January 28, 2005
Exchange
Bulletin
Volume 33, Number 4
The Constitution and Rules of the Chicago Options Exchange, Incorporated (“Exchange”), in certain specific instances, require
the Exchange to provide notice to the Exchange membership. To satisfy this requirement, a complimentary copy of the Exchange Bulletin, including the Regulatory Bulletin, is delivered to all effective members on a weekly basis.
CBOE members are encouraged to receive the Exchange and Regulatory Bulletin and Information Circulars via e-mail. E-mail
subscriptions may be obtained by submitting your name, firm, mailing address, e-mail address, and phone number, to
members@cboe.com, or, by contacting the Membership Department by phone, at 312-786-7449. There is no charge for e-mail
delivery of the Exchange and Regulatory Bulletin or for Information Circulars. If you do sign up for e-mail delivery, please
remember to inform the Membership Department of e-mail address changes.
Additional subscriptions for hard copy delivery may be obtained by submitting your name, firm, mailing address, e-mail address and telephone number to: Chicago Board Options Exchange, Accounting Department, 400 South LaSalle, Chicago, Illinois 60605, Attention: Bulletin Subscriptions. The cost of an annual subscription (July 1 through June 30) is $200.00 ($100.00
after January 1), payable in advance. The Exchange reserves the right to limit subscriptions by non-members.
For up-to-date Seat Market Quotes, refer to CBOE.com and click “Seat Market Information” under the “About CBOE” tab. For
access to the CBOE Member Web Site, please also notify the Membership Department using the contact information above.
Copyright © 2004 Chicago Board Options Exchange, Incorporated
SEAT MARKET QUOTES AS OF FRIDAY, JANUARY 28, 2005
CLASS
CBOE/FULL
CBOT/FULL
BID
$300,000.00
$1,050,000.00
OFFER
$320,000.00
$1,200,000.00
LAST SALE AMOUNT
$300,000.00
$1,075,000.00
LAST SALE DATE
January 27, 2005
January 27, 2005
MEMBERSHIP SALES AND TRANSFERS
From
X-Change Financial Access, LLC
To
Citadel Derivatives Group, LLC
Price/Transfer
$300,000.00
Date
01/27/05
Page 2
January 28, 2005
Volume 33, Number 3
Chicago Board Options Exchange
MEMBERSHIP INFORMATION FOR 1/20/05 THROUGH 1/26/05
MEMBERSHIPAPPLICATIONS RECEIVED FOR
WHICH A POSTING PERIOD IS REQUIRED
MEMBERSHIP LEASES
New Leases
Effective Date
Lessor: Loren H. Newman
Lessee: Cutler Group, LP
Robert J. Leone, NOMINEE
Rate:
0.875%
Term: Monthly
1/21/05
1/20/05
1/20/05
Lessor: S & S Options
Lessee: Citigroup Derivatives Markets Inc.
Rate:
0.875%
Term: Monthly
1/24/05
George M. Fushi, Nominee
Blue Capital Group LLC
935 Linden Lane
Glenview, IL 60025
1/24/05
Yonaton Cohen, Nominee
Andrie Trading LLC
1128 W. Armitage, #3F
Chicago, IL 60614
1/24/05
Lessor: KISAY 1, LP
Lessee: Citigroup Derivatives Markets Inc.
Rate:
0.875%
Term: Monthly
Lessor: Essex Radez, LLC
Lessee: Citigroup Derivatives Markets Inc.
Rate:
0.875%
Term: Monthly
1/24/05
Jason Chippas, Nominee
Israel A. Englander & Co., Inc.
2420 W. Farragut, Apt. 6
Chicago, IL 60625
1/24/05
Lessor: Steven Hirschtritt
Lessee: Citigroup Derivatives Markets Inc.
Rate:
0.875%
Term: Monthly
1/24/05
Benjamin H. Szelag, Nominee
Andrie Trading LLC
2614 N. Marshfield, Apt. C
Chicago, IL 60614
1/24/05
Lessor: James Richardson
Lessee: Ronin Capital, LLC
Terrence J. Moran, NOMINEE
Rate:
0.8920%
Term: Monthly
1/24/05
Anthony Hozian, Nominee
Right Side Trading, LP
2934 Lakewood Avenue
Chicago, IL 60657
1/25/05
Lessor: Marshall C. Spiegel
Lessee: Hurricane Capital, LLC
Stephen K. Fox, NOMINEE
Rate:
0.875%
Term: One Day
1/26/05
Andrew B. Levin, Nominee
CTC LLC
421 W. Belden Ave. #3-2
Chicago, IL 60614
1/25/05
Lessor: OAKPORTE, LP
Lessee: Northern Access LLC
Timothy W. Scharf, NOMINEE
Rate:
0.75%
Term: Monthly
1/26/05
Ryan P. Price, Nominee
Consolidated Trading, LLC
3014 N. Racine - #2
Chicago, IL 60657
1/26/05
Terminated Leases
Termination Date
Amar Bagwe, Nominee
Bear Wagner Specialists LLC
212 W. Washington, Unit 1107
Chicago, IL 60606
1/26/05
Member Organization Applicants
Date Posted
Lighthouse Trading, LLC
Yaron Kim, Nominee
435 W. Erie St., Apt. 2003
Chicago, IL 60610
Yaron Kim – Managing Member
1/21/05
Individual Membership Applicants
Date Posted
Hugh J. Flannery, Nominee
Morgan Stanley & Co., Inc.
742 Bonnie Brae Place
River Forest, IL 60305
Lessor: Loren H. Newman
1/21/05
Lessee: Susquehanna Investment Group
Christopher G. Larkin (LKN), NOMINEE
Thor Trading, LLC
1/26/05
Mark Thorsen, Nominee
537 W. Fullerton Pkwy.
Chicago, IL 60614
Mark M. Thorsen – Managing Member
Lessor: Kevin J. Hincks
Lessee: SLK-Hull Derivatives LLC
1/24/05
Lessor: OAKPORTE, LP
Lessee: Futrex Trading LLC
Timothy W. Scharf (TSF), NOMINEE
1/26/05
MEMBERSHIP TERMINATIONS
Individual Members
CBT Registered For:
Termination Date
Christopher Borgmeyer (CBG)
Klr Trade Corp Inc.
440 S. LaSalle St., Ste. 625
Chicago, IL 60605
1/24/05
Andrew M. Sullivan (DRU)
AB Financial LLC
440 S. LaSalle St., Ste. 3100
Chicago, IL 60605
1/26/05
Page 3
January 28, 2005
Volume 33, Number 3
Nominee(s) / Inactive Nominee(s):
Termination Date
Stephen C. Pechloff (PEC)
Citadel Derivatives Group LLC
141 W. Jackson, Ste. 500
Chicago, IL 60604
1/20/05
James M. Jacobsen (JAM)
PTR, Incorporated
131 S. Dearborn, 37th Fl.
Chicago, IL 60603
1/20/05
Carlos Saez (SEZ)
TD Options, LLC
230 S. LaSalle St., Ste. 688
Chicago, IL 60604
1/20/05
Richard C. Deogracias (DEO)
TradeLink LLC
2351 W. Moffat
Chicago, IL 60647
1/25/05
Brian Huddleston (HUD)
Everest Trading, LLC
440 S. LaSalle St., Ste. 3100
Chicago, IL 60605
1/26/05
Scott P. Nicholson (SPN)
Third Millennium Trading, LLC
440 S. LaSalle St., Ste. 3100
Chicago, IL 60605
1/26/05
Matthew H. Bentley (MHB)
Everest Trading, LLC
440 S. LaSalle St., Ste. 3100
Chicago, IL 60605
1/26/05
Member Organizations
CBT Registered For:
Termination Date
KLR Trade Corp Inc.
440 S. LaSalle St., Ste. 1600
Chicago, IL 60605
1/24/05
EFFECTIVE MEMBERSHIPS
Individual Members
CBT Registered For:
Effective Date
Ryan Michael Sellers (RZA)
1/20/05
Saen Options USA Inc.
440 S. LaSalle St., Suite 1506
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Nominee(s) / Inactive Nominee(s):
Chicago Board Options Exchange
Effective Date
Stephen K. Fox (FOX)
1/26/05
Hurricane Capital, LLC
5 Greenwood Drive
New City, NY 10956
Type of Business to be Conducted: Market Maker
JOINT ACCOUNTS
New Participants
Acronym
Effective Date
Ryan Michael Sellers
QOS
1/20/05
Luke C. Mraz
QHS
1/21/05
Luke C. Mraz
QRV
1/21/05
Sestino Milito
QAZ
1/26/05
Timothy W. Scharf
QLN
1/26/05
Terminated Participants Acronym
Termination Date
Stephen C. Pechloff
CIT
1/20/05
Carlos Saez
QBB
1/20/05
Carlos Saez
QRX
1/20/05
Carlos Saez
QWJ
1/20/05
Richard C. Deogracias
QDO
1/25/05
Brian Huddleston
QAZ
1/26/05
Timothy W. Scharf
QAG
1/26/05
Timothy W. Scharf
QED
1/26/05
Andrew M. Sullivan
QBH
1/26/05
Andrew M. Sullivan
QNI
1/26/05
Scott P. Nicholson
QMJ
1/26/05
Matthew H. Bentley
QAZ
1/26/05
Terminated Accounts
Acronym
Termination Date
Chad R. Gramann
QJK
1/21/05
John S. Stafford Jr.
QJK
1/21/05
CHANGES IN MEMBERSHIP STATUS
Individual Members
Effective Date
Effective Date
Luke C. Mraz (LCM)
1/21/05
Ronin Capital, LLC
230 S. LaSalle St., Suite 400
Chicago, IL 60604
Type of Business to be Conducted: Market Maker
Robert J. Leone (RBY)
1/21/05
440 S. LaSalle St., Suite 1124
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Sestino Milito (SSM)
1/26/05
Everest Trading, LLC
440 S. LaSalle St., Suite 3100
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Kevin J. Hincks
1/24/05
From:
Lessor
To:
CBOE Registered For BBS Partners LLC; Market
Maker
Timothy W. Scharf
1/26/05
From:
Nominee For Futrex Trading LLC; Market Maker
To:
Nominee For Northern Access LLC; Market Maker
Member Organizations
Effective Date
BBS Partners LLC
1/24/05
From:
Owner/ Lessee; Associated with a Market Maker/ Floor
Broker
To:
Owner/ Lessee/ Member Organization Affiliated with a
CBOE Registered For; Associated with a Market
Maker/Floor Broker
Page 4
January 28, 2005
Volume 33, Number 3
Chicago Board Options Exchange
MEMBER NAME CHANGES
MEMBER ADDRESS CHANGES
Individual Members
Effective Date
Member Organizations
Sallie Leaf
16 Dartmouth Drive
Rancho Mirage, CA 92270
1/21/05
From:
To:
Effective Date
Fleet Securities, Inc.,
1/21/05
DBA US Clearing Corp.
ADP Clearing & Outsourcing Services, Inc.
RESEARCH CIRCULARS
The following Research Circulars were distributed between January 20 and January 27, 2005. If you wish to read the entire document, please
refer to the CBOE website at www.cboe.com and click on the “Trading Tools” Tab. New listings and series information is also available in the
Trading Tools section of the website. For questions regarding information discussed in a Research Circular, please call The Options Clearing
Corporation at 1-888-OPTIONS.
Research Circular #RS05-046
January 20, 2005
Stelmar Shipping Ltd. (“SJH”) Merger COMPLETED
with Overseas Shipholding Group, Inc. (“OSG”)
Research Circular #RS05-047
January 20, 2005
Bayer AG (“BAY”) Cash Distribution in Lieu of Ordinary Shares
of Laxness AG - Form of Election
Ex-Distribution Date: To Be Announced
Research Circular #RS05-048
January 21, 2005
Frontline Ltd. (“FRO & adj. JVU/FXW/FMZ”)
Determination of Cash-in-Lieu Amounts
Research Circular #RS05-050
January 24, 2005
*****REVISION*****REVISION*****REVISION*****
Cendant Corporation (“CD/WLD/VUC”)
Distribution of Shares of
PHH Corporation (“PHH”)
Ex-Distribution Date: February 1, 2005
Research Circular #RS05-057
January 27, 2005
MICROS Systems, Inc. (“MCRS/MFK”)
2-for-1 Stock Split
Ex-Distribution Date: February 2, 2005
Research Circular #RS05-058
January 27, 2005
Embarcadero Technologies, Inc. (“EMBTE/MBQ”)
Underlying Symbol Change to “EMBT”
Effective Date: January 27, 2005
Research Circular #RS05-059
January 27, 2005
TALX Corporation (“TALX/TUB”)
3-for-2 Stock Split
Ex-Distribution Date: February 18, 2005
February 2, 2005
Volume RB16, Number 5
Regulatory
Bulletin
The Constitution and Rules of the Chicago Board Options Exchange, Incorporated
(“Exchange”), in certain specific instances, require the Exchange to provide notice to the membership. The weekly Regulatory Bulletin is delivered to all effective members to satisfy this
requirement.
Copyright © 2004 Chicago Board Options Exchange, Incorporated
Regulatory
Circulars
Regulatory Circular RG05-12
To:
Members and Member Firms
From: SPX Floor Procedure Committee
Options on SPDRs Floor Procedure Committee
Date:
January 24, 2005
Re:
SPX-SPDR option spread orders
The SPX Floor Procedure Committee and the Options on SPDRs Floor Procedure Committee have determined to expand the types of spread orders that are permitted under CBOE
Rule 24.19 to include any combination of SPX and SPDR options. The procedures to be
followed in representing and filling an SPX-SPDR option spread order are the same procedures as those that apply to representing and filling an OEX-SPX spread order. SPX-SPDR
option spread orders may be represented in the SPX and SPDR option trading crowds.
Any questions concerning the above may be directed to Craig Johnson, Trading Floor Liaison at extension 7939, or to David Doherty, Legal Division at extension 7466.
APPROVED RULE CHANGES
The Securities and Exchange Commission (“SEC”) has approved the following change(s) to
Exchange Rules pursuant to Section 19(b) of the Securities Exchange Act of 1934, as
amended (“the Act”). Copies are available from the Legal Division.
The effective date of the rule change is the date of approval unless otherwise noted.
SR-CBOE-2005-06
Increased Position and Exercise Limits for SPDR Options
On January 14, 2005, the SEC approved Rule Change File No. SR-CBOE-2005-06, which
filing amends Exchange Rule 4.11 to increase position and exercise limits for options on
SPDRs (Securities Exchange Act Release No. 51041, 70 FR 3408 (January 24, 2005)). Any
questions regarding the rule change may be directed to Jaime Galvan, Legal Division, at
312-786-7058. The text of the amended rules is set forth below. New language is italicized.
Rule 4.11 Position Limits
****
…Interpretations and Policies:
Rule Changes,
Interpretations and
Policies continued
SR-CBOE-2005-06 continued
.01 - .06 No change.
.07 The position limits under Rule 4.11 applicable to options on shares or other
securities that represent interests in registered investment companies (or series
thereof) organized as open-end management investment companies, unit investment trusts or similar entities that satisfy the criteria set forth in Interpretation and
Policy .06 under Rule 5.3 shall be the same as the position limits applicable to
equity options under Rule 4.11 and Interpretations and Policies thereunder. The
position limits under Rule 4.11 applicable to options on the Nasdaq-100 Index
Tracking StockSM ( “QQQ”), the Standard and Poor’s Depositary Receipts Trust
(SPDR), and the DIAMONDS Trust (DIA) shall be 300,000 option contracts.
SR-CBOE-2004-91
Market-Maker Access to Automatic Execution
On January 12, 2005, the SEC approved Rule Change File No. SR-CBOE-2004-91, which
filing extends the pilot program in Exchange Rule 6.13 relating to Market-Maker access to
the Exchange’s automatic execution system, and eliminates its rule prohibiting the electronic generation of orders (Securities Exchange Act Release No. 51030, 70 FR 3404
(January 24, 2005)). Any questions regarding the rule change may be directed to Steve
Youhn, Legal Division, at 312-786-7416. The text of the amended rules is set forth below.
New language is italicized.
Rule 6.8A.
Reserved
Rule 6.13: CBOE Hybrid System’s Automatic Execution Feature
(a) No change
(b) Automatic Execution
(i) * * * * *
(A) - (B) No change
(C)
Access:
(i) – (ii) No change
(iii) 15-Second Limitation: With respect to orders eligible for submission pursuant to paragraph (b)(i)(C)(ii), members shall neither enter nor permit the entry of multiple orders on the same
side of the market in an option class within any 15-second period for an account or accounts of the same beneficial owner.
The appropriate FPC may shorten the duration of this 15-second period by providing notice to the membership via a Regulatory Circular that is issued at least one day prior to implementation. The effectiveness of this rule shall terminate on October
12, 2005.
*****
(ii) - (iv) No change
(c) * * * *
(i)
RB2
No change
February 2, 2005, Volume RB16, Number 5
Rule Changes,
Interpretations and
Policies continued
SR-CBOE-2004-91 continued
(ii)
*****
(A) No change
(B) Effecting transactions that constitute manipulation as provided in Rule
4.7 and Exchange Act Rule 10b-5.
(d) – (e) No change
PROPOSED RULE CHANGES
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934, as amended (“the
Act”), and Rule 19b-4 thereunder, the Exchange has filed the following proposed rule changes
with the Securities and Exchange Commission (“SEC”). Copies of the rule change filings are
available from the Legal Division. Members may submit written comments to the Legal
Division.
The effective date of a proposed rule change will be the date of approval by the SEC, unless
otherwise noted.
SR-CBOE-2005-11
Listing Standards for ETFs
On January 24, 2005, the Exchange filed Rule Change File No. SR-CBOE-2005-11, which
filing proposes to revise the Exchange’s current listing standards for exchange traded funds,
or Units as currently described in Exchange rules. Specifically, this rule change proposes to
expand the range of exchange traded funds (“ETFs”) on which the Exchange may list options, including ETFs that represent interests in non-securities assets. Any questions regarding the proposed rule change may be directed to Jim Flynn, Legal Division, at 312-7867070. The text of the proposed rule amendments is set forth below. Proposed new language
is underlined. Proposed deleted language is [stricken out]. A copy of the filing is available
from the Legal Division.
Rule 5.1 – 5.2
No change.
Rule 5.3 - Criteria for Underlying Securities
(a) - (b)
No change.
…Interpretations and Policies:
.01-.05
No change.
.06 Securities deemed appropriate for options trading shall include shares or other
securities (“Units” or “Fund Shares”) that (i) represent interests in trusts, [registered]
investment companies (or series thereof) [organized as open-end management
investment companies, unit investment trusts] or [similar] other entities that hold
one or more investment assets consisting of securities, futures, options on futures,
swaps, forward contracts, commodities, or indexes or portfolios of the foregoing, or
that hold interests in entities that themselves hold such investment assets, and (ii)
are [principally] publicly traded on a national securities exchange or through the
facilities of a national securities association and are reported as “national market”
securities[, and that hold portfolios of securities comprising or otherwise based on
or representing investments in indexes or portfolios of securities (or that hold securities in one or more other registered investment companies that themselves hold
such portfolios of securities)]; provided that all of the following conditions are met:
February 2, 2005, Volume RB16, Number 5
RB3
Rule Changes,
Interpretations and
Policies continued
SR-CBOE-2005-11 continued
(A) any non-U.S. component securities of [the]an index or portfolio of securities
on which the Fund Shares[Units] are based that are not subject to comprehensive
surveillance agreements do not in the aggregate represent more than 50% of the
weight of the index or portfolio;
(B) component securities of an index or portfolio of securities on which Fund
Shares are based for which the primary market is in any one country that is not
subject to a comprehensive surveillance agreement do not represent 20% or more
of the weight of the index;
(C) component securities of an index or portfolio of securities on which Fund
Shares are based for which the primary market is in any two countries that are not
subject to comprehensive surveillance agreements do not represent 33% or more
of the weight of the index; and
(D) either (x) [the Units]Fund Shares meet the criteria and guidelines set forth in
Rule 5.3 and Interpretation and Policy .01 thereunder, or (y) [the Units] Fund Shares
are available for creation or redemption each business day from or through the
issuing trust, investment company or other entity in cash or in kind at a price
related to net asset value, and the issuer [investment company] is obligated to
issue [Units]Fund Shares in a specified aggregate number even if some or all of
the [securities]investment assets required to be deposited have not been received
by the issuer [investment company], subject to the condition that the person
obligated to deposit the [securities]investment assets has undertaken to deliver
them [securities] as soon as possible and such undertaking is secured by the
delivery and maintenance of collateral consisting of [case]cash or cash equivalents satisfactory to the issuer of Fund Shares [investment company], all as
described in the Fund Share [investment company] prospectus.
.07-.09 No change.
RB4
February 2, 2005, Volume RB16, Number 5