CBOE Holdings is the parent of the Chicago Board Options Exchange and the CBOE Futures Exchange. In financial data released Friday the company estimated it may have to pay $5 million to settle the issue with the Securities and Exchange Commission. That amount has been set aside as an expense for the fourth quarter.
Chicago-based CBOE said it is in "ongoing settlement discussions" with the SEC staff but no agreement has yet been reached.
The company disclosed a year ago that the SEC was investigating its supervision of activities on the exchanges. SEC spokesman Kevin Callahan declined to comment.
CBOE also said Friday that fourth-quarter net income rose 25 percent amid a 4 percent increase in revenue from transaction fees and gains from higher-profit financial products. The company posted net income of $39.7 million, or 45 cents a share, in the October-December quarter, up from $31.3 million, or 35 cents a share, in the fourth quarter of 2011.
Operating revenue rose 8 percent, to $130.1 million.
Analysts expected 42 cents per share on revenue of $127.9 million.
Under the system of regulation of commodities and securities trading firms, the SEC has broad oversight over much of the firms' trading but leaves day-to-day monitoring to exchange operators like CBOE and CME Group Inc., and to the securities industry's self-policing organization, the Financial Industry Regulatory Authority.
Shares of CBOE rose 5 cents to $34.35 in afternoon trading.