May 13, 2005
Exchange
Bulletin
Volume 33, Number 19
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 312-786-7449.
Copyright © 2005 Chicago Board Options Exchange, Incorporated
SEAT MARKET QUOTES AS OF FRIDAY, MAY 13, 2005
CLASS
CBOE/FULL
CBOT/FULL
BID
$485,000.00
$1,611,000.00
OFFER
$495,000.00
$1,745,000.00
LAST SALE AMOUNT
$493,000.00
$1,695,000.00
LAST SALE DATE
May 12, 2005
May 12, 2005
MEMBERSHIP SALES AND TRANSFERS
From
Merrill Lynch Professional Clearing Corp.
Citadel Derivatives Group LLC
Michael J. Post
Paul Kepes
To
Credit Suisse First Boston LLC
Geneva Stock LLC
EWT, LLC
Geneva Stock, LLC
Price/Transfer
$485,000.00
$494,000.00
$490,000.00
$493,000.00
Date
5/5/05
5/5/05
5/9/05
5/12/05
DPM APPOINTMENT TRANSFER PROPOSAL - May 11, 2005
This notice is given in accordance with the procedures utilized by the MTS Committee under CBOE Rule 8.89 in considering DPM
appointment transfer proposals. Under Rule 8.89, the MTS Committee posts notice of any proposal by a DPM involving greater
than a nominal transfer of interest in the DPM’s organization. During the posting period, members may submit to the MTS Committee written comments and/or written alternative proposals. Following the posting period, the MTS Committee will determine what
action to take regarding the proposal based on the factors enumerated in Rule 8.89 and the accompanying guidelines issued by the
Board of Directors. The MTS Committee has not yet made any determination regarding whether to approve or disapprove the
proposal described below, and the posting of the proposal does not imply that the MTS Committee has reached a particular
determination with respect to the proposal.
The MTS Committee has received a proposal from Botta Capital Management, LLC (“BCM”), a member organization, and Botta Specialists,
LLC (“BSP”) and Susquehanna Investment Group (“SIG”), both member organizations approved to operate as DPMs, regarding a transfer
of a BSP DPM appointment, which is located at Post 2, Station 10.
Currently, the ownership structure of BSP is as follows: BCM owns 100% of BSP. The ownership structure of BCM is as follows: Zydeco,
LLC (“Zydeco”) owns 100% of the Class A membership interests in BCM and there are several other classes of membership in BCM.
Under the proposal, the BSP DPM located at Post 2, Station 10 will be transferred to SIG, who will be responsible for the management and
operation of the DPM.
Any written comments and/or alternative written proposals must be received by the MTS Committee, in care of Daniel Hustad,
Business Development Division (312-786-7715), on or before May 20, 2005. Unless otherwise requested, any written comments
and/or alternative written proposals will be made available for review by the membership. For additional information regarding this
posting, please contact Daniel Hustad at the number provided above.
Page 2
May 13, 2005
Volume 33, Number 19
Chicago Board Options Exchange
MEMBERSHIP INFORMATION FOR 5/5/05 THROUGH 5/11/05
Termination Date
MEMBERSHIPAPPLICATIONS RECEIVED FOR
WHICH A POSTING PERIOD IS REQUIRED
Individual Membership Applicants
Date Posted
Jerrell R. Watts, Nominee
Lehman Brothers Inc.
52 East End Ave., Apt. 35A
New York, NY 10028
5/6/05
MEMBERSHIP LEASES
Lessor: EWT, LLC
Lessee: PFTC LLC
David A. Filippini (JQY), NOMINEE
5/11/05
Lessor: Michael J. Post
Lessee: SLK-Hull Derivatives LLC
Steven R. Rosen (RZN), NOMINEE
5/11/05
Lessor: Mary Kay McCallister
Lessee: Goldman Sachs & Co.
5/11/05
Lessor: EWT, LLC
Lessee: Samurai Trading, LLC
David Piotrowski (SKI), NOMINEE
5/11/05
New Leases
Effective Date
Lessor: UBS Financial Services, Inc.
Lessee: Cutler Group, LP
Bradley P. Anderson, NOMINEE
Rate:
1.00%
Term: Monthly
5/5/05
Lessor: Credit Suisse First Boston LLC
Lessee: Gelber Securities LLC
Brian R. Gelber, NOMINEE
Rate:
1.00%
Term: 20 Days
5/6/05
CBT Registered For:
Termination Date
5/5/05
Lessor: Geneva Stock, LLC
Lessee: Blue Capital Group LLC
Rate:
1.25%
Term: Monthly
5/10/05
Mark Hoelting (SPD)
Equitec Proprietary Markets, LLC
111 W. Jackson, 20th Floor
Chicago, IL 60604
Kirk M. Wojak (WOJ)
Ronin Capital, LLC
3911 N. Leavitt
Chicago, IL 60618
5/10/05
Lessee(s):
Termination Date
Brian H. Force (FRC)
440 S. LaSalle, Suite 3100
Chicago, IL 60605
5/11/05
Nominee(s) / Inactive Nominee(s):
Termination Date
Norman F. Anderson (AND)
Equitec Proprietary Markets, LLC
25655 Shedley Road
Minooka, IL 60447
5/6/05
MEMBERSHIP TERMINATIONS
Individual Members
Lessor: ABN Amro Incorporated
5/10/05
Lessee: Northern Access LLC
NAB Northern Access RMM, NOMINEE
Rate:
1.00%
Term: Monthly
Lessor: Theodore E. Darch
Lessee: Geneva Trading LLC
John T. Malone, NOMINEE
Rate:
1.00%
Term: Monthly
5/10/05
Lessor: Mary Kay McCallister
Lessee: SLK-Hull Derivatives LLC
Steven R. Rosen, NOMINEE
Rate:
1.00%
Term: Monthly
5/11/05
Terminated Leases
Termination Date
Lessor: Jackson Financial Group, Inc.
5/5/05
Lessee: Cutler Group, LP
Bradley P. Anderson (GFR), NOMINEE
Lessor:
Merrill Lynch Professional
Clearing Corp.
Lessee: Gelber Securities LLC
Brian R. Gelber (GEL), NOMINEE
5/6/05
Lessor: Lehman Brothers Inc.
Lessee: Vitale Trading LLC
Conan J. Vitale (CJV), NOMINEE
5/9/05
Lessor: Lehman Brothers Inc.
Lessee: Man Securities Inc.
5/9/05
Lessor: W.H. Trading, LLC
Lessee: Geneva Trading LLC
John T. Malone (JTM), NOMINEE
5/10/05
Lessor: Theodore E. Darch
Lessee: PKS Trading LLC
Paul K. Suvak (SUV), NOMINEE
5/10/05
Lessor: TRO Trading Group LLC
Lessee: Brian H. Force (FRC)
5/11/05
Member Organizations
CBT Registered For:
Termination Date
REY Trading, LLC
440 S. LaSalle - Ste. 3100
Chicago, IL 60605
5/6/05
Page 3
May 13, 2005
Volume 33, Number 19
Chicago Board Options Exchange
EFFECTIVE MEMBERSHIPS
Terminated Participants Acronym
Termination Date
Individual Members
Mark Hoelting
QAM
5/5/05
Mark Hoelting
QSC
5/5/05
Spencer E. Young
QTO
5/6/05
Kirk M. Wojak
QCY
5/10/05
CBT Registered For:
Effective Date
John A. Possidoni (JAP)
5/9/05
AB Financial LLC
440 S. LaSalle, Suite 3100
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
James W. Carney, Jr. (CNY)
5/9/05
RBC Capital Markets Corporation
One Liberty Plaza
165 Broadway
New York, NY 10006
Type of Business to be Conducted: Floor Broker
Nominee(s) / Inactive Nominee(s):
Effective Date
Philip J. Fortier (FIL)
5/6/05
Equitec Proprietary Markets, LLC
111 W. Jackson, 20th Floor
Chicago, IL 60604
Type of Business to be Conducted: Market Maker/Floor Broker
James B. Burns (JBZ)
5/6/05
Blue Capital Group LLC
401 S. LaSalle, Suite 700
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Anthony Hozian (HOZ)
5/6/05
RightSide Trading LP
2934 Lakewood Avenue
Chicago, IL 60657
Type of Business to be Conducted: Market Maker/Floor Broker
Jess Riefe (RDJ)
5/10/05
CTC LLC
141 W. Jackson, 8th Floor
Chicago, IL 60604
Type of Business to be Conducted: Market Maker/Floor Broker
Edward M. Reid (EMR)
5/11/05
Wellington Capital Markets, LLC
440 S. LaSalle, Suite 2910
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
JOINT ACCOUNTS
New Participants
Acronym
Effective Date
James B. Burns
QOJ
5/6/05
Anthony Hozian
QQR
5/6/05
Neal A. Jaffe
QJM
5/9/05
Boris Furman
QJM
5/9/05
Charles T. Weiler Jr.
QFT
5/9/05
Jess Riefe
QGQ
5/10/05
Jess Riefe
QXY
5/10/05
Steven T. Romanchuk
QZT
5/10/05
Steven T. Romanchuk
QPX
5/10/05
John S. Stafford Jr.
QCY
5/10/05
Anthony J. Carone
QXX
5/11/05
CHANGES IN MEMBERSHIP STATUS
Individual Members
Effective Date
Raymond C. Champlin
5/6/05
From:
CBT Registered For REY Trading, LLC; Market Maker
To:
CBT Registered For Everest Trading, LLC; Market Maker
Conan J. Vitale
5/9/05
From:
Nominee For Vitale Trading LLC; Market Maker
To:
CBT Registered For Vitale Trading LLC; Market Maker
Paul K. Suvak
5/10/05
From:
Nominee For PKS Trading LLC; Market Maker
To:
CBT Registered For PKS Trading LLC; Market Maker
Member Organizations
Effective Date
Credit Suisse First Boston, LLC
5/6/05
From:
Owner/Non-Member Customer Business/Order Service
Firm; Associated with a Floor Broker
To:
Lessor/Owner/Non-Member Customer Business/Order
Service Firm; Associated with a Floor Broker
Vitale Trading, LLC
5/9/05
From:
Lessee; Associated with a Market Maker
To:
CBT Registered For; Associated with a Market Maker
Jackson Financial Group, Inc.
5/9/05
From:
Lessor/Lessee; Associated with a Market Maker
To:
Owner/Lessee; Associated with a Market Maker
RBC Capital Markets Corporation
5/9/05
From:
Lessor; Associated with a Floor Broker
To:
Lessor/Member Organization Affiliated with a CBT
Registered For; Associated with a Floor Broker
Geneva Stock, LLC
5/9/05
From:
Member Organization Affiliated with a CBT Registered
For; Associated with a Market Maker
To:
Lessor/Member Organization Affiliated with a CBT
Registered For; Associated with a Market Maker
PKS Trading, LLC
5/10/05
From:
Lessee; Associated with a Market Maker
To:
CBT Registered For; Associated with a Market Maker
W.H. Trading, LLC
5/10/05
From:
Lessor/Lessee; Associated with a Market Maker
To:
Owner/Lessee; Associated with a Market Maker
Page 4
May 13, 2005
Volume 33, Number 19
Chicago Board Options Exchange
REMOTE MARKET MAKER CHANGE IN MEMBERSHIP STATUS
Individual Members
Effective Date
Joint Account
Brian S. Stutland
May 5, 2005
—-
Member Organizations
(Qualifying Member/Type)
Effective Date
Joint Account
Blue Capital Group, LLC
BNP Paribas Securities Corp.
Citadel Derivatives Group, LLC
Citigroup Derivatives Markets, Inc.
Consolidated Trading LLC
Cornerstone Trading LLC
Credit Suisse First Boston LLC
CTC LLC
Equitec Proprietary Markets LLC
EWT, LLC
Geneva Trading LLC
Group One Trading LP
Holland Trading House LLC
Jackson Financial Group Inc.
Jane Street Options LLC
Lehman Brothers, Inc.
McGowan Investors LP
Morgan Stanley & Co., Inc.
Northern Access, LLC
Ronin Capital LLC
SLK-Hull Derivatives LLC
SMC Option Management LLC
TD Options LLC
Timber Hill LLC
Wellington Capital Markets LLC
WH Trading LLC
Wolverine Trading
Zydeco Trading LLC
(John Favia/Nominee)
(Thomas J. Mahoney/CBT-RF)
(David O. Smith/Nominee)
(J. Slade Winchester/Nominee)
(Timothy Gorham/Nominee)
(Mark Duffy/CBT-RF)
(Simon Yates/Nominee)
(Paul Kepes/Nominee)
(John Stefanos/CBT-RF)
(Rodney Faragalla/Nominee)
(Daniel Williams/Nominee)
(Ben Londergan/Nominee)
(Scott Knudsen/Nominee)
(James C. Tharin, Jr./Nominee)
(Richard Emmet/Nominee)
(Jerrell R. Watts/Nominee)
(Matthew R. Shaffer/Nominee)
(Hugh J. Flannery/Nominee)
(Daniel P. Scadron/Nominee)
(Mark A. Harmon/Nominee)
(Michael Benz/Nominee)
(Mark Severin/Nominee)
(Gavin Rowe/Nominee)
(David Drummond/Nominee)
(Edward M. Reid/Nominee)
(Alvin Dodek/Nominee)
(David Becket/Nominee)
(James Kittrell/Nominee)
May 10, 2005
April 26, 2005
April 26, 2005
April 26, 2005
April 28, 2005
May 2, 2005
April 26, 2005
April 26, 2005
April 26, 2005
April 26, 2005
April 27, 2005
April 28, 2005
April 26, 2005
April 27, 2005
May 4, 2005
April 26, 2005
April 26, 2005
April 26, 2005
May 10, 2005
May 3, 2005
April 25, 2005
April 25, 2005
April 25, 2005
April 25, 2005
May 12, 2005
May 10, 2005
April 25, 2005
May 5, 2005
QOJ
—CIT
QKD
CNS
COR
AMM
QXY
QSC
——QGO
QBG, QHL, QQL, QRW
——LEH
———QMH
QIA
QSV
QBB, QHO, NJG
QTH
QWC
—QYW
QDZ
MEMBER ADDRESS CHANGES
Individual Members
Effective Date
Brian R. Cappelletto
4864 N. Talman
Chicago, IL 60625
5/5/05
Member Organizations
Effective Date
BOG-Cappelletto, LLC
4864 N. Talman
Chicago, IL 60625
5/5/05
Page 5
May 13, 2005
Volume 33, Number 19
Chicago Board Options Exchange
RESEARCH CIRCULARS
The following Research Circulars were distributed between May 5 and May 12, 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 #RS05-303
May 5, 2005
Patina Oil & Gas Corporation (“POG”) Proposed
Election Merger with Noble Energy, Inc. (“NBL”)
Research Circular #RS05-315
May 9, 2005
Advanced Energy Industries, Inc (“AEIS/OEQ”)
Underlying Symbol Change to “AEISE”
Effective Date: May 10, 2005
Research Circular #RS05-304
May 5, 2005
Carrier Access Corporation (“CACS/CQQ”)
Underlying Symbol Change to “CACSE”
Effective Date: May 6, 2005
Research Circular #RS05-316
May 11, 2005
General Motors Corporation (“GM/WGM/VGN”)
Partial Tender Offer by Tracinda Corporation
Research Circular #RS05-306
May 6, 2005
CTI Molecular Imaging, Inc. (“CTMI/QPQ”):
Merger Completed — Cash Settlement
Research Circular #RS05-318
May 11, 2005
MeadWestvaco Corporation (“MWV/YAN/VFS”)
Partial Self Tender Offer
Research Circular #RS05-307
May 6, 2005
*****UPDATE – REVISION TO ADJUSTED 2007 LEAP SYMBOL*****
Caesars Entertainment, Inc. (“CZR/YVK/ODL”)
Proposed Election Merger with Harrah’s
Entertainment, Inc. (“HET/WBI/VKH”)
Research Circular #RS05-319
May 12, 2005
Moody’s Corporation (“MCO/YPJ/OWC”)
2-for-1 Stock Split
Ex-Distribution Date: May 19, 2005
Research Circular #RS05-309
May 6, 2005
VISX Incorporated (“EYE”) Proposed Merger
with Advanced Medical Optics, Inc. (“AVO”)
Research Circular #RS05-320
May 12, 2005
The McGraw-Hill Companies, Inc. (“MHP/WMP/VMP”)
2-for-1 Stock Split
Ex-Distribution Date: May 18, 2005
Research Circular #RS05-312
May 9, 2005
Embarcadero Technologies, Inc. (“EMBTE/MBQ”)
Underlying Symbol Change to “EMBT”
Effective Date: May 10, 2005
Research Circular #RS05-323
May 12, 2005
MGM Mirage (“MGM/YDM/VYG”)
2-for-1 Stock Split
Ex-Distribution Date: May 19, 2005
Research Circular #RS05-313
May 9, 2005
Chevron Texaco Corporation (“CVX/WCH/VCH”)
Name Change to: Chevron Corporation
Effective Date: May 10, 2005
Research Circular #RS05-324
May 12, 2005
EnCana Corporation (“ECA”)
2-for-1 Stock Split
Ex-Distribution Date: May 23, 2005
Research Circular #RS05-314
May 9, 2005
Cray Inc. (“CRAY/HQC”)
Underlying Symbol Change to “CRAYE”
Effective Date: May 10, 2005
May 18, 2005
Volume RB16, Number 20
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
Rule Changes,
Interpretations
and Policies
NOTICE OF CORRECTION
In the April 20, 2005 Regulatory Bulletin, proposed Rule Change File No. SR-CBOE-2005-20
was inadvertently placed in the “Approved Rule Change(s)” Section of the Bulletin. This
proposed rule change remains pending with the SEC. It was published for notice by the SEC
on April 7, 2005. A copy of this proposed rule change filing is available at www.cboe.com/
legal/submittedsecfilings.aspx.
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-2005-37
$1 Strike Price Pilot Program Extension
On May 9, 2005, the Exchange filed Rule Change File No. SR-CBOE-2005-37, which filing
proposes to extend the existing CBOE $1 Strike Price Pilot Program for one year to June 5,
2006. 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 5.5 - Series of Option Contracts Open for Trading
(a) – (c) No Change.
…Interpretations and Policies:
.01 The interval between strike prices of series of options on individual stocks may
be:
(a.) $1.00 or greater (“$1 strike prices”) provided the strike price is $20.00 or less,
but not less than $3. The listing of $1 strike prices shall be limited to options
classes overlying no more than 5 individual stocks (“The $1 Strike Pilot Program”)
as specifically designated by the Exchange. The Exchange may list $1 strike
prices on any other option classes if those classes are specifically designated by
other securities exchanges that employ a similar $1 Strike Pilot Program under
their respective rules.
Rule Changes,
Interpretations and
Policies continued
SR-CBOE-2005-37 continued
To be eligible for inclusion into the $1 Strike Pilot Program, an underlying stock
must close below $20 in its primary market on the previous trading day. After a
stock is added to the $1 Strike Pilot Program, the Exchange may list $1 strike
prices from $3 to $20 that are no more than $5 from the closing price of the
underlying on the preceding day. For example, if the underlying stock closes at
$13, the Exchange may list strike prices from $8 to $18. The Exchange may not
list series with $1.00 intervals within $0.50 of an existing $2.50 strike price (e.g.,
$12.50, $17.50) in the same series. Additionally, the Exchange may not list longterm option series (“LEAPS®”) at $1 strike price intervals for any option class
selected for the $1 Strike Pilot Program.
A stock shall remain in the $1 Strike Pilot Program until otherwise designated by
the Exchange. The $1 Strike Pilot Program shall expire on [June 5, 2005] June 5,
2006.
RB2
(b.) – (d.)
No Change.
.02 - .08
No Change.
May 18, 2005, Volume RB16, Number 20