CME in 3.05bn deal talks

CME Group, the world's largest derivatives exchange, is in talks to take over the Chicago Board Options Exchange (CBOE) in a deal that would value the largest US options market at up to $5bn (£3.05bn), according to US media reports. Further talks are on hold until after Wednesday, reports said. A deal of such a size would mean a big payday for CBOE members, with each CBOE seat valued at about $4m, about 50 per cent more than they fetch today, the reports said. The $5bn price tag would value CBOE at about 20 times its expected annual earnings.