Document and Entity Information
9 Months Ended
Sep. 30, 2011
Entity Information [Line Items]
Entity Registrant Name
CBOE Holdings, Inc.
Entity Central Index Key
0001374310
Current Fiscal Year End Date
--12-31
Entity Filer Category
Non-accelerated Filer
Document Type
10-Q
Document Period End Date
Sep. 30, 2011
Document Fiscal Year Focus
2011
Document Fiscal Period Focus
Q3
Amendment Flag
FALSE
Entity Common Stock, Shares Outstanding
89,920,627
Entity Current Reporting Status
Yes
Condensed Consolidated Statement of Income(USD $)
In Thousands, except Per Share data
3 Months Ended
Sep.30,		 9 Months Ended
Sep.30,
2011
2010
2011
2010
Operating Revenues:
Transaction fees
$109,840
$72,885
$286,018
$250,378
Access fees
16,918
18,484
51,564
22,985
Exchange services and other fees
4,531
3,974
13,497
12,817
Market data fees
4,909
4,881
14,847
16,256
Regulatory fees
5,266
3,388
14,994
11,409
Other revenue
2,140
2,403
7,015
5,868
Total Operating Revenues
143,604
106,015
387,935
319,713
Operating Expenses:
Employee costs
25,945
34,643
76,186
80,420
Depreciation and amortization
8,897
7,099
26,588
21,701
Data processing
4,337
4,304
13,671
14,541
Outside services
6,881
6,293
20,650
24,457
Royalty fees
13,956
9,226
35,475
31,643
Trading volume incentives
3,525
4,594
11,799
15,629
Travel and promotional expenses
2,416
2,702
6,470
7,897
Facilities costs
1,081
1,440
3,974
4,139
Other expenses
1,600
781
4,171
3,799
Total Operating Expenses
68,638
71,082
198,984
204,226
Operating Income
74,966
34,933
188,951
115,487
Other Income/(Expense):
Investment income
15
158
119
393
Net loss from investment in affiliates
(190)
(168)
(650)
(542)
Interest and other borrowing costs
(226)
(225)
(673)
(671)
Total Other Income/(Expense)
(401)
(235)
(1,204)
(820)
Income Before Income Taxes
74,565
34,698
187,747
114,667
Income tax provision
33,238
14,244
80,148
46,648
Net Income
41,327
20,454
107,599
68,019
Net Income Allocated to Participating Securities
(730)
(434)
(2,294)
(615)
Net Income Allocated to Common Stockholders
$40,597
$20,020
$105,305
$67,404
Net income per share (Note 4):
Basic
$0.45
$0.20
$1.17
$0.71
Diluted
$0.45
$0.20
$1.17
$0.71
Weighted average shares used in computing income per share:
Basic
90,334
102,103
90,195
95,065
Diluted
90,334
102,103
90,195
95,065
Condensed Consolidated Balance Sheets(USD $)
In Thousands
Sep. 30, 2011
Dec. 31, 2010
Current Assets:
Cash and cash equivalents
$147,220
$53,789
Accounts receivablenet allowances of $142 and $108
46,013
37,746
Marketing fee receivable
6,999
7,815
Income taxes receivable
362
5,537
Other prepaid expenses
6,031
4,510
Other current assets
694
537
Total Current Assets
207,319
109,934
Investments in Affiliates
11,965
12,615
Land
4,914
4,914
Property and Equipment:
Construction in progress
18
1,729
Building
60,917
60,917
Furniture and equipment
250,946
240,711
Less accumulated depreciation and amortization
(234,295)
(221,273)
Total Property and EquipmentNet
77,586
82,084
Other Assets:
Software development work in progress
7,727
1,131
Data processing software and other assets (less accumulated amortization of $117,959 and $107,770)
35,132
43,434
Total Other AssetsNet
42,859
44,565
Total
344,643
254,112
Current Liabilities:
Accounts payable and accrued expenses
42,799
40,084
Marketing fee payable
7,540
8,349
Deferred revenue
11,236
280
Post-retirement medical benefits
26
103
Income tax payable
3,545
0
Total Current Liabilities
65,146
48,816
Long-term Liabilities:
Post-retirement medical benefits
1,856
1,782
Income taxes payable
8,553
3,165
Other long-term liabilities
3,806
3,993
Deferred income taxes
19,581
20,482
Total Long-term Liabilities
33,796
29,422
Commitments and Contingencies
Total Liabilities
98,942
78,238
Stockholders Equity:
Preferred stock, $0.01 par value: 20,000,000 shares authorized, no shares issued and outstanding at September 30, 2011 and December 31, 2010
0
0
Additional paid-in-capital
52,461
42,858
Retained earnings
211,210
133,087
Treasury stock at cost 729,275 at September 30, 2011 and no shares at December 31, 2010
(17,962)
0
Accumulated other comprehensive loss
(914)
(972)
Total Stockholders Equity
245,701
175,874
Liabilities and Stockholders Equity
344,643
254,112
Unrestricted Common Stock
Stockholders Equity:
Common Stock, Value, Issued
906
518
Common Class A2
Stockholders Equity:
Common Stock, Value, Issued
$0
$383
Condensed Consolidated Balance Sheets Parenthetical(USD $)
Sep. 30, 2011
Dec. 31, 2010
Current Assets:
Accounts receivable, allowances (in dollars)
$142,000
Other Assets:
Data processing software and other assets, accumulated amortization (in dollars)
$117,959,000
Shareholders' Equity:
Preferred stock, par value
$0.01
Preferred stock, shares authorized
20,000,000
Preferred stock, shares issued
0
Preferred stock, shares outstanding
0
Treasury Stock at Cost
729,275
0
Unrestricted Common Stock
Shareholders' Equity:
Common stock, par value (in dollars per share)
$0.01
Common stock, shares authorized
325,000,000
Common stock, shares issued
90,649,902
Common stock, shares outstanding
89,920,627
Common Class A2
Shareholders' Equity:
Common stock, par value (in dollars per share)
$0.01
Common stock, shares authorized
45,366,690
Common stock, shares issued
0
Common stock, shares outstanding
0
Condensed Consolidated Statements of Stockholders Equity(USD $)
In Thousands
Total
Preferred Stock
Unrestricted Common Stock
Common Class A2
Additional Paid-in Capital
Retained Earnings
Treasury Stock
Accumulated Other Comprehensive Income (Loss)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest Beginning of Period at Dec. 31, 2010
$175,874
$0
$518
$383
$42,858
$133,087
$0
$(972)
Automatic Conversion Of Shares In Unrestricted Common Stock And Sale Of That In IPO
0
383
(383)
Dividends, Common Stock, Cash
(29,476)
(29,476)
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition
9,608
9,608
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures
0
5
(5)
Purchase Of Unrestricted Common Stock
(17,962)
(17,962)
Net income
107,599
107,599
Post-retirement benefit obligation adjustments- net of tax expense of $11
58
58
Comprehensive Income
107,657
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest End of Period at Sep. 30, 2011
$245,701
$0
$906
$0
$52,461
$211,210
$(17,962)
$(914)
Condensed Consolidated Statements of Stockholders Equity Parenthetical(USD $)
In Thousands
9 Months Ended
Sep. 30, 2011
Post-retirement benefit obligation adjustment, tax expense
$4,000
Condensed Consolidated Statements of Cash Flows(USD $)
In Thousands
9 Months Ended
Sep.30,
2011
2010
Cash Flows from Operating Activities:
Net income
$107,599
$68,019
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization
26,588
21,701
Other amortization
67
52
Provision for deferred income taxes
(911)
(3,012)
Stock-based compensation
9,608
15,565
Loss on disposition of property
1,179
139
Equity in loss of affiliates
190
542
Impairment of investment in affiliate
460
0
Changes in assets and liabilities:
Accounts receivable
(8,267)
(6,140)
Marketing fee receivable
816
1,768
Income taxes receivable
5,175
(12,965)
Prepaid expenses
(1,188)
533
Other receivable
0
2,086
Other current assets
(157)
(119)
Accounts payable and accrued expenses
4,248
(8,049)
Marketing fee payable
(809)
(1,974)
Deferred revenue
10,769
11,514
Post-retirement benefit obligations
(3)
(7)
Income taxes payable
8,933
839
Settlement with appellants
0
(3,000)
Access fees subject to fee-based payment
0
(2,688)
Net Cash Flows provided by Operating Activities
164,297
84,804
Cash Flows from Investing Activities:
Capital and other assets expenditures
(23,485)
(15,049)
Investment in Signal Trading Systems, LLC
0
(7,990)
Other
57
0
Net Cash Flows used in Investing Activities
(23,428)
(23,039)
Cash Flows from Financing Activities:
Payments for debt issuance costs
0
(3)
Payment of quarterly dividends
(29,476)
(10,432)
Purchase of restricted stock from employees
(3,075)
0
Purchase of unrestricted common stock
(14,887)
0
Exercise right privilege payable
0
(300,000)
Net proceeds from issuance of unrestricted common stock
0
301,238
Payment of special dividend
0
(113,362)
Net Cash Flows used in Financing Activities
(47,438)
(122,559)
Net Increase (Decrease) in Cash and Cash Equivalents
93,431
(60,794)
Cash and Cash Equivalents at Beginning of Period
53,789
383,730
Cash and Cash Equivalents at End of Period
147,220
322,936
Supplemental Disclosure of Cash Flow Information
Cash paid for income taxes
68,119
63,279
Non-cash activities:
Change in post-retirement benefit obligation
(67)
0
Unpaid liability to acquire equipment and software
$1,053
$2,453
Description of Business
Description Of Business Conversion Dividend Payment And Initial Public Offering Disclosure [Text Block]
DESCRIPTION OF BUSINESS

CBOE Holdings is the holding company of registered securities exchanges, subject to oversight by the Securities and Exchange Commission (the “SEC”), and of a designated contract market subject to the oversight of the Commodity Futures Trading Commission (“CFTC”).
 
The primary business of the Company is the operation of markets for the trading of listed options contracts on three broad product categories: 1) the stocks of individual corporations (equity options), 2) various market indexes (index options) and 3) exchange-traded funds (ETFs) and exchange-traded notes (ETNs). We also offer futures and options on futures products through a futures market. The Company owns and operates three stand-alone exchanges, but reports the results of its operations in one reporting segment. CBOE is our primary market and offers trading for listed options through a single system that integrates electronic trading and traditional open outcry trading on our trading floor in Chicago. This integration of electronic trading and traditional open outcry trading into a single market is known as our Hybrid trading model. C2, launched in October 2010, is our all-electronic exchange that also offers trading for listed options, but with a different market model and fee schedule than CBOE. Finally, the CBOE Futures Exchange (CFE), our all-electronic futures exchange, offers futures and options on futures on the CBOE Volatility Index (“VIX”), as well as on other products. All of our exchanges operate on our proprietary technology platform known as CBOEdirect.
 
Basis of Presentation
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
BASIS OF PRESENTATION

These interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.
 
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of operating revenues and expenses. On an ongoing basis, the Company evaluates its estimates, including those related to matters that require a significant level of judgment or are otherwise subject to an inherent degree of uncertainty. These estimates are based on management’s knowledge and judgments, historical experience and observance of trends in particular matters. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of financial position, results of operations and cash flows at the dates and for the periods presented have been included. The results of operations for interim periods are not necessarily indicative of the results of operations for the full year.

Recent Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board issued an update, ASC 220 - Comprehensive Income ("ASC 220") that is intended to improve the overall quality of financial reporting by increasing the prominence of items reported in other comprehensive income (“OCI”), and align the presentation of OCI in financial statements prepared in accordance with GAAP with those prepared in accordance with International Financial Reporting Standards. The update provides the Company with an option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The amendments should be applied retrospectively. The adoption of ASC 220 is not expected to have a material impact on the Company's financial position, results of operations or cash flows.
Share Repurchase Program
Share Repurchase Program [Text Block]
SHARE REPURCHASE PROGRAM

On August 2, 2011, the Company announced that its Board of Directors had approved a share repurchase program that authorizes the Company to purchase up to $100.0 million of its unrestricted common stock. The program permits the Company to purchase shares through a variety of methods, including in the open market or through privately negotiated transactions, in accordance with applicable securities laws. It does not obligate the Company to make any repurchases at any specific time or situation.

Through the period ended September 30, 2011, the Company has purchased 599,900 shares of unrestricted common stock at an average cost per share of $24.82 totaling $14.9 million in purchases under the program.
Net Income per Common Share
Earnings Per Share [Text Block]
NET INCOME PER COMMON SHARE

To calculate net income per common share, we applied the guidance under ASC 260, Earnings Per Share (“ASC 260”). The guidance states that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities and shall be included in the computation of net income per common share pursuant to the two-class method. We have determined our restricted stock awards granted to officers, directors and employees on June 15, 2010 qualify as participating securities.
 
We compute net income per common share using the two-class method, which is an allocation formula that determines the net income for common shares and participating securities. Under the authoritative guidance, the presentation of basic and diluted earnings per share is required for each class of common stock and not for participating securities. As such, the Company presents basic and diluted net income per share for its common stock as a single class.
 
The computation of basic net income allocated to common stockholders is calculated by reducing net income for the period by dividends paid or declared and undistributed net income for the period that are allocated to the participating securities to arrive at net income allocated to common stockholders. Net income allocated to common stockholders is divided by the weighted average number of common shares outstanding during the period to determine basic net income per common share.

The dilutive effect of participating securities is calculated using the more dilutive of the treasury stock or the two-class method. Diluted net income per common share is calculated by dividing net income allocated to common stockholders by the sum of the weighted average number of common shares outstanding plus all additional common shares that would have been outstanding if the potentially dilutive common shares had been issued.
 
The weighted average number of common shares outstanding for both basic and dilutive for the nine months ended September 30, 2010 was calculated as if the restructuring transaction were consummated at the beginning of the period.

The following table reconciles net income allocated to common stockholders and the number of shares used to calculate the basic and diluted net income per common share for the three and nine months ended September 30, 2011 and 2010:

 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(in thousands, except per share amounts)
 
2011
 
2010
 
2011
 
2010
Basic EPS Numerator:
 
 
 
 
 
 
 
 
Net Income
 
$
41,327

 
$
20,454

 
$
107,599

 
$
68,019

Less: Earnings allocated to participating securities
 
(730
)
 
(434
)
 
(2,294
)
 
(615
)
Net Income allocated to common stockholders
 
$
40,597

 
$
20,020

 
$
105,305

 
$
67,404

Basic EPS Denominator:
 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
90,334

 
102,103

 
90,195

 
95,065

Basic net income per common share
 
$
0.45

 
$
0.20

 
$
1.17

 
$
0.71

 
 
 
 
 
 
 
 
 
Diluted EPS Numerator:
 
 
 
 
 
 
 
 
Net Income
 
$
41,327

 
$
20,454

 
$
107,599

 
$
68,019

Less: Earnings allocated to participating securities
 
(730
)
 
(434
)
 
(2,294
)
 
(615
)
Net Income allocated to common stockholders
 
$
40,597

 
$
20,020

 
$
105,305

 
$
67,404

Diluted EPS Denominator:
 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
90,334

 
102,103

 
90,195

 
95,065

Dilutive common shares issued under restricted stock program
 
—

 
—

 
—

 
—

Diluted net income per common share
 
$
0.45

 
$
0.20

 
$
1.17

 
$
0.71

Stock-Based Compensation
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
STOCK-BASED COMPENSATION

The Company accounts for stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation, as interpreted by SEC Staff Accounting Bulletins No. 107 and No. 110. Under ASC 718, stock-based compensation is based on the fair value of the award on the date of grant, which is recognized over the related service period, net of estimated forfeitures. The service period is the period over which the related service is performed, which is generally the same as the vesting period.
 
For the three and nine months ended September 30, 2011 and 2010, the Company recognized $3.0 million and $9.6 million and $14.9 million and $15.6 million of stock-based compensation expense, respectively. For the nine months ended September 30, 2011 and 2010, the Company recorded non-recurring stock-based compensation expense of $0.5 million and $11.0 million. The $0.5 million recorded in 2011 is for three members of the Company’s Board of Directors that left the board in May 2011. The $11.0 million recorded in 2010 is for the remaining fair value of stock-based compensation awards granted to Messrs. Brodsky and Joyce which were accelerated due to provisions contained in their respective employment agreements. Stock-based compensation expense is included in employee costs in the condensed consolidated statements of income.
 
As of September 30, 2011, the Company had unrecognized stock-based compensation of $33.0 million related to outstanding restricted stock.  The remaining unrecognized stock-based compensation is expected to be recognized over the next 32.5 months. The Company is projecting a forfeiture rate of 5%.

The activity in the Company’s restricted stock for the nine months ended September 30, 2011 was as follows:

 
 
 
Number of Shares
of Restricted
Stock
 
Weighted Average
Grant-Date Fair
Value
 
Unvested restricted stock at January 1, 2011
 
1,712,780

 
$
29.00

 
Granted
 
—

 
—

 
Vested
 
(443,781
)
 
29.00

 
Forfeited
 
(10,137
)
 
29.00

 
Unvested restricted stock at September 30, 2011
 
1,258,862

 
$
29.00

Investment in Affiliates
Investments in and Advances to Affiliates, Schedule of Investments [Text Block]
INVESTMENT IN AFFILIATES

At September 30, 2011 and December 31, 2010, the investment in affiliates was comprised of the following (in thousands):

 
 
 
September 30,
2011
 
December 31,
2010
 
Investment in OCC
 
$
333

 
$
333

 
Investment in Signal Trading
 
11,632

 
11,822

 
Investment in NSX
 
—

 
460

 
Investment in Affiliates
 
$
11,965

 
$
12,615

 
In March 2011, we recorded an impairment of $0.5 million representing the carrying value of our investment in NSX Holdings, Inc.

Accounts Payable and Accured Liabilities
Accounts Payable and Accrued Liabilities Disclosure [Text Block]
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

At September 30, 2011 and December 31, 2010, accounts payable and accrued liabilities consisted of the following (in thousands):

 
 
 
September 30,
2011
 
December 31,
2010
 
Compensation and benefit-related liabilities
 
$
16,501

 
$
15,455

 
Royalties
 
13,075

 
8,198

 
Data processing related liabilities
 
671

 
1,255

 
Facilities
 
2,738

 
2,150

 
Legal
 
1,415

 
1,017

 
Accounts payable
 
1,228

 
5,000

 
Capital and other assets
 
595

 
556

 
Linkage
 
2,437

 
2,310

 
Other
 
4,139

 
4,143

 
Total
 
$
42,799

 
$
40,084


Marketing Fee
Marketing Fees [Text Block]
MARKETING FEE

CBOE facilitates the collection and payment of marketing fees assessed on certain trades taking place at CBOE. Funds resulting from the marketing fees are made available to Designated Primary Market Makers and Preferred Market Makers as an economic inducement to route orders to CBOE. Pursuant to ASC 605-45, Revenue Recognition—Principal Agent Considerations, the Company reflects the assessments and payments on a net basis, with no impact on revenues or expenses.

As of September 30, 2011 and December 31, 2010, amounts assessed by the Company on behalf of others included in current assets totaled $7.0 million and $7.8 million, respectively, and payments due to others included in current liabilities totaled $7.5 million and $8.3 million, respectively.

Deferred Revenue
Deferred Revenue Disclosure [Text Block]
DEFERRED REVENUE

The following table summarizes the activity in deferred revenue for the nine months ended September 30, 2011 (in thousands):

 
 
Balance at 
December 31, 
2010
 
Cash 
Additions
 
Revenue 
Recognition
 
Balance at 
September 30, 2011
Other – net
 
$
280

 
$
2,525

 
$
(2,307
)
 
$
498

Liquidity provider sliding scale (1)
 
—

 
40,021

 
(29,283
)
 
10,738

Total deferred revenue
 
$
280

 
$
42,546

 
$
(31,590
)
 
$
11,236

(1)  Liquidity providers prepaying transaction fees, at a minimum, for the first two levels of the liquidity provider sliding scale are eligible to participate in reduced fees assessed to contract volume above 1.4 million per month. The prepayment of 2011 transaction fees totaled $40.0 million. This amount is amortized and recorded as transaction fees over the respective prepayment period.

Employee Benefits
Postemployment Benefits Disclosure [Text Block]
EMPLOYEE BENEFITS

Employees are eligible to participate in the Chicago Board Options Exchange SMART Plan (“SMART Plan”). The SMART Plan is a defined contribution plan, which is qualified under Internal Revenue Code Section 401(k). The Company contributed $2.7 million and $3.0 million for the nine months ended September 30, 2011 and 2010, respectively.

Eligible employees may participate in the Supplemental Employee Retirement Plan (“SERP”), Executive Retirement Plan (“ERP”) and Deferred Compensation Plan. The SERP, ERP and Deferred Compensation Plan are defined contribution plans that are nonqualified by Internal Revenue Code regulations. The Company contributed $1.0 million and $1.3 million to the above plans for the nine months ended September 30, 2011 and 2010, respectively.

The Company has a postretirement medical plan for certain current and former members of senior management. The Company recorded immaterial postretirement benefits expense for the three and nine months ended September 30, 2011 and 2010.

Income Taxes
Income Tax Disclosure [Text Block]
INCOME TAXES

For the three and nine months ended September 30, 2011 and 2010, the Company recorded income tax provisions of $33.2 million and $80.1 million and $14.2 million and $46.7 million, respectively. The effective tax rate for the nine months ended September 30, 2011 and 2010 was 42.7% and 40.7%, respectively. The higher rate reflects the impact of an increase in the Illinois tax rate effective January 1, 2011 and a charge taken of $4.2 million to reserve for potential additional tax liabilities as a result of an advisory opinion from New York State taxing authorities issued in the third quarter, which attempts to extend the state's taxing power over certain electronic transactions and other fees of out-of-state exchanges going back as far as 2007.

As of September 30, 2011 and December 31, 2010, the Company had $8.6 million and $3.1 million, respectively, of uncertain tax positions, which, if recognized in the future, would affect the annual effective income tax rate. Reductions to uncertain tax positions primarily from the lapse of the applicable statutes of limitations during the next twelve months are estimated to be approximately $1.5 million, not including any potential new additions.

Estimated interest costs and penalties, which are classified as part of the provision for income taxes in the Company’s condensed consolidated statements of income, were $(0.2) million and $0.0 million and $0.0 million and $0.1 million for the three and nine months ended September 30, 2011 and 2010, respectively. Interest costs and penalties, for the three months ended September 30, 2011, were favorable for the Company due to the de-recognition of uncertain tax positions. Accrued interest and penalties were $0.7 million as of September 30, 2011 and December 31, 2010.

The Company is subject to U.S. federal tax, Illinois, New Jersey, New York state taxes and Washington D.C. taxes, as well as other local jurisdictions. The Company’s tax returns have been examined by the Internal Revenue Service through 2009 and the Illinois Department of Revenue through 2008. For New Jersey and Washington D.C., the open years are 2008 and forward. The Company is currently under audit by the State of New York for the 2007-2009 tax years.

Senior Revolving Credit Facility
Debt Disclosure [Text Block]
SENIOR REVOLVING CREDIT FACILITY

On December 23, 2008, the Company entered into an unsecured senior revolving credit facility with three financial institutions. The credit agreement is a three-year revolving credit facility of up to $150 million and expires on December 23, 2011. As of September 30, 2011 and December 31, 2010 and during the nine months ended September 30, 2011, there were no borrowings against the credit facility. The Company does not plan to extend or replace the credit facility when it expires on December 23, 2011.
Fair Value Measurements
Fair Value Disclosures [Text Block]
FAIR VALUE MEASUREMENTS

Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including the Company’s own credit risk.
 
The Company applied Financial Accounting Standards Board ("FASB") ASC 820, Fair Value Measurement and Disclosure (formerly, FASB Statement No. 157, Fair Value Measurements), which provides guidance for using fair value to measure assets and liabilities by defining fair value and establishing the framework for measuring fair value. ASC 820 applies to financial and nonfinancial instruments that are measured and reported on a fair value basis. The three-level hierarchy of fair value measurements is based on whether the inputs to those measurements are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The fair-value hierarchy requires the use of observable market data when available and consists of the following levels:
 
•
Level 1—Unadjusted inputs based on quoted markets for identical assets or liabilities.
 
•
Level 2—Observable inputs, either direct or indirect, not including Level 1, corroborated by market data or based upon quoted prices in non-active markets.

•
Level 3—Unobservable inputs that reflect management’s best assumptions of what market participants would use in valuing the asset or liability.
 
The Company has included a tabular disclosure for financial assets that are measured at fair value on a recurring basis in the condensed consolidated balance sheet as of September 30, 2011. The Company holds no financial liabilities that are measured at fair value on a recurring basis.
(amounts in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets at fair value:
 
 

 
 

 
 

 
 

Money market funds
 
$
108

 
$
—

 
$
—

 
$
108

Total assets at fair value at September 30, 2011
 
$
108

 
$
—

 
$
—

 
$
108

 
In March 2011, the Company revalued its investment in NSX Holdings, Inc. as a result of an other-than-temporary impairment. The investment is classified as level 3 as the fair value was based on both observable and unobservable inputs, resulting in a full impairment totaling $0.5 million, which represented the carrying value of the investment.

Subsequent Events
Subsequent Events [Text Block]
SUBSEQUENT EVENTS

On October 4, 2011, SPXpm options commenced trading on C2.

On November 1, 2011, the Company's Board of Directors (the “Board”) elected to terminate Edward J. Joyce's employment as the President and Chief Operating Officer of the Company due to the condition of his health, which the Board determined to be a “disability” under the terms of his employment agreement with the Company (the “Employment Agreement”). In connection with this termination, Mr. Joyce will receive the benefits and payments that become payable in connection with a termination of his employment related to a disability under the Employment Agreement. The Company expects to incur a severance expense, which will be included in employee costs in the condensed consolidated statements of income, in the fourth quarter of 2011 totaling approximately $3.9 million in connection with this payment.

On November 1, 2011, the Board appointed Edward T. Tilly to serve as the Company's President and Chief Operating Officer.

On November 2, 2011, the Company announced the Board of Directors declared a quarterly cash dividend of $0.12 per share. The dividend is payable December 23, 2011 to stockholders of record at the close of business on December 2, 2011.