CHICAGO (Reuters) - CBOE Holdings CBOE.O won court backing Friday in its long-running legal battle to prevent rival International Securities Exchange from listing options on the Standard & Poor 500 Index, one of CBOE’s most popular and profitable products.
The Illinois Appellate Court on Friday issued a ruling forbidding ISE from listing S&P 500 options, which are licensed exclusively to CBOE by McGraw-Hill MHP.N and CME Group’s (CME.O) index services unit, according to a statement from CBOE.
The ruling, which also applies to options on the Dow Jones Industrial Average, stems from a 2006 lawsuit by CBOE and McGraw-Hill against ISE to prevent it from listing the contracts.
“No third party should be able to interfere with contractual licensing agreements,” CBOE Chairman and CEO William Brodsky said in a statement. “Nor should any exchange have a free ride on the enormous investment CBOE made in creating options on these indexes and in developing and marketing them for over two decades.”
ISE is owned by Eurex, a Frankfurt-based futures exchange co-owned by Deutsche Boerse AG (DB1Gn.DE).
“We will evaluate all of the options to determine next steps but have no additional comment at this time,” an ISE spokeswoman said.
Reporting by Ann Saphir; Editing by Tim Dobbyn