Cboe Global Markets (CBOE) 10-Q 5 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information Document	9 Months Ended
	Sep. 30, 2013	Oct. 25, 2013
Entity [Abstract]	'	'
Entity Registrant Name	'CBOE Holdings, Inc.	'
Entity Central Index Key	'0001374310	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Large Accelerated Filer	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'
Amendment Flag	'false	'
Entity Common Stock, Shares Outstanding	'	87,197,437
Entity Current Reporting Status	'Yes	'

Condensed_Consolidated_Stateme

Condensed Consolidated Statement of Income (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Operating Revenues:	'	'	'	'
Transaction fees	$92,954	$86,621	$298,193	$266,341
Access fees	15,029	15,965	45,709	48,107
Exchange services and other fees	9,213	7,771	27,616	23,072
Market data fees	6,658	6,101	17,924	18,850
Regulatory fees	8,937	5,711	29,076	14,487
Other revenue	3,952	6,150	11,702	11,404
Total Operating Revenues	136,743	128,319	430,220	382,261
Operating Expenses:	'	'	'	'
Employee costs	27,951	27,166	90,025	77,756
Depreciation and amortization	8,476	8,634	25,380	25,274
Data processing	4,552	5,070	13,613	14,896
Outside services	7,938	9,075	28,606	25,510
Royalty fees	13,844	11,304	41,531	34,496
Trading volume incentives	1,207	1,423	3,128	5,248
Travel and promotional expenses	1,894	2,548	6,552	8,018
Facilities costs	1,308	1,268	3,808	3,797
Other expenses	1,146	970	4,362	2,920
Total Operating Expenses	68,316	67,458	217,005	197,915
Operating Income	68,427	60,861	213,215	184,346
Other Income/(Expense):	'	'	'	'
Investment income	21	41	42	89
Net loss from investment in affiliates	-538	-368	-1,754	-1,282
Total Other Expense	-517	-327	-1,712	-1,193
Income Before Income Taxes	67,910	60,534	211,503	183,153
Income tax provision	26,554	14,776	81,614	65,482
Net Income	41,356	45,758	129,889	117,671
Net Income allocated to participating securities	-401	-515	-1,669	-1,690
Net Income Allocated to Common Stockholders	$40,955	$45,243	$128,220	$115,981
Net income per share (Note 4):	'	'	'	'
Basic (in dollars per share)	$0.47	$0.52	$1.47	$1.33
Diluted (in dollars per share)	$0.47	$0.52	$1.47	$1.33
Weighted average shares used in computing income per share:	'	'	'	'
Basic (in shares)	87,647	87,272	87,421	87,523
Weighted Average Number of Shares Outstanding, Diluted (in shares)	87,647	87,272	87,421	87,523

Condensed_Consolidated_Stateme1

Condensed Consolidated Statement of Comprehensive Income (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net income	$41,356	$45,758	$129,889	$117,671
Post-retirement benefit obligation	18	15	-173	-8
Comprehensive Income	41,374	45,773	129,716	117,663
Comprehensive income allocated to participating securities	-401	-515	-1,669	-1,690
Comprehensive Income allocated to common stockholders	$40,973	$45,258	$128,047	$115,973

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Current Assets:	'	'
Cash and cash equivalents	$226,378	$135,597
Accounts receivable—net allowances of $344 and $340	50,131	45,666
Marketing fee receivable	8,712	5,216
Income taxes receivable	16,440	11,717
Other prepaid expenses	6,609	4,146
Other current assets	659	567
Total Current Assets	308,929	202,909
Investments in Affiliates	14,034	14,270
Land	4,914	4,914
Property and Equipment:	'	'
Construction in progress	1,713	89
Building	63,533	62,442
Furniture and equipment	269,384	263,155
Less accumulated depreciation and amortization	-265,379	-251,642
Total Property and Equipment—Net	69,251	74,044
Other Assets:	'	'
Software development work in progress	10,036	4,370
Data processing software and other assets (less accumulated amortization—2013, $143,782; 2012, $133,862)	33,986	38,351
Total Other Assets—Net	44,022	42,721
Total	441,150	338,858
Current Liabilities:	'	'
Accounts payable and accrued expenses	46,985	45,148
Marketing fee payable	9,251	5,808
Deferred revenue and other liabilities	9,131	1,084
Post-retirement benefit obligation - current	30	110
Total Current Liabilities	65,397	52,150
Long-term Liabilities:	'	'
Post-retirement benefit obligation - long-term	2,216	1,794
Income tax liability	27,788	20,857
Other long-term liabilities	3,878	3,946
Deferred income taxes	16,472	20,989
Total Long-term Liabilities	50,354	47,586
Commitments and Contingencies	'	'
Total Liabilities	115,751	99,736
Stockholders’ Equity:	'	'
Preferred stock, $0.01 par value: 20,000,000 shares authorized, no shares issued and outstanding at September 30, 2013 or December 31, 2012	0	0
Additional paid-in-capital	87,029	67,812
Retained earnings	362,831	275,491
Treasury stock at cost – 4,448,655 shares at September 30, 2013 and 3,998,591 shares at December 31, 2012	-124,314	-104,201
Accumulated other comprehensive loss	-1,066	-893
Total Stockholders’ Equity	325,399	239,122
Total	441,150	338,858
Unrestricted Common Stock	'	'
Stockholders’ Equity:	'	'
Unrestricted common stock, $0.01 par value: 325,000,000 shares authorized; 91,845,492 issued and 87,396,837 outstanding at September 30, 2013; 91,270,274 issued and 87,271,683 outstanding at December 31, 2012	$919	$913

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets Parenthetical (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, except Share data, unless otherwise specified
Statement of Financial Position [Abstract]	'	'
Allowance for Doubtful Accounts Receivable, Current	$344	$340
Finite-Lived Intangible Assets, Accumulated Amortization	$143,782	$133,862
Preferred Stock, Par or Stated Value Per Share	$0.01	$0.01
Preferred Stock, Shares Authorized	20,000,000	20,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par or Stated Value Per Share	$0.01	$0.01
Common Stock, Shares Authorized	325,000,000	325,000,000
Common Stock, Shares, Issued	91,845,492	91,270,274
Common Stock, Shares, Outstanding	87,396,837	87,271,683
Treasury Stock, Shares	4,448,655	3,998,591

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Stockholders’ Equity (USD $)	Total	Preferred Stock	Unrestricted Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)
In Thousands
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest Beginning of Period at Dec. 31, 2012	$239,122	$0	$913	$67,812	$275,491	($104,201)	($893)
Cash dividends on common stock	-42,549	'	'	'	-42,549	'	'
Stock-based compensation	16,867	'	'	16,867	'	'	'
Adjustment related to tax benefit from stock-based compensation plan	2,356	'	'	2,356	'	'	'
Issuance of shares in connection with vesting of restricted stock units	0	'	6	-6	'	'	'
Purchase of unrestricted common stock from employees to fulfill employee tax obligations	-6,136	'	'	'	'	-6,136	'
Purchase Of Unrestricted Common Stock	-13,977	'	'	'	'	-13,977	'
Net income	129,889	'	'	'	129,889	'	'
Post-retirement benefit obligation adjustment—net of tax	-173	'	'	'	'	'	-173
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest End of Period at Sep. 30, 2013	$325,399	$0	$919	$87,029	$362,831	($124,314)	($1,066)

Condensed_Consolidated_Stateme3

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash Flows from Operating Activities:	'	'
Net income	$129,889	$117,671
Adjustments to reconcile net income to net cash flows from operating activities:	'	'
Depreciation and amortization	25,380	25,274
Other amortization	86	66
Provision for deferred income taxes	-4,407	387
Stock-based compensation	16,867	9,048
Loss on disposition of property	3	0
Loss on investment in affiliate	1,509	1,282
Impairment of investment in affiliate	245	0
Changes in assets and liabilities:	'	'
Accounts receivable	-4,466	-7,801
Marketing fee receivable	-3,496	-3,261
Income taxes receivable	-4,723	-10,053
Prepaid expenses	-2,463	-2,585
Other current assets	-92	279
Accounts payable and accrued expenses	-294	-7,149
Marketing fee payable	3,443	3,278
Deferred revenue and other liabilities	7,979	8,424
Post-retirement benefit obligations	-27	-13
Income taxes payable	6,931	6,021
Net Cash Flows provided by Operating Activities	172,364	140,868
Net Cash Provided by (Used in) Investing Activities [Abstract]	'	'
Capital and other assets expenditures	-19,767	-26,829
Investment in Affiliates	-1,518	-1,234
Other	8	0
Net Cash Flows used in Investing Activities	-21,277	-28,063
Payment of quarterly dividends	-42,549	-34,589
Excess tax benefit from stock-based compensation	2,356	0
Purchase of unrestricted stock from employees	-6,136	-3,127
Purchase of unrestricted common stock under announced program	-13,977	-49,744
Net Cash Flows used in Financing Activities	-60,306	-87,460
Net Increase (Decrease) in Cash and Cash Equivalents	90,781	25,345
Cash and Cash Equivalents at Beginning of Period	135,597	134,936
Cash and Cash Equivalents at End of Period	226,378	160,281
Supplemental Disclosure of Cash Flow Information	'	'
Cash paid for income taxes	81,475	69,423
Non-cash activities:	'	'
Unpaid liability to acquire equipment and software	$2,887	$923

Description_of_Business

Description of Business	9 Months Ended
	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Description Of Business	'
	DESCRIPTION OF BUSINESS
	CBOE Holdings, Inc. is the holding company for Chicago Board Options Exchange, Incorporated, C2 Options Exchange, Incorporated, CBOE Futures Exchange, LLC and other subsidiaries.
	The primary business of the Company is the operation of markets for the trading of listed derivatives, including proprietary products. The Company operates markets for trading in four broad product categories: 1) options on the stocks of individual corporations (equity options), 2) options on various market indexes (index options), 3) options on other exchange-traded products (ETP options), such as exchange-traded funds (ETF options) and exchange-traded notes (ETN options) and 4) futures products through our 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 exchange 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 exchange is known as our Hybrid trading model. C2 is our all-electronic exchange that also offers trading for listed options, but with a different market model and fee structure than CBOE. CFE, our all-electronic futures exchange, offers futures on the VIX Index, as well as on other products. All of our exchanges operate on our proprietary technology platform known as CBOE Command.

Basis_of_Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Basis of Presentation	'
	BASIS OF PRESENTATION
	These interim unaudited condensed consolidated financial statements have been prepared in accordance with 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, 2012.
	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, disclosures of contingent assets and liabilities and reported amounts of operating revenues and expenses. On an ongoing basis, management 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, information available from outside sources and various other assumptions that are believed to be reasonable under the circumstances.
	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.

Share_Repurchase_Program

Share Repurchase Program	9 Months Ended
	Sep. 30, 2013
Share Repurchase Program [Abstract]	'
Share Repurchase Program	'
	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 million of its outstanding unrestricted common stock. On July 31, 2012, the Company announced that its board of directors had approved the repurchase of an additional $100 million of its outstanding unrestricted common stock. This authorization was in addition to any amount remaining under the August 2011 authorization. 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.
	For the nine months ended September 30, 2013, the Company repurchased 306,300 shares of unrestricted common stock at an average cost per share of $45.63 totaling $14.0 million in purchases under the program.
	Since inception of the program, the Company has repurchased 4,013,724 shares of unrestricted common stock at an average cost per share of $27.58, totaling $110.7 million in purchases under the program.

Net_Income_per_Common_Share

Net Income per Common Share	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]	'
New Income per Common Share	'
	NET INCOME PER COMMON SHARE
	Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities and are included in the computation of net income per common share pursuant to the two-class method. Our restricted stock awards granted to officers, directors and employees qualify as participating securities.
	The Company computes 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 one class of common stock.
	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 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, 2013 and 2012:
		Three Months Ended September 30,						Nine Months Ended September 30,
	(in thousands, except per share amounts)	2013			2012			2013			2012
	Basic EPS Numerator:
	Net Income	$	41,356		$	45,758		$	129,889		$	117,671
	Less: Earnings allocated to participating securities	(401		)	(515		)	(1,669		)	(1,690		)
	Net Income allocated to common stockholders	$	40,955		$	45,243		$	128,220		$	115,981
	Basic EPS Denominator:
	Weighted average shares outstanding	87,647			87,272			87,421			87,523
	Basic net income per common share	$	0.47		$	0.52		$	1.47		$	1.33
	Diluted EPS Numerator:
	Net Income	$	41,356		$	45,758		$	129,889		$	117,671
	Less: Earnings allocated to participating securities	(401		)	(515		)	(1,669		)	(1,690		)
	Net Income allocated to common stockholders	$	40,955		$	45,243		$	128,220		$	115,981
	Diluted EPS Denominator:
	Weighted average shares outstanding	87,647			87,272			87,421			87,523
	Dilutive common shares issued under restricted stock program	—			—			—			—
	Diluted net income per common share	$	0.47		$	0.52		$	1.47		$	1.33
	For the nine months ended September 30, 2013, 709,344 shares of restricted stock were not included in the computation of diluted net income per common share because to do so would have an antidilutive effect.

StockBased_Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2013
Share-based Compensation [Abstract]	'
Stock-Based Compensation	'
	STOCK-BASED COMPENSATION
	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.
	On February 6, 2013, the Company granted 390,272 shares of restricted stock to certain officers and employees at a fair value of $34.23 per share, the closing price of the Company's stock on the grant date. The shares have a three year vesting period and vesting accelerates upon the occurrence of a change in control of the Company. On May 23, 2013, the Company granted 83,880 shares of restricted stock, at a fair value of $40.54 per share, which included 22,212 granted to the board of directors and 61,668 shares, of which 50% vested upon grant, to the incoming Chief Executive Officer and President and Chief Operating Officer in connection with their new positions. The unvested portion of the shares granted on May 23, 2013 have a one year vesting period and vesting accelerates upon the occurrence of a change in control of the Company. Unvested portions of the restricted stock will be forfeited if the officer, director or employee leaves the company prior to the applicable vesting date, except in limited circumstances.
	For the three and nine months ended September 30, 2013 and 2012, the Company recognized $3.9 million and $3.1 million and $16.9 million and $9.0 million in stock-based compensation expense, respectively. The nine months ended September 30, 2013 and 2012 included $4.0 million and $0.2 million of accelerated stock-based compensation expense, respectively. The accelerated stock-based compensation expense, in 2013, is primarily for certain executives due to provisions contained in their employment arrangements and, in 2012, departures from the board of directors. Stock-based compensation expense is included in employee costs in the condensed consolidated statements of income.
	As of September 30, 2013, the Company had unrecognized stock-based compensation of $16.9 million.  The remaining unrecognized stock-based compensation is expected to be recognized over a weighted average period of 17.3 months.
	The activity in the Company’s restricted stock for the nine months ended September 30, 2013 was as follows:
			Number of Shares		Weighted Average
			of Restricted		Grant-Date Fair
			Stock		Value
		Unvested restricted stock at January 1, 2013	835,823		$	28.92
		Granted	474,152		35.35
		Vested	(590,422	)	40.86
		Forfeited	(10,209	)	29
		Unvested restricted stock at September 30, 2013	709,344		$	32.04

Investment_in_Affiliates

Investment in Affiliates	9 Months Ended
	Sep. 30, 2013
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]	'
Investments in Affiliates	'
	INVESTMENTS IN AFFILIATES
	At September 30, 2013 and December 31, 2012, the investments in affiliates was composed of the following (in thousands):
			September 30,		December 31,
			2013		2012
		Investment in OCC	$	333	$	333
		Investment in Signal Trading Systems, LLC	11,201		11,437
		Investment in IPXI Holdings, LLC	2,500		2,500
		Investment in CBOE Stock Exchange, LLC	—		—
		Investments in Affiliates	$	14,034	$	14,270

Accounts_Payable_and_Accured_L

Accounts Payable and Accured Liabilities	9 Months Ended
	Sep. 30, 2013
Payables and Accruals [Abstract]	'
Accounts Payable and Accrued Liabilities	'
	ACCOUNTS PAYABLE AND ACCRUED EXPENSES
	At September 30, 2013 and December 31, 2012, accounts payable and accrued expenses consisted of the following (in thousands):
			September 30,		December 31,
			2013		2012
		Compensation and benefit-related liabilities	$	17,482	$	18,306
		Royalties	13,282		10,529
		Facilities	1,445		1,932
		Legal	1,917		1,706
		Accounts payable	1,911		735
		Estimated liability related to SEC matter	—		5,000
		Linkage	1,886		1,116
		Other	9,062		5,824
		Total	$	46,985	$	45,148

Marketing_Fee

Marketing Fee	9 Months Ended
	Sep. 30, 2013
Marketing Fee [Abstract]	'
Marketing Fees	'
	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, 2013 and December 31, 2012, amounts assessed by the Company on behalf of others included in current assets totaled $8.7 million and $5.2 million, respectively, and payments due to others included in current liabilities totaled $9.3 million and $5.8 million, respectively.

Deferred_Revenue

Deferred Revenue	9 Months Ended
	Sep. 30, 2013
Deferred Revenue [Abstract]	'
Deferred Revenue	'
	DEFERRED REVENUE
	The following table summarizes the activity in deferred revenue for the nine months ended September 30, 2013 (in thousands):
		Balance at		Cash		Revenue			Balance at September 30, 2013
		December 31,		Additions		Recognition
		2012
	Other – net	$	1,084	$	5,411	$	(4,672	)	$	1,823
	Liquidity provider sliding scale (1)	—		29,232		(21,924		)	7,308
	Total deferred revenue	$	1,084	$	34,643	$	(26,596	)	$	9,131
	(1)  Liquidity providers who prepay transaction fees for the first two levels of the liquidity provider sliding scale, at a minimum, are eligible to receive reduced fees on contract volume above 2,000,000 per month. The prepayment of 2013 transaction fees totaled $29.2 million. This amount is amortized and recorded as transaction fees over the respective period.

Employee_Benefits

Employee Benefits	9 Months Ended
	Sep. 30, 2013
Employee Benefits [Abstract]	'
Postemployment Benefits Disclosure	'
	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 $3.1 million and $3.2 million to the SMART Plan for the nine months ended September 30, 2013 and 2012, respectively.
	Eligible employees may participate in the Supplemental Employee Retirement Plan, Executive Retirement Plan and Deferred Compensation Plan. Each plan is a defined contribution plan that is non-qualified by Internal Revenue Code regulations. The Company contributed $1.2 million and $1.0 million to the above plans for the nine months ended September 30, 2013 and 2012, respectively.
	The Company has a post-retirement medical plan for certain current and former members of senior management. The Company recorded immaterial post-retirement benefits expense for the nine months ended September 30, 2013 and 2012.

Income_Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	INCOME TAXES
	For the three and nine months ended September 30, 2013 and 2012, the Company recorded income tax provisions of $26.5 million and $14.7 million and $81.6 million and $65.5 million, respectively. The effective tax rate for the nine months ended September 30, 2013 and 2012 was 38.6% and 35.8%, respectively. The increase in the effective tax rate for the nine months ended September 30, 2013 compared to the prior year period is the result of the recognition of certain discrete items in 2012. The effective rate in 2012 includes the recognition of a benefit for a Section 199 deduction for U.S. production activities, which encompasses all personal property including computer software, for years ended 2008 and 2011.
	As of September 30, 2013 and December 31, 2012, the Company had $25.0 million and $19.5 million, respectively, of uncertain tax positions excluding interest and penalties, 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 statues of limitations during the twelve months ended September 30, 2014 are estimated to be approximately $6.4 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 $1.0 million and $0.2 million for the three months ended September 30, 2013 and 2012, respectively, and $1.5 million and $0.5 million for the nine months ended September 30, 2013 and 2012, respectively. Accrued interest and penalties were $2.8 million and $1.4 million as of September 30, 2013 and December 31, 2012, respectively.
	The Company is subject to U.S. federal tax, Illinois, New Jersey and New York state taxes and Washington D.C. taxes, as well as taxes in other local jurisdictions. The Company has open tax years from 2007 on for New York, 2008 on for federal, and 2009 on for Illinois, New Jersey and Washington, D.C. Specific line items for the 2008 tax year are being examined by the Internal Revenue Service and the Illinois Department of Revenue due to the filing by the Company of amended returns containing the recognition of certain credits and deductions. The Company's tax returns have been examined by the Internal Revenue Service through 2009 and the Illinois Department of Revenue through 2008. The Company is currently under audit by the Internal Revenue Service for 2010 and a limited issue focus examination for 2011. Additionally, the Company is under audit by the State of New York for the 2007 through 2009 tax years and the State of Illinois for the 2009 and 2010 tax years.

Fair_Value_Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Fair Value Disclosures	'
	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 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, 2013 and December 31, 2012. The Company holds no financial liabilities that are measured at fair value on a recurring basis.
	(amounts in thousands)		Level 1		Level 2		Level 3		Total
	Assets at fair value:
	Money market funds		$	216,000	$	—	$	—	$	216,000
	Total assets at fair value at September 30, 2013		$	216,000	$	—	$	—	$	216,000
	(amounts in thousands)		Level 1		Level 2		Level 3		Total
	Assets at fair value:
	Money market funds		$	126,000	$	—	$	—	$	126,000
	Total assets at fair value at December 31, 2012		$	126,000	$	—	$	—	$	126,000
	The Company, through DerivaTech Corporation, a wholly-owned subsidiary, acquired a 10.0% interest in IPXI Holdings, LLC ("IPXI") for $2.5 million in 2012. The investment, measured at fair value on a non-recurring basis, is classified as level 3 as the fair value was based on both observable and unobservable inputs.

Legal_Proceedings

Legal Proceedings	9 Months Ended
	Sep. 30, 2013
Legal Proceedings [Abstract]	'
Legal Proceedings	'
	LEGAL PROCEEDINGS
	As of September 30, 2013, the end of the period covered by this report, the Company was subject to various legal proceedings and claims, as well as certain other legal proceedings and claims that have not been fully resolved and that have arisen in the ordinary course of business. There have been no material changes to the Legal Proceedings discussed in the Annual Report on Form 10-K for the year ended December 31, 2012, as supplemented by the Quarterly Reports on Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013.
	The Company reviews its legal proceedings and claims, regulatory reviews and inspections and other legal proceedings on an ongoing basis and follows appropriate accounting guidance when making accrual and disclosure decisions. The Company establishes accruals for those contingencies where the incurrence of a loss is probable and can be reasonably estimated, and we disclose the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for our financial statements to not be misleading. The Company does not record liabilities when the likelihood that the liability has been incurred is probable, but the amount cannot be reasonably estimated, or when the liability is believed to be only reasonably possible or remote. The Company's assessment of whether a loss is reasonably possible or probable is based on its assessment of the ultimate outcome of the matter following all appeals.
	Estimates of probable losses resulting from patent litigation involving the Company are inherently difficult to make, particularly when the Company's view of the case is significantly different than that expressed by the plaintiff. The Company has not recorded a liability related to damages in connection with these matters.
	As of September 30, 2013, the Company does not think that there is a reasonable possibility that any material loss exceeding the amounts already recognized for these reviews, inspections or other legal proceedings, if any, has been incurred. While the consequences of certain unresolved proceedings are not presently determinable, the outcome of any litigation is inherently uncertain and an adverse outcome from certain matters could have a material effect on our earnings in any given reporting period. However, in the opinion of management, the ultimate liability is not expected to have a material effect on our financial position, liquidity or capital resources.

Subsequent_Events

Subsequent Events	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
Subsequent Events	'
	SUBSEQUENT EVENTS
	The Company announced that its board of directors declared a quarterly cash dividend of $0.18 per share. The dividend is payable December 20, 2013 to stockholders of record at the close of business on November 29, 2013.

Net_Income_per_Common_Share_Ta

Net Income per Common Share (Tables)	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]	'
Schedule of Earnings Per Share, Basic and Diluted	'
	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, 2013 and 2012:
		Three Months Ended September 30,						Nine Months Ended September 30,
	(in thousands, except per share amounts)	2013			2012			2013			2012
	Basic EPS Numerator:
	Net Income	$	41,356		$	45,758		$	129,889		$	117,671
	Less: Earnings allocated to participating securities	(401		)	(515		)	(1,669		)	(1,690		)
	Net Income allocated to common stockholders	$	40,955		$	45,243		$	128,220		$	115,981
	Basic EPS Denominator:
	Weighted average shares outstanding	87,647			87,272			87,421			87,523
	Basic net income per common share	$	0.47		$	0.52		$	1.47		$	1.33
	Diluted EPS Numerator:
	Net Income	$	41,356		$	45,758		$	129,889		$	117,671
	Less: Earnings allocated to participating securities	(401		)	(515		)	(1,669		)	(1,690		)
	Net Income allocated to common stockholders	$	40,955		$	45,243		$	128,220		$	115,981
	Diluted EPS Denominator:
	Weighted average shares outstanding	87,647			87,272			87,421			87,523
	Dilutive common shares issued under restricted stock program	—			—			—			—
	Diluted net income per common share	$	0.47		$	0.52		$	1.47		$	1.33
	For the nine months ended September 30, 2013, 709,344 shares of restricted stock were not included in the computation of diluted net income per common share because to do so would have an antidilutive effect.

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2013
Share-based Compensation [Abstract]	'
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity	'
	The activity in the Company’s restricted stock for the nine months ended September 30, 2013 was as follows:
			Number of Shares		Weighted Average
			of Restricted		Grant-Date Fair
			Stock		Value
		Unvested restricted stock at January 1, 2013	835,823		$	28.92
		Granted	474,152		35.35
		Vested	(590,422	)	40.86
		Forfeited	(10,209	)	29
		Unvested restricted stock at September 30, 2013	709,344		$	32.04

Investment_in_Affiliates_Table

Investment in Affiliates (Tables)	9 Months Ended
	Sep. 30, 2013
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]	'
Investments in and Advances to Affiliates	'
	At September 30, 2013 and December 31, 2012, the investments in affiliates was composed of the following (in thousands):
			September 30,		December 31,
			2013		2012
		Investment in OCC	$	333	$	333
		Investment in Signal Trading Systems, LLC	11,201		11,437
		Investment in IPXI Holdings, LLC	2,500		2,500
		Investment in CBOE Stock Exchange, LLC	—		—
		Investments in Affiliates	$	14,034	$	14,270

Accounts_Payable_and_Accured_L1

Accounts Payable and Accured Liabilities (Tables)	9 Months Ended
	Sep. 30, 2013
Payables and Accruals [Abstract]	'
Schedule of Accounts Payable and Accrued Liabilities	'
	At September 30, 2013 and December 31, 2012, accounts payable and accrued expenses consisted of the following (in thousands):
			September 30,		December 31,
			2013		2012
		Compensation and benefit-related liabilities	$	17,482	$	18,306
		Royalties	13,282		10,529
		Facilities	1,445		1,932
		Legal	1,917		1,706
		Accounts payable	1,911		735
		Estimated liability related to SEC matter	—		5,000
		Linkage	1,886		1,116
		Other	9,062		5,824
		Total	$	46,985	$	45,148

Deferred_Revenue_Tables

Deferred Revenue (Tables)	9 Months Ended
	Sep. 30, 2013
Deferred Revenue [Abstract]	'
Deferred Revenue, by Arrangement, Disclosure	'
	The following table summarizes the activity in deferred revenue for the nine months ended September 30, 2013 (in thousands):
		Balance at		Cash		Revenue			Balance at September 30, 2013
		December 31,		Additions		Recognition
		2012
	Other – net	$	1,084	$	5,411	$	(4,672	)	$	1,823
	Liquidity provider sliding scale (1)	—		29,232		(21,924		)	7,308
	Total deferred revenue	$	1,084	$	34,643	$	(26,596	)	$	9,131

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Fair Value, Measurement Inputs, Disclosure	'
	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, 2013 and December 31, 2012. The Company holds no financial liabilities that are measured at fair value on a recurring basis.
	(amounts in thousands)	Level 1		Level 2		Level 3		Total
	Assets at fair value:
	Money market funds	$	216,000	$	—	$	—	$	216,000
	Total assets at fair value at September 30, 2013	$	216,000	$	—	$	—	$	216,000
	(amounts in thousands)	Level 1		Level 2		Level 3		Total
	Assets at fair value:
	Money market funds	$	126,000	$	—	$	—	$	126,000
	Total assets at fair value at December 31, 2012	$	126,000	$	—	$	—	$	126,000

Share_Repurchase_Program_Detai

Share Repurchase Program (Details) (USD $)	1 Months Ended		9 Months Ended
In Millions, except Share data, unless otherwise specified	Jul. 31, 2012	Aug. 31, 2011	Sep. 30, 2013
Stock Repurchase Program, Authorized Amount	$100	$100	'
Treasury Stock, Shares, Acquired	'	'	306,300
Treasury Stock Acquired, Average Cost Per Share	'	'	$45.63
Treasury Stock, Value, Acquired, Cost Method	'	'	14
Treasury Stock, Shares	'	'	4,013,724
Treasury Stock Acquired,Cost Per Share	'	'	$27.58
Treasury Shares, Acquired, Value	'	'	$110.70

Net_Income_per_Common_Share_De

Net Income per Common Share (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Earnings Per Share [Abstract]	'	'	'	'
Net income	$41,356	$45,758	$129,889	$117,671
Net Income allocated to participating securities	-401	-515	-1,669	-1,690
Net Income Allocated to Common Stockholders	$40,955	$45,243	$128,220	$115,981
Weighted Average Number of Shares Outstanding, Basic (in shares)	87,647,000	87,272,000	87,421,000	87,523,000
Weighted Average Number of Shares Outstanding, Diluted (in shares)	87,647,000	87,272,000	87,421,000	87,523,000
Weighted Average Number Diluted Shares Outstanding Adjustment	0	0	0	0
Basic (in dollars per share)	$0.47	$0.52	$1.47	$1.33
Diluted (in dollars per share)	$0.47	$0.52	$1.47	$1.33

StockBased_Compensation_Narrat

Stock-Based Compensation (Narrative) (Details) (USD $)	0 Months Ended		3 Months Ended		9 Months Ended
	24-May-13	Feb. 07, 2013	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]	'	'	'	'	'	'
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period (in shares)	'	390,272	83,880	'	474,152	'
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$40.54	$34.23	'	'	$35.35	'
Stock-based compensation	'	'	$3,918,000	$3,082,000	$16,867,000	$9,048,000
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost	'	'	'	'	4,000,000	200,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	'	'	$16,900,000	'	$16,900,000	'
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition	'	'	'	'	'17 months	'
Director [Member]	'	'	'	'	'	'
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]	'	'	'	'	'	'
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period (in shares)	22,212	'	'	'	'	'
Chief Executive Officer [Member]	'	'	'	'	'	'
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]	'	'	'	'	'	'
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period (in shares)	61,668	'	'	'	'	'

StockBased_Compensation_Restic

Stock-Based Compensation (Resticted Stock) (Details) (USD $)	0 Months Ended		3 Months Ended	9 Months Ended
	24-May-13	Feb. 07, 2013	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
Share-based Compensation [Abstract]	'	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	'	'	709,344	709,344	835,823
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	'	'	$32.04	$32.04	$28.92
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period (in shares)	'	390,272	83,880	474,152	'
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$40.54	$34.23	'	$35.35	'
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	'	'	'	-590,422	'
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	'	'	'	$40.86	'
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	'	'	'	-10,209	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	'	'	'	$29	'

Investment_in_Affiliates_Detai

Investment in Affiliates (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Investments in Affiliates	$14,034	$14,270
Investment in OCC [Member]	'	'
Investments in Affiliates	333	333
Investment in Signal Trading [Member]	'	'
Investments in Affiliates	11,201	11,437
Investment in IPXI [Member]	'	'
Investments in Affiliates	2,500	2,500
Investment in CBSX [Member] [Member]	'	'
Investments in Affiliates	$0	$0

Accounts_Payable_and_Accured_L2

Accounts Payable and Accured Liabilities (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Compensation and benefit-related liabilities	$17,482	$18,306
Royalties	13,282	10,529
Facilities	1,445	1,932
Legal	1,917	1,706
Accounts payable	1,911	735
Estimated Liability related to SEC matter (See Note 13)	0	5,000
Linkage	1,886	1,116
Other	9,062	5,824
Total	$46,985	$45,148

Marketing_Fee_Details

Marketing Fee (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Marketing Fee [Abstract]	'	'
Marketing fee receivable	$8,712	$5,216
Marketing fee payable	$9,251	$5,808

Deferred_Revenue_Details

Deferred Revenue (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
	contracts
Deferred Revenue [Roll Forward]	'
Balance at December 31, 2012	$1,084
Cash Additions	34,643
Revenue Recognition	-26,596
Balance at September 30, 2013	9,131
Liquidity Provider Transaction Fee Sliding Scale, Monthly Contract Volume for Reduced Fees, Minimum	2,000,000
Other – net	'
Deferred Revenue [Roll Forward]	'
Balance at December 31, 2012	1,084
Cash Additions	5,411
Revenue Recognition	-4,672
Balance at September 30, 2013	1,823
Liquidity Provider Slidingn Scale [Member]	'
Deferred Revenue [Roll Forward]	'
Cash Additions	29,232
Revenue Recognition	-21,924
Balance at September 30, 2013	$7,308

Employee_Benefits_Details

Employee Benefits (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Employee Benefits [Abstract]	'	'
Defined Benefit Plan, Contributions by Employer	$3,141	$3,181
Pension and Other Postretirement Benefit Contributions	$1,193	$995

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Income Tax Expense (Benefit)	$26,554,000	$14,776,000	$81,614,000	$65,482,000	'
Effective Income Tax Rate, Continuing Operations	'	'	38.60%	35.80%	'
Liability for Uncertain Tax Positions, Noncurrent	25,000,000	'	25,000,000	'	19,500,000
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations	'	'	6,404,000	'	'
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	1,000,000	200,000	1,473,000	500,000	'
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	$2,800,000	'	$2,800,000	'	$1,400,000

Fair_Value_Measurements_Narrat

Fair Value Measurements (Narrative) (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'	'
Investments in Affiliates	$14,034	'	$14,270
Other than Temporary Impairment Losses, Investments	245	0	'
Cost Method Investment, Ownership Percentage	'	'	10.00%
Payments for (Proceeds from) Investments	1,518	1,234	'
Investment in IPXI [Member]	'	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'	'
Investments in Affiliates	$2,500	'	$2,500

Fair_Value_Measurements_Fair_V

Fair Value Measurements Fair Value Measurements (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Level 1	'	'
Money market funds	$216,000	$126,000
Assets, Fair Value Disclosure	216,000	126,000
Estimate of Fair Value, Fair Value Disclosure [Member]	'	'
Money market funds	216,000	126,000
Assets, Fair Value Disclosure	$216,000	$126,000

Subsequent_Events_Details

Subsequent Events (Details) (USD $)	0 Months Ended
	Oct. 25, 2013
Common Stock, Dividends, Per Share, Declared	$0.18