- 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, thePage: 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