April 1, 2005
Exchange
Bulletin
Volume 33, Number 13
The Constitution and Rules of the Chicago Board 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 by hard copy or e-mail 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 if applicable, 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 after the first complimentary copy may be obtained by submitting your name, firm
if any, 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 nonmembers.
For up-to-date Seat Market Quotes, call 312-786-7456 or 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 by sending an e-mail to
members@cboe.com or by phone at 312-786-7443.
Copyright © 2005 Chicago Board Options Exchange, Incorporated
SEAT MARKET QUOTES AS OF FRIDAY, APRIL 1, 2005
CLASS
CBOE/FULL
CBOT/FULL
BID
$425,000.00
$1,375,000.00
OFFER
$465,000.00
$1,495,000.00
LAST SALE AMOUNT
$425,100.00
$1,425,000.00
LAST SALE DATE
April 1, 2005
March 29, 2005
MEMBERSHIP SALES AND TRANSFERS
From
Nickolas J. Neubauer
Cassandra Trading Group LLC
Apollo Partners LP
To
Lehman Brothers Inc.
EWT LLC
Goliath Group LLC
Price/Transfer
$418,000.00
$439,500.00
$425,100.00
Date
3/28/2005
3/31/2005
4/1/2005
Page 2
April 1, 2005
Volume 33, Number 13
Chicago Board Options Exchange
MEMBERSHIP INFORMATION FOR 3/24/05 THROUGH 3/30/05
MEMBERSHIPAPPLICATIONS RECEIVED FOR
WHICH A POSTING PERIOD IS REQUIRED
Individual Membership Applicants
Date Posted
Eren Levi, Nominee
Sparta Group Of Chicago, LP
1 W. Superior St., Apt. 1706
Chicago, IL 60610
3/28/05
Elizabeth A. Resnick, Nominee
Red Cedar Trading LLC
535 N. Michigan Ave.
Chicago, IL 60605
3/28/05
Neal C. Salmen, Nominee
Cutler Group, LP
360 W. Illinois, Apt. 117
Chicago, IL 60610
3/28/05
Andrew S. Rosenkrantz, Nominee
Grace Trading LLC
1118 W. Webster
Chicago, IL 60614
3/28/05
Patrick Doherty, Nominee
Susquehanna Investment Group
175 W. Jackson Blvd., Suite 1700
Chicago, IL 60604
3/28/05
Member Organization Applicants
Date Posted
Lessor: DNA Ltd., Inc.
Lessee: Cornerstone Trading, LLC
Robert J. Mayer Jr., NOMINEE
Rate:
0.875%
Term: Monthly
3/28/05
Lessor: Fugue
Lessee: Cornerstone Trading, LLC
Stephen M. Dillinger, NOMINEE
Rate:
1.625%
Term: Monthly
3/28/05
Lessor: Lehman Brothers Inc.
Lessee: Man Securities Inc.
Keith M. Inglesby, NOMINEE
Rate:
0.75%
Term: One Month
3/29/05
Lessor: John L. Schlipper
Lessee: KATL Group, LLC
Gregory R. Tilly, NOMINEE
Rate:
0.8281%
Term: Monthly
3/30/05
***BULLETIN CORRECTION AS OF 3/4/05***
Lessor: Jackson Financial Group, Inc.
3/4/05
Lessee: Cutler Group LP
Bradley P. Anderson, NOMINEE
Rate:
0.875%
Term: Monthly
Terminated Leases
Link Strategies, LP
3/30/05
Eion Mast, Nominee
7 Alta Court
West Windsor, NJ 08550
Srinivasan Viswanathan – General Partner
Michael M. Becker – Limited Partner
Michael W. Golden – Limited Partner
LT Derivatives LLC
Gregory R. Tilly, Nominee
440 S. LaSalle, 16th Floor
Chicago, IL 60605
Gregory R. Tilly – Manager/Member
James B. Leichter - Member
Effective Date
3/28/05
Bluefin Chicago LLC
3/28/05
Sagy Sharon, Nominee
Yoav Sharon, Nominee
1 Barker Avenue
White Plains, NY 10601
Bluefin Holdings LLC – Managing Member
Michael Goodwin – Sr. Managing Member
MEMBERSHIP LEASES
New Leases
Effective Date
Lessor: Fugue
Lessee: Cornerstone Trading, LLC
Richard S. Dooley, NOMINEE
Rate:
0.875%
Term: Monthly
3/28/05
Lessor: Theodore Silver
Lessee: Cornerstone Trading, LLC
Paul J. Weiss, NOMINEE
Rate:
1.25%
Term: Monthly
3/28/05
Lessor: Patrick J. English
Lessee: Cornerstone Trading, LLC
William J. O’Keefe, NOMINEE
Rate:
$2,000.00
Term: Monthly
3/28/05
Termination Date
Lessor: Fugue
3/28/05
Lessee: Cornerstone Partners
Stephen M. Dillinger (DIL), NOMINEE
Lessor: Patrick J. English
3/28/05
Lessee: Cornerstone Partners
William J. O’Keefe (BOK), NOMINEE
Lessor: DNA Ltd., Inc.
3/28/05
Lessee: Cornerstone Partners
Robert J. Mayer, Jr. (RJM), NOMINEE
Lessor: Fugue
Lessee: Cornerstone Partners
Richard S. Dooley (RDL), NOMINEE
3/28/05
Lessor: Theodore Silver
Lessee: Cornerstone Partners
Paul J. Weiss (PJX), NOMINEE
3/28/05
Lessor: Nickolas J. Neubauer
Lessee: Man Securities Inc.
Keith M. Inglesby (VET), NOMINEE
3/29/05
Lessor: John L. Schlipper
Lessee: Ronin Capital, LLC
3/30/05
*** BULLETIN CORRECTION AS OF 3/4/05***
Lessor: Edmund Leff Family Ltd. Partnership 3/4/05
Lessee: Cutler Group LP
Bradley P. Anderson (GFR), NOMINEE
Page 3
April 1, 2005
Volume 33, Number 13
Chicago Board Options Exchange
MEMBERSHIP TERMINATIONS
Member Organizations
Individual Members
CBT Registered For:
Termination Date
Cornerstone Partners
440 S. LaSalle, Suite 1900
Chicago, IL 60605
3/28/05
CBT Exercisers:
Termination Date
Steven F. Callahan (SCX)
175 W. Jackson, Suite 400
Chicago, IL 60604
3/28/05
David P. Brennan (DPB)
141 W. Jackson, Suite 3720
Chicago, IL 60604
3/28/05
John E. Callahan (JEC)
175 W. Jackson Blvd., Suite 400
Chicago, IL 60604
3/29/05
CBT Registered For:
Termination Date
David D. Paloyan (PLN)
Rubicon Investments LLC
440 S. LaSalle, Suite 1749
Chicago, IL 60605
3/28/05
Thomas C. Smith III (TSC)
Timber Hill LLC
323 W. Lake St.
Barrington, IL 60010
3/29/05
Nominee(s) / Inactive Nominee(s):
Termination Date
Patrick J. Logue (LOG)
Lakeshore Securities, LP
401 S. LaSalle, Suite 1000
Chicago, IL 60605
3/24/05
L. Scott Dennison (DSN)
TD Options, LLC
230 S. LaSalle, Suite 688
Chicago, IL 60604
3/24/05
Christopher J. Hart (UFO)
Okoboji Options LLC
440 S. LaSalle, Suite 1725
Chicago, IL 60605
3/24/05
Joseph D. Mueller (JKM)
TD Options, LLC
230 S. LaSalle, Suite 688
Chicago, IL 60605
3/24/05
Jeffrey W. Schneider (HEX)
Third Millennium Trading, LLC
440 S. LaSalle, Suite 3100
Chicago, IL 60605
3/28/05
Timothy J. Werner (TTW)
Cutler Group, LP
440 S. LaSalle, Suite 1124
Chicago, IL 60605
3/28/05
Bruce I. Andrews (BIA)
Commercial Crush Trading, LLC
440 S. LaSalle, Suite 1596
Chicago, IL 60605
3/29/05
Andrew S. Troob (ATT)
Sallerson-Troob LLC
440 S. LaSalle, Suite 950
Chicago, IL 60605
3/30/05
***BULLETIN CORRECTION AS OF 3/4/05***
Lessor(s):
Termination Date
Edmund Leff Family Ltd. Partnership
8641 N. 55th Place
Paradise Valley, AZ 85253
3/4/05
EFFECTIVE MEMBERSHIPS
Individual Members
CBT Exercisers:
Effective Date
David P. Brennan (DPB)
3/24/05
141 W. Jackson, Suite 3720
Chicago, IL 60604
Type of Business to be Conducted: Market Maker
John E. Callahan (JEC)
3/28/05
175 W. Jackson Blvd., Suite 400
Chicago, IL 60604
Type of Business to be Conducted: Market Maker
Steven F. Callahan (SCX)
3/29/05
175 W. Jackson, Suite 400
Chicago, IL 60604
Type of Business to be Conducted: Market Maker
Nominee(s) / Inactive Nominee(s):
Effective Date
Jason E. Chippas (JXC)
3/24/05
Israel A. Englander & Co., Inc.
440 S. LaSalle, Suite 1124
Chicago, IL 60605
Type of Business to be Conducted: Floor Broker
Kevin Kwiatt (KKW)
3/24/05
Consolidated Trading, LLC
440 S. LaSalle, Suite 3100
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Vincent J. Hart (VJH)
3/24/05
Okoboji Options LLC
1204 W. Green Acres
Mt Prospect, IL 60056
Type of Business to be Conducted: Market Maker/Floor Broker
Gary L. Anderson (GLA)
3/28/05
Centurion Securities, LLC
1818 Market Street, 18th Floor
Philadelphia, PA 19103
Type of Business to be Conducted: Market Maker
Steven T. Romanchuk (ROM)
3/28/05
Susquehanna Investment Group
175 W. Jackson, Suite 1700
Chicago, IL 60604
Type of Business to be Conducted: Market Maker/Floor Broker
Edward P. McFadden III (EDM)
3/28/05
Cutler Group, LP
440 S. LaSalle, Suite 1124
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Page 4
April 1, 2005
Volume 33, Number 13
Chicago Board Options Exchange
Effective Date
Gregory R. Tilly (GXT)
3/30/05
KATL Group, LLC
440 S. LaSalle, Suite 1600
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Member Organizations
CBT Registered For:
Effective Date
Cornerstone Trading, LLC
3/28/05
440 S. LaSalle
Chicago, IL 60605
Type of Business to be Conducted: Market Maker/Floor Broker
JOINT ACCOUNTS
New Participants
Acronym
Effective Date
Kevin Kwiatt
QCP
3/24/05
Steven T. Romanchuk
QGS
3/28/05
Donald F. Urbas Jr.
QBQ
3/29/05
Sean C. Sullivan
QRR
3/29/05
Richard W. Fuller Jr.
QXX
3/29/05
Timothy J. Drechsel
QQD
3/30/05
New Accounts
Acronym
Effective Date
Brian W. Jarosch
QSS
3/29/05
Michael T. Kalchbrenner
QSS
3/29/05
Paul E. Stone
QSS
3/29/05
Terminated Participants Acronym
Termination Date
Joseph D. Mueller
QBB
3/24/05
David D. Paloyan
QUR
3/28/05
David D. Paloyan
QBQ
3/28/05
Thomas C. Smith III
QTH
3/29/05
Thomas C. Smith III
QTI
3/29/05
Thomas C. Smith III
QMN
3/29/05
Terminated Accounts
Acronym
Termination Date
Richard M. Podkowa
QXX
3/29/05
James A. Gray
QXX
3/29/05
CHANGES IN MEMBERSHIP STATUS
Individual Members
Effective Date
Michael F. Gallagher
3/24/05
From:
Lessor/Nominee For Lakeshore Securities, LP; Market
Maker/Floor Broker
To:
Lessor
William J. O’Keefe
3/28/05
From:
Nominee For Cornerstone Partners; Market Maker
To:
Nominee For Cornerstone Trading, LLC; Market Maker/
Floor Broker
Effective Date
Roy W. Kissel
3/28/05
From:
CBT Registered For Cornerstone Partners; Market
Maker
To:
CBT Registered For Cornerstone Trading, LLC; Market
Maker/Floor Broker
Daniel J. Cahill III
3/28/05
From:
CBT Registered For Cornerstone Partners; Market
Maker
To:
CBT Registered For Cornerstone Trading, LLC; Market
Maker/Floor Broker
Stephen M. Dillinger
3/28/05
From:
Nominee For Cornerstone Partners; Market Maker
To:
Nominee For Cornerstone Trading, LLC; Market Maker/
Floor Broker
Thomas P. Tenney
3/28/05
From:
CBT Registered For Cornerstone Partners; Market
Maker
To:
CBT Registered For Cornerstone Trading, LLC; Market
Maker/Floor Broker
David Campione
3/28/05
From:
CBT Registered For Cornerstone Partners; Market
Maker
To:
CBT Registered For Cornerstone Trading, LLC; Market
Maker/Floor Broker
Robert J. Mayer Jr.
3/28/05
From:
Nominee For Cornerstone Partners; Market Maker/
Floor Broker
To:
Nominee For Cornerstone Trading, LLC; Market Maker/
Floor Broker
Richard S. Dooley
3/28/05
From:
Nominee For Cornerstone Partners; Market Maker
To:
Nominee For Cornerstone Trading, LLC; Market Maker/
Floor Broker
Justin J. Range
3/28/05
From:
CBT Registered For Cornerstone Partners; Market
Maker
To:
CBT Registered For Cornerstone Trading, LLC; Market
Maker/Floor Broker
Paul J. Weiss
3/28/05
From:
Lessor/ Nominee For Cornerstone Partners/ Nominee
For Cornerstone Trading, LLC; Market Maker
To:
Lessor/ Nominee For Cornerstone Trading, LLC;
Market Maker
Member Organizations
Effective Date
LaBranche Structured Products LLC
3/28/05
From:
Member Organization Affiliated with a CBT Registered
For LaBranche Structured Products LLC; Associated
with a Market Maker
To:
Member Organization Affiliated with a CBT Registered
For LaBranche Structured Products LLC; Associated
with a Market Maker/Floor Broker
Bear Wagner Specialists LLC
3/28/05
From:
Lessee; Associated with a Market Maker
To:
Lessee; Associated with a Market Maker/Floor Broker
Rubicon Investments LLC
3/28/05
From:
Lessee/ Member Organization Affiliated with a CBT
Registered For; Associated with a Market Maker
To:
Lessee; Associated with a Market Maker
Tradestation Securities LLC
3/28/05
From:
Owner/Non-Member Customer Business; Associated
with No Floor Functions
To:
Owner/Non-Member Customer Business/OCC Clearing
Page 5
April 1, 2005
Volume 33, Number 13
Chicago Board Options Exchange
POSITION LIMIT CIRCULARS
Pursuant to Exchange Rule 4.11, the Exchange issued the below listed Position Limit Circulars on March 29, 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 PL05-16
March 29, 2005
Adjusted Position and Exercise Limits for certain
Equity Option Classes will revert to their Applicable
Standard Position and Exercise Limits effective April 18, 2005
RESEARCH CIRCULARS
The following Research Circulars were distributed between March 24 and March 31, 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 #RS05-184
March 24, 2005
Kmart Holding Corporation (“KMRT/KTQ/KDU/YQH/YAS/VK/
ODK”) Name and Underlying Symbol Change to:
Sears Holdings Corporation (“SHLD”)
Anticipated Effective Date: March 28, 2005
Research Circular #RS05-185
March 24, 2005
Companhia Siderurgica Nacional (“SID”)
CONTRACT ADJUSTMENT FOR CASH DIVIDEND
Ex-Date: April 5, 2005
Research Circular #RS05-187
March 24, 2005
*****UPDATE*****UPDATE*****UPDATE*****
Kmart Holding Corporation (“KMRT/KTQ/KDU/YQH/YAS/VK/
ODK”) Name and Underlying Symbol Change to:
Sears Holdings Corporation (“SHLD”)
Effective Date: March 28, 2005
Research Circular #RS05-188
March 24, 2005
*****UPDATE*****UPDATE*****UPDATE*****
Sears, Roebuck and Co. (“S/WSI/VRS”) Election Merger
COMPLETED with Kmart Holding Corporation
(“KMRT/KTQ/KDU/YQH/YAS/VK/ODK”)
Research Circular #RS05-189
March 28, 2005
Coach, Inc. (“COH/WZI/VZF”)
2-for-1 Stock Split
Ex-Distribution Date: April 5, 2005
Research Circular #RS05-190
March 28, 2005
Comtech Telecommunications Corp. (“CMTL/CQH”)
3-for-2 Stock Split
Ex-Distribution Date: April 5, 2005
Research Circular #RS05-191
March 28, 2005
Ligand Pharmaceuticals Incorporated (“LGND/LQP/YDB/OIN”)
Underlying Symbol Change to “LGNDE”
Effective Date: March 29, 2005
Research Circular #RS05-192
March 29, 2005
PC Mall, Inc. (“MALL/QGS”)
Distribution of Shares of eCOST.com, Inc. (“ECST”)
Ex-Distribution Date: April 12, 2005
Research Circular #RS05-194
March 29, 2005
W.R. Berkley Corporation (“BER”)
3-for-2 Stock Split
Ex-Distribution Date: April 11, 2005
Research Circular #RS05-197
March 30, 2005
*****UPDATE*****UPDATE*****UPDATE*****
Sears, Roebuck and Co. (“S/adj. SRU/WUQ/OTV”)
Determination of Contract Deliverable — Cash Settlement
Research Circular #RS05-198
March 31, 2005
Red Robin Gourmet Burgers, Inc. (“RRGB/QZR”)
Underlying Symbol Change to: (“RRGBE”)
Effective Date: April 1, 2005
April 6, 2005
Regulatory
Bulletin
Volume RB16, Number 14
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
Rule Changes,
Interpretations
and Policies
PROPOSED RULE CHANGE(S)
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 change(s)
with the Securities and Exchange Commission (“SEC”). Copies of the rule change filing(s)
are available at www.cboe.com/legal/submittedsecfilings.aspx. 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-2005-27
e-DPM Opening Quote Obligations
On March 23, 2005, the Exchange filed Rule Change File No. SR-CBOE-2005-27, which
filing proposes to amend its rules relating to HOSS procedures and e-DPMs to require all eDPMs to submit opening quotes during the HOSS opening rotation for every series in each
Hybrid class to which any e-DPM is allocated. Any questions regarding the proposed rule
change may be directed to Jim Flynn, Legal Division, at 312-786-7070. The text of the
proposed rule amendments is set forth below. Proposed new language is underlined. Proposed deleted language is [stricken out].
Rule 6.1 – 6.2A
Rule 6.2B.
No change
Hybrid Opening System (“HOSS”)
(a) For a period of time before the opening of trading in the underlying security, as
determined by the appropriate Floor Procedure Committee (FPC) and announced to
the membership via Regulatory Circular, the Hybrid System will accept orders and
quotes. The Hybrid System will disseminate to market participants (as defined in
Rule 6.45A) information about resting orders in the Book that remain from the prior
business day and any orders submitted before the opening. At a randomly selected
time within a number of seconds after the primary market for the underlying security
disseminates the opening trade or the opening quote, the System initiates the
opening procedure and sends a notice (“Opening Notice”) to market participants
who may then submit their opening quotes. The DPM and each e-DPM for the class
must enter opening quotes. Spread orders and contingency orders do not participate in the opening trade or in the determination of the opening price.
(b) – (i)
*****
No change
Rule Changes,
Interpretations and
Policies continued
SR-CBOE-2005-27 continued
Rule 8.85.
DPM Obligations
(a) Dealer Transactions. Each DPM shall fulfill all of the obligations of a MarketMaker under the Rules, and shall satisfy each of the following requirements 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 subparagraphs (a)(i) through (a)(xii) of this Rule and the general obligations of a MarketMaker under the Rules, subparagraphs (a)(i) through (a)(xii) of this Rule shall govern. Each DPM shall:
(i) – (xii) No change
(xiii) enter opening quotes in accordance with Rule 6.2B in 100% of the series of
each allocated class.
(b) – (e) No change
*****
Rule 8.93.
e-DPM Obligations
Each e-DPM shall fulfill all of the obligations of a Market-Maker and of a DPM
under the Rules (except those contained in Rules 8.85(a)(i),(iv),(v) and (vii)-(x),
8.85(b), 8.85(c)(i) and (v), and 8.85(e)), and shall satisfy each of the following
requirements:
(i) – (x)
No change
(xi) enter opening quotes in accordance with Rule 6.2B in 100% of the series of
each allocated class.
RB2
April 6, 2005, Volume RB16, Number 14