ETF Trends
ETF Trends

There may be wider implications on the horizon for the exchange traded fund (ETF) businesses. Chicago Board Options Exchange has joined with Standard & Poor’s and the Dow Jones & Co to file a lawsuit against International Securities Exchange Holdings Inc. (ISE). The attempt is to block ISE from listing and trading options linked to the S&P and Dow Jones indexes. 

The legal action was taken because ISE threatened to list, trade and profit from financial products-specifically index options-based directly on the S&P 500, reports John Spence of Marketwatch. The CBOE said it’s trying to stop the S&P and Dow Jones options because it has an exclusive licensing agreement with the index managers. This case could cause a large change in the index licensing business, which suffered a setback last year due to ISE.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.