NEW YORK, Aug 25 (Reuters) - The Chicago Board Options Exchange (CBOE) on Wednesday called accusations by a rival exchange about its option fees 'completely baseless'.
Last week, the International Securities Exchange (ISE) called on U.S. market regulators to review certain fee practices at three rival option venues, including the CBOE, that it said are 'anti-competitive and discriminatory.'
'We can only surmise that ISE is attempting to improve its competitive footing by submitting and publicizing unfounded regulatory complaints,' said CBOE President Edward Joyce in a letter sent to the U.S. Securities and Exchange Commission.
'Regardless of the motive, we look to the Commission to carefully assess not only the substance of ISE's complaints, but to also assess the appropriateness of the very serious and damaging public accusations.'
In a complaint filed to the SEC, the ISE said the practices relate to certain fees applied to orders executed at the Boston Options Exchange, Chicago Board Options Exchange, owned by CBOE Holdings Inc, and Nasdaq OMX Group Inc's PHLX exchange. For details, see
The complaint by the ISE, which is owned by Deutsche Boerse's Eurex unit, came four months after the SEC proposed capping options fees, and a month after the regulator reopened a debate over so-called flash orders -- both putting the marketplace's complicated fee structure in the spotlight.
The ISE said that an increasing number of existing and proposed fees from various options exchanges inappropriately impede competition for order flow by 'stacking the deck' in favor of firms that seek to trade against -- or 'internalize' -- their retail customer order flow.
(Reporting by Angela Moon; Editing by Eric Walsh) Keywords: CBOE/OPTION FEES (angela.moon@thomsonreuters.com; +1 646 223 5685; Reuters Messaging: angela.moon.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Last week, the International Securities Exchange (ISE) called on U.S. market regulators to review certain fee practices at three rival option venues, including the CBOE, that it said are 'anti-competitive and discriminatory.'
'We can only surmise that ISE is attempting to improve its competitive footing by submitting and publicizing unfounded regulatory complaints,' said CBOE President Edward Joyce in a letter sent to the U.S. Securities and Exchange Commission.
'Regardless of the motive, we look to the Commission to carefully assess not only the substance of ISE's complaints, but to also assess the appropriateness of the very serious and damaging public accusations.'
In a complaint filed to the SEC, the ISE said the practices relate to certain fees applied to orders executed at the Boston Options Exchange, Chicago Board Options Exchange, owned by CBOE Holdings Inc, and Nasdaq OMX Group Inc's PHLX exchange. For details, see
The complaint by the ISE, which is owned by Deutsche Boerse's Eurex unit, came four months after the SEC proposed capping options fees, and a month after the regulator reopened a debate over so-called flash orders -- both putting the marketplace's complicated fee structure in the spotlight.
The ISE said that an increasing number of existing and proposed fees from various options exchanges inappropriately impede competition for order flow by 'stacking the deck' in favor of firms that seek to trade against -- or 'internalize' -- their retail customer order flow.
(Reporting by Angela Moon; Editing by Eric Walsh) Keywords: CBOE/OPTION FEES (angela.moon@thomsonreuters.com; +1 646 223 5685; Reuters Messaging: angela.moon.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.