A few months ago C2 approval was "imminent". Now, CBOE no longer has the green light. Has CBOE been a bad boy somewhere that we don't know about? http://www.wallstreetletter.com/SubContent.aspx?ArticleID=2319516
Bad timing to introduce an exchange model that caters to high frequency traders. http://online.wsj.com/article/0,,SB125302890503912349,00.html
CBOE said the approval was "imminent" on 10/19/09, more than a month after the WSJ article you provided (full article below). So those WSJ issues were well known to all, then, later, CBOE used "imminent". Still no go. I smell a rat. http://online.wsj.com/article/0,,SB125302890503912349,00.html
That and demutualization and possible merger pre ipo, regulatory environment is getting dicier. I don't think they want to roll this out if they have to migrate it to a new exchange platform. It is worth more in the can than fighting for regulatory approval right now.
I think regulatory approval is the hold up. I read in the Wall Street Letter, or somewhere, option industry professionals saying - "We don't like customer priority. The question is - does the customer really know he's due a fill when he sees a print at his price. That's where we're at with it right now." The new C2 rules try to scale back customer priority. The CBOE has had big regulatory problems with this in the past. My guess is that they can't collude with the SEC anymore to skate past their regulatory violations. Therefore, red light on C2. I wish to heck, I'd kept that article. I've searched and searched for it. It's a 2009 item, I know that.