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CBOE says cost of settling SEC probe could reach $10m

The SEC for more than a year has been looking into the way CBOE, the biggest US options exchange in terms of trading activity, regulates the firms that do business on its markets

The parent of the Chicago Board Options Exchange said Thursday that the cost of resolving a yearlong regulatory investigation could rise to $10m, double what the company has set aside to settle the matter, according to a regulatory filing.

Settling the federal investigation into the CBOE's functions as a regulator of financial firms also could require changes to the exchange group's compliance practices and "other remedies," CBOE Holdings officials wrote in documents filed with the Securities and Exchange Commission, which is pursuing the inquiry.

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