Plans by the CBOE to list options referencing US restaurant chain shake shack were put on hold last week, as the instruments did not meet the required listing criteria. The name failed to meet requirements of the Options Clearing Corporation, which has set a threshold of 7m shares outstanding for a stock to be deemed eligible for listed options. Shake Shack sold just 5m shares during its NYSE initial public offering in May. Company insiders are set to sell a further 4m shares in a secondary offer following the expiry of a post-IPO lock-up agreement. That would see the free-float boosted to 9m shares, making the planned derivatives contracts eligible under OCC criteria.
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