Bailey McCann, Opalesque New York - Senior compliance executive at CBOE Holdings Inc., Patrick Fay has resigned during an ongoing investigation by the Securities and Exchange Commission into how the options market operator was supervising traders. According to Bloomberg, Fay went on administrative leave at the start of the investigation.
The investigation is part of a broader investigation into exchanges by the SEC arising out of the collapse of MF Global. The SEC is investigating the Chicago Board Options Exchange (CBOE) for potentially favoring larger trading companies to the detriment of smaller ones. The investigation focuses specifically on CBOE's New Jersey based exchange, CBSX - according to the Financial Times.
The CBOE has been in the spotlight recently as a possible merger target, leading CEO William Brodsky to note that the firm is "happily solo." The SEC has also issued a number of filings involving proposed changes concerning CBOE although no official action has been taken against the firm.
The futures industry self-regula......................
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