SEC v. Chicago Board Options Exchange and others (2013)

Settled

Checked against the primary document on October 3, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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In June 2013 the Securities and Exchange Commission settled an administrative order with the Chicago Board Options Exchange and C2 Options Exchange, finding that CBOE failed to enforce several rules as a self-regulator. The order imposes a $6 million penalty on CBOE.

The record

Structured fields for this action, as recorded in our case library.
Agency	SEC
Release number	34-69726
Date filed	2013-06-11
Date resolved	2013-06-11
Status	settled
Asset class	equities
Venue	NYSE
Criminal parallel	No
Defendants	Chicago Board Options Exchange, Incorporated (entity) ; C2 Options Exchange, Incorporated (entity)
Cited as charged or alleged	Securities Act s.17(a) (statutes and rules cited in the document; not a finding that they were violated)
Techniques

What was ordered

Civil penalty: $6m
Disgorgement: —
Prejudgment interest: —
Total relief: $6m
Alleged gain: —

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Securities and Exchange Commission announced this matter on June 11, 2013 as release 34-69726. The respondents named are Chicago Board Options Exchange, Incorporated and C2 Options Exchange, Incorporated (0 individuals, 2 entities).

The order finds that CBOE did not adequately enforce firm-quote and priority rules, registration and access rules, and Regulation SHO close-out requirements (Rules 204 and 204T), including an investigation by staff who did not know how to identify a failure to deliver. It also finds C2 breached its filing obligations. No trader is found to have sold short without a borrow.

This library does not tag the matter to a manipulation technique. The respondents are exchanges charged with self-regulatory failures; the order does not find any respondent sold short without borrowing or locating shares.

The relief recorded in our data is a civil penalty of $6,000,000, imposed on CBOE only; C2 was censured and ordered to cease and desist.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

Timeline

2013-06-11 Administrative proceeding instituted (cease-and-desist)

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

SEC order

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Record added September 10, 2026. submit a correction.