FOR IMMEDIATE RELEASE
CBOE CHOSEN TO BE REGULATORY SERVICES PROVIDER FOR NEW OPTIONS REGULATORY SURVEILLANCE AUTHORITY
CHICAGO, April 6, 2006
- The Chicago Board Options Exchange (CBOE) announced today that it is participating with the other options exchanges in a new entity -- the Options Regulatory Surveillance Authority (ORSA) -- intended to serve as a central organization to facilitate collaboration in insider trading surveillance and investigations for the U.S. options industry. ORSA was jointly created by the six U.S. options exchanges: CBOE, American Stock Exchange LLC, Boston Stock Exchange, International Securities Exchange, NYSE Arca, Inc. (formerly the Pacific Exchange) and Philadelphia Stock Exchange.
The formation of ORSA is expected to enhance the effectiveness and efficiency of regulation of the national options market system, as well as that of each of the individual options markets, by facilitating the sharing of regulatory resources and information.
The participant exchanges in ORSA have entered into Regulatory Service Agreements with CBOE to conduct the coordinated surveillance efforts through the utilization of the insider trading surveillance system developed by CBOE. While CBOE will conduct the insider trading surveillance and investigations for ORSA operations, the six exchanges will share equal authority in regulation, and will jointly plan, develop, and operate ORSA's regulatory systems and facilities to monitor for insider trading violations.
"We are very honored to lead ORSA's coordinated surveillance efforts on behalf of the U.S. options exchanges. This is a tremendous endorsement of CBOE's state-of-the-art surveillance systems and dedicated regulatory staff," said Timothy H. Thompson, CBOE Senior Vice President and Chief Regulatory Officer. "It is paramount that investors have the utmost confidence in financial markets and, with the creation of ORSA, the U.S. options industry is strengthening the regulatory oversight of its markets even further."
Each of the collaborating marketplaces is a self-regulatory organization (SRO), responsible for actively policing the securities trading activity on its markets. The Securities and Exchange Commission (SEC) provides federal regulatory oversight of the SROs and the U.S. options industry as a whole. The ORSA plan developed by the options exchanges has just been published by the SEC for public comment, and requires SEC approval.
CBOE, the world's largest options marketplace and the creator of listed options, is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, visit the CBOE website at: www.cboe.com.
Contacts:
Lynne Howard-Reed
(312) 786-7123
howardl@cboe.com
Gary Compton
(312) 786-7612
comptong@cboe.com
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