- 6 -
** The Chicago Board of Option Exchange (CBOE) is an organization
separate from the CBOT.
The bundles of rights inherent in CBOT memberships are
divisible into two components: the ownership or equity component
and the trading privilege component. Although all members of a
class of membership have equal rights and privileges,
approximately 35 to 40 percent of petitioner's members do not
exercise their trading privileges. The owner of a membership is
entitled to lease or delegate the trading privileges attributable
to the membership. A member who leases or delegates trading
privileges retains the voting and dissolution rights attributable
to the membership. Included in the 35 to 40 percent of members
who do not exercise their trading privileges are approximately 16
percent of petitioner's members who neither exercise their
trading privileges nor lease or delegate them to third parties.
Petitioner's members may freely sell or transfer their
memberships pursuant to petitioner's rules and procedures
described infra pp. 10-11. During the taxable years 1988 through
1990, 494 full memberships, 334 associate memberships, 25 GIM
memberships, 487 COM memberships, and 432 IDEM memberships were
sold or otherwise transferred. At the time of trial, spring
1994, the fair market value of a full membership was
approximately $575,000. When a membership is transferred, the
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011