October 7, 2005
Exchange
Bulletin
Volume 33, Number 40
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 (January 1 through
December 31) is $200.00 ($100.00 after July 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, OCTOBER 7, 2005
CLASS
BID
CBOE
$500,000.00
OFFER
LAST SALE AMOUNT
$645,000.00
LAST SALE DATE
$625,000.00
October 6, 2005
CBOT FULL MEMBERSHIP
CLASS
BID
With CBOE Exercise Right
$2,185,000.00
Without CBOE Exercise Right
$2,000,000.00
$20,000.00
CBOE Exercise Right
OFFER
LAST SALE AMOUNT
$2,350,000.00
LAST SALE DATE
$2,155,000.00
October 4, 2005
$0.00
$1,900,000.00
October 4, 2005
$100,000.00
$98,000.00
October 4, 2005
CBOE MEMBERSHIP SALES AND TRANSFERS
From
Charles J. Peres
To
R&D Partnership
Price/Transfer
$625,000.00
Date
10/6/2005
Page 2
October 7, 2005
Volume 33, Number 40
Chicago Board Options Exchange
Information Circular IC05-131
Date:
September 30, 2005
To:
Membership
From:
Nominating Committee
Re:
Candidates Nominated for
Board of Directors and Nominating Committee
The Nominating Committee held meetings and conducted interviews to consider candidates for expiring terms on the Board of
Directors and Nominating Committee. After careful consideration and deliberation, the Nominating Committee selected the following nominees
for these positions. The nominees are listed alphabetically in each category with a notation indicating the available positions for which each
nominee is eligible. The membership will be asked to vote on the Nominating Committee’s recommended slate of nominees at the Annual
Election Meeting that will be held on Thursday, November 17, 2005.
Board of Directors
Candidate Nominated for
Floor Director
(One Available Position – 3-Year Term, Class I)
Edward Tilly
Managing Member, KATL Group, LLC
Eligible for Floor Director
Candidate Nominated for
Lessor Director
(One Available Position – 3-Year Term, Class I)
William Power
Eligible for Lessor Director
Candidates Nominated for
Public Director
(Three Available Positions – 3-Year Terms, Class I)
James Boris
Retired Chairman and Chief Executive Officer,
EVEREN Capital Corporation and EVEREN Securities, Inc.
Eligible for Public Director
Carole Stone
Former Director, New York State Division of the Budget
Eligible for Public Director
Eugene Sunshine
Senior Vice President for Business and Finance, Northwestern University
Eligible for Public Director
Nominating Committee
Candidate Nominated for
Firm Member
(One Available Position – 3-Year Term)
Peter Bottini
Executive Vice President - Trading/Customer Service, optionsXpress, Inc.
Eligible for Firm Member
Candidates Nominated for
Floor Member
(Two Available Positions – 3-Year Term and 1-Year Term)
Dennis Carta
Partner, Ronin Capital, LLC
Eligible for Floor Member
(3-Year Term)
Richard Fuller
Trader DPM/Partner, G-Bar Limited Partnership
Eligible for Floor Member
(1-Year Term)
Page 3
October 7, 2005
Volume 33, Number 40
Chicago Board Options Exchange
Candidate Nominated for
Lessor Member
(One Available Position – 3-Year Term)
Jeffrey Kirsch
Eligible for Lessor Member
Candidate Nominated for
Public Member
(One Available Position – 3-Year Term)
J. Douglas Gray
Managing Director, Braydon Partners, LLC
Eligible for Public Member
The following persons currently serve on the Nominating Committee: Gerald McNulty (GMC) (Chairman), Terrence Andrews (TAN),
Lawrence Blum, Anthony Carone (AJC), Daniel Carver (DPC), Thomas Durkin, Timothy Feeney (FNY), Donald Jacobs, Kenneth Mueller (OBE),
and Nickolas Neubauer.
*****
Qualified individuals may petition to run against slated candidates for the Board of Directors and Nominating Committee by obtaining
the signatures of at least 100 voting members of the Exchange and submitting those names and signatures to the Office of the Secretary no
later than 5:00 p.m. (Chicago time) on Monday, October 31, 2005. All candidates must satisfy the applicable qualifications at the time of their
nomination and at the time of election. The Executive Committee is the sole judge of whether a candidate nominated by petition satisfies the
applicable qualification criteria. Brief biographies for all candidates will be included with the voting materials for the Annual Election Meeting.
If you have any questions regarding the petition process, please call Joanne Moffic-Silver at (312) 786-7462 or Jaime Galvan at (312) 7867058.
DPM APPOINTMENT TRANSFER PROPOSAL – September 29, 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 SLK-Hull Derivatives, LLC (“SHD”), a member organization operating as a DPM,
regarding a transfer of its DPM appointments to PEAK6 Capital Management LLC (“PEAK6”). The SHD DPMs are located at Post 1 Station 4, Post 1 – Station 5, Post 1 – Station 9, and Post 1 – Station 10.
The current PEAK6 ownership structure is as follows: PEAK6 Investments LP - 100%, the General Partner of which is PEAK6, LLC.
Under the proposal, SHD would transfer all of its DPM appointment to PEAK6 and several SHD personnel also will be transferring to
PEAK6. Gavin Lowrey would oversee PEAK6’s DPM operations.
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 October 12, 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 4
October 7, 2005
Volume 33, Number 40
Chicago Board Options Exchange
DPM APPOINTMENT TRANSFER PROPOSAL – October 5, 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 Citadel Derivatives Group, LLC (“Citadel”), a member organization operating as a DPM,
regarding a transfer of its DPM appointments. The Citadel DPM is located at Post 4 - Station 5.
Currently, Citadel’s ownership structure is as follows: Citadel Wellington, LLC – 99%, Citadel Limited Partnership – 1%.
Under the proposal, Citadel would transfer all of its DPM appointments to Susquehanna International Group, LLP (“SIG”) and Paul Jiganti
of SIG would assume responsibility for overseeing the operations of the DPM on behalf of SIG.
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 October 18, 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.
MEMBERSHIP INFORMATION FOR 9/29/05 THROUGH 10/5/05
MEMBERSHIP APPLICATIONS RECEIVED FOR
WHICH A POSTING PERIOD IS REQUIRED
Individual Membership Applicants
Date Posted
Burton P. Bilfeld, Lessor
1217 W. Roscoe St.
Chicago, IL 60657
10/4/05
Charles C. Sorsby, Lessor
100 E. Huron St., Suite 3140
Chicago, IL 60611
10/5/05
Member Organization Applicants
Date Posted
Genesis Options Trading LLC
220 Montgomery St., #500
San Francisco, CA 94104
Allan J. Leong – Operating Manager
10/3/05
MEMBERSHIP LEASES
Effective Date
Lessor: Botta Specialist, LLC
10/3/05
Lessee: BOTTA Capital Management LLC
Kelly C. Luthringshausen, NOMINEE
Rate:
1.125%
Term: Monthly
Lessor: Timothy C. Boyd
Lessee: Goldman Sachs & Co.
Eric T. McGoey, NOMINEE
Rate:
1.2455%
Term: Monthly
10/3/05
Lessor: Geneva Stock, LLC
Lessee: Geneva Trading LLC
Joseph T. Pultz, NOMINEE
Rate:
1.2455%
Term: Monthly
10/3/05
Lessor: Jeffry T. Mandell
Lessee: Everest Trading, LLC
Brooks C. Taylor, NOMINEE
Rate:
1.00%
Term: Monthly
10/3/05
10/3/05
New Leases
Effective Date
Lessor: Mike Koress
Lessee: Brian Ludden LLC
Brian F. Ludden, NOMINEE
Rate:
1.2393%
Term: Monthly
9/29/05
Lessor: Howard I. Lidov
Lessee: Wolverine Trading LLC
James W. Moore, NOMINEE
Rate:
1.2455%
Term: Monthly
10/3/05
Lessor: Harry L. Cody
Lessee: Brian Ludden LLC
David A. Ludden, NOMINEE
Rate:
1.2393%
Term: Monthly
9/29/05
Lessor: Bear Wagner Specialists LLC
Lessee: KV Execution Services, LLC
Frederick A. Gahl, NOMINEE
Rate:
1.25%
Term: Monthly
10/3/05
Lessor: OAKPORTE, LP
Lessee: Brian Ludden LLC
Jeffrey D. Gehrke, NOMINEE
Rate:
1.25%
Term: Monthly
9/29/05
Lessor: Ilene M. Resnick Garber
Lessee: Zydeco Trading LLC
Rate:
1.00%
Term: Monthly
10/3/05
Lessor: W. Thomas Jones LLC
Lessee: Sallerson-Troob LLC
Garett J. Nesbitt, NOMINEE
Rate:
$6,200.00
Term: 6 Months
10/3/05
Lessor: Gloria and David Company
Lessee: Sallerson-Troob LLC
Matthew J. Sheldon, NOMINEE
Rate:
1.125%
Term: Monthly
Lessor: Berton Rubin
Lessee: Sallerson-Troob LLC
Mark Wolicki, NOMINEE
Rate:
1.125%
Term: Monthly
10/3/05
Lessor: William Toll & Co.
Lessee: Sling Trading LLC
Gregory J. Olson, NOMINEE
Rate:
1.2455%
Term: Monthly
10/3/05
Page 5
October 7, 2005
Volume 33, Number 40
Chicago Board Options Exchange
Effective Date
Lessor: Dru Options
Lessee: WDG Trading, LLC
Phillip Dop, NOMINEE
Rate:
1.125%
Term: Monthly
10/3/05
Lessor: John Ferro
Lessee: Ronin Capital, LLC
Brian G. Hunt, NOMINEE
Rate:
1.2455%
Term: Monthly
10/4/05
Lessor: O & R Options Co.
Lessee: Vintage Capital LLC
Daniel P. Scadron, NOMINEE
Rate:
1.125%
Term: Monthly
10/5/05
Terminated Leases
Termination Date
Lessor: OAKPORTE, LP
9/29/05
Lessee: Northern Access LLC
Jeffrey D. Gehrke (GKE), NOMINEE
Termination Date
Lessor: Karen E. Strano
Lessee: BOTTA Capital Management LLC
David L. Seidman (SZE), NOMINEE
10/3/05
Lessor: Dru Options
Lessee: Harrison Trading Group, LLC
Phillip Dop (DOP), NOMINEE
10/3/05
Lessor: Gahl & Schwartz Inc.
Lessee: KV Execution Services, LLC
Frederick A. Gahl (FG), NOMINEE
10/3/05
Lessor: Jeffry T. Mandell
Lessee: DZL Options Inc.
David R. Zalesky (DZL), NOMINEE
10/3/05
Lessor: General Options Limited
10/3/05
Partnership
Lessee: BOTTA Capital Management LLC
Kelly C. Luthringshausen (KCL), NOMINEE
9/29/05
Lessor: Lawrence C. Kaufman
Lessee: Sallerson-Troob LLC
Garett J. Nesbitt (NEZ), NOMINEE
10/3/05
Lessor: Harry L. Cody
Lessee: Northern Access LLC
David A. Ludden (DAL), NOMINEE
9/29/05
Lessor: O & R Options Co.
Lessee: Everest Trading, LLC
Brooks C. Taylor (BCT), NOMINEE
10/3/05
Lessor: Mike Koress
Lessee: Northern Access LLC
Brian F. Ludden (LDO), NOMINEE
Lessor: John Ferro
Lessee: Sling Trading LLC
Gregory J. Olson (IGO), NOMINEE
10/3/05
Lessor: Howard I. Lidov
10/3/05
Lessee: S & W Grain Co.
Brian M. Connelly (BCC), NOMINEE
Lessor: Theodore E. Darch
Lessee: Geneva Trading LLC
Joseph T. Pultz (JTP), NOMINEE
10/3/05
Lessor: Joseph A. Pirus
Lessee: Quiet Light Securities LLC
Kirk M. Wojak (WOJ), NOMINEE
10/3/05
Lessor: Richard W. Aaron
Lessee: JPE Options Inc.
Joseph P. Perona (JPE), NOMINEE
10/3/05
Lessor: John R. Power
10/3/05
Lessee: Zydeco Trading LLC
Matthew J. Sheldon (SHL), NOMINEE
Lessor: Berton Rubin
Lessee: Zydeco Trading LLC
Mark Wolicki (IKI), NOMINEE
10/3/05
Lessor: EWT LLC
10/3/05
Lessee: Consolidated Trading, LLC
Mei Mei Christine Chan (WOW), NOMINEE
Lessor: George D. Hinchcliff
10/3/05
Lessee: Platinum Financial LLC
Andrew KT Powers (AKP), NOMINEE
Lessor: Botta Specialist, LLC
Lessee: William J. Popper (WAP)
10/3/05
Lessor: Ilene M. Resnick Garber
Lessee: SMC Option Management LLC
10/3/05
Lessor: William A. Rosen
Lessee: Jackson Financial Group, Inc.
10/3/05
Lessor: Geneva Stock, LLC
Lessee: CTC LLC
10/3/05
Lessor: Patrick J. English
10/3/05
Lessee: Quiet Light Securities LLC
James C. Kowalski (JCK), NOMINEE
Lessor: Gloria And David Company
Lessee: Zydeco Trading LLC
10/3/05
MEMBERSHIP TERMINATIONS
Lessor: Charles J. Peres
10/3/05
Lessee: Zydeco Trading LLC
Christopher M. Quander (IQI), NOMINEE
Individual Members
CBT Exercisers:
Termination Date
Lessor: Joel E. Frazin
Lessee: BOTTA Capital Management LLC
10/3/05
10/4/05
Lessor: William Toll & Co.
Lessee: Geneva Trading LLC
10/3/05
Tim R. Wipert
1415 N. Dearborn, #27B
Chicago, IL 60610
CBT Registered For:
Termination Date
Lessor: Timothy C. Boyd
Lessee: BBS Partners LLC
Steven R. Baer (SRB), NOMINEE
10/3/05
David S. Fleming (DSF)
G-Bar Limited Partnership
1040 Oak Knoll Drive
Lake Forest, IL 60045
10/3/05
Page 6
October 7, 2005
Volume 33, Number 40
Chicago Board Options Exchange
Termination Date
Termination Date
Michael T. Kalchbrenner (MTK)
Panos Trading Limited Partnership
440 S. LaSalle, Suite 743
Chicago, IL 60605
10/3/05
James D. Sullivan (JDS)
Navillus, Inc.
9235 S. Winchester
Chicago, IL 60620
10/3/05
M. Eoin Mast
Link Strategies, LP
178 Mendham Road
Morristown, NJ 07960
10/3/05
Ivan Tchorbadjiyski (ILT)
Sparta Group Of Chicago, LP
440 S. LaSalle, Suite 2101
Chicago, IL 60605
10/3/05
Daniel J. Coyne (CDJ)
Coyne Trading, LLC
440 S. LaSalle, Suite 1822
Chicago, IL 60605
10/3/05
Mark D. Freund (KYL)
PFTC LLC
10049 S Seeley Ave.
Chicago, IL 60643
10/3/05
Paul K. Suvak (SUV)
PKS Trading LLC
440 S. LaSalle, Suite 1822
Chicago, IL 60605
10/3/05
David R. Zalesky (DZL)
DZL Options Inc.
440 S. LaSalle, Suite 3100
Chicago, IL 60605
10/3/05
Nominee(s) / Inactive Nominee(s):
Termination Date
Member Organizations
Eren Levi (ERN)
Sparta Group Of Chicago, LP
440 S. LaSalle, Suite 2101
Chicago, IL 60605
9/29/05
CBT Registered For:
Termination Date
Link Strategies, LP
7 Alta Court
West Windsor, NJ 08550
10/3/05
Joseph Feldman (TMF)
Equitec-Schwartz, LLC
141 W. Jackson, Suite 300
Chicago, IL 60604
9/29/05
TEV LLC
440 S. LaSalle, Suite 1749
Chicago, IL 60605
10/3/05
William P. Litgen (LTG)
Northern Access LLC
440 S. LaSalle, Suite 1569
Chicago, IL 60605
9/29/05
Coyne Trading, LLC
440 S. LaSalle, Suite 1822
Chicago, IL 60605
10/3/05
9/29/05
PKS Trading LLC
440 S. LaSalle, Suite 1822
Chicago, IL 60605
10/3/05
Daniel P. Scadron (DPS)
Northern Access LLC
440 S. LaSalle, 9th Floor
Chicago, IL 60605
10/3/05
Patrick S. Hamilton (HUK)
BBS Partners LLC
440 S. LaSalle, Suite 623
Chicago, IL 60605
10/3/05
Cool Breeze Inc.
440 S. LaSalle, Suite 1822
Chicago, IL 60605
Lessee(s):
Termination Date
10/3/05
DZL Options Inc.
440 S. LaSalle, Suite 3100
Chicago, IL 60605
10/3/05
Andrew KT Powers (AKP)
Platinum Financial LLC
440 S. LaSalle, Suite 713
Chicago, IL 60605
10/3/05
Scott M. Kaplan (SKQ)
Quiet Light Securities LLC
141 W. Jackson, Suite 2020A
Chicago, IL 60604
10/3/05
Harrison Trading Group, LLC
601 S. LaSalle, Suite 200
Chicago, IL 60605
David Plandowski (DXP)
Zydeco Trading LLC
440 S. LaSalle, Suite 3100
Chicago, IL 60605
10/3/05
Timothy L. Spears (HKT)
Quiet Light Securities LLC
141 W. Jackson, Suite 2020A
Chicago, IL 60604
10/3/05
W. Thomas Jones (MZE)
W. Thomas Jones LLC
440 S. LaSalle, Suite 950
Chicago, IL 60605
10/3/05
Donald D. Ziol (DZD)
Consolidated Trading, LLC
440 S. LaSalle, Suite 3100
Chicago, IL 60605
10/3/05
EFFECTIVE MEMBERSHIPS
Individual Members
CBT Registered For:
Effective Date
David R. Zalesky (DZL)
10/5/05
DZL Options Inc.
440 S. LaSalle, Suite 3100
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Page 7
October 7, 2005
Volume 33, Number 40
Chicago Board Options Exchange
New Accounts
Acronym
Effective Date
Ivan Tchorbadjiyski (ILT)
9/29/05
Sparta Group Of Chicago, LP
440 S. LaSalle, Suite 2101
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
David A. Ludden
QBR
9/29/05
Benjamin W. Phillips
QDR
10/3/05
Mark E. Westcott
QDR
10/3/05
Sloan M. Smith (SLN)
9/30/05
Botta Specialist, LLC
440 S. LaSalle, Suite 960
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Terminated Participants Acronym
Termination Date
Eren Levi
QUB
9/29/05
Andrew KT Powers
QZA
10/3/05
Eric T. McGoey (GOO)
10/3/05
Goldman Sachs & Co.
440 S. LaSalle
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Timothy L. Spears
QHJ
10/3/05
Timothy L. Spears
QHN
10/3/05
Scott M. Kaplan
QHJ
10/3/05
James W. Moore (JIM)
10/3/05
Wolverine Trading LLC
1048 N. Ashland
Chicago, IL 60622
Type of Business to be Conducted: Market Maker/Floor Broker
Scott M. Kaplan
QHD
10/3/05
David Plandowski
QZK
10/3/05
Michael T. Kalchbrenner
QTF
10/3/05
Daniel P. Scadron (DPS)
10/5/05
Vintage Capital LLC
440 S. LaSalle, 9th Floor
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Michael T. Kalchbrenner
QVV
10/3/05
Donald D. Ziol
QCI
10/3/05
Donald D. Ziol
QRI
10/3/05
Member Organizations
Mark D. Freund
QPT
10/3/05
Mark Wolicki
QDZ
10/3/05
Mark Wolicki
QKX
10/3/05
Mark Wolicki
QZK
10/3/05
Matthew J. Sheldon
QKX
10/3/05
Matthew J. Sheldon
QZK
10/3/05
Terminated Accounts
Acronym
Termination Date
Brian F. Ludden
QLN
9/29/05
David A. Ludden
QLN
9/29/05
Jeffrey D. Gehrke
QLN
9/29/05
William P. Litgen
QLN
9/29/05
Nominee(s) / Inactive Nominee(s):
CBT Registered For:
Effective Date
Effective Date
WDG Trading, LLC
10/3/05
601 S. LaSalle, Suite 200
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
DZL Options Inc.
10/5/05
440 S. LaSalle, Suite 3100
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Lessee(s):
Effective Date
Brian Ludden LLC
9/29/05
2775 N. Kenmore
Chicago, IL 60614
Type of Business to be Conducted: Market Maker
JOINT ACCOUNTS
Daniel P. Scadron
QLN
9/29/05
New Participants
Acronym
Effective Date
Scott C. England
QLN
9/29/05
Michael T. Cohn
QCM
9/29/05
Paul Aronson
QNG
10/3/05
Sloan M. Smith
QYZ
9/30/05
Brian J. Dowling
QNG
10/3/05
Sloan M. Smith
QLZ
9/30/05
Jonathon Coe
QNG
10/3/05
Eric T. McGoey
QKG
10/3/05
Michael A. Giangiorgi
QNG
10/3/05
Eric T. McGoey
QRA
10/3/05
John M. Homan
QNG
10/3/05
Timothy G. McMahon
QWZ
10/4/05
Matthew M. Koenig
QNG
10/3/05
New Accounts
Acronym
Effective Date
Timothy S. McGugan
QNG
10/3/05
Jeffrey D. Gehrke
QBR
9/29/05
Matthew D. Peters
QNG
10/3/05
Brian F. Ludden
QBR
9/29/05
Steven Stefancic
QNG
10/3/05
Page 8
October 7, 2005
Volume 33, Number 40
Terminated Accounts
Acronym
M. Neil Hebb
QKN
10/3/05
M. Neil Hebb
QRF
10/3/05
Phillip Dop
QRL
10/3/05
Jeffrey W. Schneider
QRF
10/3/05
Simon Eric Amich
QKN
10/3/05
Simon Eric Amich
QRF
10/3/05
Tim R. Wipert
QWR
10/4/05
CHANGES IN MEMBERSHIP STATUS
Individual Members
Chicago Board Options Exchange
Termination Date
Effective Date
Brian F. Ludden
9/29/05
From:
Nominee For Northern Access LLC; Market Maker
To:
Nominee For Brian Ludden LLC; Market Maker
David A. Ludden
9/29/05
From:
Nominee For Northern Access LLC; Market Maker
To:
Nominee For Brian Ludden LLC; Market Maker
Effective Date
John R. Connolly
10/3/05
From:
Nominee For SMC Option Management LLC; Market
Maker/Floor Broker
To:
CBT Registered For SMC Option Management LLC;
Market Maker
Phillip Dop
10/3/05
From:
Nominee For Harrison Trading Group, LLC; Market
Maker
To:
Nominee For WDG Trading, LLC; Market Maker
S. Jason Harris
10/3/05
From:
CBT Registered For Harrison Trading Group, LLC;
Market Maker
To:
CBT Registered For WDG Trading, LLC; Market Maker
M. Neil Hebb
10/3/05
From:
CBT Registered For Harrison Trading Group, LLC;
Market Maker
To:
CBT Registered For WDG Trading, LLC; Market Maker
Brian M. Connelly
10/3/05
From:
Nominee For S & W Grain Co.; Market Maker
To:
CBT Registered For S & W Grain Co.; Market Maker
Jeffrey D. Gehrke
9/29/05
From:
Nominee For Northern Access LLC; Market Maker
To:
Nominee For Brian Ludden LLC; Market Maker
Jeffrey W. Schneider
10/3/05
From:
CBT Registered For Harrison Trading Group, LLC;
Market Maker
To:
CBT Registered For WDG Trading, LLC; Market Maker
Steven R. Baer
10/3/05
From:
Nominee For BBS Partners LLC; Market Maker
To:
CBT Registered For BBS Partners LLC; Market Maker
Matthew J. Sheldon
10/3/05
From:
Nominee For Zydeco Trading LLC; Market Maker
To:
Nominee For Sallerson-Troob LLC; Market Maker
Mitchell D. Schoenfeld
10/3/05
From:
CBT Registered For Cool Breeze Inc.; Market Maker/
Floor Broker
To:
CBT Registered For Geneva Trading LLC; Market
Maker
Steven I. Malitz
10/3/05
From:
CBT Registered For TEV LLC; Market Maker
To:
CBT Registered For Cassandra Trading Group, LLC;
Market Maker
Joseph P. Perona
10/3/05
From:
Nominee For JPE Options Inc.; Market Maker
To:
CBT Registered For JPE Options Inc.; Market Maker
Chad R. Gramann
10/3/05
From:
CBT Registered For Harrison Trading Group, LLC;
Market Maker
To:
CBT Registered For WDG Trading, LLC; Market Maker
Patrick W. Wagoner
10/3/05
From:
Nominee For Susquehanna Investment Group; Market
Maker/Floor Broker
To:
CBT Registered For Susquehanna Investment Group;
Market Maker/Floor Broker
RVA Geneva Trading LLC RMM
10/3/05
From:
Nominee For Geneva Trading LLC; Market Maker
To:
CBT Registered For Geneva Trading LLC; Market
Maker
Mark Wolicki
10/3/05
From:
Nominee For Zydeco Trading LLC; Market Maker
To:
Nominee For Sallerson-Troob LLC; Market Maker
Scott C. Rives
10/3/05
From:
Nominee For Susquehanna Investment Group; Market
Maker/Floor Broker
To:
CBT Registered For Susquehanna Investment Group;
Market Maker/Floor Broker
Scott N. Stoliar
10/3/05
From:
CBT Registered For Harrison Trading Group, LLC;
Market Maker
To:
CBT Registered For WDG Trading, LLC; Market Maker
William J. Popper
From:
Lessee; Market Maker
To:
CBT Exerciser; Market Maker
10/3/05
Spencer D. Worley
10/5/05
From:
Nominee For Susquehanna Investment Group; Market
Maker/Floor Broker
To:
CBT Registered For Susquehanna Investment Group;
Market Maker/Floor Broker
Member Organizations
Effective Date
Jackson Financial Group, Inc.
10/3/05
From:
Owner/Lessee; Associated with a Market Maker/
Remote Market Maker
To:
Owner; Associated with a Market Maker/Remote
Market Maker
Geneva Trading LLC
10/3/05
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/Remote Market Maker
BBS Partners LLC
10/3/05
From:
Lessee/Member Organization Affiliated with a CBT
Registered For; Associated with a Market Maker/Floor
Broker
To:
Member Organization Affiliated with a CBT Registered
For; Associated with a Market Maker
Page 9
October 7, 2005
Volume 33, Number 40
Effective Date
JPE Options Inc.
10/3/05
From:
Lessee; Associated with a Market Maker
To:
CBT Registered For; Associated with a Market Maker
W. Thomas Jones LLC
10/3/05
From:
Owner; Associated with a Market Maker/Floor Broker
To:
Lessor
Cassandra Trading Group LLC
10/3/05
From:
Lessee/Member Organization Affiliated with a CBT
Registered For; Associated with a Market Maker/Floor
Broker
To:
Lessee/Member Organization Affiliated with a CBT
Registered For; Associated with a Market Maker/Floor
Broker/Remote Market Maker
Chicago Board Options Exchange
MEMBER ADDRESS CHANGES
Individual Members
Effective Date
Trevor Wenberg
175 W. Jackson, Suite 1650
Chicago, IL 60604
9/29/05
Krzysztof Zarczynski
2150 W. Addison #2
Chicago, IL 60618
10/5/05
POSITION LIMIT CIRCULARS
Pursuant to Exchange Rule 4.11, the Exchange issued the below listed Position Limit Circulars from October 3 to October 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 Dan Earner at (312) 786-7059 or Tim Mac Donald at (312) 786-7706.
Position Limit Circular PL05-45
October 3, 2005
The Gillette Company (“G/VZG/WZG”) merger
completed with Aquarium Acquisition Corp., a wholly
owned subsidiary of The Procter & Gamble Company
(“PG/VPG/WPG”)
Effective Date October 3, 2005
Position Limit Circular PL05-47
October 4, 2005
Guilford Pharmaceuticals, Inc. (“GLFD/GQF/OUC”) merger
completed with Granite Acquisition, Inc., a wholly owned
subsidiary of MGI PHARMA, INC. (“MOGN/QOG/VFG/YYW”)
Effective Date October 4, 2005
Position Limit Circular PL05-46
October 3, 2005
Providian Financial Corporation (“PVN/VQV/WVR”) merger
completed with Washington Mutual, Inc. (“WM/VWI/WWI”)
Effective Date October 3, 2005
RESEARCH CIRCULARS
The following Research Circulars were distributed between September 30 and October 5, 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 #RS05-702
September 30, 2005
*****UPDATE*****UPDATE*****UPDATE*****
The Gillette Company (“G/VZG/WZG”) Proposed Merger
with The Procter & Gamble Company (“PG/VPG/WPG”)
Research Circular #RS05-703
September 30, 2005
Mitsubishi Tokyo Financial Group, Inc. (“MTF”)
Name, Stock and Option Symbol Change to
Mitsubishi UFJ Financial Group, Inc. (“MTU”)
Effective Date: October 3, 2005
Research Circular #RS05-708
September 30, 2005
The Gillette Company (“G/VZG/WZG”) Merger COMPLETED
with The Procter & Gamble Company (“PG/VPG/WPG”)
Research Circular #RS05-710
October 3, 2005
*****UPDATE*****UPDATE*****UPDATE*****
Providian Financial Corporation (“PVN/VQV/WVR”) Merger
COMPLETED with Washington Mutual, Inc. (“WM/VWI/WWI”)
Research Circular #RS05-711
October 3, 2005
Guilford Pharmaceuticals, Inc. (“GLFD/GQF/OUC”) Merger
COMPLETED with MGI PHARMA, INC. (“MOGN/QOG/VFG/YYW”)
Research Circular #RS05-712
October 3, 2005
Argosy Gaming Company (“AGY”) Merger COMPLETED
with Penn National Gaming, Inc. (“PENN”)
Research Circular #RS05-713
October 4, 2005
MCI, Inc. (“MCIP/MQI/OWQ/YXW”) Proposed Merger
with Verizon Communications Inc. (“VZ/VBU/WLE”)
Research Circular #RS05-716
October 4, 2005
Covanta Holding Corporation (“DHC”)
To Move To and Begin Trading on the NYSE/
Underlying Symbol Change
Effective Date: October 5, 2005
Research Circular #RS05-720
October 4, 2005
Dycom Industries, Inc. (“DY”)
Partial Self Tender Offer EXTENDED
Research Circular #RS05-721
October 5, 2005
Starbucks Corporation (“SBUX/SQX/VPR/WSP”)
2-for-1 Stock Split
Ex-Distribution Date: October 24, 2005
Research Circular #RS05-722
October 5, 2005
MBNA Corporation (“KRB/VZK/WK”) Proposed Merger
with Bank of America Corporation (“BAC/VBA/WBA”)
October 12, 2005
Volume RB16, Number 41
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 RG05-80
Date:
September 27, 2005
To:
The Membership
From:
Accounting
Subject:
S&P 500 Index Options LEAPS® Fee Waiver Program
The purpose of this circular is to inform you that CBOE has amended its Fees Schedule to
waive fees for certain transactions in S&P 500 index (“SPX”) options LEAPS through December 15, 2005. The effective date of this fee waiver program was September 26, 2005.
Specifically, CBOE will waive all trading related fees (transaction, floor brokerage and OBO
fees) for transactions in which a market participant closes a position in reduced-value SPX
LEAPS (“RV SPX LEAPS”) and simultaneously opens a corresponding (i.e., equivalent
strike price and expiration) position in full-value SPX LEAPS (“FV SPX LEAPS”).
Key details of the program are outlined below, for your information.
•
The fee waiver would apply only to trades that close positions in RV SPX LEAPS
and simultaneously (e.g., executed as a spread) open corresponding positions in
FV SPX LEAPS. The fee waiver would apply on a 10-for-1 basis only1 ; i.e., 10 RV
SPX LEAPS equals 1 FV SPX LEAPS.
•
Trade records must clearly indicate “closing” for RV SPX LEAPS trades and “opening” for corresponding FV SPX LEAPS trades.
•
CBOE will issue the rebate via clearing firms as a credit in the month following the
month in which qualifying transactions are executed. Clearing firms will see the
rebate credits as a separate item on monthly CBOE billing statements.
Please contact Don Patton at 312-786-7026 or patton@cboe.com if you have questions
regarding rebate processing, or Bill Speth at 312-786-7141 if you have questions regarding
transactions that qualify for the fee waiver.
1 For example, if a market participant closes 100 contracts of the December 2006 120 strike RV SPX LEAPS
and opens a 10 contract position in the December 2006 1200 strike FV SPX LEAPS, all trading related fees
would be waived for all contracts in both transactions. However, if a market participant closes 100 contracts
of the December 2006 120 strike RV SPX LEAPS and opens a 100 contract position in the December 2006
1200 strike FV SPX LEAPS, fees would be waived for all of the RV SPX LEAPS contracts but only for 10
contracts of the FV SPX LEAPS transaction. All standard fees would apply to the remaining 90 contracts of
the FV SPX LEAPS transaction.
Regulatory Circulars
continued
Regulatory Circular RG 05-81
Date:
September 29, 2005
To:
Members and Member Organizations
From:
Allocation Committee
Index Market Performance Committee
Equity Market Performance Committee
Modified Trading Systems (MTS) Appointments Committee
Subject:
Short Term Option Quoting Obligations
The Securities and Exchange Commission (SEC) has recently approved (on July 12,
2005) a rule change enabling the CBOE to list and trade Short Term Option Series, which
will expire one week after the date on which a series is opened (see SR-CBOE-2004-63).
Established as a one-year pilot program, the CBOE is allowed to select up to five approved
option classes on which Short Term Option Series can be opened. A series can be opened
on any Friday that is a business day and will expire at the close of business on the next
Friday that is a business day*. Under the pilot program, the CBOE also can list and trade
Short Term Option Series on any option class that is selected by another exchange that
employs a similar pilot program.
The Exchange intends to consider Short Term Options as an additional series on an underlying product, and therefore the continuous quoting obligations of DPMs, EDPMs, MMs
and RMMs, as defined in CBOE Rules 8.85, 8.93, 8.7 and 8.4 respectively, will apply to
Short Term Options.
Failure to comply with the requirements set forth in CBOE Rules 8.4, 8.7, 8.85 and 8.93
may result in remedial market performance action and/or disciplinary action.
A copy of this approved rule change is available on the Exchange’s website at www.cboe.com.
For questions regarding quoting obligations, please contact Allison Kile (312) 786-7210 or
Angela Redell (312) 786-7559. For general questions regarding Short Term Options, please
contact Jim Flynn (312) 786-7070.
*
If a Friday were not a business day, the series could be opened (or would expire) on the
first business day immediately prior to Friday.
Regulatory Circular RG05-82
Date:
October 3, 2005
To:
The Membership
From:
Financial Planning Committee
Subject:
Fee Reductions for October 2005
CBOE has averaged approximately 1,620,000 contracts per day (CPD) during the period
July 2004 through September 2005.
Per the Prospective Fee Reduction Program, Market-Maker and DPM transaction fees
and floor brokerage fees will be reduced by 25% per contract from standard rates during
October 2005 (September 2005 discounts were also 25%).
RB2
Fee
Standard
Rate
Oct. ‘05
Rate
Equities Market-Maker Trans. Fee
Equities DPM Trans. Fee
QQQQ, SPY, DIA & Indexes Mrkt. Maker/DPM Trans. Fee
Floor Brokerage Fee
22 cents
12 cents
(1)24 cents
4 cents
16.5 cents
9 cents
18 cents
3 cents
October 12, 2005, Volume RB16, Number 41
Regulatory Circulars
continued
SR-CBOE-2005-82 continued
(1) Above rates exclude a 10 cents license fee surcharge for the following products:
• Dow Jones indexes (excluding DIAMONDS ETF)
• Mini Nasdaq 100 (MNX)
• Nasdaq 100 (NDX)
• Russell 2000 cash-settled index (RUT)
Please call Ermer Love (312-786-7032) if you have any questions.
Regulatory Circular RG05-83
Date:
October 5, 2005
To:
DPMs
From:
Financial Planning Committee
Subject:
Linkage Fees Rebates Increased October through December 2005
The Financial Planning Committee recommended and the Board of Directors recently approved an increase in the level of linkage fees rebates described below.
Effective October 1, 2005 through December 30, 2005, CBOE will rebate DPM transaction
fees generated from transactions against customer orders that underlie outbound principal
acting as agent (PA) orders. In addition, when DPMs incur fees to execute PA orders at
other exchanges, those DPMs will be credited up to an additional $.20 per contract, up to the
amount of total fees CBOE receives from inbound linkage transaction fees.
Rebates for October in equity options will amount to 29 cents per contract (9 cents discounted CBOE transaction fee plus 20 cents related to fees from away exchanges).
Under the previous linkage fees rebate plan, DPMs were credited for CBOE transaction fees
and up to 50% of CBOE transaction fees to assist in offsetting costs incurred in routing
orders to away exchanges. For October 2005, the former plan would have amounted to a
rebate of 13.5 cents in equity options (9 cents discounted CBOE transaction fee plus 4.5
cents related to fees from away exchanges).
Rebates to DPMs who elected the fixed fee program for 2005 are lower since CBOE variable
transaction fees are not assessed to the DPM (only 20 cents related to away exchange fees
are rebated).
The Financial Planning Committee will be analyzing the linkage fee rebate program during
the 2006 budget review in the 4Q05.
Please call Don Patton (312-786-7026) if you have any questions.
Business Conduct
Committee
Decisions
At its meeting on September 7, 2005, the Business Conduct Committee resolved the following disciplinary matter by instituting Summary Proceedings, due to the respondent’s failure
to answer or deny the allegations set forth in the statement of charges, wherein the charges
were deemed admitted by the respondent and disciplinary sanctions were accordingly imposed. (CBOE Rule 17.7)
File No. 05-0025 (Summary Proceedings, Decision issued September 22, 2005)
Coyne Trading, LLC (“Coyne”), a former CBT Exerciser and broker/dealer, was censured and
fined $5,000 for the following conduct. Coyne failed to file its AML Compliance Program
with the Exchange by December 13, 2004. As a result, Coyne impeded and delayed the
Exchange’s investigation of this matter. (CBOE Rules 4.20 – Anti-Money Laundering Compliance Program; 15.1 – Furnishing of Books, Records and Other Information; and 17.2(b)Complaint and Investigation: Requirement to Furnish Information)
October 12, 2005, Volume RB16, Number 41
RB3