Before You Invest Your Money » Chicago Board Options Exchange (CBOE) http://before-you-invest.com This site monitors financial news articles that track corporate fraud and white collar crimes as they happen across the world. Mon, 06 Sep 2010 14:14:00 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 CBOE files for $300 million IPO http://before-you-invest.com/cboe-files-for-300-million-ipo/ http://before-you-invest.com/cboe-files-for-300-million-ipo/#comments Thu, 11 Mar 2010 17:13:00 +0000 Before You Invest tag:blogger.com,1999:blog-7461018119073696961.post-4376915410601296438

The Chicago Board Options Exchange (CBOE) filed an application with the U.S. securities regulator for an initial public offering.

CBOE, the largest U.S. options exchange by trading volume, filed form S-4 with the U.S. Securities and Exchange Commission on Thursday as a first step towards the IPO.

"There isn't another exchange out there like CBOE that would be ready to come to market," CBOE Chief Executive Bill Brodsky said.

CBOE'S long-running quest to demutualize was delayed by a legal battle with some Chicago Board of Trade members over ownership rights, which was eventually settled last year.

The settlement paved the way for the IPO plans.

CBOE's peers the Chicago Board of Trade (CBOT), the International Stock Exchange (ISE), and the New York Mercantile Exchange (NYMEX) all elected earlier this decade to go public before agreeing to takeovers by larger exchanges.

CBOE offers equity, index and Exchange Traded Fund (ETF) options, including proprietary products, such as S&P 500 options, the most active U.S. index option, and options on the CBOE Volatility Index, the world's barometer for market volatility.

The company will issue 55.8 million class A shares to current owner-members in the demutualization.

CBOE will also issue 12.2 million class B shares to one-time Chicago Board of Trade members, under terms of the settlement of a 2006 lawsuit brought by CBOT members against CBOE over ownership rights, CBOE said in a regulatory filing.

CBOE Chairman and CEO William Brodsky earned a $1.4-million salary last year and a bonus of $1.2 million. Along with other compensation of $808,967, he made a total of about $3.4 million, according to a filing with the U.S. Securities and Exchange Commission.

CBOE was founded in 1973 and only began operating on a for-profit basis at the start of 2006. The company, which has about 600 employees, had net income of $106.5 million last year on revenue of $426 million.

While net income last year slid 7.6% from $115.3 million in 2008, on revenue of $416.8 million, it had jumped almost 40% in 2008 from 2007 net income of $83.2 million.

CBOE files for $300 million IPO is a post from: Before You Invest Your Money

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The Chicago Board Options Exchange (CBOE) filed an application with the U.S. securities regulator for an initial public offering.

CBOE, the largest U.S. options exchange by trading volume, filed form S-4 with the U.S. Securities and Exchange Commission on Thursday as a first step towards the IPO.

“There isn’t another exchange out there like CBOE that would be ready to come to market,” CBOE Chief Executive Bill Brodsky said.

CBOE’S long-running quest to demutualize was delayed by a legal battle with some Chicago Board of Trade members over ownership rights, which was eventually settled last year.

The settlement paved the way for the IPO plans.

CBOE’s peers the Chicago Board of Trade (CBOT), the International Stock Exchange (ISE), and the New York Mercantile Exchange (NYMEX) all elected earlier this decade to go public before agreeing to takeovers by larger exchanges.

CBOE offers equity, index and Exchange Traded Fund (ETF) options, including proprietary products, such as S&P 500 options, the most active U.S. index option, and options on the CBOE Volatility Index, the world’s barometer for market volatility.

The company will issue 55.8 million class A shares to current owner-members in the demutualization.

CBOE will also issue 12.2 million class B shares to one-time Chicago Board of Trade members, under terms of the settlement of a 2006 lawsuit brought by CBOT members against CBOE over ownership rights, CBOE said in a regulatory filing.

CBOE Chairman and CEO William Brodsky earned a $1.4-million salary last year and a bonus of $1.2 million. Along with other compensation of $808,967, he made a total of about $3.4 million, according to a filing with the U.S. Securities and Exchange Commission.

CBOE was founded in 1973 and only started operating on a for-profit basis at the start of 2006. The company, which has about 600 employees, had net income of $106.5 million last year on revenue of $426 million.

While net income last year slid 7.6% from $115.3 million in 2008, on revenue of $416.8 million, it had jumped nearly 40% in 2008 from 2007 net income of $83.2 million.

CBOE files for $300 million IPO is a post from: Before You Invest Your Money

]]> http://before-you-invest.com/cboe-files-for-300-million-ipo/feed/ 0 Book : Too Good to Be True: The Rise and Fall of Bernie Madoff http://before-you-invest.com/book-too-good-to-be-true-the-rise-and-fall-of-bernie-madoff/ http://before-you-invest.com/book-too-good-to-be-true-the-rise-and-fall-of-bernie-madoff/#comments Wed, 16 Dec 2009 01:06:00 +0000 Before You Invest tag:blogger.com,1999:blog-7461018119073696961.post-8473072935867528789 When Bernie Madoff’s $65 billion Ponzi scheme unraveled at the end of 2008, many in the industry wondered how he did it, how otherwise savvy investors were lured into it, and how regulators failed to stop it. These are the questions that Erin Arvedlund attempts to answer in her book “Too Good to Be True: The Rise and Fall of Bernie Madoff.”


The book explores Madoff’s background, interviewing classmates from his days at Far Rockaway High School in New York, who noted that Bernie was an average guy who they never dreamed would ascend to titan of Wall Street and chairman of the Nasdaq. She also discusses Madoff’s involvement in the early development of electronic trading, including the Nasdaq and the Cincinnati Stock Exchange, an all-electronic stock market that actually moved to Chicago through a membership deal with the Chicago Board Options Exchange (CBOE) in 1995.


The book goes on to explain how Madoff carried out his Ponzi scheme through his illegal advisory business with the help of the legal side of his business, a brokerage firm. Both businesses were on three floors of the same building. Arvedlund’s descriptions of how the activity on the broker-dealer business on the eighteenth and nineteenth floors differed from the advisory business on the seventeenth are fascinating. It’s amazing how Madoff was able to get away with mailing his investors tickets for trades supposedly made on their behalf that never actually happened. The book explains that instead of actually trading for the advisory business, he would take investors money, deposit it into a bank account, and send it back to earlier investors.

One of the more amusing accounts in the book is the story of Salomon Konig, a money manager who is essentially in exile in the United States after running a mini Ponzi scheme in Venezuela. Konig would ask any fund of hedge funds he considered doing business with if they had any money in Madoff, and if they did, he would not deal with them. As another of Arvedlund’s interviewees points out, “it takes a crook to smell another crook.”

“Too Good to Be True” is an informative account of how Madoff carried out his scheme, how he lured in his victims, how industry experts raised alerts about it, and, ultimately, how the investigations into it failed. Anyone who is interested in this Ponzi scheme to end all Ponzi schemes will find it a worthwhile read.

Book : Too Good to Be True: The Rise and Fall of Bernie Madoff is a post from: Before You Invest Your Money

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When Bernie Madoff’s $65 billion Ponzi scheme unraveled at the end of 2008, many in the industry wondered how he did it, how otherwise savvy investors were lured into it, and how regulators failed to stop it. These are the questions that Erin Arvedlund attempts to answer in her book “Too Excellent to Be Right: The Rise and Fall of Bernie Madoff.”

The book explores Madoff’s background, interviewing classmates from his days at Far Rockaway High School in New York, who noted that Bernie was an average guy who they never dreamed would ascend to titan of Wall Street and chairman of the Nasdaq. She also discusses Madoff’s involvement in the early development of electronic trading, including the Nasdaq and the Cincinnati Stock Exchange, an all-electronic stock market that really went to Chicago through a membership deal with the Chicago Board Options Exchange (CBOE) in 1995.

The book goes on to clarify how Madoff carried out his Ponzi scheme through his illegal advisory business with the help of the legal side of his business, a brokerage firm. Both businesses were on three floors of the same building. Arvedlund’s descriptions of how the activity on the broker-dealer business on the eighteenth and nineteenth floors differed from the advisory business on the seventeenth are fascinating. It’s incredible how Madoff was able to get away with mailing his investors tickets for trades supposedly made on their behalf that never really happened. The book clarifies that instead of really trading for the advisory business, he would take investors money, deposit it into a bank account, and send it back to earlier investors.

One of the more amusing accounts in the book is the tale of Salomon Konig, a money manager who is essentially in exile in the United States after running a mini Ponzi scheme in Venezuela. Konig would question any fund of hedge funds he considered doing business with if they had any money in Madoff, and if they did, he would not deal with them. As another of Arvedlund’s interviewees points out, “it takes a crook to smell another crook.”

“Too Excellent to Be Right” is an informative account of how Madoff carried out his scheme, how he lured in his victims, how industry experts raised alerts about it, and, ultimately, how the investigations into it failed. Anyone who is interested in this Ponzi scheme to end all Ponzi schemes will find it a worthwhile read.

Book : Too Good to Be True: The Rise and Fall of Bernie Madoff is a post from: Before You Invest Your Money

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