November 11, 2005 Exchange Bulletin Volume 33, Number 45 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, NOVEMBER 11, 2005 CLASS CBOE BID OFFER $705,000.00 LAST SALE AMOUNT $790,000.00 LAST SALE DATE $715,000.00 November 11, 2005 CBOT FULL MEMBERSHIP CLASS BID OFFER LAST SALE AMOUNT LAST SALE DATE With CBOE Exercise Right $2,750,000.00 $2,950,000.00 $2,900,000.00 November 9, 2005 Without CBOE Exercise Right $2,400,000.00 $3,300,000.00 $2,850,000.00 October 24, 2005 $90,000.00 $90,000.00 October 28, 2005 CBOE Exercise Right $30,000.00 CBOE MEMBERSHIP SALES AND TRANSFERS From Lawrence Novak Richard E. Tobin Robert A. Zordani BNY Brokerage Inc. To Geneva Stock, LLC Ronin Capital, LLC Citigroup Derivatives Markets, Inc. TRO Trading Group LLC Price/Transfer $725,000.00 $681,000.00 $675,000.00 $715,000.00 Date 11/8/05 11/8/05 11/8/05 11/11/05 Page 2 November 11, 2005 Volume 33, Number 45 Chicago Board Options Exchange MEMBERSHIP INFORMATION FOR 11/3/05 THROUGH 11/9/05 MEMBERSHIPAPPLICATIONS RECEIVED FOR WHICH A POSTING PERIOD IS REQUIRED Individual Membership Applicants Date Posted Stephen C. Kanavos, Lessor 888 Timberhill Road Highland Park, IL 60035 11/7/05 Lessor: Richard E. Tobin Lessee: Ronin Capital, LLC Richard E. Tobin (RJT), NOMINEE Lessor: Burton P. Bilfeld Lessee: Hurricane Capital, LLC Stephen K. Fox (FOX), NOMINEE Termination Date 11/9/05 11/9/05 MEMBERSHIP TERMINATIONS MEMBERSHIP LEASES Individual Members New Leases Effective Date Lessor: Gahl & Schwartz Inc. Lessee: Cutler Group, LP Rate: 1.125% Term: Monthly 11/7/05 Lessor: Anthony P. Arciero Lessee: PEAK6 Capital Management LLC Neel Shah, NOMINEE Rate: 1.212% Term: Monthly Nominee(s) / Inactive Nominee(s): Termination Date 11/3/05 11/7/05 Brian J. McGrath (BQM) Timber Hill LLC 209 S. LaSalle - 10th Floor Chicago, IL 60604 11/7/05 Lessor: Burt R. Bondy Lessee: PEAK6 Capital Management LLC Franz F. Paul, NOMINEE Rate: 1.212% Term: Monthly 11/7/05 Michael R. Lossia (MRL) PEAK6 Capital Management LLC 141 W. Jackson, Suite 400 Chicago, IL 60604 11/7/05 Lessor: David Gerstel Lessee: PEAK6 Capital Management LLC Joseph D. Mueller, NOMINEE Rate: 1.212% Term: Monthly 11/7/05 Timothy M. Sommerfield (EIS) SLK-Hull Derivatives LLC 440 S. LaSalle Street - 17th Floor Chicago, IL 60605 11/9/05 Lessor: Ruth I. Kahn Lessee: PEAK6 Capital Management LLC Gavin M. Lowrey, NOMINEE Rate: 1.212% Term: Monthly 11/7/05 Stephen K. Fox (FOX) Hurricane Capital, LLC 5 Greenwood Drive New City, NY 10956 11/9/05 Lessor: Elliott N. Mirman Lessee: SLK-Hull Derivatives LLC Rate: 1.212% Term: Monthly 11/7/05 Michael R. Moore (CBY) Ronin Capital, LLC PO Box 14558 Chicago, IL 60614 11/9/05 Lessor: S & S Options Lessee: Cutler Group, LP Harilaos S. Mantzoros, NOMINEE Rate: 1.125% Term: Monthly 11/7/05 Tom G. Sideris (TGS) TD Options, LLC 230 South LaSalle Chicago, IL 60604 Lessor: Burton P. Bilfeld Lessee: Hurricane Capital, LLC Stephen K. Fox (FOX), NOMINEE Rate: 1.125% Term: 1 Day 11/8/05 Terminated Leases Termination Date Member Organizations Lessor: Mont R. Wickham 11/7/05 Lessee: Xenos, LLC Harilaos S. Mantzoros (HSM), NOMINEE Lessor: David Gerstel Lessee: SLK-Hull Derivatives LLC 11/7/05 Lessor: Burt R. Bondy Lessee: SLK-Hull Derivatives LLC 11/7/05 Lessor: Anthony P. Arciero 11/7/05 Lessee: SLK-Hull Derivatives LLC John H. Waterfield III (NYO), NOMINEE Lessor: Ruth I. Kahn Lessee: SLK-Hull Derivatives LLC 11/7/05 Lessee(s): Termination Date Xenos, LLC Harilaos S. Mantzoros 4820 Kathleen Ct. Long Grove, IL 60047 11/7/05 EFFECTIVE MEMBERSHIPS Nominee(s) / Inactive Nominee(s): Effective Date Steven M. Bock (WIN) 11/3/05 Futrex Trading LLC 3456 N. Hoyne Chicago, IL 60618 Type of Business to be Conducted: Market Maker Stephen K. Fox (FOX) 11/8/05 Hurricane Capital, LLC 5 Greenwood Drive New City, NY 10956 Type of Business to be Conducted: Market Maker Page 3 November 11, 2005 Volume 33, Number 45 Effective Date Michael J. Walsh (MJW) 11/9/05 Ronin Capital, LLC 230 S. LaSalle, Ste. 400 Chicago, IL 60604 Type of Business to be Conducted: Market Maker Chicago Board Options Exchange Vishal Savla QCA Termination Date 11/7/05 Vishal Savla QIA 11/7/05 Timothy M. Sommerfield QIA 11/7/05 Timothy M. Sommerfield QCA 11/7/05 Michael A. Favia (FVA) 11/9/05 Ronin Capital, LLC 8211 W. Catherine Ave. Chicago, IL 60656 Type of Business to be Conducted: Market Maker Tom G. Sideris QBB 11/9/05 Terminated Accounts Acronym Termination Date JOINT ACCOUNTS David C. Adent QLL 11/7/05 Jonathan M. Costello QLL 11/7/05 Gavin M. Lowrey QLL 11/7/05 Neel Shah QLL 11/7/05 Joseph D. Mueller QLL 11/7/05 Steven R. Rosen QLL 11/7/05 Franz F. Paul QLL 11/7/05 Vishal Savla QLL 11/7/05 Timothy M. Sommerfield QLL 11/7/05 New Participants Acronym Effective Date Steven M. Bock QED 11/3/05 Michael J. Walsh QHS 11/9/05 Michael J. Walsh QRV 11/9/05 Michael A. Favia QSA 11/9/05 New Accounts Acronym Effective Date Jonathan M. Costello QPE 11/7/05 Neel Shah QPE 11/7/05 Steven R. Rosen QPE 11/7/05 CHANGES IN MEMBERSHIP STATUS Vishal Savla QPE 11/7/05 Individual Members Franz F. Paul QPE 11/7/05 David C. Adent QPE 11/7/05 Anthony P. Arciero 11/4/05 From: Lessor To: Lessor/ Nominee For Casey Trading LLC; Market Maker Gavin M. Lowrey QPE 11/7/05 Joseph D. Mueller QPE 11/7/05 Terminated Participants Acronym Termination Date Brian J. McGrath QTH 11/3/05 David C. Adent QCA 11/7/05 David C. Adent QIA 11/7/05 Jonathan M. Costello QCA 11/7/05 Jonathan M. Costello QIA 11/7/05 Gavin M. Lowrey QIA 11/7/05 Gavin M. Lowrey QCA 11/7/05 Neel Shah QCA 11/7/05 Neel Shah QIA 11/7/05 Joseph D. Mueller QCA 11/7/05 Joseph D. Mueller QIA 11/7/05 Steven R. Rosen QCA 11/7/05 Steven R. Rosen QIA 11/7/05 Franz F. Paul QCA 11/7/05 Franz F. Paul QIA 11/7/05 Effective Date Craig R. Luce 11/4/05 From: Lessor/ Nominee For Casey Trading LLC; Market Maker/ Floor Broker To: Lessor David C. Adent 11/7/05 From: CBT Registered For SLK-Hull Derivatives LLC; Market Maker/ Floor Broker To: CBT Registered For PEAK6 Capital Management LLC; Market Maker/ Floor Broker Gavin M. Lowrey 11/7/05 From: Nominee For SLK-Hull Derivatives LLC; Market Maker/ Floor Broker To: Nominee For PEAK6 Capital Management LLC; Market Maker/ Floor Broker Harilaos S. Mantzoros 11/7/05 From: Nominee For Xenos, LLC; Market Maker To: Nominee For Cutler Group, LP; Market Maker Neel Shah 11/7/05 From: Nominee For SLK-Hull Derivatives LLC; Market Maker/ Floor Broker To: Nominee For PEAK6 Capital Management LLC; Market Maker/ Floor Broker Franz F. Paul 11/7/05 From: Nominee For SLK-Hull Derivatives LLC; Market Maker/ Floor Broker To: Nominee For PEAK6 Capital Management LLC; Market Maker/ Floor Broker Vishal Savla 11/7/05 From: Nominee For SLK-Hull Derivatives LLC; Market Maker/ Floor Broker To: Nominee For PEAK6 Capital Management LLC; Market Maker/ Floor Broker Page 4 November 11, 2005 Volume 33, Number 45 Effective Date Chicago Board Options Exchange Member Organizations Effective Date Jonathan M. Costello 11/7/05 From: Nominee For SLK-Hull Derivatives LLC; Market Maker/ Floor Broker To: Nominee For PEAK6 Capital Management LLC; Market Maker/ Floor Broker Ronin Capital, LLC 11/9/05 From: Lessee/ Member Organization Affiliated with a CBT Registered For; Associated with a Market Maker To: Owner/ Lessee/ Member Organization Affiliated with a CBT Registered For; Associated with a Market Maker Joseph D. Mueller 11/7/05 From: Nominee For SLK-Hull Derivatives LLC; Market Maker/ Floor Broker To: Nominee For PEAK6 Capital Management LLC; Market Maker/ Floor Broker PEAK6 Capital Management LLC 11/7/05 From: Owner; 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 Steven R. Rosen 11/7/05 From: Nominee For SLK-Hull Derivatives LLC; Market Maker To: Nominee For PEAK6 Capital Management LLC; Market Maker/ Floor Broker MEMBER ADDRESS CHANGES Individual Members Effective Date Anthony P. Arciero 11/8/05 From: Lessor/ Nominee For Casey Trading LLC; Market Maker To: Lessor Vern C. Rudnik 275 Olympic Drive Mountain Home, AR 72653 11/4/05 Craig R. Luce 11/8/05 From: Lessor To: Lessor/ Nominee For Casey Trading LLC; Market Maker Stephen W. Quan 1111 N. Hermitage Ave. - #1 Chicago, IL 60622 11/4/05 Richard E. Tobin 11/9/05 From: Lessor/ Nominee for Ronin Capital, LLC; Market Maker To: Nominee For Ronin Capital, LLC; Market Maker Michael N. Suarez 1661 N. Claremont Ave., #1 Chicago, IL 60647 11/4/05 Member Organizations Effective Date Stuckey LLC 1725 W. Ellen St. - Apt. 2 Chicago, IL 60622 11/4/05 RESEARCH CIRCULARS The following Research Circulars were distributed between November 3 and November 9, 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 #RS05-784 Research Circular #RS05-778 November 4, 2005 November 3, 2005 Action Performance Companies, Inc. (“ATN”) Denbury Resources, Inc. (“DNR”) with SMISC, LLC 2-for-1 Stock Split Ex-Distribution Date: November 8, 2005 Research Circular #RS05-785 November 7, 2005 Research Circular #RS05-779 *****UPDATE – Determination of Contract Deliverable November 4, 2005 Precision Drilling Corporation (“PDS/ZCD/LPB”) The Scotts Miracle-Gro Company (“SMG/ORY/WOF”) Plan of Arrangement COMPLETED 2-for-1 Stock Split Ex-Distribution Date: November 10, 2005 Research Circular #RS05-786 November 8, 2005 Research Circular #RS05-780 Trident Microsystems, Inc. (“TRID/HVU”) November 4, 2005 2-for-1 Stock Split Fastenal Company (“FAST/FQA”) Ex-Distribution Date: November 21, 2005 2-for-1 Stock Split Ex-Distribution Date: November 14, 2005 Research Circular #RS05-787 November 8, 2005 Research Circular #RS05-781 NII Holdings, Inc. (“NIHD/QHQ/VQD/WZU”) November 4, 2005 2-for-1 Stock Split Southwestern Energy Company (“SWN”) Ex-Distribution Date: November 22, 2005 2-for-1 Stock Split Ex-Distribution Date: November 18, 2005 Research Circular #RS05-788 November 8, 2005 Research Circular #RS05-782 Brown & Brown, Inc. (“BRO”) November 4, 2005 2-for-1 Stock Split ID Biomedical Corporation (“IDBE/QQ”) Proposed Plan of Ex-Distribution Date: November 29, 2005 Arrangement with GlaxoSmithKline Inc. (“GSK”) Research Circular #RS05-791 November 9, 2005 Research Circular #RS05-783 *****UPDATE – Determination of Contract Deliverable November 4, 2005 Precision Drilling Corporation (“PDS/ZCD/LPB”) Precision Drilling Corporation (“PDS/ZCD/LPB”) Plan of Arrangement COMPLETED Plan of Arrangement COMPLETED November 16, 2005 Volume RB16, Number 46 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 RG 05-104 Date: November 3, 2005 To: Members and Member Organizations From: Regulatory Services Division Re: S&P 100 Index and American-Style FLEX Index Option Exercise Procedures This memorandum describes exercise procedures and requirements of Exchange Rules 11.1 and 24.18 as they pertain to the exercise of Standard & Poor’s 100 Stock Index option contracts, American-Style FLEX Index Option contracts, and any other American-style cash-settled index option contracts, including Short-Term Options (“Weeklys”), which are option series that, generally, are opened on a Friday and that expire on the next Friday. Please refer to Information Circular IC05-138 for more information on Weeklys. This regulatory circular also replaces RG00-70. 1. Members who prepare their own exercise instruction memoranda must prepare and time stamp such memoranda upon making the decision to exercise. 2. Clearing firms must prepare and time stamp an exercise instruction memorandum upon receipt of instructions to exercise from a customer or Market-Maker or upon making the decision to exercise on behalf of a proprietary account. 3. An “exercise advice” must be submitted to the Exchange no later than 3:20 p.m. (CT) for all American-style, cash-settled index option contracts exercised. However, “exercise advices” are not required to be submitted to the Exchange (i) on the business day prior to expiration with respect to expiring non-FLEX American-style, cash-settled index option contracts, (ii) on the day of expiration with respect to expiring FLEX American-style cash-settled index option contracts that expire on a business day, or (iii) on the business day prior to expiration with respect to expiring FLEX American-style, cash-settled index option contracts that expire on a day other than a business day. 4. An “exercise advice” must be clearly and accurately completed prior to submission. Staff will not remove an “exercise advice” for any alteration once it has been deposited in a drop-off box. 5. Clearing firms may enter exercises for any Market-Maker, customer, or proprietary account on OCC’s Encore System (“Encore”) in lieu of physically delivering an “exercise advice” to the Exchange trading floor. Such entries must be made no later than 3:20 p.m. (CT) and serve as both an exercise instruction to OCC and an “exercise advice” to the Exchange. Regulatory Circulars continued Regulatory Circular RG05-104 continued 6. Members acting on their own behalf or on behalf of a customer may only submit an “exercise advice” and exercise instruction for the “net long position” open in any series of American-style index options for the account at the time the “exercise advice” or exercise instruction is submitted. For a complete explanation of this requirement, members should refer to Exchange Rule 24.18 and Regulatory Circular RG99-84. 7. If a member decides not to exercise all or part of the amount indicated on an “exercise advice” previously submitted to the Exchange, he or she must submit another “exercise advice” to the Exchange, with the cancel box checked, no later than 3:20 p.m. (CT). (“exercise advice cancellations” do not cancel exercise instruction memoranda already submitted to the clearing firm). 8. The “exercise advice” drop-off boxes are located on the Exchange’s trading floor in the OEX trading crowd and behind the OEX Book. Additional boxes may be made available, as need arises and box locations may similarly be moved or removed, as business warrants. The drop-off boxes are removed at 3:20:59 p.m. (CT). Submitting an “exercise advice” or “exercise advice cancellation” after this time is a violation of Exchange Rule 11.1, and doing so on the basis of material information released after this time, in addition to violating Rule 11.1, may constitute activity inconsistent with just and equitable principles of trade. If a member inadvertently fails to submit an “exercise advice” or “exercise advice cancellation” before the applicable deadline, the member should still consider submitting the advice or cancellation to the Exchange’s Department of Market Regulation as soon as possible after the deadline (even though a violation of Rule 11.1 will still exist) in order to help to establish the time at which the exercise decision was made. 9. The joint account participant who makes the decision to exercise on behalf of the joint account must indicate both the joint account acronym and his or her individual acronym on both the exercise instruction memorandum and the “exercise advice”. 10. The submission of an “exercise advice” to the Exchange does not initiate an exercise at OCC; members must also submit an exercise instruction memorandum to their clearing firm. 11. In the event that any of the following market conditions are declared, the below provisions will apply (including Encore entries): Delayed Opening or Trading Halt: Exercises of American-style, cash-settled index options (and the submission of corresponding “exercise advice” and advice cancel forms) shall be prohibited during any time when trading in such options is delayed, halted, or suspended, subject to the following exceptions: (i) The exercise of an American-style, cash-settled index option may be processed and given effect in accordance with and subject to the rules of the Clearing Corporation while trading in the option is delayed, halted, or suspended if it can be documented, in a form prescribed by the Exchange, that the decision to exercise the option was made during allowable time frames prior to the delay, halt, or suspension. Acceptable documentation shall ordinarily be limited to an “exercise advice” previously transmitted via Encore or a member’s copy of an “exercise advice” previously submitted to the Exchange. RB2 November 16, 2005, Volume RB16, Number 46 Regulatory Circulars continued Regulatory Circular RG05-104 continued (ii) Exercises of expiring American-style, cash-settled index options shall not be prohibited on the last business day prior to their expiration. (iii) Exercises of American-style, cash-settled index options shall not be prohibited during a trading halt that occurs at or after 3:00 p.m. (CT). In the event of such a trading halt, exercises may occur through 3:20 p.m. (CT). In addition, if trading resumes following a trading halt (such as by closing rotation), exercises may occur during the resumption of trading and for five (5) minutes after the close of the resumption of trading. The provisions of this subparagraph (iii) are subject to the authority of the Board to impose restrictions on transactions and exercises pursuant to Rule 4.16(a). (iv) The President or his designee may determine to permit the exercise of American-style, cash-settled index options while trading in such options is delayed, halted, or suspended. In general, such a determination would be based on extraordinary circumstances. To the extent that exercises of American-style, cash-settled index options are not permitted due to a delayed opening, the exercise advice drop-off boxes will not be placed in the designated areas until trading commences. Exercises may not be effected, nor will “exercise advices” be accepted until trading commences. To the extent that exercises of American-style, cash-settled index options are not permitted due to a trading halt, the “exercise advice” drop-off boxes will be immediately removed from the designated areas upon the declaration of the trading halt and will be returned to the designated areas upon the resumption of trading. These restrictions shall remain in place until trading resumes. Closing Rotation: The “exercise advice” drop-off boxes will remain at the designated areas and “exercise advices” will be accepted at the box until five minutes after the completion of the closing rotation. Modified Trading Hours: If trading hours are extended or modified, the exercise deadline will be five minutes after the close of trading on that day instead of 3:20 p.m. (CT). The “exercise advice” drop-off boxes will be removed after the modified exercise deadline, and exercises may not be effected, nor will “exercise advices” be accepted, after such time. FLEX Index Options: In the case of an American-style, cash-settled FLEX Index Option, the references in this Paragraph 11 to a trading delay, halt, suspension, resumption, closing rotation, or modified trading hours shall mean the occurrence of the applicable condition in the standardized option on the index underlying the FLEX Index Option (rather than the occurrence of the applicable condition in the FLEX Index Option itself). 12. The President or his designee may determine to extend the applicable deadline for the delivery of “exercise advice” and “exercise advice cancellation” if unusual circumstances are present. Any questions pertaining to index option exercises can be addressed to Dan Earner at (312) 786-7059 or Tim Mac Donald at (312) 786-7706. (RG 00-70 Revised) November 16, 2005, Volume RB16, Number 46 RB3 Regulatory Circulars continued Regulatory Circular RG 05-105 Date: November 3, 2005 To: Members and Member Organizations From: Department of Market Regulation Subject: Exercise Advice Requirements for OEX Short Term Options The Securities and Exchange Commission approved a rule change enabling the CBOE to list and trade ShortTerm Options (“Weeklys”) based on the S&P 100 (“OEX”). OEX Weeklys will be listed on a Friday and expire the following Friday (see SRCBOE-2004-63). OEX Weekly options may be exercised on any business day before the expiration date. As such, OEX Weeklys are subject to the requirements set forth in CBOE Rule 11.1, as it pertains to American-style cash-settled option contracts. Therefore, an “exercise advice” must be submitted to the Exchange no later than 3:20 p.m. (CT). An “exercise advice” does not need to be submitted to the Exchange on the Friday the OEX Weekly expires. Be reminded that members may only submit an “exercise advice” and exercise instruction for the “net long position” open in any series of American-style index options, including OEX Weeklys, for the account at the time the “exercise advice” or exercise instruction is submitted. Please refer to CBOE Rule 11.1 for general information regarding exercise procedures, and refer to CBOE Rule 24.18 and Regulatory Circular RG99-84 for further information regarding the exercise of the “net long position” open in an account at the time of exercise. For questions regarding exercise obligations, please contact Mike Banker (312) 786-7427 or Tim MacDonald at (312) 786-7706. For general questions regarding Weeklys, please contact Jim Flynn (312) 786-7070. RB4 November 16, 2005, Volume RB16, Number 46 Rule Changes, Interpretations and Policies PROPOSED RULE CHANGE(S) Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934, as amended (“the Act”), and Rule 19b-4 thereunder, the Exchange has filed the following proposed rule change(s) with the Securities and Exchange Commission (“SEC”). Copies of the rule change filing(s) are available at www.cboe.com/legal/submittedsecfilings.aspx. Members may submit written comments to the Legal Division. The effective date of a proposed rule change will be the date of approval by the SEC, unless otherwise noted. SR-CBOE-2005-94 Exposure of Orders in Hybrid On November 4, 2005, the Exchange filed Rule Change File No. SR-CBOE-2005-94, which filing proposes to decrease the exposure period for crossing orders in Hybrid from 30 seconds to 10 seconds. Any questions regarding the rule change may be directed to Jennifer Lamie, Legal Division, at 312-786-7576. The text of the proposed rule amendments is set forth below. Proposed new language is underlined. Proposed deleted language is [stricken out]. Rule 6.45A. - Priority and Allocation of Equity Option Trades on the CBOE Hybrid System (a) – (e) No change. . . .Interpretations and Policies: .01 Principal Transactions: Order entry firms may not execute as principal against orders they represent as agent unless: (i) agency orders are first exposed on the Hybrid System for at least [thirty (30)]ten (10) seconds, (ii) the order entry firm has been bidding or offering for at least [thirty (30)]ten (10) seconds prior to receiving an agency order that is executable against such bid or offer, or (iii) the order entry firm proceeds in accordance with the crossing rules contained in Rule 6.74. .02 Solicitation Orders. Order entry firms must expose orders they represent as agent for at least [thirty (30)]ten (10) seconds before such orders may be executed electronically via the electronic execution mechanism of the Hybrid System, in whole or in part, against orders solicited from members and non-member brokerdealers to transact with such orders. ***** Rule 6.45B - Priority and Allocation of Trades in Index Options and Options on ETFs on the CBOE Hybrid System (a) – (d) No change. . . . Interpretations and Policies: .01 Principal Transactions: Order entry firms may not execute as principal against orders they represent as agent unless: (i) agency orders are first exposed on the Hybrid System for at least [thirty (30)]ten (10) seconds, (ii) the order entry firm has been bidding or offering for at least [thirty (30)]ten (10) seconds prior to receiving an agency order that is executable against such bid or offer, or (iii) the order entry firm proceeds in accordance with the crossing rules contained in Rule 6.74. .02 Solicitation Orders. Order entry firms must expose orders they represent as agent for at least [thirty (30)]ten (10) seconds before such orders may be executed electronically via the electronic execution mechanism of the Hybrid System, in whole or in part, against orders solicited from members and non-member brokerdealers to transact with such orders. November 16, 2005, Volume RB16, Number 46 RB5