Largest derivatives exchange of the world, CME Group Inc., is in pursuing first round talks to acquire the Chicago Board Options Exchange.

As per reports by the Crain's Chicago Business, the deal would value the biggest US options market at up to $5 billion.

A $5 billion price tag would value each CBOE seat at around $4 million.

However, no formal bid has been made yet as CBOE will have to resolve legal challenges to its ownership structure prior to formally being sold.

Speaking his mind, analyst Richard Repetto said, "It's like buying a house where there's still some minor repairs."

Board of Trade members sued the options market in 2006, claiming that they were entitled to equity stakes in CBOE.

Shares in CME have surged 50 per cent in 2009.