July 8, 2005
Exchange
Bulletin
Volume 33, Number 27
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 8, 2005
CLASS
BID
CBOE
$625,000.00
OFFER
LAST SALE AMOUNT
LAST SALE DATE
$595,000.00
June 30, 2005
LAST SALE AMOUNT
LAST SALE DATE
$700,000.00
CBOT FULL MEMBERSHIP
CLASS
With CBOE Exercise Right
Without CBOE Exercise Right
CBOE Exercise Right
BID
OFFER
$1,925,000.00
$2,070,000.00
$2,000,000.00
$0.00
0.00
N/A
$102,000.00
$175,000.00
$102,000.00
July 5, 2005
N/A
June 27, 2005
Page 2
July 8, 2005
Volume 33, Number 27
Chicago Board Options Exchange
MEMBERSHIP INFORMATION FOR 6/30/05 THROUGH 7/6/05
MEMBERSHIPAPPLICATIONS RECEIVED FOR
WHICH A POSTING PERIOD IS REQUIRED
Individual Membership Applicants
Date Posted
Samuel I. Sallerson, Lessor
1839 N. Burling Street
Chicago, IL 60614
7/1/05
Sondra C. Rabin, Lessor
1300 N. Lake Shore Drive, Apt. 18B
Chicago, IL 60610
7/6/05
Effective Date
Lessor: Pershing LLC
7/1/05
Lessee: Credit Suisse First Boston LLC
YTI Credit Suisse First Boston LLC, NOMINEE
Rate:
1.00%
Term: Monthly
Lessor: Pershing LLC
7/1/05
Lessee: Credit Suisse First Boston LLC
YTJ Credit Suisse First Boston LLC, NOMINEE
Rate:
1.00%
Term: Monthly
Lessor: Pershing LLC
7/1/05
Lessee: Credit Suisse First Boston LLC
YTL Credit Suisse First Boston LLC, NOMINEE
Rate:
1.00%
Term: Monthly
MEMBERSHIP LEASES
New Leases
Effective Date
Lessor: Gabriel Inc.
Lessee: Everest Trading, LLC
Michael DeNardis, NOMINEE
Rate:
1.25%
Term: Monthly
7/1/05
Lessor: Geneva Stock, LLC
Lessee: CTC LLC
Ryan A. Hesser, NOMINEE
Rate:
1.25%
Term: 20 Days
7/1/05
Lessor: Samuel A. Miller
Lessee: Fimat Preferred LLC
Michael Nakielny, NOMINEE
Rate:
1.25%
Term: Monthly
7/1/05
Lessor: Daniel A. Gooze
Lessee: Ronin Capital, LLC
Steven E. Pickett, NOMINEE
Rate:
1.1486%
Term: Monthly
7/1/05
Lessor: Ruth I. Kahn
Lessee: Wolverine Trading LLC
Rate:
1.25%
Term: Monthly
7/1/05
Lessor: Pershing LLC
7/1/05
Lessee: Wellington Capital Markets, LLC
Christopher P. Farry (CPF), NOMINEE
Lessor: Susquehanna Investment Group
Lessee: Westward Capital LLC
Jeffrey S. Dalton, NOMINEE
Rate:
1.25%
Term: Monthly
7/1/05
Lessor: Pershing LLC
7/1/05
Lessee: J.T. Limited Partnership
David M. Wheaton (WTN), NOMINEE
Lessor: Pershing LLC
7/1/05
Lessee: Credit Suisse First Boston LLC
YTB Credit Suisse First Boston LLC, NOMINEE
Rate:
1.00%
Term: Monthly
Lessor: Pershing LLC
7/1/05
Lessee: Credit Suisse First Boston LLC
YTC Credit Suisse First Boston LLC, NOMINEE
Rate:
1.00%
Term: Monthly
Lessor: Pershing LLC
7/1/05
Lessee: Credit Suisse First Boston LLC
YTD Credit Suisse First Boston LLC, NOMINEE
Rate:
1.00%
Term: Monthly
Lessor: Pershing LLC
7/1/05
Lessee: Credit Suisse First Boston LLC
YTE Credit Suisse First Boston LLC, NOMINEE
Rate:
1.00%
Term: Monthly
Lessor: Pershing LLC
7/1/05
Lessee: Credit Suisse First Boston LLC
YTG Credit Suisse First Boston LLC, NOMINEE
Rate:
1.00%
Term: Monthly
Lessor: Hugh P. Nunnally
Lessee: Andrie Trading LLC
Wesley Alan Breton, NOMINEE
Rate:
1.125%
Term: Monthly
7/1/05
Lessor: Rothschild Investment Corporation
Lessee: Kc-Co II LLC
Anthony L. Williams, NOMINEE
Rate:
1.1486%
Term: Monthly
7/1/05
Lessor: Man Securities Inc.
Lessee: Group One Trading, LP
Rate:
1.125%
Term: Monthly
7/1/05
Lessor:
Merrill Lynch Professional
Clearing Corp.
Lessee: Group One Trading, LP
Rate:
1.125%
Term: Monthly
7/1/05
Lessor:
Merrill Lynch, Pierce,
Fenner & Smith, Inc.
Lessee: Group One Trading, LP
Rate:
1.125%
Term: Monthly
7/1/05
Terminated Leases
Termination Date
Lessor: Samuel A. Miller
Lessee: PreferredTrade, Inc.
Michael Nakielny (NIK), NOMINEE
7/1/05
Lessor: Rothschild Investment Corporation 7/1/05
Lessee: Kc-Co Equity Trading, LLC
Anthony L. Williams (ALW), NOMINEE
Lessor: Susquehanna Investment Group
Lessee: Sunset Securities LLC
Brian Huddleston (HUD), NOMINEE
7/1/05
Lessor: Susquehanna Investment Group
7/1/05
Lessee: LiquidPoint, LLC
M. Barbara O’Brien (OBI), NOMINEE
Lessor:
Merrill Lynch Professional
7/1/05
Clearing Corp.
Lessee: Adirondack Electronic Markets LLC
Jonathan M. Birch (THE), NOMINEE
Lessor: Pershing LLC
Lessee: CMZ Trading, LLC
John Guastella (GWZ), NOMINEE
7/1/05
Lessor: Pershing LLC
Lessee: Ronin Capital, LLC
Patrick T. Koehler (TOE), NOMINEE
7/1/05
Page 3
July 8, 2005
Volume 33, Number 27
Chicago Board Options Exchange
Termination Date
Termination Date
Lessor: Pershing LLC
Lessee: Ronin Capital, LLC
Steven E. Pickett (PIK), NOMINEE
7/1/05
Lessor:
Merrill Lynch, Pierce,
Fenner & Smith, Inc.
Lessee: Susquehanna Investment Group
John J. Karp (JKP), NOMINEE
7/1/05
Lessor: Pershing LLC
Lessee: Westward Capital LLC
Jeffrey S. Dalton (DTN), NOMINEE
7/1/05
Lessor: Pershing LLC
Lessee: Citigroup Derivatives Markets Inc.
Scott F. Tinervia (TIN), NOMINEE
7/1/05
Lessor: Daniel A. Gooze
Lessee: Israel A. Englander & Co., Inc.
Martin J. Collins (MJX), NOMINEE
7/1/05
Lessor: Pershing LLC
Lessee: CTC LLC
Brett M. Estell (EST), NOMINEE
7/1/05
Lessor: Ruth I. Kahn
7/1/05
Lessee: Canal Street Trading, LLC
Jeffery P. Thompson (MZU), NOMINEE
Lessor: Jules Sobel
7/1/05
Lessee: Everest Trading, LLC
Michael DeNardis (MDD), NOMINEE
Lessor: Larkspur Securities, Inc.
Lessee: CTC LLC
Brett M. Estell (EST), NOMINEE
7/1/05
Lessor: Hugh P. Nunnally
Lessee: Everest Trading, LLC
Brian E. Salomon (BST), NOMINEE
7/1/05
Lessor: Mark A. Proskine
7/1/05
Lessee: Andrie Trading LLC
Wesley Alan Breton (WAB), NOMINEE
MEMBERSHIP TERMINATIONS
Individual Members
Cassidy McTigue (MCT)
McTigue Trading LLC
440 S. LaSalle, Suite 2101
Chicago, IL 60605
7/1/05
Daniel R. Lomer (LOM)
Grace Trading LLC
440 S. LaSalle, Suite 3400
Chicago, IL 60605
7/1/05
Scott R. Evans (IUU)
Citadel Derivatives Group LLC
131 S. Dearborn, 37th Floor
Chicago, IL 60603
7/5/05
Robert T. Cummings (RRC)
Citadel Derivatives Group LLC
3339 Lapp Lane
Naperville, IL 60564
7/6/05
Lessor(s):
Termination Date
Jules Sobel
56 7th Avenue, Apt. 16H
New York, NY 10011
7/1/05
Nominee(s) / Inactive Nominee(s):
Termination Date
Andre Ponce DeLeon Arruda (AAR)
SMC Option Management LLC
440 S. LaSalle, 19th Floor
Chicago, IL 60605
6/30/05
Giuseppe F. Petrillo (PEP)
Equitec Premier, LLC
111 W. Jackson Blvd., 20th Floor
Chicago, IL 60604
7/1/05
William J. O’Keefe (BOK)
Cornerstone Trading, LLC
440 S. LaSalle, 19th Floor
Chicago, IL 60605
7/1/05
Brian E. Salomon (BST)
Everest Trading, LLC
440 S. LaSalle, Suite 3100
Chicago, IL 60605
7/1/05
Holden K. Hodgson (ODN)
Man Securities Inc.
1617 N. Hudson, #2R
Chicago, IL 60614
7/1/05
David M. Wheaton (WTN)
J.T. Limited Partnership
440 S. LaSalle, Suite 700
Chicago, IL 60605
7/1/05
7/1/05
CBT Exercisers:
Termination Date
Thomas M. Prosek (TMP)
253 Arboretum Circle
Wheaton, IL 60187
7/1/05
Todd R. Soerens (CHZ)
440 S. LaSalle, Suite 2100
Chicago, IL 60605
7/1/05
CBT Registered For:
Termination Date
Thomas J. MacKimm (MIT)
Ronin Capital, LLC
440 S. LaSalle, Suite 743
Chicago, IL 60605
6/30/05
Joshua J. Grant (JSH)
Susquehanna Investment Group
175 W. Jackson Blvd., Suite 1700
Chicago, IL 60604
7/1/05
Henry Y. Choi (HCO)
DRW Securities, LLC
10 S. Riverside Plaza, Suite 2100
Chicago, IL 60606
7/1/05
M. Barbara O’Brien (OBI)
LiquidPoint, LLC
327 Neva
Glenview, IL 60025
7/1/05
Terrence J. Brown (TBR)
Panos Trading Limited Partnership
440 S. LaSalle, Suite 700
Chicago, IL 60605
7/1/05
Jonathan M. Birch (THE)
Adirondack Electronic Markets LLC
400 S. LaSalle, CBOE Box 67
Chicago, IL 60605
Page 4
July 8, 2005
Volume 33, Number 27
Chicago Board Options Exchange
Termination Date
Todd R. Lane (TOD)
Susquehanna Investment Group
175 W. Jackson Blvd., Suite 1700
Chicago, IL 60604
7/5/05
Eren Levi (ERN)
Sparta Group of Chicago, LP
440 S. LaSalle, Suite 2101
Chicago, IL 60605
7/6/05
Member Organizations
Effective Date
Kent L. Oots (KLO)
7/1/05
Stephens Inc.
111 Center Street
Little Rock, AR 72201
Type of Business to be Conducted: Floor Broker
Paul A. Partyka (PTY)
7/6/05
Sparta Group Of Chicago, LP
4617 W. 99th Place
Oak Lawn, IL 60453
Type of Business to be Conducted: Market Maker
CBT Registered For:
Termination Date
Member Organizations
McTigue Trading LLC
440 S. LaSalle, Suite 2101
Chicago, IL 60605
7/1/05
Lessee(s):
Lessee(s):
Termination Date
PreferredTrade, Inc.
220 Montgomery Street
San Francisco, CA 94194
7/1/05
KC-Co Equity Trading, LLC
10 S. LaSalle, Suite 2300
Chicago, IL 60603
7/1/05
Adirondack Electronic Markets LLC
120 W. 45th Street, 25th Floor
New York, NY 10036
7/1/05
Lessor(s):
Termination Date
Larkspur Securities, Inc.
401 S. LaSalle, Suite 200
Chicago, IL 60605
7/1/05
Effective Date
Fimat Preferred LLC
7/1/05
667 Mission St., Suite 400
San Francisco, CA 94105
Type of Business to be Conducted: Floor Broker
JOINT ACCOUNTS
New Participants
Acronym
Effective Date
David Michael Johnson
QBA
6/30/05
Benjamin J. Feller
QCP
7/1/05
Thomas J. MacKimm
QTF
7/5/05
Thomas J. MacKimm
QVV
7/5/05
Paul A. Partyka
QUB
7/6/05
New Accounts
Acronym
Effective Date
EFFECTIVE MEMBERSHIPS
DWT DRO WST
Trading RMM
QDQ
7/1/05
Individual Members
Benjamin W. Phillips
QDQ
7/1/05
CBT Registered For:
Effective Date
Thomas J. MacKimm (MIT)
7/5/05
Panos Trading Limited Partnership
440 S. LaSalle, Suite 743
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Nominee(s) / Inactive Nominee(s):
Effective Date
David Michael Johnson (DEJ)
6/30/05
Ronin Capital, LLC
230 S. LaSalle, Suite 400
Chicago, IL 60604
Type of Business to be Conducted: Market Maker
Jeffrey A. Fairbanks (JFK)
7/1/05
Equitec Proprietary Markets, LLC
111 W. Jackson, 20th Floor
Chicago, IL 60604
Type of Business to be Conducted: Floor Broker
Matthew S. Heyn (HEY)
7/1/05
TJM Investments, LLC
11211 S. Western Ave., #Rear
Chicago, IL 60643
Type of Business to be Conducted: Floor Broker
Donald E. Lapato (DNI)
7/1/05
Navillus, Inc.
9235 S. Winchester
Chicago, IL 60620
Type of Business to be Conducted: Floor Broker
Terminated Participants Acronym
Termination Date
Andre Ponce
DeLeon Arruda
QSV
6/30/05
Thomas J. MacKimm
QAB
6/30/05
Robert B. Duddy
CIT
6/30/05
Giuseppe F. Petrillo
QZL
7/1/05
Terrence J. Brown
QVV
7/1/05
Terrence J. Brown
QTF
7/1/05
William J. O’Keefe
QMV
7/1/05
Brian E. Salomon
QAZ
7/1/05
Daniel R. Lomer
QDW
7/1/05
Joshua J. Grant
QEW
7/1/05
Joshua J. Grant
QFS
7/1/05
Joshua J. Grant
QGS
7/1/05
Joshua J. Grant
QLO
7/1/05
Joshua J. Grant
QNA
7/1/05
Joshua J. Grant
QVA
7/1/05
Joshua J. Grant
QYH
7/1/05
Page 5
July 8, 2005
Volume 33, Number 27
Chicago Board Options Exchange
Terminated Participants Acronym
Termination Date
Joshua J. Grant
QYS
7/1/05
Joshua J. Grant
QIS
7/1/05
Joshua J. Grant
QJY
7/1/05
Joshua J. Grant
QMD
7/1/05
Joshua J. Grant
QMP
7/1/05
Joshua J. Grant
QNY
7/1/05
Joshua J. Grant
QPN
7/1/05
Joshua J. Grant
QPO
7/1/05
Joshua J. Grant
QSM
7/1/05
Joshua J. Grant
QUT
7/1/05
Scott R. Evans
CIT
7/5/05
Todd R. Lane
QEX
7/5/05
Todd R. Lane
QFS
7/5/05
Todd R. Lane
QIG
7/5/05
Terrence J. Andrews
7/5/05
From:
Nominee For CTC LLC; Market Maker/Floor Broker
To:
CBT Registered For CTC LLC; Market Maker/Floor
Broker
Todd R. Lane
QLO
7/5/05
Member Organizations
Todd R. Lane
QNA
7/5/05
Todd R. Lane
QPX
7/5/05
Todd R. Lane
QSM
7/5/05
Wellington Capital Markets, LLC
7/1/05
From:
Lessee; Associated with a Market Maker
To:
Lessee/Member Organization Affiliated with a CBT
Registered For; Associated with a Market Maker
Todd R. Lane
QYS
7/5/05
Todd R. Lane
QZT
7/5/05
Todd R. Lane
QGS
7/5/05
Eren Levi
QUB
7/6/05
Robert T. Cummings
CIT
7/6/05
Terminated Accounts
Acronym
Termination Date
Steve H. Kats
QWS
6/30/05
David M. Wheaton
QJL
7/1/05
CHANGES IN MEMBERSHIP STATUS
Individual Members
Effective Date
Daniel T. Hillegass
7/1/05
From:
Nominee For Group One Trading LP; Market Maker
To:
Nominee For Group One Trading LP; Market Maker/
Floor Broker
Stephen M. Dillinger
7/1/05
From:
Nominee For Cornerstone Trading LLC; Market Maker/
Floor Broker
To:
Nominee For Cornerstone Trading LLC; Market Maker/
Floor Broker/Remote Market Maker
David W. Silvester
7/1/05
From:
Nominee For Wellington Capital Markets, LLC; Market
Maker
To:
CBT Registered For Wellington Capital Markets, LLC;
Market Maker
Effective Date
Jeffery P. Thompson
7/1/05
From:
Nominee For Canal Street Trading, LLC; Market Maker
To:
CBT Registered For Canal Street Trading, LLC; Market
Maker
David J. Masino
7/1/05
From:
CBT Registered For Archelon LLC; Market Maker
To:
Nominee For Archelon LLC; Market Maker
Michael Nakielny
7/1/05
From:
Nominee For PreferredTrade, Inc.; Floor Broker
To:
Nominee For Fimat Preferred LLC; Floor Broker
Brian Huddleston
7/1/05
From:
Nominee For Sunset Securities LLC; Market Maker
To:
CBT Registered For Sunset Securities LLC; Market
Maker
Anthony L. Williams
7/1/05
From:
Nominee For KC-Co Equity Trading, LLC; Market
Maker
To:
Nominee For KC-Co II LLC; Market Maker
Effective Date
Sunset Securities LLC
7/1/05
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
Credit Suisse First Boston LLC
7/1/05
From:
Lessor/Owner/Non-Member Customer Business/Order
Service Firm; Associated with a Market Maker/Floor
Broker/Remote Market Maker
To:
Lessor/Owner/Lessee/Non-Member Customer
Business/ Order Service Firm; Associated with a
Market Maker/Floor Broker/Remote Market Maker
Canal Street Trading, LLC
7/1/05
From:
Lessee/ Member Organization Affiliated with a CBT
Registered For; Associated with a Market Maker
To:
Member Organization Affiliated with a CBT Registered
For; Associated with a Market Maker
Man Securities Inc.
7/1/05
From:
Owner/Lessee/Non-Member Customer Business/Order
Service Firm; Associated with a Market Maker/Floor
Broker
To:
Lessor/Lessee/Non-Member Customer Business/Order
Service Firm; Associated with a Market Maker/Floor
Broker
MEMBER ADDRESS CHANGES
Individual Members
Effective Date
M. Eoin Mast
178 Mendham Road
Morristown, NJ 07960
6/30/05
Page 6
July 8, 2005
Patrick D. Lusk
418 W. Franklin Ave.
Naperville, IL 60540
Volume 33, Number 27
Chicago Board Options Exchange
Effective Date
Member Organizations
Effective Date
7/1/05
JAG Trading LLC
32300 Northwestern Hwy., Suite 234
Farmington Hills, MI 48334
6/30/05
RESEARCH CIRCULARS
The following Research Circulars were distributed between July 1 and July 7, 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 #RS05-454
July 1, 2005
Great Lakes Chemical Corporation (“GLK”) Merger
COMPLETED with Crompton Corporation (“CK”)
Research Circular #RS05-455
July 1, 2005
UnitedGlobalCom, Inc. Class A (“UCOMA/adj. IGZ”)
Determination of Cash-in-Lieu Amount
Research Circular #RS05-460
July 6, 2005
Toll Brothers, Inc. (“TOL/YKW/LYT/OTY/VYT”)
2-for-1 Stock Split
Ex-Distribution Date: July 11, 2005
Research Circular #RS05-461
July 6, 2005
AU Optronics Corp. (“AUO”)
9% ADS Dividend
Ex-Distribution Date: July 14, 2005
Research Circular #RS05-462
July 6, 2005
Nara Bancorp, Inc. (“NARAE/QAN”)
Underlying Symbol Change to “NARA”
Effective Date: July 7, 2005
Research Circular #RS05-464
July 7, 2005
Caterpillar, Inc. (“CAT/VKT/WKT”)
2-for-1 Stock Split
Ex-Distribution Date: July 14, 2005
Research Circular #RS05-466
July 7, 2005
DoubleClick Inc. (“DCLK/QWE/OVT/YKH”) Proposed Merger
with Click Acquisition Corp.
July 13, 2005
Regulatory
Bulletin
Volume RB16, Number 28
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 RG05-59
Date:
June 30, 2005
To:
The Membership
From:
Financial Planning Committee
Subject:
Fee Reductions Program Extended and Fee Reductions for July 2005
The Prospective Fee Reduction Program in effect for the period July 2004 through June
2005 has been extended through December 2005. Details of the program were provided in
Regulatory Circular RG04-77 and are also available on CBOE’s Fee Schedule at
www.cboe.com.
CBOE has averaged approximately 1,560,000 contracts per day (CPD) during the period
July 2004 through June 2005.
Per the Prospective Fee Reduction Program, Market-Maker and DPM transaction fees and
floor brokerage fees will be reduced by 20% per contract from standard rates during July
2005 (June 2005 discounts were also 20%).
Fee
Equities Market-Maker Trans. Fee
Equities DPM Trans. Fee
QQQQ, SPY & Indexes
Mrkt.-Maker/DPM Trans. Fee
Floor Brokerage Fee
Standard
Rate
July ‘05
Rate
22 cents
12 cents
(1)24 cents
17.6 cents
9.6 cents
(1) 19.2 cents
4 cents
3.2 cents
(1) Above rates exclude a 10 cents license fee surcharge for the following products:
•
Dow Jones indexes
•
Mini Nasdaq 100 (MNX)
•
Nasdaq 100 (NDX)
•
Russell 2000 cash settled index (RUT)
Please call Ermer Love (312-786-7032) or Don Patton (312-786-7026) if you have any questions.
Rule Changes,
Interpretations
and Policies
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-2005-50
Increased Preferred DPM Participation Entitlement
On June 29, 2005, the Exchange filed Rule Change File No. SR-CBOE-2005-50, which
filing increases the Preferred DPM participation entitlement to 40%. Any questions regarding the rule change may be directed to Angelo Evangelou, Legal Division, at 312-786-7464.
The text of the proposed rule amendments is set forth below. Proposed new language is
underlined. Proposed deleted language is [stricken out].
Rule 8.87. Participation Entitlement of DPMs and e-DPMs
(a) Subject to the review of the Board of Directors, the MTS Committee may
establish from time to time a participation entitlement formula that is applicable to
all DPMs.
(b) The participation entitlement for DPMs and e-DPMs (as defined in Rule 8.92)
shall operate as follows:
(1) Generally.
(i)
(ii)
(iii)
To be entitled to a participation entitlement, the DPM/e-DPM
must be quoting at the best bid/offer on the Exchange.
A DPM/e-DPM may not be allocated a total quantity greater than
the quantity that the DPM/e-DPM is quoting at the best bid/offer
on the Exchange.
The participation entitlement is based on the number of contracts remaining after all public customer orders in the book at
the best bid/offer on the Exchange have been satisfied.
(2) Participation Rates applicable to DPM Complex. The collective DPM/e-DPM
participation entitlement shall be: 50% when there is one Market-Maker also quoting at the best bid/offer on the Exchange; 40% when there are two Market-Makers
also quoting at the best bid/offer on the Exchange; and, 30% when there are three
or more Market-Makers also quoting at the best bid/offer on the Exchange.
(3) Allocation of Participation Entitlement Between DPMs and e-DPMs. The participation entitlement shall be as follows: If the DPM and one or more e-DPMs are
quoting at the best bid/offer on the Exchange, the e-DPM participation entitlement
shall be one-half (50%) of the total DPM/e-DPM entitlement and shall be divided
equally by the number of e-DPMs quoting at the best bid/offer on the Exchange.
The remaining half shall be allocated to the DPM. If the DPM is not quoting at the
best bid/offer on the Exchange and one or more e-DPMs are quoting at the best
bid/offer on the Exchange, then the e-DPMs shall be allocated the entire participation entitlement (divided equally between them). If no e-DPMs are quoting at the
best bid/offer on the Exchange and the DPM is quoting at the best bid/offer on the
Exchange, then the DPM shall be allocated the entire participation entitlement. If
only the DPM and/or e-DPMs are quoting at the best bid/offer on the Exchange
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SR-CBOE-2005-50 continued
(with no Market-Makers at that price), the participation entitlement shall not be
applicable and the allocation procedures under Rule 6.45A shall apply.
(4) Allocation of Participation Entitlement Between DPMs and e-DPMs for Orders
Specifying a Preferred DPM. Notwithstanding the provisions of subparagraph (b)(3)
above, the Exchange may allow, on a class-by-class basis, for the receipt of marketable orders, through the Exchange’s Order Routing System when the Exchange’s
disseminated quote is the NBBO, that carry a designation from the member transmitting the order that specifies a DPM or e-DPM in that class as the “Preferred
DPM” for that order.
In such cases and after the provisions of subparagraph (b)(1)(i) and (iii) above have
been met, then the Preferred DPM participation entitlement shall be 50% when
there is one Market-Maker also quoting at the best bid/offer on the Exchange; and
40% when there are two or more Market-Makers also quoting at the best bid/offer
on the Exchange[; and, 30% when there are three or more Market-Makers also
quoting at the best bid/offer on the Exchange], subject to the following:
(i) if the Preferred DPM is not quoting at the best bid/offer on the Exchange then the participation entitlement set forth in subparagraph (b)(3)
above shall apply;
(ii) in no case shall the Preferred DPM be allocated, pursuant to this participation right, a total quantity greater than the quantity that the Preferred
DPM is quoting at the best bid/offer on the Exchange.
The Preferred DPM participation entitlement set forth in subparagraph (b)(4) of this
Rule shall be in effect until June 2, 2006 on a pilot basis.
. . . Interpretations and Policies:
.01 Notwithstanding subparagraph (b)(2) above, the Exchange may establish a
lower DPM Complex Participation Rate on a product-by-product basis for newlylisted products or products that are being allocated to a DPM trading crowd for the
first time. Notification of such lower participation rate shall be provided to members
through a Regulatory Circular.
SR-CBOE-2005-52
Extension of Prospective Fee Reduction Program
On June 30, 2005, the Exchange filed Rule Change File No. SR-CBOE-2005-52, which filing
amends the Fee Schedule to extend the Prospective Fee Reduction program through December 31, 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.
July 13, 2005, Volume RB16, Number 28
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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-2005-51
Linkage Amendment
On June 30, 2005, the Exchange filed Rule Change File No. SR-CBOE-2005-51, which
filing amends CBOE’s Linkage rules to adopt the “trade/book and ship” concepts proposed
in a recent Linkage Plan amendment. Any questions regarding the rule change may be
directed to Angelo Evangelou, Legal Division, at 312-786-7464. The text of the proposed
rule amendments is set forth below. Proposed new language is underlined. Proposed
deleted language is [stricken out].
6.80. Definitions
The following terms shall have the meaning specified in this Rule solely for the
purpose of this Section E under Chapter VI:
(1)-(18)
No Change.
(19) “Trade-Through” means a transaction in an options series at a price that is
inferior to the NBBO, but shall not include a transaction that occurs at a price that
is one minimum quoting increment inferior to the NBBO provided a Linkage Order
is contemporaneously sent to each Participant disseminating the NBBO for the
full size of the Participant’s bid (offer) that represents the NBBO.
(20)-(21) No Change.
*****
6.84 Locked and Crossed Markets
(a)-(b)
No Change.
(c) Exception. The provisions of paragraphs (a) and (b) above do not apply to
situations where a member books an order that would lock a market and contemporaneously sends through the Linkage a P/A Order or Principal Order for the full
size of the bid or offer that was locked.
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