New Electronic U.S. Options Exchange Created

The Bourse de Montréal Inc. launched BOX, the new electronic U.S. options exchange created by the Bourse’s joint venture with the Boston Stock Exchange, Incorporated and Interactive Brokers LLC. BOX was formed on January 16, 2002 as a Delaware LLC. The capital contributions of the three founding members are confidential. BOX will operate as a fully automated equity market that will conduct trading in options on individual U.S. equities, equity indices, exchange-traded funds and single stock futures.

The Bourse, through its trading platform, will provide technical and operational services for BOX and will license and customize electronic exchange software for derivatives trading. The Boston Stock Exchange will serve as the regulatory services provider, with oversight by the U.S. Securities and Exchange Commission. Interactive Brokers will provide options market design and marketing assets and will participate as a financial investor in BOX.

Ogilvy Renault is acting for the Bourse, with a team that includes Michel Gagnon (joint venture agreement), Daniel Paul (trading systems licensing and technical service agreements), Eric Gelinas (tax) and William Hesler, Q.C., (derivatives trading regulatory aspects and team co-ordination). Counsel for the Boston Stock Exchange and BOX is Bingham Dana LLP, with a team that includes Neal Curtin, Matthew Cushing, John Brown and Matthew Schnall (tax), Neal Sullivan and Wayne Pestone (Exchange rules) and Thomas Halket (technology). David Battan is in-house counsel for Interactive Brokers.