOE could be takeover target

By Ros Krasny

NEW YORK (Reuters) - The Chicago Board Options Exchange could be an acquisition target in the consolidating world of financial exchanges but is able to chart its own course, chief executive William Brodsky said on Monday.

"We have total autonomy over our destiny," Brodsky told the Reuters Exchanges and Trading Summit in New York, speaking by telephone from his Chicago office.

Brodsky gave few details on whether the historic "exercise right" for Chicago Board of Trade members at CBOE could tilt the tussle for CBOT Holdings Inc. BOT.N between Chicago Mercantile Exchange Holdings Inc. CME.N and IntercontinentalExchange Inc. (ICE.N: Quote, Profile, Research, Stock Buzz).

CBOE, the largest U.S. options mart, is restructuring into a for-profit entity from a member-owned exchange, which could foreshadow an initial public offering.

Brodsky allowed that possible suitors were not in short supply. "I'm not going tell you who comes to visit but we do have a lot of people," he said. "Suffice to say we are an obvious partner to many people."

The International Securities Exchange Inc. ISE.N, the No. 2 U.S. options mart, said on April 30 it would be acquired by Germany's Deutsche Boerse (DB1Gn.DE: Quote, Profile, Research, Stock Buzz) for $2.8 billion.

That move, which would create the No. 1 transatlantic derivatives marketplace, helped push CBOE's seat price to a record $2.4 million, up 33 percent so far this year.

"None of us live in isolation," Brodsky said. "When your largest competitor gets priced the way ISE was priced, you will see that in our seat prices."  Continued...