July 1, 2005
Exchange
Bulletin
Volume 33, Number 26
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, JULY 1, 2005
CLASS
BID
CBOE
$600,000.00
OFFER
LAST SALE AMOUNT
LAST SALE DATE
$595,000.00
June 30, 2005
LAST SALE AMOUNT
LAST SALE DATE
$675,000.00
CBOT FULL MEMBERSHIP
CLASS
BID
With CBOE Exercise Right
Without CBOE Exercise Right
CBOE Exercise Right
OFFER
$2,002,500.00
$2,075,000.00
$2,000,000.00
June 30, 2005
$0.00
0.00
N/A
June 20, 2005
$101,000.00
$175,000.00
$102,000.00
June 27, 2005
CBOE MEMBERSHIP SALES AND TRANSFERS
From
To
Price/Transfer
Date
Larkspur Securities Inc.
Jules Sobel
Geneva Stock LLC
Gabriel Inc.
$590,000.00
$595,000.00
6/29/05
6/30/05
DPM APPOINTMENT TRANSFER APPROVAL - June 29, 2005
The MTS Committee has conditionally approved pursuant to CBOE Rule 8.89 a proposal from Platinum Trading (“Platinum”), a member
organization approved to operate as a DPM, regarding a transfer of the profit distribution in Platinum. The Platinum DPM appointment is
located at Post 10, Station 3.
Currently, the profit distribution in Platinum is as follows: Blackbird Holdings, L.L.C. (“Blackbird”) – 60%; J. Hartford Securities First, L.P. (“J.
Hartford”) – 27%; Irevin, L.L.C. (“Irevin”) – 5%; New Millennium Global Investments, L.L.C. (“NMGI”) – 4%; and JTL Investments, L.L.C.
(“JTL”) - 4%.
Under the proposal, NMGI and JTL each will acquire 50% of Irevin’s profit distribution in Platinum and the new profit distribution in Platinum
will be as follows: Blackbird – 60%; J. Hartford – 27%; NMGI – 6.5%; and JTL – 6.5%. The current management structure of Platinum will not
be affected by this transfer.
Page 2
July 1, 2005
Volume 33, Number 26
Chicago Board Options Exchange
MEMBERSHIP INFORMATION FOR 6/23/05 THROUGH 6/29/05
MEMBERSHIPAPPLICATIONS RECEIVED FOR
WHICH A POSTING PERIOD IS REQUIRED
Individual Membership Applicants
Date Posted
Daniel R. L’Italien, Nominee
Susquehanna Investment Group
1416 W. Fletcher, Apt. 3
Chicago, IL 60657
6/23/05
Christopher T. Joseph, Nominee
Westward Capital LLC
870 N. State, Apt. 1N
Chicago, IL 60610
6/24/05
Thomas K. Genereux, Nominee
Susquehanna Investment Group
1350 N. Wells, #F417
Chicago, IL 60610
6/24/05
Steven M. Bock, Nominee
Futrex Trading LLC
3456 N. Hoyne
Chicago, IL 60618
6/27/05
Member Organization Applicants
Date Posted
Walleye Trading, LLC
Mark Lyons, Nominee
294 Grove Lane East, Ste. 240
Wayzata, MN 55391
Walleye Investments Fund LLC – Member
Irvin R. Kessler - Member
6/27/05
MEMBERSHIP LEASES
New Leases
Effective Date
Lessor: M.B. Partners II
Lessee: Gelber Securities, LLC
Brian R. Gelber, NOMINEE
Rate:
1.125%
Term: Monthly
6/23/05
Lessor: Galien Trading, LLC
Lessee: Mustang Trading, LLC
Jason Coogan, NOMINEE
Rate:
1.125%
Term: Monthly
6/27/05
Lessor: Kam Partners
Lessee: QCL I Trading LLC
Paul E. Stone, NOMINEE
Rate:
1.125%
Term: Monthly
6/27/05
Terminated Leases
Termination Date
Lessor: M.B. Partners II
Lessee: Edgewater Partners, LLC
Craig R. Barone (CRB), NOMINEE
6/23/05
Lessor: EWT LLC
Lessee: John R. Henington (HTN)
6/23/05
Lessor: Kam Partners
Lessee: TBMP, LLC
Paul E. Stone (SNE), NOMINEE
6/27/05
MEMBERSHIP TERMINATIONS
Individual Members
CBT Registered For:
Termination Date
Joseph J. Gregory (JJG)
Citadel Derivatives Group LLC
131 S. Dearborn, 37th Fl.
Chicago, IL 60603
6/27/05
Mark R. Salerno (MRQ)
Sallerson-Troob LLC
440 S. LaSalle - Ste. 950
Chicago, IL 60605
6/28/05
Lessee(s):
Termination Date
John R. Henington (HTN)
440 S. LaSalle - Ste. 3100
Chicago, IL 60605
6/23/05
Nominee(s) / Inactive Nominee(s):
Termination Date
Craig R. Barone (CRB)
Edgewater Partners, LLC
440 S. LaSalle, Ste. 3100
Chicago, IL 60605
6/23/05
Michael A. Favia (FVA)
Ronin Capital, LLC
230 S. LaSalle - Ste. 688
Chicago, IL 60604
6/23/05
Peter H. Schulte (SHP)
Galien Trading, LLC
331 Marquette Dr.
New Buffalo, MI 49117
6/27/05
Jamie Rauch (TXS)
CTC LLC
440 S. LaSalle St., Suite 1850
Chicago, IL 60610
6/27/05
Jason E. Chippas (JXC)
Israel A. Englander & Co., Inc.
440 S. LaSalle, Ste. 1124
Chicago, IL 60605
6/27/05
Philip J. Fortier (FIL)
Equitec Proprietary Markets, LLC
111 W. Jackson, 20th Fl.
Chicago, IL 60604
6/28/05
Roberto Zagaroli (RZX)
Israel A. Englander & Co., Inc.
440 S. LaSalle St.- Ste. 1124
Chicago, IL 60605
6/29/05
Member Organizations
Lessee(s):
Termination Date
Edgewater Partners, LLC
1833 W. Roscoe St.
Chicago, IL 60657
6/23/05
Page 3
July 1, 2005
Volume 33, Number 26
Chicago Board Options Exchange
EFFECTIVE MEMBERSHIPS
Member Organizations
Individual Members
Lessee(s):
CBT Registered For:
Effective Date
Nominee(s) / Inactive Nominee(s):
Effective Date
Michael F. Fong (FON)
Susquehanna Investment Group
175 W. Jackson, Ste. 1700
Chicago, IL 60604
Type of Business to be Conducted:
6/23/05
Effective Date
Gelber Securities, LLC
6/23/05
141 W. Jackson, 2150 Annex
Chicago, IL 60604
Type of Business to be Conducted: No Trading Function
QCL I Trading LLC
6/27/05
6626 N. Nokomis
Lincolnwood, IL 60712
Type of Business to be Conducted: Market Maker
Glenn A. McMillan
6/23/05
Css, LLC
175 W. Jackson Blvd., Suite 440
Chicago, IL 60604
Type of Business to be Conducted: Market Maker
JOINT ACCOUNTS
New Participants
Acronym
Effective Date
Michael F. Fong
QGS
6/23/05
David J. Berger (DBR)
6/23/05
Group One Trading, LP
440 S. LaSalle, Suite 3232
Chicago, IL 60605
Type of Business to be Conducted: Market Maker/ Floor Broker
Jordan M. Pockross
QYW
6/23/05
Michael F. Fong
QIG
6/23/05
Michael F. Fong
QLO
6/23/05
Daniel T. Hillegass (DTH)
6/23/05
Group One Trading, LP
440 S. LaSalle, Ste. 3232
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Michael F. Fong
QPX
6/23/05
Michael F. Fong
QZT
6/23/05
Jason Coogan
QMM
6/27/05
Brian R. Gelber (GEL)
6/23/05
Gelber Securities, LLC
141 W. Jackson - Ste. 2150
Chicago, IL 60604
Type of Business to be Conducted: No Trading Function
William P. Litgen
QLN
6/27/05
Daniel DeCore
QGQ
6/27/05
Daniel DeCore
QXY
6/27/05
Jason Coogan (COG)
6/27/05
Mustang Trading, LLC
440 S. LaSalle, Ste. 3100
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Benjamin J. Feller
QCC
6/28/05
David J. Berger
QGO
6/28/05
Daniel T. Hillegass
QGO
6/28/05
William P. Litgen (LTG)
6/27/05
Northern Access LLC
440 S. LaSalle, Suite 1569
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
David J. Berger
QNX
6/28/05
Daniel T. Hillegass
QNX
6/28/05
David J. Berger
QOP
6/28/05
Daniel DeCore (DDL)
6/27/05
CTC LLC
141 W. Jackson - Suite 800
Chicago, IL 60604
Type of Business to be Conducted: Market Maker/ Floor Broker
Daniel T. Hillegass
QOP
6/28/05
Dave Becket
QWD
6/29/05
New Accounts
Acronym
Effective Date
Roberto Zagaroli (RZX)
6/27/05
Israel A. Englander & Co., Inc.
440 S. LaSalle St.- Ste. 1124
Chicago, IL 60605
Type of Business to be Conducted: Floor Broker
Matthew A. Proskine
QBA
6/29/05
John S. Stafford Jr.
QBA
6/29/05
Benjamin J. Feller (FLR)
6/28/05
Consolidated Trading, LLC
440 S. LaSalle, Ste. 3100
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Keith B. Kurzner (KBK)
CIBC World Markets Corp.
300 Madison Avenue
New York, NY 10017
Type of Business to be Conducted:
6/28/05
Terminated Participants Acronym
Termination Date
Michael A. Favia
QCL
6/23/05
Joseph J. Gregory
CIT
6/27/05
Peter H. Schulte
QSD
6/27/05
Peter H. Schulte
QSH
6/27/05
Jamie Rauch
QGQ
6/27/05
Jamie Rauch
QGT
6/27/05
Jamie Rauch
QXY
6/27/05
Page 4
July 1, 2005
Volume 33, Number 26
Terminated Participants Acronym
Termination Date
Luke G. O’Donnell Jr.
QCL
6/27/05
Luke G. O’Donnell Jr.
QUK
6/27/05
Paul E. Stone
QSS
6/27/05
CHANGES IN MEMBERSHIP STATUS
Individual Members
Effective Date
Luke G. O’Donnell Jr.
6/27/05
From:
CBT Registered For Ronin Capital, LLC; Market Maker
To:
CBT Registered For QCL I Trading LLC; Market Maker
Paul E. Stone
6/27/05
From:
Nominee For TBMP, LLC; Market Maker
To:
Nominee For QCL I Trading LLC; Market Maker
Matthew I. Gray
6/28/05
From:
Nominee For G-Bar Limited Partnership; Market Maker
To:
CBT Registered For G-Bar Limited Partnership; Market
Maker
Christopher T. Steiner
6/28/05
From:
Nominee For Consolidated Trading, LLC; Market Maker
To:
CBT Registered For Consolidated Trading, LLC; Market
Maker
Patricia A. Konieczka
6/28/05
From:
Nominee For Citadel Derivatives Group LLC; Market
Maker
To:
CBT Registered For Citadel Derivatives Group LLC;
Market Maker/ Floor Broker
Member Organizations
Effective Date
Galien Trading, LLC
6/27/05
From:
Owner; Associated with a Market Maker
To:
Lessor
CSS, LLC
6/23/05
From:
Lessor
To:
Owner; Associated with a Market Maker
MEMBER ADDRESS CHANGES
Chicago Board Options Exchange
Effective Date
Roy W. Kissel
440 S. LaSalle, Ste. 1900
Chicago, IL 60605
6/29/05
John W. Fickle
440 S. LaSalle, 19th Floor
Chicago, IL 60605
6/29/05
Svebor Smolic
440 S. LaSalle, 19th Floor
Chicago, IL 60605
6/29/05
Daniel W. Murphy
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Thomas P. Tenney
440 S. LaSalle, Ste. 1900
Chicago, IL 60605
6/29/05
John V. Nash
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Stephen M. Dillinger
440 S. LaSalle, Ste. 1900
Chicago, IL 60605
6/29/05
Michael P. McGuire
440 S. LaSalle, Suite 3221
Chicago, IL 60605
6/29/05
Paul Aronson
440 S. LaSalle, Ste. 1900
Chicago, IL 60605
6/29/05
David J. Hoelscher
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Brian J. Dowling
440 S. LaSalle, Ste. 1900
Chicago, IL 60605
6/29/05
Michael A. Giangiorgi
440 S. LaSalle, Ste. 1900
Chicago, IL 60605
6/29/05
Individual Members
Effective Date
6/29/05
Matthew M. Koenig
440 S. LaSalle, Ste. 1900
Chicago, IL 60605
6/29/05
Jeffrey J. Oechsel
440 S. LaSalle, 19th Floor
Chicago, IL 60605
6/29/05
Timothy S. McGugan
440 S. LaSalle, Ste. 1900
Chicago, IL 60605
6/29/05
Mark J. Cosenza
440 S. LaSalle, 19th Floor
Chicago, IL 60605
6/29/05
Matthew D. Peters
440 S. LaSalle, Ste. 1900
Chicago, IL 60605
6/29/05
Thomas J. Hess
440 S. LaSalle, Suite 1900
Chicago, IL 60605
6/29/05
Steven Stefancic
440 S. LaSalle, Ste. 1900
Chicago, IL 60605
6/29/05
Daniel J. Cahill III
440 S. LaSalle, Ste. 1900
Chicago, IL 60605
6/29/05
T. Graham Alexa
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Richard S. Dooley
440 S. LaSalle, Ste. 1900
Chicago, IL 60605
6/29/05
Jonathon Coe
440 S. LaSalle, Ste. 1900
Chicago, IL 60605
6/29/05
Lawrence N. Gage
440 S. LaSalle, 19th Floor
Chicago, IL 60605
6/29/05
John P. Eshoo
440 S. LaSalle, Ste. 1900
Chicago, IL 60605
6/29/05
Thomas C. Bruno
440 S. LaSalle - 19th Floor
Chicago, IL 60605
Page 5
July 1, 2005
Volume 33, Number 26
Chicago Board Options Exchange
Effective Date
Effective Date
John R. Connolly
440 S. LaSalle St. - 19th Floor
Chicago, IL 60605
6/29/05
Andre Arruda
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Eric A. Conlon
440 S.LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Peter Erl
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
I. Patrick Kernan
440 S. LaSalle St. - 19th Floor
Chicago, IL 60605
6/29/05
David Ho
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Bryan J. Luby
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Member Organizations
Effective Date
6/27/05
Scott M. Johnson
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Jordan-Matthew LLC
386 Grape Street
Denver, CO 80220
6/27/05
Thomas R. Prainito
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
P&D Investments LLC
249 Springline Drive
Vero Beach, FL 32963
6/27/05
Mark Severin
440 S. LaSalle - 19th Floor
Chicago, IL 60604
6/29/05
Lucille’s Trust, LLC
321 N. Clark St., Suite 2200
Chicago, IL 60610
6/29/05
Brian T. Patton
440 S. Lasalle - 19th Floor
Chicago, IL 60605
6/29/05
Blue Star Trading, LLC
440 S. LaSalle, 19th Floor
Chicago, IL 60605
6/29/05
Arthur T. Kramer
440 S. LaSalle- 19th Floor
Chicago, IL 60605
6/29/05
Pioneer Capital, LLC
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Zachary A. Marsh
440 S. LaSalle -19th Floor
Chicago, IL 60605
6/29/05
Cornerstone Trading, LLC
440 S. LaSalle, 19th Floor
Chicago, IL 60605
6/29/05
Benjamin W. Phillips
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Resource Equities LLC
440 S. LaSalle Ste. - 19th Floor
Chicago, IL 60605
6/29/05
Marios K. Sinapoglou
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
S.G. Marx And Associates, Inc.
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Karl Wolfgang Suess
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Tighe Trading, LLC
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Mark E. Westcott
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Grand Slam Trading, Inc.
440 S. LaSalle, Ste. 1900
Chicago, IL 60605
6/29/05
Michael J. Monahan
550 W. Jackson Blvd. Suite 500
Chicago, IL 60661
6/29/05
James David Pattie, LLC
440 S. LaSalle - Ste. 1900
Chicago, IL 60605
6/29/05
Matthew H. Bentley
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Sunset Securities LLC
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Brendan Cunningham
411 S. Wells, 12th Floor
Chicago, IL 60607
6/29/05
TK Trading, LLC
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Jason Mucklow
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
DRO WST Trading LLC
440 S. LaSalle - 19th Floor
Chicago, IL 60605
Trevor Wenberg
440 S. LaSalle - 19th Floor
Chicago, IL 60605
6/29/05
Page 6
July 1, 2005
Volume 33, Number 26
Chicago Board Options Exchange
MEMBER NAME CHANGES
Member Organizations
Effective Date
From:
To:
Compass Services LLC
6/24/05
Compass Professional Services LLC
From:
To:
Equitec-Feldman DPM Group, LLC
Equitec RS, LLC
6/24/05
RESEARCH CIRCULARS
The following Research Circulars were distributed between June 23 and June 30, 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 #RS05-438
June 23, 2005
United Defense Industries, Inc. (“UDI”) Merger COMPLETED
with BAE Systems North America Inc.
Research Circular #RS05-448
June 30, 2005
Mylan Laboratories Inc. (“MYL/OKL/WYQ”)
Partial Self Tender Offer
Research Circular #RS05-440
June 29, 2005
*****UPDATE*****UPDATE*****UPDATE*****
Toys “R” Us, Inc. (“TOY/WYT/VTY”) Proposed Merger
with Global Toys Acquisition, LLC
Research Circular #RS05-449
June 30, 2005
*****UPDATE*****UPDATE*****UPDATE*****
Ashland Inc. (“ASH/OKD/YLS”)
Mandatory Exchange of Shares of Ashland Inc. (“ASH”)
Common Stock for Shares of “New” Ashland Inc. (“ASH”)
Common Stock and Shares of Marathon Oil Corporation
(“MRO”)
Exchange Effective Date: June 30, 2005
Research Circular #RS05-444
June 29, 2005
Wilson Greatbatch Technologies, Inc. (“GB”)
Name Change to: Greatbatch, Inc.
Effective Date: July 1, 2005
Research Circular #RS05-445
June 29, 2005
*****UPDATE*****UPDATE*****UPDATE*****
Great Lakes Chemical Corporation (“GLK”) Proposed Merger
with Crompton Corporation (“CK”)
Research Circular #RS05-446
June 29, 2005
Crompton Corporation (“CK”)
Name, Stock and Option Symbol Change to
Chemtura Corporation (“CEM”)
Effective Date: July 5, 2005
Research Circular #RS05-447
June 30, 2005
*****UPDATE*****UPDATE*****UPDATE*****
Ashland Inc. (“ASH/OKD/YLS”)
Mandatory Exchange of Shares of Ashland Inc. (“ASH”)
Common Stock for Shares of “New” Ashland Inc. (“ASH”)
Common Stock and Shares of Marathon Oil Corporation (“MRO”)
Anticipated Exchange Effective Date: June 30, 2005
Research Circular #RS05-450
June 30, 2005
PETCO Animal Supplies, Inc. (“PETCE/PQQ/OPI/YFC”)
Underlying Symbol Change to “PETC”
Effective Date: July 1, 2005
Research Circular #RS05-451
June 30, 2005
Bioenvision, Inc. (“BIVNE/BQN”)
Underlying Symbol Change to “BIVN”
Effective Date: July 1, 2005
July 6, 2005
Volume RB16, Number 27
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 RG05-58
Date:
June 30, 2005
To:
Members and Member Firms
From: Department of Market Regulation
Re:
Quote Width Regulation
CBOE’s Regulatory Division wishes to advise members to review their current policies and
procedures for setting quote parameters to ensure their quotes are in compliance with CBOE
Rule 8.7. This circular supplements other recently issued circulars concerning maximum
permitted quote width and the parameters of CBOE Rule 8.7. The Regulatory Division
considers quotes that exceed the permitted width to be a serious regulatory matter and
intends to treat instances uncovered as such. Violation of the market width provisions of
CBOE Rule 8.7 may result in disciplinary or regulatory action by CBOE’s Business Conduct
Committee.
The following are examples of factors that affect the quality of disseminated quotes and
may also result in rules violations:
•
Incorrect bid/ask differential parameters in proprietary systems, especially
with respect to the standard Rule 8.7 parameters that are applicable in nonHybrid classes and on the open in Hybrid classes. For example, if a
member were to set its bid/ask parameter for $0.50 with respect to bids
from $5.00 - $9.99, instead of using that parameter only for bids from $5.01
to $10.00, this would result in improperly wide quotes on a bid of $5.
•
Market Performance Committee (“MPC”) relief normally is granted for a
pre-determined period, typically the current expiration cycle. After expiration or other pre-determined period, the MPC bid/ask relief expires. Members requesting relief must, prior to the end of the cycle, either request and
receive confirmation of continued relief from the appropriate MPC or reset
their bid/ask parameters to correspond to CBOE Rule 8.7. Please note
that neither the appropriate MPC nor Floor Officials have the authority to
grant relief from the $5 maximum quote-width provisions applicable to electronic quotes in Hybrid classes.
•
It is impermissible to widen quote parameters prior to being granted relief
or in excess of relief granted by either Floor Official or the appropriate
MPC.
Regulatory Circulars
continued
Regulatory Circular RG05-58 continued
•
Intra-day bid/ask relief granted by Floor Officials is only valid for the day
granted and, unlike MPC relief, not for the expiration cycle. If a member
requires bid/ask relief the following day, the member must again request
it. Once the member anticipates requiring bid/ask relief for an extended
period, the appropriate MPC is the approving authority for the relief.
•
Some members use proprietary autoquote systems that allow “snapping”.1
Snapping at or in excess of 100% of the permissible width where no bid/
ask relief has been granted may cause the autoquote system to temporarily disseminate a market that exceeds the allowable width. Members
operating autoquotes that employ the snapping feature should implement
policies or procedures to ensure its appropriate use.
•
Rule 8.7(b)(iv) states that the bid/ask differentials contained in the rule do
not apply to in-the-money series where the underlying securities market
is wider than differential. The rule provides that for these series, the bid/
ask differential may be as wide as the quotation on the primary market
of the underlying security. Please note that setting autoquote to recognize a market other than the primary market for the underlying security
may cause the differential for in-the-money options series to be wider
than permitted.
Questions regarding MPC relief should be directed to Angela Redell in the Exchange’s
Market Quality Assurance Department at (312) 786-7559.
Questions about obtaining intra-day relief by Floor Officials should be directed to the Help
Desk at (312) 786-7100.
Questions or concerns about the Illegal Quote Width regulatory program should be directed
to Mike Banker at (312) 786-7427 or Timothy MacDonald at (312) 786-7706.
This circular replaces RG02-111
1
Snapping is a function that temporarily changes and refreshes quotes by expanding quotes at a
percentage determined by the member and then returning quotes to the previous quoting parameter.
RB2
July 6, 2005, Volume RB16, Number 27
Rule Changes,
Interpretations
and Policies
APPROVED RULE CHANGE(S)
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-2005-38
Sales Value Fee
On June 20, 2005, the SEC approved Rule Change File No. SR-CBOE-2005-38, which filing
amends the CBOE Fee Schedule and rules relating to the Sales Value Fee (Securities
Exchange Act Release No. 51880, 70 FR 36676 (June 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 Fee Schedule is available from the Legal Division, or can be accessed
online at http://www.cboe.com/AboutCBOE/FeeSchedule.aspx.
EFFECTIVE-ON-FILING RULE CHANGE(S)
The following rule filing(s) were submitted to the SEC “effective on filing,” and have taken
effect pursuant to Section 19(b)(3) of the Securities Exchange Act. They will remain in
effect barring further action by the SEC within 60 days after their publication in the Federal
Register. Copies are available on the CBOE public website at www.cboe.com/legal/
effectivefiling.aspx.
SR-CBOE-2005-49
Increased Class Quoting Limit
On June 22, 2005, the Exchange filed Rule Change File No. SR-CBOE-2005-49 for immediate effectiveness, which filing increases the Class Quoting Limit (“CQL”) in DIA options from
25 to 30. Any questions regarding the rule change may be directed to Pat Sexton, Legal
Division, at 312-786-7467.
July 6, 2005, Volume RB16, Number 27
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