Cboe, CBSX, & CFE Press Releases



CHICAGO, June 7, 2007 - The Chicago Board Options Exchange (CBOE) today announced that it plans to launch Credit Default Options on five individual companies: General Motors Corporation (GM), Ford Motor Company (F), Lear Corporation (LEA), Hovnanian Enterprises, Inc. (HOV) and Standard Pacific Corp. (SPF) on Tuesday, June 19, 2007. CBOE received regulatory approval yesterday from the Securities and Exchange Commission (SEC) to list and trade Credit Default Options such as these, and approval for CBOE's Credit Default Baskets is expected soon. CBOE's Credit Default Options offer the opportunity to hedge or speculate on the risk of credit events such as bankruptcy and failure to pay.

"We are very pleased to receive SEC approval for these products which we first proposed last June. Investors can now take advantage of the synergies between options prices, volatility and credit risk, hedging all three on one electronic platform, CBOEdirect," said CBOE Chairman and CEO William J. Brodsky. "Credit Default Options are a natural extension of CBOE's product line and will bring great benefits and tremendous cost savings to a market that has exploded into a $26 trillion business."

"CBOE's credit products will provide investors with the advantages of a standardized, exchange-traded options contract, including triple-A rated clearing, price transparency and reduced trading costs," said CBOE Vice President of Product Development Joe Levin. "CBOE's Credit Default Options will trade on the highly regarded Hybrid Trading System, offering sub-second electronic executions combined with the flexibility of open-outcry trading. "

Jane Street Specialists, LLC., a global, well-capitalized market making firm, has been appointed to be the Designated Primary Market Maker (DPM) in the initial five Credit Default Options. Liquidity may also be provided by Market Makers and Remote Market Makers.

CBOE's Credit Default Options are cash-settled binary call options that pay $100,000 when the Exchange confirms that a credit event, such as default on specified payment obligations, has occurred. If no such credit event occurs, the option expires with no value. Special procedures apply in the event of a succession or redemption. Trading hours are 8:30 a.m. to 3:00 p.m. C.T. Contract specifications and additional details are available at www.cboe.com/CREDIT.

CBOE, the largest options marketplace in the U.S. 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/.

Equity Ticker Symbol
Company Name

Credit Default Option Ticker Symbols

Expiration: Sept. 2008
Expiration: Sept. 2012
General Motors Corp
Ford Motor Co
Lear Corp
Hovnanian Enterprises Inc
Standard Pacific Corp

Lynne Howard-Reed
(312) 786-7123

Gary Compton
(312) 786-7612

CBOE® and Chicago Board Options Exchange® are registered trademarks of Chicago Board Options Exchange, Incorporated.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

In connection with the proposed restructuring transaction, CBOE Holdings, Inc. ("CBOE Holdings") has filed certain relevant materials with the United States Securities and Exchange Commission (SEC), including a registration statement on Form S-4. Members are encouraged to read the registration statement, including the proxy statement/prospectus that are a part of the registration statement, because it contains important information about the proposed transaction. Members are able to obtain a free copy of the proxy statement/prospectus, as well as the other filings containing information about CBOE Holdings and the Chicago Board Options Exchange, Incorporated ("CBOE"), without charge, at the SEC's Web site, http://www.sec.gov/, and the companies' website, http://www.cboe.com/. In addition, CBOE members may obtain free copies of the proxy statement/prospectus and other documents filed by CBOE Holdings or the CBOE from CBOE Holdings by directing a request to the Office of the Secretary, CBOE Holdings, Inc., 400 South LaSalle Street, Chicago, Illinois 60605.

CBOE Holdings, the CBOE and their respective directors, executive officers and other employees may be deemed to be participants in the solicitation of proxies in connection with the proposed transaction. Information about the directors and executive officers of CBOE Holdings and of the CBOE is available in the prospectus/proxy statement.

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