ICE and CBOE reach $665m agreement over CBOE exercise rights

Under the agreement, full members of the CBOT holding CBOE exercise rights would receive $500,000 compensation for each right, up to a total of $665.5 million. This consideration would be paid equally by CBOE and ICE, with holders of exercise rights being entitled to receive cash and/or debt securities convertible into both stock of the newly combined ICE/CBOT Holdings and common shares of CBOE after its demutualisation. ICE and CBOE have also agreed in principle to a broad commercial partnership, including technology and product development, and access to the distribution capabilities of each exchange.

The agreement between ICE and CBOE is contingent on the completion of the proposed merger of ICE and CBOT Holdings, and may help ICE in its bid for the exchange.