March 4, 2005
Exchange
Bulletin
Volume 33, Number 9
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, MARCH 4, 2005
CLASS
CBOE/FULL
CBOT/FULL
BID
$335,000.00
$1,318,000.00
OFFER
$390,000.00
$1,360,000.00
LAST SALE AMOUNT
$394,900.00
$1,350,000.00
LAST SALE DATE
March 3, 2005
March 3, 2005
MEMBERSHIP SALES AND TRANSFERS
From
Larkspur Securities, Inc.
Edmund Leff Family Ltd. Partnership
Isomorphism
To
SLK-Hull Derivatives LLC
Jackson Financial Group Inc.
Fugue
Price/Transfer
$325,000.00
$365,000.00
$394,900.00
Date
3/2/05
3/3/05
3/3/05
Page 2
March 4, 2005
Volume 33, Number 9
Chicago Board Options Exchange
MEMBERSHIP INFORMATION FOR 2/24/05 THROUGH 3/2/05
MEMBERSHIP APPLICATIONS RECEIVED FOR
WHICH A POSTING PERIOD IS REQUIRED
Individual Membership Applicants
Date Posted
Anna L. Vanes, Lessor
430 Whittier Lane
Northfield, IL 60093
2/24/05
Wyatt Unger, Nominee
Cutler Group, L.P.
2829 N. Lincoln - #4
Chicago, IL 60657
2/25/05
Steven Lee, Nominee
Cutler Group, LP
3723 W. Wallen
Lincolnwood, IL 60712
2/25/05
Joseph C. Merrick, Nominee
Cutler Group, LP
737 W. Washington Blvd., #1204
Chicago, IL 60661
2/25/05
Douglas P. Underhill, Nominee
PFTC LLC
2340 N. Lister - #3
Chicago, IL 60614
2/28/05
Philip J. Fortier, Nominee
Equitec Proprietary Markets, LLC
10412 S. Campbell
Chicago, IL 60655
2/28/05
Milan-Aleksandar Asanovic, Nominee
Timber Hill LLC
600 N. McClurg Ct., Apt. #2901A
Chicago, IL 60611
2/28/05
Member Organization Applicants
Date Posted
Date Posted
Edgewater Partners, LLC
Craig R. Barone, Nominee
1833 W. Roscoe St.
Chicago, IL 60657
David R. Zalesky - Manager/Member
Timothy G. Hender – Member
Joseph P. Perona – Member
Frank W. Tabachka Jr. - Member
2/28/05
FWT Options LLC
2/28/05
Frank W. Tabachka Jr., CBT Registered For
440 S. LaSalle, Ste. 3100
Chicago, IL 60605
Frank W. Tabachka Jr. - Managing Member
TRO Trading Group LLC
440 S. LaSalle St. - Suite 2101
Chicago, IL 60605
TRO Investments, LLC – Member
TRO Manager LLC – Member
Richard A. Lund – Managing Member
2/25/05
Caesaron II Fund LP
2/25/05
Stephen Silberman, Nominee
9464 Beverly Crest Drive
Beverly Hills, CA 90210
JS Management LLC - General Partner
John I. Silberman – Member
Stephen L. Silberman – Member
John I. Silberman - Special Partner
Stephen L. Silberman - Special Partner
Lessor Income Fund E, LLC
270 Grapevine Run
Dunwoody, GA 30350
Michael Post - LLC Manager
2/24/05
MEMBERSHIP LEASES
Jane Street Options, LLC
3/2/05
Richard Emmet, Nominee
111 Broadway, Ste. 2102
New York, NY 10006
Henry Capital LLC – Member
Marc A. Gerstein – Chief of Information Technology
Richard S. Emmet - Managing Director
Robert A. Granieri - Managing Director
Michael A. Jenkins - Managing Director
Barry J. Kronemer - CCO/CLO
Sandor G. Lehoczky - Managing Director
Marc A. Gerstein - Managing Director
Jason E. McCarthy - Managing Director
Timothy W. Reynolds - Managing Director
Brett A. Rogers - Managing Director
Ian R. Schaad - Managing Director
Jay M. Stone - Chief Operations Officer
Maras Trading LLC
2/28/05
Jason S. Maras, CBT Registered For
440 S. LaSalle, Suite 1822
Chicago, IL 60605
Geneva LLC – Member
Geneva Derivatives Trading Corp. – Member
Gary Silverman – President
Daniel Williams - Secretary
New Leases
Effective Date
Lessor: Judd Perlson
Lessee: Daniel E. Teuscher
Rate:
0.875%
Term: Monthly
2/25/05
Lessor: Charles J. Peres
Lessee: BOTTA Capital Management LLC
David Plandowski, NOMINEE
Rate:
0.875%
Term: Monthly
2/25/05
Lessor: Diane F. Ianiro
Lessee: Joseph Ianiro
Rate:
$1.00
2/28/05
Term: 1 Day
Lessor: Arlene Weinstein
Lessee: Wellington Capital Markets, LLC
Keir S. Collins, NOMINEE
Rate:
0.8281%
Term: Monthly
3/1/05
Lessor: Kam Partners
Lessee: TBMP, LLC
Michael T. Kalchbrenner, NOMINEE
Rate:
0.875%
Term: Monthly
3/1/05
Lessor: Diane F. Ianiro
Lessee: Andrew J. Ianiro
Rate:
0.75%
Term: Monthly
3/1/05
Lessor: Arthur M. Pearson
Lessee: Sparta Group Of Chicago, LP
Derek J. Schoonhoven, NOMINEE
Rate:
0.75%
Term: Monthly
3/1/05
Page 3
March 4, 2005
Volume 33, Number 9
Chicago Board Options Exchange
Effective Date
Lessor: Hartz Construction Company, Inc.
Lessee: SPO II LLC
Mark A. Esposito, NOMINEE
Rate:
0.875%
Term: Monthly
3/1/05
Lessor: Richard B. Weininger
Lessee: Lighthouse Trading, LLC
Yaron Kim, NOMINEE
Rate:
0.75%
Term: Monthly
3/1/05
Lessor: First Clearing, LLC
Lessee: Wachovia Securities, LLC
Henry G. Nothnagel, NOMINEE
Rate:
0.875%
Term: Monthly
3/1/05
Termination Date
Lessor: Arlene Weinstein
Lessee: Ronin Capital, LLC
Steven Zader (SDR), NOMINEE
3/1/05
Lessor: First Clearing, LLC
3/1/05
Lessee: Wachovia Securities, LLC
Henry G. Nothnagel (HGN), NOMINEE
Lessor: Citadel Derivatives Group LLC
Lessee: Stuartt R. Kammer (KAM)
3/1/05
Lessor: First Clearing, LLC
3/1/05
Lessee: Merrill Lynch, Pierce, Fenner & Smith, Inc.
Antanas Siurna (TON), NOMINEE
Lessor: First Clearing, LLC
3/1/05
Lessee: Merrill Lynch, Pierce, Fenner & Smith, Inc.
Antanas Siurna, NOMINEE
Rate:
0.875%
Term: Monthly
MEMBERSHIP TERMINATIONS
Lessor: Hugh P. Nunnally
Lessee: Sparta Group Of Chicago, LP
Shaun M. Williams, NOMINEE
Rate:
0.8281%
Term: Monthly
3/1/05
CBT Exercisers:
Termination Date
Chad R. Gramann (CEG)
230 S. LaSalle - Ste. 688
Chicago, IL 60604
3/1/05
Lessor: Peter C. Lutz
Lessee: X-Change Financial Access LLC
Salvatore J. Aiello, NOMINEE
Rate:
0.875%
Term: Monthly
3/1/05
Donald E. Meyer (EYE)
10530 Shelley Ct.
Woodstock, IL 60098
3/1/05
Terminated Leases
Termination Date
Lessee(s):
Termination Date
Andrew J. Ianiro (NDY)
1455 W. Belden
Chicago, IL 60614
2/28/05
Stuartt R. Kammer (KAM)
175 N. Harbor, #2212
Chicago, IL 60601
3/1/05
Nominee(s) / Inactive Nominee(s):
Termination Date
Jeffrey J. Herter (JXH)
ROQ Capital, LLC
30 S. Wacker, Ste. 1111
Chicago, IL 60604
2/24/05
Timothy A. Kirchner (KXR)
ROQ Capital, LLC
2121 N. Racine
Chicago, IL 60614
2/24/05
Kristofor T. Anderson (KTA)
ROQ Capital, LLC
30 S. Wacker Dr., Ste. 2009
Chicago, IL 60606
2/24/05
Paul E. Stone (SNE)
TBMP, LLC
175 W. Jackson
Chicago, IL 60604
2/24/05
Donald F. Pratl (DNN)
Merrill Lynch, Pierce, Fenner & Smith, Inc.
400 S. LaSalle - CBOE Box #99
Chicago, IL 60605
2/24/05
Robert M. Barry (GVR)
GVR Company LLC
1436 W. Warner, #2W
Chicago, IL 60613
2/28/05
Derek J. Schoonhoven (DKS)
Tradelink LLC
440 South LaSalle - Suite 2101
Chicago, IL 60606
2/28/05
Lessor: JRG Enterprises, Inc
Lessee: Cutler Group, LP
2/24/05
Lessor: Judd Perlson
2/25/05
Lessee: BOTTA Capital Management LLC
Daniel E. Teuscher (DAT), NOMINEE
Lessor: Arthur M. Pearson
Lessee: GVR Company LLC
Robert M. Barry (GVR), NOMINEE
2/28/05
Lessor: Diane F. Ianiro
Lessee: Andrew J. Ianiro (NDY)
2/28/05
Lessor: Kam Partners
Lessee: Quiet Light Securities LLC
3/1/05
Lessor: UBS Financial Services, Inc.
Lessee: Cornerstone Partners
3/1/05
Lessor: KISAY 1, LP
Lessee: Specialists DPM, LLC
Scott D. Force (SKT), NOMINEE
3/1/05
Lessor: Peter C. Lutz
Lessee: K & S Trading, LP
John S. Barnes (SQD), NOMINEE
3/1/05
Lessor: Hugh P. Nunnally
3/1/05
Lessee: Bear Wagner Specialists LLC
Shaun M. Williams (AUS), NOMINEE
Lessor: Diane F. Ianiro
Lessee: Joseph Ianiro (JII)
3/1/05
Lessor: Richard B. Weininger
Lessee: SPO II LLC
Mark A. Esposito (SPO), NOMINEE
3/1/05
Lessor: Essex Radez, LLC
Lessee: Red Cedar Trading LLC
Scott A. Resnick (LJS), NOMINEE
3/1/05
Individual Members
Page 4
March 4, 2005
Volume 33, Number 9
Chicago Board Options Exchange
Effective Date
Termination Date
Salvatore J. Aiello (ILO)
Citigroup Global Markets Inc.
440 S. LaSalle, 39th Floor
Chicago, IL 60605
2/28/05
William S. Menden (WSM)
PFTC LLC
440 S. LaSalle Ste. 3100
Chicago, IL 60605
3/1/05
Charles L. Roth (CTR)
Ronin Capital, LLC
230 S. LaSalle, Suite 4000
Chicago, IL 60604
3/1/05
Scott Billington (SSB)
Ronin Capital, LLC
230 S. LaSalle St., 4th floor
Chicago, IL 60604
3/1/05
Derek J. Schoonhoven (DKS)
Tradelink LLC
440 South LaSalle - Suite 2101
Chicago, IL 60606
3/1/05
Phillip Dop (DOP)
Consolidated Trading, LLC
601 S. LaSalle - Suite 200
Chicago, IL 60605
3/2/05
William Ulivieri (YEA)
Equitec Proprietary Markets, LLC
111 W. Jackson - 20th Fl.
Chicago, IL 60604
3/2/05
Arthur B. Gregory (RTB)
Consolidated Trading, LLC
601 S. LaSalle, Ste. 200
Chicago, IL 60605
3/2/05
Greg Smith (SMH)
Robert C. Sheehan & Associates, LLC
141 W. Jackson - Suite 3510
Chicago, IL 60606
3/2/05
Heath H. Gerdes (HTH)
3/1/05
Sparta Group Of Chicago, LP
440 S. LaSalle, #2101
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Lessee(s):
Member Organizations
Lessee(s):
Termination Date
GVR Company LLC
440 S. LaSalle, #3030
Chicago, IL 60605
2/28/05
Effective Date
Andrew J. Ianiro (NDY)
3/1/05
1455 W. Belden
Chicago, IL 60614
Type of Business to be Conducted: Market Maker
Nominee(s) / Inactive Nominee(s):
Effective Date
David Plandowski (DXP)
2/25/05
BOTTA Capital Management LLC
440 S. LaSalle Street, Suite 3100
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Paul E. Stone (SNE)
2/28/05
TBMP, LLC
175 W. Jackson
Chicago, IL 60604
Type of Business to be Conducted: Market Maker
Keir S. Collins (KIR)
3/1/05
Wellington Capital Markets, LLC
440 S. LaSalle, Ste. 2910
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Derek J. Schoonhoven (DKS)
3/1/05
Sparta Group Of Chicago, LP
440 South LaSalle - Suite 2101
Chicago, IL 60606
Type of Business to be Conducted: Market Maker
Yaron Kim (YPR)
3/1/05
Lighthouse Trading, LLC
440 S. LaSalle, 16th Floor
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Christopher M. Wheaton (WTS)
3/1/05
Christopher M. Wheaton Inc.
1909 W. Nelson
Chicago, IL 60657
Type of Business to be Conducted: Market Maker
EFFECTIVE MEMBERSHIPS
Individual Members
CBT Registered For:
Cem A. Karsan (JEM)
3/1/05
Sparta Group Of Chicago, LP
440 S. LaSalle, Ste. 2101
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Effective Date
Jonathan S. Grabill (JSG)
3/1/05
SMC Option Management LLC
440 S. LaSalle, 19th Floor
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Andrew M. Sullivan (DRU)
3/1/05
G-Bar Limited Partnership
440 S. LaSalle - Ste. 650
Chicago, IL 60605
Type of Business to be Conducted: Market Maker/Floor Broker
Salvatore J. Aiello (ILO)
3/1/05
X-Change Financial Access LLC
440 S. LaSalle, 39th Floor
Chicago, IL 60605
Type of Business to be Conducted: Floor Broker
Amar P. Bagwe (AMR)
3/2/05
Sparta Group Of Chicago, LP
212 W. Washington, Unit 1107
Chicago, IL 60606
Type of Business to be Conducted: Market Maker
Norman F. Anderson (AND)
3/2/05
Equitec Proprietary Markets, LLC
25655 Shedley Road
Minooka, IL 60447
Type of Business to be Conducted: Market Maker/Floor Broker
Page 5
March 4, 2005
Volume 33, Number 9
Member Organizations
Lessee(s):
Effective Date
Lighthouse Trading, LLC
3/1/05
435 W. Erie St., Apt. 2003
Chicago, IL 60610
Type of Business to be Conducted: Market Maker
JOINT ACCOUNTS
Chicago Board Options Exchange
Terminated Participants Acronym
Termination Date
Charles L. Roth
QTW
3/1/05
Shaun M. Williams
QWS
3/1/05
Scott Billington
QRH
3/1/05
Phillip Dop
QCC
3/2/05
Phillip Dop
QZY
3/2/05
New Participants
Acronym
Effective Date
Phillip Dop
QRI
3/2/05
Scott A. Adams
QBH
2/25/05
Arthur B. Gregory
QCC
3/2/05
Scott A. Adams
QMS
2/25/05
Arthur B. Gregory
QRI
3/2/05
David Plandowski
QEK
2/25/05
Arthur B. Gregory
QZY
3/2/05
Keir S. Collins
QWC
3/1/05
CHANGES IN MEMBERSHIP STATUS
Andrew M. Sullivan
QYA
3/1/05
Individual Members
Andrew B. Levin
QGT
3/2/05
Andrew B. Levin
QCT
3/2/05
Ted A. Fried
2/24/05
From:
Lessor
To:
Lessor/Nominee For TBMP, LLC; Market Maker
Joseph F. Landy III
QCT
3/2/05
Patrick C. Schiltz
QQT
3/2/05
Amar P. Bagwe
QUB
3/2/05
New Accounts
Acronym
Effective Date
Heath H. Gerdes
QUB
3/1/05
Cem A. Karsan
QUB
3/1/05
Derek J. Schoonhoven
QUB
3/1/05
Shaun M. Williams
QUB
3/1/05
Eric A. Conlon
QKU
3/1/05
Jonathan S. Grabill
QKU
3/1/05
Thomas R. Prainito
QKU
3/1/05
Effective Date
Daniel E. Teuscher
2/25/05
From:
Nominee For BOTTA Capital Management LLC; Market
Maker
To:
Lessee; Market Maker
Ted A. Fried
2/28/05
From:
Lessor/ Nominee For TBMP, LLC; Market Maker
To:
Lessor
Joseph Ianiro
From:
Lessor
To:
Lessee/ Lessor; Market Maker
2/28/05
Scott A. Resnick
3/1/05
From:
Nominee For Red Cedar Trading LLC; Market Maker/
Floor Broker
To:
CBT Registered For Red Cedar Trading LLC; Market
Maker/ Floor Broker
Scott D. Force
3/1/05
From:
Nominee For Specialists DPM, LLC; Market Maker
To:
CBT Registered For Specialists DPM, LLC; Market
Maker
Terminated Participants Acronym
Termination Date
Jeffrey J. Herter
QXL
2/24/05
Timothy A. Kirchner
QXL
2/24/05
Kristofor T. Anderson
QXL
2/24/05
Daniel E. Teuscher
QBL
2/25/05
Daniel E. Teuscher
QBX
2/25/05
Daniel E. Teuscher
QNK
2/25/05
Daniel E. Teuscher
QSK
2/25/05
Joseph Ianiro
From:
Lessee/ Lessor; Market Maker
To:
Lessor
Derek J. Schoonhoven
QSO
2/28/05
*************Correction to Bulletin Dated 2/25/05**************
William S. Menden
QPT
3/1/05
Paul A. Robinson
QRH
3/1/05
Paul A. Robinson
QCD
3/1/05
John H. Superson
2/22/05
From:
Nominee For Group One Trading, LP; Market Maker
To:
Nominee For Group One Trading, LP; Market Maker/
Floor Broker
Shaun M. Williams
3/1/05
From:
Nominee For Bear Wagner Specialists LLC; Market
Maker
To:
Nominee For Sparta Group Of Chicago, LP; Market
Maker
Michael T. Kalchbrenner
3/1/05
From:
CBT Registered For TBMP, LLC; Market Maker
To:
Nominee For TBMP, LLC; Market Maker
3/1/05
Page 6
March 4, 2005
Member Organizations
Volume 33, Number 9
Chicago Board Options Exchange
Effective Date
Effective Date
Specialists DPM, LLC
3/1/05
From:
Lessee; Associated with a Market Maker/ Floor Broker
To:
Lessee/ Member Organization Affiliated with a CBT
Registered For; Associated with a Market Maker/ Floor
Broker
Red Cedar Trading LLC
3/1/05
From:
Owner/ Lessee; Associated with a Market Maker/ Floor
Broker
To:
Owner/ Lessee/ Member Organization Affiliated with a
CBT Registered For; Associated with a Market Maker/
Floor Broker
MEB Options, Inc.
3/1/05
From:
Lessee; Associated with a Floor Broker
To:
Lessee/ Non-Member Customer Business; Associated
with a Floor Broker
Christopher M. Wheaton Inc.
3/1/05
From:
Lessor/Lessee; Associated with a Market Maker
To:
Owner; Associated with a Market Maker
MEMBER ADDRESS CHANGES
Individual Members
Effective Date
Daniel E. Moriarty
790 Sumac Lane
Winnetka, IL 60093
2/28/05
Member Organizations
Effective Date
Tallman Options, Inc
1616 Sheridan Road
Willmette, IL 60091
2/28/05
POSITION LIMIT CIRCULARS
Pursuant to Exchange Rule 4.11, the Exchange issued the below listed Position Limit Circulars between February 24 and March 4, 2005. The complete
circulars are available from the Department of Market Regulation, in the data information bins on the 2nd Floor of the Exchange, and on the CBOE
website at cboe.com under the “Market Data” tab.
To receive regular updates of the position limit list via fax, contact Candice Nickrand at (312) 786-7730. Questions concerning position and exercise
limits may be directed to the Department of Market Regulation to Rich Pedraza at (312) 786-7077 or Tim Mac Donald at (312) 786-7706.
Position Limit Circular PL05-08
This is to advise the members and member
organizations of the following regulatory circular.
REGULATORY CIRCULAR RG05-26
February 24, 2005
Position and Exercise Limits
Position Limit Circular PL05-09
February 25, 2005
Revision to Apple Computer, Inc.
(“AAPL/AAQ/QAA/WAA/YHC/VAA/OBR”)
Adjusted and Standard Position and Exercise Limits
reflected in Research Circular #RS05-110
2-for-1 Stock Split
Ex-Distribution Date: February 28, 2005
Position Limit Circular PL05-010
February 25, 2005
Revision to Henry Schein, Inc. (“HSIC/HQE/YUH/OLF”)
Adjusted and Standard Position and Exercise Limits
reflected in Research Circular #RS05-081
2-for-1 Stock Split
Ex-Distribution Date: March 1, 2005
Position Limit Circular PL05-011
February 25, 2005
Revision to Astoria Financial Corporation (“AF”)
Adjusted and Standard Position and Exercise Limits
reflected in Research Circular #RS05-090
3-for-2 Stock Split
Ex-Distribution Date: March 2, 2005
Position Limit Circular PL05-012
February 25, 2005
Revision to EOG Resources, Inc. (“EOG/YBK/OAC”)
Adjusted and Standard Position and Exercise Limits
reflected in Research Circular #RS05-093
2-for-1 Stock Split
Ex-Distribution Date: March 2, 2005
Position Limit Circular PL05-13
March 4, 2005
Equity Position and Exercise Limits will be decreased
to a Lower Tier Limit Effective March 21, 2005
Page 7
March 4, 2005
Volume 33, Number 9
Chicago Board Options Exchange
RESEARCH CIRCULARS
The following Research Circulars were distributed between February 24 and March 1, 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 #RS05-117
February 24, 2005
Resources Connection, Inc. (“RECN/JUJ”)
2-for-1 Stock Split
Ex-Distribution Date: March 2, 2005
Research Circular #RS05-121
March 1, 2005
Commerce Bancorp, Inc. (“CBH/WDE/OUD”)
2-for-1 Stock Split
Ex-Distribution Date: March 8, 2005
Research Circular #RS05-119
February 25, 2005
*****UPDATE*****UPDATE*****UPDATE*****
Caesars Entertainment, Inc. (“CZR/YVK/ODL”)
Proposed Election Merger
with Harrah’s Entertainment, Inc. (“HET/WBI/VKH”)
Research Circular #RS05-122
March 1, 2005
Frontline Ltd. (“FRO & adj. AFZ/JVU/FMZ”)
Distribution of Shares of
Ship Finance International Limited (“SFL”)
Ex-Distribution Date: March 9, 2005
Research Circular #RS05-120
March 1, 2005
American Eagle Outfitters, Inc. (“AEOS/AQU/WXD/VXX”)
2-for-1 Stock Split
Ex-Distribution Date: March 8, 2005
Research Circular #RS05-124
March 1, 2005
Penn National Gaming, Inc. (“PENN/UQN”)
2-for-1 Stock Split
Ex-Distribution Date: March 8, 2005
March 9, 2005
Volume RB16, Number 10
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 RG05-26
Date:
February 24, 2005
To:
Members and Member Organizations
From:
Department of Market Regulation
Re:
Position and Exercise Limits
Effective today, for a pilot program period of six (6) months beginning February 23, 2005 the
standard position and exercise limits as provided under Exchange Rule 4.11, Interpretation
and Policy .02 to Rule 4.11, and Rule 4.12 will be increased from their current levels of
13,500, 22,500, 31,500, 60,000, and 75,000 contracts to 25,000, 50,000, 75,000, 200,000,
and 250,000 contracts, respectively. During this same period, the standard position and
exercise limit for options on the Nasdaq-100 Index Tracking Stock (“QQQQ”) shall be increased from 300,000 contracts to 900,000 contracts. Prior to the conclusion of the pilot
program period, the Exchange may request an extension of the pilot program.
Additionally, a new qualified equity hedge exemption may be employed for “reverse collars”,
in which a long call position is accompanied by a short put position where the long call
expires with the short put and the strike price of the long call equals or exceeds the short
put and where each long call and short put position is hedged with 100 shares of the
underlying security (or other adjusted number of shares). Neither side of the long call, short
put position can be in-the-money at the time the position is established.
Any questions concerning position and exercise limits should be directed to Tim MacDonald
at (312) 786-7706 or Jim Flynn at (312) 786-7070.
Regulatory Circular RG05-27
Date:
February 28, 2005
To:
The Membership
From:
Financial Planning Committee
Subject:
Fee Reductions for March 2005
CBOE averaged approximately 1,475,000 contracts per day (CPD) during the period July
2004 through February 2005.
Per the Prospective Fee Reduction Program, Market-Maker and DPM transaction fees and
floor brokerage fees will be reduced by 15% per contract from standard rates during March
2005 (equal to February 2005 discounts).
Regulatory Circulars
continued
Regulatory Circular RG05-27 continued
Fee
Equities Market-Maker Trans. Fee
Equities DPM Trans. Fee
QQQQ, SPY & Indexes Mrkt.
Maker/DPM Trans. Fee (1)
Floor Brokerage Fee
Standard
Rate
March ‘05
Rate
22 cents
12 cents
24 cents
18.7 cents
10.2 cents
20.4 cents
4 cents
(1)
3.4 cents
(1) Above rates exclude a license fee surcharge for the following products:
•
Dow Jones indexes, MNX and NDX – 10 cents
•
Russell 2000 (RUT) cash settled index – 40 cents
Please call Ermer Love (312-786-7032) or Don Patton (312-786-7026) if you have any
questions.
Regulatory Circular RG05-28
Date:
March 1, 2005
To:
Members and Member Firms
From:
Market Operations Department
Re:
Restrictions on Transactions in
Ultimate Electronics Inc. (ULTEQ/QTQ)
Ultimate Electronics Inc. (ULTEQ) said in a regulatory filing that Nasdaq has delisted the
company’s securities. The company, which has been operating under Chapter 11 bankruptcy protection since Jan. 11, 2005 said in a Form 8-K submitted to the Securities and
Exchange Commission that the exchange denied its request for continued trading status.
As of March 1, 2005 trading on CBOE in existing series of QTQ options will be subject to
the following restrictions. Only closing transactions may be affected in any series of QTQ
options except for (i) opening transactions by Market-Makers executed to accommodate
closing transactions of other market participants and (ii) opening transactions by CBOE
member organizations to facilitate the closing transactions of public customers executed
as crosses pursuant to and in accordance with CBOE Rule 6.74(b) or (d).
The execution of opening transactions in QTQ options, except as permitted above, and/or
the misrepresentation as to whether an order is opening or closing, will constitute a violation
of CBOE rules, and may result in disciplinary action. Member organizations should ensure
that they have appropriate procedures in place to prevent their customers from entering
opening orders in this restricted option class.
There are no restrictions in place with respect to the exercise of QTQ options. The provisions of this circular apply to any options on Ultimate Electronics Inc. traded on CBOE.
Any questions regarding this circular may directed to Kerry Winters at (312) 786-7312 or
Joanne Heenan-Hustad at (312) 786-7786.
RB2
March 9, 2005, Volume RB16, Number 10
Regulatory Circulars
continued
Regulatory Circular RG05-29 (revised)
To:
Members and Member Firms
From: Index and SPY Floor Procedure Committees
Date:
March 1, 2005
Re:
Changes to Order Routing Parameters and Autobook Timer at Hybrid Index
DPM Locations
The Index and SPY Floor Procedure Committees have determined that the following changes
to order routing parameters and the Autobook timer will be effective immediately in all DPM
PARs in all Hybrid Index DPM locations:
Order Routing Changes: All non-marketable ORS orders with C, F, and B origin, unless
otherwise directed by the entering firm, will route directly to the book, bypassing PAR.
Autobook: For any book-eligible orders that route to PAR, the Autobook timer will be reduced from the current length of 5-seconds to 1-second. An order will not auto-book if…
•
•
•
•
The order contains an “X” in the first position of the CORRESpondent field.
At the direction of the client, member firm staff may enter the “X” in the
CORRESpondent field on the BERS template to prevent auto-booking.
The order is entered from FBW using the <CROWD/NO BOOK> destination.
The order contains any contingency.
The order has a non-customer origin.
General questions regarding this matter may be directed to Anthony Montesano at (312)
786-7365 or any member of the Committee.
Regulatory Circular RG05-30
To:
Membership
From: Market Performance Committee
Date:
March 1, 2005
Re:
The new “SizeQuote” Mechanism
The SEC approved CBOE’s SizeQuote Mechanism, a process by which a floor broker (FB)
may execute and facilitate large-sized orders in open outcry. The SizeQuote procedure
works as follows:
1. A FB holding an order for at least 250-contracts must specifically request a SizeQuote
from in-crowd market participants (“ICMPs”). ICMPs may respond with indications of the
price and size at which they would be willing to trade with a SizeQuote order. ICMPs only
have one opportunity to respond and are obligated to respond with a legal width quote for at
least ten contracts.
2. After ICMPs have been given the opportunity to respond, the FB must execute the entire
SizeQuote order either with ICMPs or with a facilitation order, or both, in accordance with the
following procedures:
March 9, 2005, Volume RB16, Number 10
RB3
Regulatory Circulars
continued
Regulatory Circular RG05-30 continued
A. Executing the Order at ICMP’s Best Price: ICMPs that provided SizeQuote
responses at the highest bid or lowest offer (“best price”) have priority to trade at
the best price. Allocation of the order among ICMPs is prorata, up to the size of
each ICMP’s response. The FB must trade at the best price any contracts remaining in the original SizeQuote Order that were not executed by ICMPs.
B. Executing the Order at a Price that Betters the ICMP’s Price by One Tick:
ICMPs that provided SizeQuote responses at the best price (“eligible ICMPs”)
have priority to trade with the SizeQuote Order at a price equal to one trading
increment better than the best price (“improved best price”). Allocation of the
order among eligible ICMPs at the improved best price shall be prorata. The FB
must trade at the improved best price any contracts remaining in the original
SizeQuote Order that were not executed by eligible ICMPs.
C. Trading at a Price that Betters the ICMP’s Price by More than One Tick: A
FB may execute the entire SizeQuote order at a price two trading increments
better than the best price communicated by the ICMPs in their responses to the
SizeQuote request.
Executions at NBBO: Unless a SizeQuote request is properly canceled, a FB must
execute the entire SizeQuote order at a price that is not inferior to the NBBO, even in
situations where there are no SizeQuote responses received or where such responses are
inferior to the NBBO.
Canceling a SizeQuote Request: It will be a violation of a FB’s duty of best execution to
its customer if it were to cancel a SizeQuote order to avoid execution at a better price. Use
of the SizeQuote Mechanism does not alter a FB’s best execution duty to get the best
price for its customer. A SizeQuote request can be canceled prior to the receipt of responses. Once the FB receives a response to the SizeQuote request, if he/she were to
cancel the order and then subsequently attempt to execute the order at an inferior price to
the previous SizeQuote response, there would be a presumption that the FB did so to
avoid execution of its customer order in whole or in part by others at the better price.
Questions regarding this circular should be addressed to any member of MPC or to Steve
Youhn at (312) 786-7416.
RB4
March 9, 2005, Volume RB16, Number 10
Rule Changes,
Interpretations
and Policies
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 on the CBOE public website at www.cboe.com/
legal/effectivefiling.aspx.
The effective date of the rule change is the date of approval unless otherwise noted.
SR-CBOE-2003-30
Position Limit Increases for Equity Options and Options on
QQQQ
On February 23, 2005, the SEC approved Rule Change File No. SR-CBOE-2003-30, which
filing increases position limits for equity options and options on the Nasdaq-100 Index
Tracking Stock (QQQQ) (Securities Exchange Act Release No. 51244, 70 FR 10010 (March
1, 2005)). Any questions regarding the rule change may be directed to Jim Flynn, Legal
Division, at 312-786-7070. The text of the amended rules is set forth below. New language
is italicized.
Rule 4.11 - Position Limits
Except with the prior permission of the President or his designee, to be confirmed
in writing, no member shall make, for any account in which it has an interest or for
the account of any customer, an opening transaction on any exchange if the member has reason to believe that as a result of such transaction the member or its
customer would, acting alone or in concert with others, directly or indirectly, (a)
control an aggregate position in an option contract dealt in on the Exchange in
excess of 13,500 or 22,500 or 31,500 or 60,000 or 75,000 option contracts (whether
long or short), except that for a pilot program period of 6 months (“Rule 4.11 Pilot
Program Period”) from February 23, 2005 through August 23, 2005, the position
limits shall be 25,000 or 50,000 or 75,000 or 200,000 or 250,000 option contracts
(whether long or short), of the put type and the call type on the same side of the
market respecting the same underlying security, combining for purposes of this
position limit long positions in put options with short positions in call options, and
short positions in put options with long positions in call options, or such other
number of option contracts as may be fixed from time to time by the Exchange as
the position limit for one or more classes or series of options, or (b) exceed the
applicable position limit fixed from time to time by another exchange for an option
contract not dealt in on the Exchange, when the member is not a member of the
other exchange on which the transaction was effected. In addition, should a member have reason to believe that a position in any account in which it has an interest
or for the account of any customer is in excess of the applicable limit, such member shall promptly take the action necessary to bring the position into compliance.
Reasonable notice shall be given of each new position limit fixed by the Exchange,
by publicly posting notice thereof. Limits shall be determined in the manner described in Interpretations .02 and .04 below.
... Interpretations and Policies:
.01
March 9, 2005, Volume RB16, Number 10
No change.
RB5
Rule Changes,
Interpretations and
Policies continued
SR-CBOE-2003-30 continued
.02 The 13,500 option contract limit (or 25,000 option contract limit during the 4.11
Pilot Program Period) applies to those options having an underlying security that
does not meet the requirements for a higher option contract limit. To be eligible for
the 22,500-contract limit (or 50,000 option contract limit during the 4.11 Pilot Program Period), either the most recent six-month trading volume of the underlying
security must have totaled at least 20,000,000 shares; or the most recent sixmonth trading volume of the underlying security must have totaled at least
15,000,000 shares and the underlying security must have at least 40,000,000
shares currently outstanding. To be eligible for the 31,500-contract limit (or 75,000
option contract limit during the 4.11 Pilot Program Period), either the most recent
six-month trading volume of the underlying security must have totaled at least
40,000,000 shares; or the most recent six-month trading volume of the underlying
security must have totaled at least 30,000,000 shares and the underlying security
must have at least 120,000,000 shares currently outstanding. To be eligible for the
60,000-contract limit (or 200,000 option contract limit during the 4.11 Pilot Program Period), either the most recent six-month trading volume of the underlying
security must have totaled at least 80,000,000 shares; or the most recent sixmonth trading volume of the underlying security must have totaled at least
60,000,000 shares and the underlying security must have at least 240,000,000
shares currently outstanding. To be eligible for the 75,000-contract limit (or 250,000
option contract limit during the 4.11 Pilot Program Period), either the most recent
six-month trading volume of the underlying security must have totaled at least
100,000,000 shares; or the most recent six-month trading volume of the underlying security must have totaled at least 75,000,000 shares and the underlying
security must have at least 300,000,000 shares currently outstanding. Every six
months, the Exchange will review the status of underlying securities to determine
which limit should apply. A higher limit will be effective on the date set by the
Exchange, while any change to a lower limit will take effect after the last expiration then trading, unless the requirement for the same or a higher limit is met at the
time of the intervening six-month review. However, if subsequent to a six-month
review, an increase in volume and/or outstanding shares would make a stock
eligible for a higher position limit prior to the next review, the Exchange in its
discretion may immediately increase such position limit.
.03
No change.
.04
Equity Hedge Exemption
(a)
No change.
(1) – (4) No change.
(5) A long call position accompanied by a short put position where the long call
expires with the short put and the strike price of the long call equals or exceeds
the short put and where each long call and short put position is hedged with 100
shares of the underlying security (or other adjusted number of shares). Neither
side of the long call, short put position can be in-the-money at the time the position is established (“reverse collar”).
(6)
No change.
(7)
No change.
(8) For those strategies described under (2), (3), (4), and (5) above, one component of the option strategy can be an OTC option contract guaranteed or endorsed
by the firm maintaining the proprietary position or carrying the customer account.
RB6
March 9, 2005, Volume RB16, Number 10
OE-2005-12 continued
Rule Changes,
Interpretations and
Policies continued
SR-CBOE-2003-30 continued
(9) An OTC option contract is defined as an option contract that is not listed on a
National Securities Exchange or cleared at the Options Clearing Corporation.
(b)
The equity hedge exemption is in addition to the standard limit and other
exemptions available under Exchange rules, interpretations and policies.
*****
.05
No change.
.06
No change.
(a)
The member organization must receive approval from the Exemption Committee prior to executing facilitating trades. The facilitation exemption shall
be granted to the member organization owning or controlling the account in
which the exempt option positions are held. For purposes of this Interpretation .06, control shall be determined in accordance with the provision of
Interpretation .03 to Rule 4.11. Exchange approval may be given on the
basis of verbal representations, in which event the member organization
shall, within a period of time to be designated by the Exchange, furnish the
Department of Market Regulation with appropriate forms and documentation substantiating the basis for the exemption. The approval for the facilitation exemption will specify the maximum number of contracts that may
be exempt under this Interpretation. In no event may the aggregate exempted position under this Interpretation and Policy .06 exceed the number of contracts specified in the table as follows:
OPTION TYPE
FIRM FACILITATION EXEMPTION
(is in addition to standard limit)
Equity
2 x applicable standard limit
Broad-based index
(other than DJX, OEX or SPX)
2 x standard overall limit
Narrow-based (industry or sector) index
2 x applicable standard limit
Flexible Exchange (FLEX)
2 x FLEX standard limit
Interest rate
3 x standard limit
Government securities
2 x standard limit value
EXAMPLE: If a firm desires to facilitate customer order(s) in the XYZ option class,
which is assumed to be a in a non–multiply listed class of options with a 50,000
contract standard position limit, the firm may qualify for a firm facilitation exemption
of up to twice the standard limit or 100,000 contracts.
The facilitation exemption is in addition to the standard limit and other exemptions
available under exchange rules, interpretations and policies. A member organization so approved is hereinafter referred to as a “facilitation firm”.
(b) – (f)
March 9, 2005, Volume RB16, Number 10
No change.
RB7
Rule Changes,
Interpretations and
Policies continued
SR-CBOE-2003-30 continued
.07 The position limits under Rule 4.11 applicable to options on shares or other
securities that represent interest in registered 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 (“QQQQ”) and the DIAMONDS Trust (DIA)
shall be 300,000 option contracts, except that during the 4.11 Pilot Program Period the position limit on the QQQQ shall be 900,000 contracts.
*****
Rule 4.12 Exercise Limits
Rule 4.12. Except with the prior permission of the President or his designee, to be
confirmed in writing, no member shall exercise, for any account in which it has an
interest or for the account of any customer, a long position in any option contract
where such member or customer, acting alone or in concert with others, directly or
indirectly, (a) has or will have exercised within any five consecutive business
days aggregate long positions in any class of options dealt in on the Exchange in
excess of 13,500 or 22,500 or 31,500 or 60,000, or 75,000 option contracts, except that during the 4.11 Pilot Program Period the exercise limits shall be 25,000
or 50,000 or 75,000 or 200,000 or 250,000 option contracts, or such other number
of options contracts as may be fixed from time to time by the Exchange as the
exercise limit for that class of options, or (b) has or will have exceeded the applicable exercise limit fixed from time to time by another exchange for an option
class not dealt in on the Exchange, when the member is not a member of the
other exchange which lists the option class. Reasonable notice shall be given of
each new exercise limit fixed by the Exchange by publicly posting notice thereof.
Limits shall be determined in the manner described in Interpretation .02 or in the
case of a hedged position Interpretation .04 to Rule 4.11 or in the case of facilitation exempted position in accordance with Interpretation .06 to Rule 4.11. Whether
option positions should be aggregated under this rule shall be determined in the
manner described in Interpretation .03 to Exchange Rule 4.11.
…Interpretations and Policies:
.01 - .02 No change.
SR-CBOE-2004-89
Reduced-Value Options on the Russell 2000 Index
On February 17, 2005, the SEC approved Rule Change File No. SR-CBOE-2004-89, which
filing allows the CBOE to list and trade reduced-value options (1/5th and 1/10th values) on
the Russell 2000 index (Securities Exchange Act Release No. 51220, 70 FR 9398 (February 25, 2005)). Any questions regarding the rule change may be directed to Jim Flynn,
Legal Division, at 312-786-7070. The text of the amended rules is set forth below. New
language is italicized.
Rule 24.4 – Position Limits for Broad-Based Index Options
Rule 24.4 (a) In determining compliance with Rule 4.11, there shall be no position
limit for broad based-index option contracts on the DJX, OEX and SPX classes.
All other broad based-index option contracts shall be subject to a contract limitation fixed by the Exchange, which shall not be larger than the limits provided in the
chart below.
RB8
March 9, 2005, Volume RB16, Number 10
Rule Changes,
Interpretations and
Policies continued
SR-CBOE-2004-89 continued
BROAD-BASED INDEX
OPTION TYPE
STANDARD LIMIT
(on the same side
of the market)
RESTRICTIONS
Nasdaq 100 Index (1/10th) (MNX)
750,000
None
Nasdaq 100 Index (1/10th) (NDX)
75,000
None
Russell 2000 Index (1/10th)
500,000
no more than 300,000 near-term
Dow Jones Equity REIT Index
250,000 contracts
None
Russell 2000 Index (1/5th)
250,000 contracts
no more than 150,000 near-term
Lipper Analytical/Salomon
Bros. Growth Fund Index
Lipper Analytical/Salomon Bros.
Growth and Income
Fund Index
75,000 contracts
no more than 50,000 near-term
S&P 500/Barra Growth or Value
36,000 contracts
in the aggregate
no more than 21,500 near-term
S&P SmallCap 600
GSTI Composite
100,000 contracts
no more than 60,000 near-term
Russell 2000
Russell 1000
Russell 1000 Growth
Russell 1000 Value
Russell 2000 Growth
Russell 2000 Value
Russell 3000
Russell 3000 Growth
Russell 3000 Value
Russell Midcap
Russell Midcap Growth
Russell Midcap Value
Russell Top 200 Index
Russell Top 200 Growth Index
Russell Top 200 Value Index
Mexico 30 Index
Germany 25
Morgan Stanley Multinational
Company Index
CBOE Euro 25 Index
CBOE Asian 25 Index
50,000 contracts
no more than 30,000 near-term
Reduced Value NYSE Composite
45,000 contracts
no more than 25,000 near-term
Other broad-based index
25,000 contracts
no more than 15,000 near-term
(b) - (c)
No change.
(d)
Positions in reduced-value index options shall be aggregated with positions in full-value indices. For example, if an index is reduced by one-tenth, ten (10)
reduced-value contracts shall equal one contract. If an index is reduced by onefifth, five (5) reduced-value contracts shall equal one contract.
. . . Interpretations and Policies:
.01 Broad-based Index Hedge Exemption
March 9, 2005, Volume RB16, Number 10
RB9
Rule Changes,
Interpretations and
Policies continued
SR-CBOE-2004-89 continued
The broad-based index hedge exemption is in addition to the standard limit and
other exemptions available under Exchange rules, interpretations and policies.
The following procedures and criteria must be satisfied to qualify for a broadbased index hedge exemption:
(a) - (d)
No change.
(e) Positions in broad-based index options that are traded on the Exchange are
exempt from the standard limits to the extent specified below.
BROAD-BASED INDEX
OPTION TYPE
BROAD-BASED INDEX
HEDGE EXEMPTION
(is in addition to standard limit)
Nasdaq 100 Stock Index
(1/10th value) (MNX)
1,500,000 contracts
Russell 2000 Index (1/10th)
750,000 contracts
Nasdaq 100 Stock Index
(Full Value) (NDX)
150,000 contracts
Russell 2000 Index (1/5th)
375,000 contracts
S&P 500/Barra Growth or Value
65,000 contracts
other broad-based index
75,000 contracts
(f) - (h)
No change.
Rule 24.9
Terms of Index Option Contracts
(a) - (c)
No change.
*****
. . . Interpretations and Policies:
.01
The procedures for adding and deleting strike prices for index options are
provided in Rule 5.5 and Interpretations and Policies related thereto, as otherwise
generally provided by Rule 24.9, and include the following:
(a)
The interval between strike prices will be no less than $5.00; provided,
that in the case of the following classes of index options, the interval between
strike prices will be no less than $2.50:
Russell 2000 Index (1/10th value), if the strike price is less than $200.00.
Russell 2000 Index (1/5th value), if the strike price is less than $200.00.
(b) – (d) No change.
.02 - .12 No change.
RB10
March 9, 2005, Volume RB16, Number 10
Rule Changes,
Interpretations and
Policies continued
SR-CBOE-2004-73
DPM Brokerage Commissions
On February 22, 2005, the SEC approved Rule Change File No. SR-CBOE-2004-73, which
filing clarifies when DPMs may not charge a brokerage commission on orders for which they
do not perform an agency function (Securities Exchange Act Release No. 51235, 70 FR
9687 (February 28, 2005)). Any questions regarding the rule change may be directed to Jim
Flynn, Legal Division, at 312-786-7070. The text of the amended rules is set forth below.
New language is italicized.
Rule 8.85. DPM Obligations
(a) Dealer Transactions. No Change.
(b) Agency Transactions. Each DPM shall fulfill all of the obligations of a Floor
Broker (to the extent the DPM acts as a Floor Broker) and of an Order Book Official
under the Rules, and shall satisfy each of the requirements contained in this paragraph in respect of each of the securities allocated to the DPM. To the extent that
there is any inconsistency between the specific obligations of a DPM set forth in
subparagraph (b)(i) through (b)(vii) of this Rule and the general obligations of a Floor
Broker or of an Order Book Official under the Rules, subparagraph (b)(i) through
(b)(vii) of this Rule shall govern.
(i) – (iii) No Change.
(iv) not charge any brokerage commission with respect to:
(A)
the execution of any portion of an order for which the DPM has acted as
both agent and principal, unless the customer who placed the order has consented
to paying a brokerage commission to the DPM with respect to the DPM’s execution
of the order while acting as both agent and principal; or
(B)
any portion of an order for which the DPM was not the executing floor
broker, including any portion of the order that is automatically executed through an
Exchange system; or
(C)
any portion of an order that is automatically cancelled; or
(D)
any portion of an order that is not executed and not cancelled.
(v) – (viii)
No Change.
*****
March 9, 2005, Volume RB16, Number 10
RB11