Cboe Global Markets, Inc. (CBOE, NASDAQ)
Annual report, fiscal year 2009


## CBOE 2009
Annual Report



“CBOE’s focus on a for-profit strategy and adoption of a corporate structure like that of a for-profit business provides CBOE with the flexibility to respond to the demands of a rapidly changing business and regulatory environment.”

The year 2009 was a time for the financial industry to take stock of its immediate past, while looking ahead to its future. Most significantly, in the aftermath of the 2008 financial crisis, legislators began crafting new regulations that would not only avert future meltdowns, but change the very framework of the financial system. However these reforms are ultimately designed, when enacted, they will most certainly alter the future course of the financial industry.

The Chicago Board Options Exchange (CBOE) played a central role in the regulatory reform dialogue throughout the past year. The Exchange and its executives were sought regularly to provide their viewpoint on industry and market structure issues. CBOE embraces its role as the leading advocate on behalf of the options industry and will remain active on Capitol Hill as the reform initiatives begin to take shape.
Just as critical to CBOE’s own future, however, were the major steps taken to complete its demutualization, a process whereby the Exchange is converting its business model from a member owned, non-stock corporation to a new stock corporation, CBOE Holdings, Inc. The transformation of CBOE’s business model is a strategic decision that will provide the agility and flexibility necessary to compete effectively in the options industry.

CBOE is now preparing to write the next chapter in its illustrious history. In December 2009, CBOE’s Board of Directors approved plans to pursue an underwritten initial public offering (IPO) of common stock of CBOE Holdings, Inc. with the intent that CBOE’s demutualization and IPO take place concurrently. The goal is to complete both the demutualization and the IPO by the end of June 2010. This defining moment in the evolution of the Exchange would not have been possible without the determined and coordinated efforts of CBOE’s Board of Directors, members and staff.

Although the Exchange is changing its corporate structure, it will continue to play an essential role in the global financial system. At its core, CBOE is a self-regulatory organization and it is committed to the goals of providing an open and liquid marketplace for buyers and sellers, providing fair and orderly markets and protecting investors by enforcing the securities laws and the rules that govern its marketplace.

The dynamics of the business environment are changing—new rules will alter how global markets operate, while the competition in the U.S. options industry is expected to intensify. CBOE is positioning to meet these new realities. The transformation of CBOE’s business model, combined with its competitive strengths, will be the driving forces of the Exchange’s growth strategy in the years to come.







# “The letters ‘CBOE’ have become synonymous with options trading and the Exchange’s leadership role in the industry is recognized worldwide.”

CBOE has established itself as the global leader and innovator in the options industry. The Exchange’s expertise in product innovation, technological engineering and industry advocacy is unrivaled. CBOE continues to leverage these competitive strengths to meet the challenges of an evolving options landscape.

New product development has been a signature of CBOE since its inception in 1973. The Exchange’s focus on innovation has resulted in a vast array of risk management tools that are essential to making sound investment decisions. CBOE has created numerous products that have shaped the industry—from index options, LEAPS and FLEX options, to its suite of volatility products, benchmarks and strategies—most notably, the CBOE Volatility Index (VIX). Among the recent new product highlights was the launch of options on the S&P 500 Dividend Index. A long list of industry “firsts,” numerous industry awards for innovation, and key index options contracts distinguish CBOE from its peers.
CBOE’s innovative spirit also fuels ongoing advancements in trading technology. CBOE owns, operates and maintains its core trading systems and information technology, all of which were built in-house. CBOE’s Hybrid Trading System, which integrates open outcry and electronic trading into a single market, offers customers more choices, a diverse pool of liquidity and the ability to execute complex strategies that may not be available on a screen-based trading system.

The Exchange’s Hybrid Trading System is powered by CBOE direct, one of the most advanced trading platforms in the world. CBOE direct was designed to be scalable for both capacity and throughput; and can simultaneously support both screen and floor-based trading for multiple trading models, products and matching algorithms.

The options trading environment at CBOE supports the activities of nearly 200 trading firms and approximately 1,000 members, representing leading financial and securities firms. This diverse pool of liquidity providers, in combination with the Exchange’s broad range of products and services, offers market participants the markets they require to effectively execute a broad range of trading strategies.

Committed to advancing and growing the options industry, CBOE is dedicated to investor advocacy and education. CBOE regularly engages with policy makers on issues that impact the industry and its participants. As the foremost educational authority, the Exchange promotes the responsible use of options through a variety of different forums, including The Options Institute, the Exchange’s educational arm, which is celebrating its 25th anniversary in 2010; www.cboe.com, an award-winning website and the annual Risk Management Conference.



“An exchange’s ability to participate in the ongoing growth of the derivatives markets will be driven, in great part, by the trading functionality products and services that it offers to market participants.”

A key component to CBOE’s growth strategy is a commitment to finding new applications for its unique products and services that meet the growing—and changing—needs of the marketplace. Expanding the use and appeal of these offerings allows the Exchange to organically grow its business by tapping new market segments and reaching potential new customers.

CBOE continues to refine its market model and enhance its trading platform. CBOE is using its strong in-house development capabilities to further augment the functionality and capacity of the Exchange’s trading environment. To this end, in 2008, CBOE shaped plans for the creation of a separate all-electronic options market—C2 Options Exchange, capable of trading all CBOE products. C2 received regulatory approval in 2009 and is expected to launch in 2010, as CBOE awaits guidance from the SEC on several key market structure issues.

CBOE is building on its reputation as the industry architect for new product development by using licensed products, as well as CBOE proprietary intellectual property, to create exclusive products that meet the needs of the derivatives industry and enhance the CBOE brand. New, innovative products have the potential to drive trading volumes by attracting new customers to the Exchange and expanding the array of products available to existing customers.

The Exchange seeks new opportunities to derive revenue from new and expanded service offerings. For example, through an arrangement with Standard & Poor’s, CBOE licenses the Exchange’s proprietary indexes and methodologies to firms, banks and other exchanges around the world. In March 2010, CBOE and CME Group entered into a license agreement that extends the reach of CBOE’s volatility franchise. CBOE is applying its proprietary CBOE Volatility Index (VIX) methodology to price data of, initially, up to five products listed on one or more of CME Group’s exchanges and is creating new volatility benchmark indexes that it has licensed for use to CME Group.

As a result of the 2008 financial crisis, over-the-counter (OTC) market participants have been under pressure from regulators to move much of their trading to an exchange-traded, centrally cleared environment. CBOE has developed and refined products and strategies that target this market segment, including CFLEX, an internet-based, electronic system that allows participants to customize key contract terms with the clearing guarantees of standardized listed options. In addition, CBOE eliminated blackout dates for FLEX options in 2009, allowing for options trading on dates near or on expiration Fridays, and early in 2010, implemented two pilot programs that eliminate the minimum size values for all FLEX options and the PM-settlement restrictions for FLEX index options.

By taking steps to build the value of its business and retain its leadership position in the industry, CBOE is well-positioned to meet the challenges of 2010 and beyond. All market participants can be assured that CBOE is—and will remain—a vital necessity in the options industry.






## CBOE Volume Highlights




















## CBOE Financial Highlights











William J. Brodsky
Chairman of the Board and
Chief Executive Officer



Edward J. Joyce
President and
Chief Operating Officer



Edward T. Tilly
Executive Vice Chairman



Bradley G. Griffith
Vice Chairman
(served January through July)

## 2009 Board of Directors



Robert J. Birnbaum
Public Director
Former President
NewYork Stock Exchange
American Stock Exchange



James R. Boris
Public Director
Lead Director
Retired Chairman and
Chief Executive Officer
EVEREN Securities, Inc.



Mark F. Duffy
Floor Director
Managing Member
Cornerstone Trading, LLC
General Partner
Fugue



David A. Fisher
Off-Floor Director
Chief Executive Officer
optionsXpress Holdings, Inc.
Chairman of the Board
optionsXpress, Inc.



Duane R. Kullberg
Public Director
Former Chief Executive Officer, 1980–1989
Arthur Andersen & Co., S.C.



Benjamin R. Londergan
Floor Director
Chief Executive Officer
Group OneTrading, LP



R. Eden Martin
Public Director
Of Counsel
Sidney Austin LLP
President
The Commercial Club
of Chicago



Anthony D. McCormick
Off-Floor Director
(served January through
September)
Vice President
Equities and Options
Charles Schwab & Co., Inc.



William R. Power
Lessor Director
Member
Chicago Board Options
Exchange



Samuel K. Skinner
Public Director
Former Chairman of the Board
USF Corporation
Former Chief of Staff and
Former U.S. Secretary of
Transportation
Under President
George H.W. Bush



John E. Smollen
Floor Director
Managing Director
Golden Sachs & Co.



Carole E. Stone
Public Director
Former Director
NewYork State
Division of the Budget



Janet P. Froetscher
Public Director
President and
Chief Executive Officer
National Safety Council



Paul Kepes
At-Large Director
Managing Director
CTC, LLC



Stuart J. Kipnes
At-Large Director
President
Associated Options, Inc.



Kevin L. Murphy
Off-Floor Director
Managing Director
Head of U.S. Broker Dealer
Sales
Citigroup Global Markets, Inc.



Roderick Palmore
Public Director
Executive Vice President,
General Counsel and
Chief Compliance and Risk
Management Officer
General Mills



Susan M. Phillips
Public Director
Former Governor
Federal Reserve Board
Dean
School of Business and
Public Management
The George Washington
University



Howard L. Stone
Public Director
Retired Senior Managing
Director
American Express Tax and
Business Services



Eugene S. Sunshine
Public Director
Senior Vice President
Business and Finance
Northwestern University



Jonathan B. Werts
Off-Floor Director
Managing Director
Merrill Lynch, Pierce, Fenner & Smith Inc.



## Standing Committees of the Board

Audit Committee
R. Eden Martin
Chair
James R. Boris \( ^{*} \) 
David A. Fisher
Duane R. Kullberg
Roderick Palmore
Carole E. Stone

Compensation Committee
Eugene S. Sunshine
Chair

James R. Boris
Bradley G. Griffith
R. Eden Martin
Anthony D. McCormick \( ^{\dagger} \) 
Kevin L. Murphy \( ^{\dagger} \) 
William R. Power

Executive Committee
William J. Brodsky
Chair

Robert J. Birnbaum
James R. Boris
Mark F. Duffy
Bradley G. Griffith \( ^{\S} \) 
Stuart J. Kipnes
R. Eden Martin
William R. Power \( ^{\#} \) 
Eugene S. Sunshine
Jonathan B. Werts

Floor Directors Committee
Bradley G. Griffith \( ^{§} \) 
Chair
Mark F. Duffy
Paul Kepes
Stuart J. Kipnes
Benjamin R. Londergan
William R. Power \( ^{**} \) 
John E. Smollen

Governance Committee
Janet P. Froetscher
Chair

Robert J. Birnbaum
James R. Boris
Paul Kepes
Benjamin R. Londergan
Kevin L. Murphy
William R. Power
Samuel K. Skinner
John E. Smollen
Howard L. Stone

Regulatory Oversight Committee
Susan M. Phillips
Chair
Robert J. Birnbaum
James R. Boris \( ^{*} \) 
Roderick Palmore
Samuel K. Skinner
Howard L. Stone

Special Committee of Independent Directors
R. Eden Martin
Chair

Chair
James R. Boris
Duane R. Kullberg
Eugene S. Sunshine

 \( ^{*} \) Ex Officio Non-Voting
Member as Lead Director

**Non-Voting Member
 \( ^{1} \) Served January through
September

 \( ^{1} \) Served in December
 \( ^{2} \) Served January through July
 \( ^{3} \) Served July through

December

Advisory/Managing Directors Committee

Joseph Bile
Oppenheimer & Co., Inc.

Peter Bottini
optionsXpress Holdings, Inc.

Jack Boyle
Penson Financial Services, Inc.

James Boyle
UBS Securities, LLC

Jeffrey Capretta
JPMorgan Chase & Co.

Patrick Carroll
Compass Execution Services

Joseph Dattolo
Pershing LLC

Michael Domka
Interactive Brokers LLC

Brian Falls
Scottrade, Inc.

James Fitzgibbons
Susquehanna International
Group, LLC

Jay Hanlon
Merrill Lynch Professional

Michael Juneman
Citadel Investment Group, LLC

Andy Kolinsky
Citadel Execution Services, LLC

Christopher Larkin
E*Trade Securities, LLC

Edward Lynn
UBS Financial Services, Inc.

Anthony McCormick
Charles Schwab & Co., Inc.
(served January through

September)

Andrew McLeod
Morgan Stanley & Co.,
Incorporated

Kurt Muller
National Financial
Services, LLC

Kevin Murphy
Citigroup Global Markets, Inc.

Phillip Muscarella
Pershing LLC

Christopher Nagy
Ameritrade/Advanced
Clearing

John O'Donnell
RBC Drain Rauscher

Christopher Sandel
TradeKing

Joseph Sellitto
Susquehanna International
Group, LLC

Scott Spears
Wachovia Securities, LLC

Jonathan Werts
Merrill Lynch, Pierce, Fenner

& Smith Inc.

J.P. Xenakis
Goldman Sachs & Co.

## Committees of the Membership

Appeals Committee
B. Michael Kelly
Chair
Thomas R. Beehler
Henry.Y. Choi
David J. Drummond
Douglas H. Edelman
Joseph A. Frehr
Patrick V. Gleason
Ann Grady
Allen D. Greenberg
Mark M. Grywacheski
Paul J. Jiganti
Richard J. Kevin
Michael T. Lyons
Patrick J. McDermott
John B. Niemann
Daniel J. O'Shea
Douglas W. Prskalo
James P. Rouzan
J. David Short
Antanas Shurna
John Paul Stowick
Joseph P. Sullivan, III

Arbitration Committee
Thomas R. Beehler
Chair

Alexander M. Ackerhalt
Daniel Baldwin
Henry.Y. Choi
Terrence E. Cullen
Stephen P. Donahue
Douglas C. Draeger
David J. Drummond
Douglas H. Edelman
Brian H. Egert
Mark R. Eluger
David F. Miller, Jr.
Benjamin E. Parker
Ethan H. Schwartz
Eileen Smith
Adam R. Walls

Financial Planning Committee
Bradley G. Griffith
Chair
Alan J. Dean
Mark F. Duffy
Paul Kepes
Stuart J. Kipnes
Benjamin R. Londergan
William R. Power
John E. Smollen

Floors Officials Committee
Craig R. Johnson
Chair

Richard W. Fuller, Jr.
Vice Chair

Richard W. Fuller, Jr.

Patricia Bachman
Eduard P. McFadden, III
Business Conduct Committee
Bruce I. Andrews
Chair

John P. Brown
Richard A. Bruder
John M. Conway
Douglas H. Edelman
James P. Fitzgibbons
Philip N. Hablutzel
John J. Kaminsky
Edward F. Kelly
Wendy A. Massa
Howard Plotkin
Scott K. Shaw
Margaret E. Wiermanksi

Election Committee
Joanne Moffie-Silver
Chair

Jaime Galvan
Stanley E. Leimer

Equity Options Procedure Committee
Stuart J. Kipnes

Daniel P. Carver
Stephen M. Dillinger
William J. Ellington
Elizabeth Esposito
Richard W. Fuller, Jr.
Sean W. Haggerty
Timothy Hender
Eric J. Henschel
Frank A. Hirsch
Eric J. Levine
Mark R. Eluger
David F. Miller, Jr.
Benjamin E. Parker
Ethan H. Schwartz
Eileen Smith
Adam R. Walls

Financial Planning Committee
Bradley G. Griffith
Chair
Alan J. Dean
Mark F. Duffy
Paul Kepes
Stuart J. Kipnes
Benjamin R. Londergan
William R. Power
John E. Smollen

Floor Officials Committee
Craig R. Johnson
Chair

Richard W. Fuller, Jr.
Vice Chair

Patricia Bachman
Eduard Barry
Michael J. Bartholomew

James Corsey
James D. Coughlan
Robert B. Duddy
Jeffrey Fried
John Haffner
Michael J. Hayes
Peter J. Heinz, Jr.
John T. Kark
Aaron T. Leider
Sean P. Moran
Burt J. Robinson
Michael Todorofsky
Kerry Winters
Robert J. Zaremba

Index Options Procedure Committee
Benjamin R. Londergan
Chair
Richard E. Tobin
Vice Chair
Salvator J. Aiello
Eoin T. Callyer
James D. Coughlan
David J. Drummond
Timothy P. Feeney
Matthew J. Filipovich
Howard D. Gillman
Peter J. Heinz, Jr.
Eric F. Jacobson
Michael T. Juneman
James W. Lynch
Richard T. Marneris
Timothy S. McGugan
Brian L. Meister
Anthony Montesano
Terrence J. Moran
Christopher Nevins
Michael S. Sours
Scott F. Tinervia

Lessors Committee
William R. Power
Chair
Brendan T.N. Caldwell
Steve Fanady
Victor C. Faraci
James P. Fitzgibbons
Ruth I. Kahn
Jeffrey T. Kaufmann
Jeffrey S. Kirsch
Andrew J. Kurtz
Richard A. Lund
Martin P. O'Connell
Michael J. Post
Alan E. Ray
Robert Silverstein
J. Will Vicars
Gary Weber

Market Quality and Allocation Committee

Michael J. Sullivan
Fred Teichert
Emily Zweifel

Membership Committee
Mary Rita Ryder
Chair

Matthew J. Filipovich
Robert B. Gianone
Michael J. Guzy, Jr.
John J. Kaminsky
Stanley E. Leimer
Leonard T. Musielak
Steven Padley
Stuart D. Saltzberg
Thomas E. Stern
Robert J. Wasserman

Nominating Committee
Aaron T. Leider
Chair

Richard W. Fuller, Jr.
Howard D. Gillman
Sean W. Haggerty
Frank A. Hirsch
Craig R. Luce
Richard A. Lund
Martin P. O'Connell
Pamela Strobel
Richard L. Thomas

Product Development Committee
Anthony J. Carone
Chair

Eric H. Chern
Boris Furman
R. Anderson Groover
Robert A. Hocking
Jeffrey J. Kupets
Gary P. Jakes
Joseph Levin
Richard A. Lund
Israel “Izzy” Nellen
Martin P. O’Connell
Mario Pelini

Mario Pelini
Dominic J. Salvino
Ilan J. Shalit
Stephen Sullivan

Market Quality and Allocation Committee
John E. Smollen
Chair

Paul Kepes
Vice Chair

Anthony J. Carone
John J. Colletti
Raymond P. Dempsey
Richard S. Dooley
James P. Fitzgibbons
Joseph A. Frehr
Thomas Hutchinson
Michael T. Juneman
I. Patrick Kernan
Andrew Larsen
Aaron T. Leider

Benjamin R. Londergan
Andrew J. Lowenthal
Daniel C. Mandernach
Gerald T. McNulty
Sean P. Moran
Kenneth D. Mueller
Daniel O'Grady
John P. O'Grady
Daniel J. O'Shea
Joseph P. Perona
Matthew W. Scott
Aaron Wahls
J. Slade Winchester



## CBOE Clearing Member Firms

Advantage Securities LLC
Asset LLC
Automated Trading Desk
Financial Services, LLC
Bank of America Securities
LLC
Barclays Capital, Inc.
BNP Paribas Securities Corp.
Charles Schwab & Co., Inc.
CIBC World Markets Corp.
Citadel Trading Group, LLC
Citigroup Global Markets, Inc.
Compass Professional
Services LLC
Credit Suisse Securities
(USA) LLC
Daiwa Securities America Inc.

Deutsche Bank Securities Inc.
Electronic Brokerage
Systems, LLC
First Clearing, LLC
Fortis Clearing Americas, LLC
Goldman Sachs & Co.
Goldman Sachs Execution & Clearing LP
HSBC Securities (USA) Inc.
Interactive Brokers LLC
J.J.B. Hilliard, W.L. Lyons, Inc.
JPMorgan Clearing Corp.
JPMorgan Securities, Inc.
Lakeshore Securities, LP
Lek Securities Corporation
LiquidPoint, LLC
Merrill Lynch, Pierce, Fenner & Smith Inc.

Merrill Lynch Professional
Clearing Corp.
MF Global Inc.
Morgan Stanley & Co.,
Incorporated
National Financial Services,
LLC
Newedge USA, LLC
Octeg, LLC
Oppenheimer & Co. Inc.
optionsXpress, Inc.
Penson Financial Services, Inc.
Pershing LLC
Raymond James &
Associates, Inc.
RBC Capital Markets
Corporation

RBS Securities Inc.
Ridge Clearing & Outsourcing Solutions, Inc.
Robert W. Baird & Co.
Incorporated
SG Americas Securities, LLC
Stephens Inc.
Stifel, Nicolaus & Company,
Incorporated
Timber Hill LLC
Tradelink LLC
Tradestation Securities, Inc.
UBS Financial Services, Inc.
UBS Securities, LLC
Vision Financial Markets, LLC
Ziv Investment Company

## CBOE Futures Exchange (CFE) Clearing Member Firms

Advantage Futures LLC
Banc of America Securities
LLC
Barclays Capital, Inc.
BNP Paribas Securities Corp.
Citigroup Global Markets, Inc.
Credit Suisse Securities
(USA) LLC
Deutsche Bank Securities Inc.

Electronic Brokerage
Systems, LLC
Fortis Clearing Americas, LLC
Goldman Sachs & Co.
Goldman Sachs Execution & Clearing LP
Interactive Brokers LLC
JPMorgan Clearing Corp.
JPMorgan Futures, Inc.

Lek Securities Corporation
Merrill Lynch, Pierce, Fenner & Smith Inc.
Merrill Lynch Professional
Clearing Corp.
MF Global Inc.
Morgan Stanley & Co.,
Incorporated
Newedge USA, LLC

Prudential Bache
Commodities, LLC
R.J. O'Brien & Associates LLC
RBC Capital Markets
Corporation
Timber Hill LLC
Tradelink LLC
UBS Securities, LLC
Vision Financial Markets, LLC

## CBOE Stock Exchange (CBSX) Clearing Member Firms

Archipelago Securities LLC
Asset LLC
Banc of America Securities
LLC
Barclays Capital, Inc.
BNP Paribas Securities Corp.
BNY ConvergEx Execution
Solutions LLC
Calyon Securities (USA) Inc.
Charles Schwab & Co., Inc.
CIBC World Markets Corp.
Citadel Trading Group, LLC
Citigroup Global Markets, Inc.
Credit Suisse Securities
(USA) LLC
Deutsche Bank Securities Inc.
E*Trade Capital Markets, LLC
Electronic Brokerage Systems,
LLC

Electronic Transaction
Clearing, Inc.
Essex Radez LLC
First Clearing, LLC
Fortis Clearing Americas, LLC
Goldman Sachs & Co.
Goldman Sachs Execution & Clearing LP
HSBC Securities (USA) Inc.
ICAP Corporates, LLC
Instinet, LLC
Interactive Brokers LLC
ITG Inc.
Jefferies Execution Services,
Inc.
JPMorgan Clearing Corp.
JPMorgan Securities, Inc.
Knight Clearing Services LLC
LavaFlow, Inc.

Lek Securities Corporation
Merrill Lynch, Pierce, Fenner & Smith Inc.
Merrill Lynch Professional Clearing Corp.
MF Global Inc.
Morgan Stanley & Co., Incorporated
Nasdaq Execution Services, LLC
National Financial Services, LLC
Newedge USA, LLC
Oppenheimer & Co. Inc.
optionsXpress, Inc.
Penson Financial Services, Inc.
Pershing LLC
RBC Capital Markets Corporation

## CBOE Futures Exchange (CFE) 2009 Board of Directors

William J. Brodsky
Chairman and
Chief Executive Officer
Chicago Board Options
Exchange
Chairman of the Board
CBOE Futures Exchange

Lawrence J. Blum
Lessor Member
Chicago Board Options
Exchange

Vice Chairman
CBOE Futures Exchange
(served January through July)

Edward J. Joyce
President and
Chief Operating Officer
Chicago Board Options
Exchange
President
CBOE Futures Exchange

Bradley G. Griffith
Vice Chairman
Chicago Board Options
Exchange

Vice Chairman
CBOE Futures Exchange
(served January through July)

Edward J. Joyce
President and
Chief Operating Officer
Chicago Board Options
Exchange
President
CBOE Futures Exchange

Gerald T. McNulty
Managing Director
Merrill Lynch, Pierce, Fenner & Smith Inc.

James P. Fitzgibbons
Director
Susquehanna International
Group, LLC

Bradley G. Griffith
Vice Chairman
Chicago Board Options
Exchange
(served January through July)

David F. Harris
Chief Executive Officer
CBOE Stock Exchange (CBSX)

Susan M. Phillips
Dean and
Professor of Finance
School of Business and
Public Management
The George Washington
University

Former Chairman
Commodity Futures Trading
Commission

Jeffrey L. Shaw
Vice President –
Head of Trading
Timber Hill LLC

Edward T. Tilly
Executive Vice Chairman
Chicago Board Options
Exchange

William P. White
Managing Director –
Equities Division
Barclays Capital

## CBOE Stock Exchange (CBSX) 2009 Board of Directors

Edward L. Provost
Executive Vice President
Chicago Board Options
Exchange
Chairman of the Board
CBOE Stock Exchange (CBSX)

William J. Chip) Burke III
Chief Operating Officer
LaBranche & Co., Inc.

William J. (Chip) Burke III
Chief Operating Officer
LaBranche & Co., Inc.

David F. Harris
Chief Executive Officer
CBOE Stock Exchange (CBSX)

Edward T. Tilly
Executive Vice Chairman
Chicago Board Options
Exchange

William P. White
Managing Director –
Equities Division
Barclays Capital



## Executive Officers and Staff Officials

Executive
William J. Brodsky
Chairman and
Chief Executive Officer

Edward J. Joyce
President and
Chief Operating Officer

Edward T. Tilly
Executive Vice Chairman

Bradley G. Griffith
Vice Chairman
(served January through July)

Business Development
Edward L. Provost
Executive Vice President

Thomas A. Brady
Vice President
Member Trading Services

Cynthia Elsener
Vice President
Marketing and Educational
Services

Matthew T. Moran
Vice President
Institutional Marketing

Debra L. Peters
Vice President
The Options Institute

CBOE Futures Exchange
Andrew B. Lowenthal
Managing Director
CBOE Futures Exchange

Vice President
Business Development, CBOE

CBOE Stock Exchange
David F. Harris
Chief Executive Officer

Corporate Communications
Carol E. Kennedy
Vice President

Corporate Planning and Research
Richard G. DuFour
Executive Vice President

Eric Frait
Vice President
Strategic Planning

Joseph Levin
Vice President
Research and
Product Development

Finance and Administration
Alan J. Dean
Executive Vice President and
Chief Financial Officer

LuAnn O'Shea
Vice President
Facilities

David S. Reynolds
Chief Accounting Officer
CBOE and CBOE Holdings, Inc.

Donald R. Patton
Controller and Vice President
Accounting

James P. Roche
Vice President
Market Data Services

Deborah Woods
Vice President
Human Resources

Legal
Joanne Moffie-Silver
Executive Vice President,
General Counsel and
Corporate Secretary

Arthur B. Reinstein
Deputy General Counsel

J. Patrick Sexton
Associate General Counsel

Regulatory Services
Patrick Fay
Senior Vice President
Member and
Regulatory Services

Timothy H. Thompson
Senior Vice President and
Chief Regulatory Officer

Lawrence J. Bresnahan
Vice President
Member Firm Regulation

Daniel R. Hustad
Vice President
Market Quality Assurance
and DPM Administration

Margaret E. Williams
Vice President
Regulatory Services Division

Systems
Gerald T. O'Connell
Executive Vice President and
Chief Information Officer

Mark S. Novak
Vice President and
Chief Technology Officer
Systems Development

Roberta J. Piwnicki
Vice President
Systems Development

Gautam Roy
Vice President
Systems Software

Curt Schumacher
Vice President and
Chief Technology Officer
Systems Operations

Trading Operations
Philip M. Slocum
Executive Vice President

John T. Johnston
Vice President
Execution and
Reporting Services

Thomas P. Knoring
Vice President
Trade Processing

Anthony Montesano
Vice President
Trading Systems
Development

Michael Todorofsky
Vice President
Market Operations

Timothy T. Watkins
Vice President
Trading Systems
Development

CBOE \( ^{®} \) , Chicago Board Options Exchange \( ^{®} \) , CBSX \( ^{®} \) , CBOE Stock Exchange \( ^{®} \) , CFE \( ^{®} \) , CBOE director \( ^{®} \) , Hybrid \( ^{®} \) , CBOE Volatility Index \( ^{®} \) , VIX \( ^{®} \) , LEAPS \( ^{®} \) , FLEX \( ^{®} \) , CFLEX \( ^{®} \)  and The Options Institute \( ^{®} \)  are registered trademarks, and C2 \( ^{TM} \)  and CBOE Futures Exchange \( ^{TM} \)  are servicemakers of Chicago Board Options Exchange, Incorporated.

Standard & Poor's \( ^{®} \) , S&P \( ^{®} \)  and S&P 500 \( ^{®} \)  are registered trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Chicago Board Options Exchange, Incorporated.

Other names, logos, designs, titles, words or phrases in this publication may constitute trademarks, service marks, or trade names of Chicago Board Options Exchange, Incorporated or other entities and which may be registered in certain jurisdictions.

©2010 Chicago Board Options Exchange, Incorporated.
All rights reserved.

Design: Liska+Associates
Photography: Tom Maday

This annual report contains statements which may be considered forward-looking statements within the meaning of the Securities Exchange Act of 1934, including, without limitation, statements regarding operating strategies, future plans and financial results. Forward-looking statements may be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “possible,” “predict,” “project” or similar words, phrases or expressions. The Company does not undertake any obligation to update the information contained herein, which speaks only as of the date of this annual report. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, including our recent Registration Statement Form S-4 (Registration No. 333-140547) under the heading “Forward-Looking Statements” and/or “Risk Factors.” Such discussions regarding risk factors and forward-looking statements are incorporated herein by reference.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.



## CBOE
CHICAGO BOARD OPTIONS EXCHANGE

LaSalle at VanBuren
Chicago, Illinois 60605
312.786.5600

61 Broadway, Suite 1301
New York, New York 10006
212.344.4110

www.cboe.com