Members approve restructuring of CBOT
An overwhelming 99 per cent of the votes were cast in favour of the Chicago Board of Trade's restructuring proposal, which involves demutualization.
Acceptance of the proposal will see the conversion of CBOT into a for-profit, stock-based holding company and for-profit, membership exchange subsidiary.
CBOT Chairman Charles P. Carey said: "We appreciate the membership's tremendous support for the CBOT demutualization plan, which was created to enhance our competitiveness within the dynamic derivatives industry. This support is a vote of confidence in the CBOT's business plan to unlock the value of the Exchange while continuing to provide trading benefits and opportunities to CBOT members and other market participants."
CBOT President and CEO Bernard W. Dan said: "For 157 years, the CBOT has driven change within the derivatives industry, and I expect the Exchange's transformation into a for-profit company to enhance our position as a global industry leader. Further, the demutualised CBOT is designed to maintain the Exchange's ability to deliver the premier products and services for which it is known worldwide."
The restructuring transactions, including the distribution of common stock in the holding company, CBOT Holdings, to the CBOT's members, are expected to be completed within the coming weeks.
Also, the newly approved restructuring transactions provide a framework to facilitate the creation of public markets of CBOT Holdings common stock, capital raising transactions and other securities issuances following a second approval of the stockholders for CBOT Holdings.
The Exchange currently intends to solicit this second approval from CBOT Holdings stockholders as soon as reasonably practicable following the completion of the restructuring transactions.
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