By Ann Saphir
SAN FRANCISCO, May 8 (Reuters) - CBOE Holdings Inc
expects to be fined as much as $10 million to resolve a probe by
federal authorities into its duties as a self-policing
It also expects any settlement to require it to beef up its
compliance and regulatory programs, CBOE said in its quarterly
filing with the U.S. Securities and Exchange Commission.
The operator of the oldest U.S. stock-options trading venue
previously said it was in talks with the SEC to settle the
probe, which is centered on the exchange's role as a front-line
overseer of Chicago brokerage OptionsXpress, now owned by
Charles Schwab Corp.
"We believe that any resolution of this matter will include
a monetary penalty and will require CBOE to make additional
changes to its compliance and regulatory programs and
procedures," CBOE said in the filing, dated Tuesday.
The wording might suggest CBOE has moved closer to settling
A CBOE filing last week said discussions on a resolution of
the matter "remain ongoing" and "an agreement has not been
reached with the SEC staff."
The description in this week's filing omitted any reference
to settlement discussions and did not note the absence of an
agreement with the SEC staff.
Instead it repeated that "any agreement will be subject to
the approval by the Commissioners of the SEC."
A CBOE spokeswoman declined to comment on the investigation.
The SEC has historically refrained from fining exchanges for
misdeeds. It levied its first monetary penalty on an exchange
last September, fining NYSE Euronext $5 million to
settle SEC allegations that it gave some customers an early look
CBOE has made some changes to its compliance division in
response to the probe and earlier this year said it would remove
board directors with ties to trading firms.