December 9, 2005
Exchange
Bulletin
Volume 33, Number 49
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, December 9, 2005
CLASS
CBOE
BID
OFFER
$750,000.00
LAST SALE AMOUNT
$800,000.00
LAST SALE DATE
$800,000.00
December 8, 2005
CBOT FULL MEMBERSHIP
CLASS
BID
OFFER
LAST SALE AMOUNT
LAST SALE DATE
With CBOE Exercise Right
$2,600,000.00
$2,800,000.00
$2,650,000.00
December 1, 2005
Without CBOE Exercise Right
$2,400,000.00
$3,400,000.00
$2,850,000.00
October 24, 2005
$30,000.00
$85,000.00
$65,000.00
December 8, 2005
CBOE Exercise Right
CBOE MEMBERSHIP SALES AND TRANSFERS
From
D&S Partnership
R&D Partnership
Mark R. Jiganti
Woody Creek
Capital Management, LLC
Citadel Derivatives Group, LLC
Timothy G. Keller
Timothy G. Keller
Citadel Derivatives Group, LLC
To
Donald J. Schell
Seko II, LLC
Cassandra Trading Group, LLC
Steve Fanady
Price/Transfer
Transfer
$740,100.00
$740,000.00
$771,000.00
Date
12/01/05
12/02/05
12/02/05
12/05/05
Gary B. Patzik
BKS Capital Management, LLC
BKS Capital Management, LLC
Kisay 1, LP
$777,000.00
$780,000.00
$795,000.00
$800,000.00
12/06/05
12/08/05
12/08/05
12/08/05
Page 2
December 9, 2005
Volume 33, Number 49
Chicago Board Options Exchange
MEMBERSHIP INFORMATION FOR 12/1/05 THROUGH 12/7/05
MEMBERSHIP APPLICATIONS RECEIVED FOR
WHICH A POSTING PERIOD IS REQUIRED
Effective Date
12/1/05
Individual Membership Applicants
Date Posted
Lessor: Donald J. Schell
Lessee: Ronin Capital, LLC
Paul S. Clark, NOMINEE
Rate:
0.75%
Term: Monthly
Robert Palazzi, Nominee
SLK-Hull Derivatives LLC
57 Highland Ave.
Maplewood, NJ 07040
12/2/05
Lessor:
Stathis Family
Limited Partnership III
Lessee: Market Street Securities, Inc.
Kevin P. Davitt, NOMINEE
Rate:
0.75%
Term: Monthly
12/1/05
Thomas E. Arcella, Nominee
SLK-Hull Derivatives LLC
24 W. 11th St., Apt. #1
New York, NY 10011
12/2/05
Lessor: KISAY 1, LP
Lessee: Sallerson-Troob LLC
Colin K. Fisher, NOMINEE
Rate:
0.75%
Term: Monthly
12/1/05
Todd Wesley Hohman, Nominee
SLK-Hull Derivatives LLC
16 Schoolhouse Lane
Morristown, NJ 07960
12/2/05
Lessor: Jay M. Schiff
Lessee: CMZ Trading, LLC
Matthew Cavanaugh, NOMINEE
Rate:
$6,000.00
Term: Monthly
12/1/05
Igor Chernomzav, Nominee
Hard Eight Trading, LLC
400 W. Ontario, #1801
Chicago, IL 60610
12/6/05
Lessor: Geneva Stock, LLC
Lessee: Vitale Trading LLC
Conan J. Vitale, NOMINEE
Rate:
0.7975%
Term: Monthly
12/1/05
John Porter, Lessor
33 Locust Rd.
Winnetka, IL 60093
12/6/05
12/2/05
Member Organization Applicants
Date Posted
Lessor: Seko II LLC
Lessee: Blue Capital Group LLC
Bryon H. Brand, NOMINEE
Rate:
0.7975%
Term: Monthly
*** Correction to Bulletin Dated 11/25/05 ***
CTC XS, LLC
11/23/05
Joseph F. Landy III, Nominee
Adrian Velazquez, Nominee
141 W. Jackson, 8th Floor
Chicago, IL 60604
CTC Holdings, LLC – Sole Member
Eric H. Chern – Managing Director
Andrew W. Hall – Managing Director
Paul Kepes – Managing Director
Erich W. Tengelsen – Managing Director
John J. Watrous – Managing Director
Paul Kepes – Managing Director
Margaret Wiermanski - COO
MEMBERSHIP LEASES
Lessor:
Woody Creek
Capital Management, LLC
Lessee: The Hermitage Group, LLC
Rate:
$5,600.00
Term: Monthly
12/5/05
Lessor: Peter C. Guth
Lessee: Timber Hill LLC
Rate:
1.25%
Term: Monthly
12/5/05
Lessor: Jeffry T. Mandell
12/5/05
Lessee: Zydeco Trading LLC
Christopher M. Quander, NOMINEE
Rate:
0.75%
Term: Daily
Lessor: Alan J. Lifchultz
Lessee: CMZ Trading, LLC
Kevin R. Novak, NOMINEE
Rate:
$4,500.00
Term: Monthly
12/5/05
12/6/05
New Leases
Effective Date
Lessor: Henry P. Gosiene
Lessee: TJM Investments, LLC
Michael S. Sours, NOMINEE
Rate:
0.75%
Term: Monthly
12/1/05
Lessor: Cassandra Trading Group, LLC
Lessee: Susquehanna Investment Group
Robert A. Barr, NOMINEE
Rate:
0.75%
Term: Monthly
12/7/05
Lessor: R & D Partnership
Lessee: Blue Capital Group, LLC
Bryon H. Brand, NOMINEE
Rate:
0.7975%
Term: Monthly
12/1/05
Lessor: Hartz Construction Company, Inc
Lessee: WDG Trading, LLC
Stephen J. Cirame, NOMINEE
Rate:
0.75%
Term: Monthly
Terminated Leases
Termination Date
Lessor: S & S Options
Lessee: CCM Equities, LLC
Patrick R. Carroll, NOMINEE
Rate:
0.75%
Term: Monthly
12/1/05
Lessor: Seats Exchange Inc.
Lessee: SMC Option Management LLC
Scott M. Johnson (NFG), NOMINEE
12/1/05
Lessor: Ruth I. Kahn
Lessee: KATL Group, LLC
Jordan Goldberg, NOMINEE
Rate:
0.7975%
Term: Monthly
12/1/05
Lessor: Geneva Stock, LLC
Lessee: Blue Capital Group LLC
Bryon H. Brand (BXX), NOMINEE
12/1/05
Page 3
December 9, 2005
Volume 33, Number 49
Termination Date
Lessor: Frances Beck Whigam
12/1/05
Lessee: NOJ Trading, LLC
Stephen J. Cirame (HUB), NOMINEE
Lessor: GAM Enterprises, Inc.
Lessee: TD Options, LLC
Joseph S. Nelkin (NLK), NOMINEE
12/1/05
Lessor: Anthony D. Partipilo
12/1/05
Lessee: G-Bar Limited Partnership
Anthony J. Carone (AJC), NOMINEE
Lessor: Alan J. Lifchultz
Lessee: NOJ Trading, LLC
Eric M. Ringo (RNG), NOMINEE
12/1/05
Lessor:
Stathis Family
12/1/05
Limited Partnership III
Lessee: DRO WST Trading LLC
Michael A. Dalesandro (DRO), NOMINEE
Lessor: D & S Partnership
Lessee: Ronin Capital, LLC
Paul S. Clark (CLK), NOMINEE
12/1/05
Lessor: KISAY 1, LP
12/1/05
Lessee: Grace Trading LLC
Andrew S. Rosenkrantz (DRW), NOMINEE
Lessor: R. Martin & Co.
12/1/05
Lessee: Citigroup Derivatives Markets Inc.
Lessor: Ruth I. Kahn
Lessee: Wolverine Trading LLC
12/1/05
Lessor: Maurice E. Grosby
12/1/05
Lessee: CMZ Trading, LLC
Matthew Cavanaugh (MCV), NOMINEE
Chicago Board Options Exchange
MEMBERSHIP TERMINATIONS
Individual Members
CBT Registered For:
Termination Date
Steven R. Baer (SRB)
BBS Partners LLC
440 S. LaSalle, Suite 1600
Chicago, IL 60605
12/1/05
Timothy M. Feuerborn (DRT)
HGI, Inc.
141 W. Jackson, Suite 1520
Chicago, IL 60604
12/1/05
Timothy C. Womack (WOZ)
SMC Option Management LLC
2435 N. Sheffield Ave.
Chicago, IL 60614
12/1/05
Robert Baxter (BXT)
Baxter Trading LLC
440 S. LaSalle, Suite 1822
Chicago, IL 60605
12/1/05
Timothy E. Penrod (ROD)
BOG Penrod LLC
440 S. LaSalle, Suite 618
Chicago, IL 60605
12/1/05
Steven M. Krug (KRG)
BK Management Partners, LLC
2745 Walters Ave.
Northbrook, IL 60062
12/5/05
Kevin J. Hincks (HUV)
BBS Partners LLC
440 S. LaSalle, Suite 623
Chicago, IL 60605
12/5/05
Lessor(s):
Termination Date
Lessor: SCL Seats LP
Lessee: G-Bar Limited Partnership
David S. Fleming (DSF), NOMINEE
12/1/05
Lessor: Jay M. Schiff
Lessee: Sallerson-Troob LLC
Colin K. Fisher (CKF), NOMINEE
12/1/05
Mark R. Jiganti
P.O. Box 3310
Crested Butte, CO 81224
12/6/05
Lessor: Jan C. Philipsborn
Lessee: Wolverine Trading LLC
12/1/05
Nominee(s) / Inactive Nominee(s):
Termination Date
12/1/05
Eric M. Ringo (RNG)
NOJ Trading, LLC
10025 S. Kilbourn
Chicago, IL 60453
12/1/05
Lessor: Alan G. Barsumian
Lessee: TJM Investments, LLC
Michael S. Sours (SRS), NOMINEE
Lessor: R & D Partnership
Lessee: Blue Capital Group LLC
Bryon H. Brand (BXX), NOMINEE
12/2/05
Andrew S. Rosenkrantz (DRW)
Grace Trading LLC
440 S. LaSalle, Suite 3100
Chicago, IL 60605
12/1/05
Lessor: Jeffry T. Mandell
Lessee: Everest Trading, LLC
12/5/05
12/1/05
Lessor: UBS Securities, LLC
Lessee: Timber Hill LLC
12/5/05
Stephen J. Cirame (HUB)
NOJ Trading, LLC
1521 Big Oaks Court
Lake Forest, IL 60045
Lessor:
Woody Creek
Capital Management, LLC
Lessee: The Hermitage Group, LLC
12/5/05
David B. Schmueck (BIG)
LiquidPoint, LLC
311 S. Wacker, Suite 3800
Chicago, IL 60606
12/1/05
Lessor: Peter C. Guth
Lessee: BOTTA Capital Management LLC
12/5/05
12/1/05
Lessor: Mark R. Jiganti
Lessee: Susquehanna Investment Group
Robert A. Barr (RAB), NOMINEE
12/6/05
Brooks C. Taylor (BCT)
Everest Trading, LLC
440 S. LaSalle, Suite 3100
Chicago, IL 60605
Jeffrey K. Wong (JWO)
G-Bar Limited Partnership
440 S. LaSalle, Suite 650
Chicago, IL 60605
12/1/05
Lessor: Hartz Construction Company, Inc. 12/7/05
Lessee: Cutler Group, LP
Matthew J. Henderson (MTH), NOMINEE
Page 4
December 9, 2005
Volume 33, Number 49
Termination Date
David S. Fleming (DSF)
G-Bar Limited Partnership
1040 Oak Knoll Drive
Lake Forest, IL 60045
12/1/05
Lawrence R. Schultz (LRS)
Israel A. Englander & Co., Inc.
6343 N. Le Mai Ave.
Chicago, IL 60646
12/2/05
Raymond F. Hurley (RAE)
Cutler Group, LP
440 S. LaSalle, Suite 1124
Chicago, IL 60605
12/5/05
Matthew J. Henderson (MTH)
Cutler Group, LP
440 S. LaSalle, Suite 1124
Chicago, IL 60605
12/7/05
Member Organizations
CBT Registered For:
Termination Date
Baxter Trading LLC
440 S. LaSalle, Suite 1822
Chicago, IL 60605
12/1/05
BOG Penrod LLC
Tim Penrod
440 S. LaSalle, Suite 618
Chicago, IL 60605
12/1/05
BBS Partners LLC
Frank A. Brodlo
440 S. LaSalle, Suite 623
Chicago, IL 60605
12/5/05
Lessee(s):
Termination Date
NOJ Trading, LLC
506 Lakeland
Lake Bluff, IL 60044
12/1/05
Lessor(s):
Termination Date
D & S Partnership
5666 Cape Leyte Drive, c/o Mr. Schell
Sarasota, FL 34242
12/1/05
Woody Creek Capital Management, LLC
6740 Epping Forest Way N., Suite 102
Jacksonville, FL 32217
12/5/05
CBT Registered For:
Effective Date
George Heidenreich (FVE)
12/1/05
Consolidated Trading, LLC
440 S. LaSalle, 34th Floor
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
John B. McKnight (BMK)
12/1/05
Hilltop Trading, LLC
440 S. LaSalle, Suite 1822
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Lessor(s):
Effective Date
Donald J. Schell
5666 Cape Leyte
Sarasota, FL 34242
12/1/05
Nominee(s) / Inactive Nominee(s):
Effective Date
Patrick R. Carroll (PRC)
CCM Equities, LLC
200 S. Wacker, Suite 3325
Chicago, IL 60606
Type of Business to be Conducted: Floor Broker
12/1/05
Kevin P. Davitt (KPD)
12/1/05
Market Street Securities, Inc.
1508 W. Addison
Chicago, IL 60613
Type of Business to be Conducted: Market Maker
Joseph C. Barnas (GIO)
12/5/05
Cutler Group, LP
440 S. LaSalle, Suite 1578
Chicago, IL 60603
Type of Business to be Conducted: Market Maker
Matthew J. Henderson (MTH)
12/5/05
Cutler Group, LP
440 S. LaSalle, Suite 1124
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Stephen J. Cirame (HUB)
12/7/05
WDG Trading, LLC
1521 Big Oaks Court
Lake Forest, IL 60045
Type of Business to be Conducted: Market Maker
Member Organizations
CBT Registered For:
EFFECTIVE MEMBERSHIPS
Effective Date
Hilltop Trading, LLC
12/1/05
440 S. LaSalle, Suite 1822
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Individual Members
CBT Exercisers:
Chicago Board Options Exchange
Effective Date
Thomas M. Wallace (CAZ)
12/2/05
440 S. LaSalle, Suite 3100
Chicago, IL 60605
Type of Business to be Conducted: Market Maker
Lessee(s):
Effective Date
CCM Equities, LLC
200 S. Wacker, Suite 3325
Chicago, IL 60606
Type of Business to be Conducted: Floor Broker
12/1/05
Page 5
December 9, 2005
Volume 33, Number 49
Chicago Board Options Exchange
Effective Date
JOINT ACCOUNTS
Jordan Goldberg
12/1/05
From:
Nominee For BOTTA Capital Management LLC; Market
Maker/ Floor Broker
To:
Nominee For KATL Group, LLC; Market Maker
New Accounts
Acronym
Effective Date
George Heidenreich
QCW
12/1/05
Colby D. Lamberson
QCW
12/1/05
Marc E. Rothman
QCW
12/1/05
Ilan J. Shalit
QCW
12/1/05
Stephen J. Cirame
QNH
12/7/05
Jeffrey W. Schneider
QNH
12/7/05
Terminated Participants
Acronym
Termination Date
Jordan Goldberg
QBJ
12/1/05
Jordan Goldberg
QBL
12/1/05
Jordan Goldberg
QBN
12/1/05
Jordan Goldberg
QBV
12/1/05
Jordan Goldberg
QHF
12/1/05
Gary B. Patzik
12/7/05
From:
Nominee For Everest Trading, LLC; Market Maker
To:
Lessor/Nominee For Everest Trading, LLC; Market Maker
Jordan Goldberg
QLZ
12/1/05
Member Organizations
Jordan Goldberg
QUZ
12/1/05
Jordan Goldberg
QYZ
12/1/05
Andrew S. Rosenkrantz
QDW
12/1/05
Vitale Trading LLC
12/1/05
From:
Member Organization Affiliated with a CBT Registered
For; Associated with a Market Maker
To:
Lessee/Member Organization Affiliated with a CBT
Registered For; Associated with a Market Maker
Timothy M. Feuerborn
QHG
12/1/05
Brooks C. Taylor
QHM
12/1/05
Timothy C. Womack
QJG
12/1/05
Terminated Accounts
Acronym
Termination Date
Eric M. Ringo
QNB
12/1/05
Stephen J. Cirame
QNB
12/1/05
CHANGES IN MEMBERSHIP STATUS
Individual Members
T. Graham Alexa
12/1/05
From:
Nominee For SMC Option Management LLC; Market
Maker
To:
CBT Registered For SMC Option Management LLC;
Market Maker
Conan J. Vitale
12/1/05
From:
CBT Registered For Vitale Trading LLC; Market Maker
To:
Nominee For Vitale Trading LLC; Market Maker
Erwin Aguinaldo
12/1/05
From:
Nominee for Cutler Group, LP; Market Maker
To:
Nominee for Cutler Group, LP; Remote Market Maker
Kevin R. Novak
12/5/05
From:
CBT Registered For CMZ Trading, LLC; Market Maker
To:
Nominee For CMZ Trading, LLC; Market Maker
Effective Date
Resource Equities, LLC
12/6/05
From:
Lessee/Member Organization Affiliated with a CBT
Registered For Resource Equities LLC; Associated with
a Market Maker
To:
Lessee/Member Organization Affiliated with a CBT
Registered For Resource Equities LLC; Associated with
a Market Maker/Floor Broker
Market Street Securities, Inc.
12/7/05
From:
Lessee; Associated with a Market Maker
To:
Lessee; Associated with a Market Maker/Remote Market
Maker
MEMBER ADDRESS CHANGES
Effective Date
Richard T. Melson
12/1/05
From:
CBT Exerciser; Market Maker
To:
CBT Registered For BK Management Partners, LLC;
Market Maker
Kevin S. Martinez
12/1/05
From:
Nominee For Equitec Proprietary Markets, LLC; Floor
Broker
To:
Nominee For Compass Professional Services LLC; Floor
Broker
Individual Members
Effective Date
Jerry Manne
111 W. Jackson, Suite 1106
Chicago, IL 60604
12/5/05
Page 6
December 9, 2005
Volume 33, Number 49
Chicago Board Options Exchange
POSITION LIMIT CIRCULARS
Pursuant to Exchange Rule 4.11, the Exchange issued the below listed Position Limit Circular on December 9, 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 PL05-53
December 9, 2005
Equity Position and Exercise Limits will be
decreased to a Lower Tier Limit Effective
December 19, 2005
Position Limit Circular PL05-055
December 9, 2005
The GSTIä Internet Index’s (“GIN”) Position and
Exercise Limit will be decreased to a Lower Tier
Limit Effective December 19, 2005
Position Limit Circular PL05-54
December 9, 2005
Adjusted Position and Exercise Limits
for certain Equity Option Classes and an
Exchange Traded Fund will revert to either
their Applicable Standard or Adjusted Position
and Exercise Limits effective December 19, 2005
RESEARCH CIRCULARS
The following Research Circulars were distributed between December 2 and December 8, 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 #RS05-855
December 2, 2005
Archipelago Holdings, Inc. (“AX/ODE/YTV”) Proposed
Merger with the New York Stock Exchange, Inc.
Research Circular #RS05-856
December 2, 2005
Macromedia, Inc. (“MACR/MRQ”) Merger COMPLETED
with Adobe Systems Incorporated (“ADBE/AEQ/VAE/WAE”)
Research Circular #RS05-857
December 2, 2005
Emdeon Corporation (“HLTH/HUT/VGW/WGQ”)
Partial Self Tender Offer
Research Circular #RS05-863
December 6, 2005
TXU Corp. (“TXU/TXF/OYR/YZB”)
2-for-1 Stock Split
Ex-Distribution Date: December 9, 2005
Research Circular #RS05-864
December 6, 2005
Joy Global Inc. (“JOYG/JQY”)
3?for?2 Stock Split
Ex-Distribution Date: December 13, 2005
Research Circular #RS05-866
December 6, 2005
***UPDATE – ANTICIPATED MERGER
EFFECTIVE DATE – DECEMBER 9, 2005***
York International Corporation (“YRK”) Proposed Merger
with Johnson Controls, Inc. (“JCI”)
Research Circular #RS05-867
December 7, 2005
Cooper Cameron Corporation (“CAM/OKA/YXX”)
2-for-1 Stock Split
Ex-Distribution Date: December 16, 2005
Research Circular #RS05-869
December 7, 2005
Valero Energy Corporation (“VLO/BLO/ZPY/VHB/ZBO/YPY”)
2-for-1 Stock Split
Ex-Distribution Date: December 16, 2005
Research Circular #RS05-873
December 8, 2005
ID Biomedical Corporation (“IDBE/QQ”) Plan of Arrangement COMPLETED with GlaxoSmithKline Inc. (“GSK”)
Research Circular #RS05-874
December 8, 2005
Instinet Group Incorporated (“INGP/UAU”) Merger
COMPLETED with The Nasdaq Stock Market, Inc.
(“NDAQ/NQD”)
December 14, 2005
Regulatory
Circulars
Regulatory
Bulletin
Volume RB16, Number 50
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 Circular RG05-120
Date:
December 1, 2005
To:
The Membership
From:
Financial Planning Committee
Subject:
Fee Reductions for December 2005
CBOE has averaged approximately 1,690,000 contracts per day (CPD) during the period
July 2004 through November 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 December 2005 (November 2005 discounts were also 25%).
Fee
Standard
Rate
Dec. ‘05
Rate
Equities Market-Maker Trans. Fee
22 cents
Equities DPM Trans. Fee
12 cents
QQQQ, SPY, DIA, DJX & Indexes
24 cents (1)
Mrkt. Maker/DPM Trans. Fee
Mini-SPX (XSP) Market-Maker Trans. Fee 15 cents
waived until 2/1/06
Floor Brokerage Fee
Floor Brokerage Fee - Mini-SPX (XSP)
3 cents
waived until 2/1/06
4 cents
4 cents
16.5 cents
9 cents
18 cents (1)
(1) Above rates exclude a 10 cents license fee surcharge for the following products:
• Dow Jones indexes, excluding DJX and DIA
• 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 Circulars
continued
Regulatory Circular RG05-121
Date:
December 1, 2005
To:
The Membership
From:
Financial Planning Committee
Subject:
Non-Member Market-Maker Fee Changes in DJX, DXL & XSP
The following per contract fee changes are effective December 1, 2005 in DJX, DXL (large
size DJX) and XSP for non-member Market-Maker orders (N origin code):
DJX non-member Market-Maker, premium > or = $1
DJX non-member Market-Maker, premium < $1
Former
Fee
$0.47
0.27
Revised
Fee
$0.26
0.26
DXL non-member Market-Maker, premium > or = $1
DXL non-member Market-Maker, premium < $1
0.47
0.27
0.36
0.36
XSP non-member Market-Maker, premium > or = $1
XSP non-member Market-Maker, premium < $1
0.47
0.27
0.17
0.17
As a reminder, all XSP fees are waived through January 31, 2006.
Please contact Ermer Love (312-786-7032 or lovee@cboe.com) or Don Patton (312-7867026 or patton@cboe.com) if you have any questions.
Regulatory Circular RG05-122
To:
Membership
From: Trading Operations
Date:
December 6, 2005
Re:
Preferred Market-Maker Program
The CBOE is pleased to announce an enhancement to its Preferred Market-Maker Program. All that is needed to participate in the Program is an email from the order flow
provider to: Helpdesk@CBOE.com, stating the order flow provider’s name, and a list that
identifies its Preferred Market-Maker in each class. To further simplify the process, the
email may indicate one Preferred Market-Maker for all classes at a given post/station, or
for all classes, etc. For those order flow providers that service multiple correspondents,
flexibility is also available to allow a different Preferred Market-Maker for each correspondent/mnemonic firm acronym. The email may contain this information in any format that is
most convenient for the submitting order flow provider. Shortly after receipt of the email, a
response will be returned from the CBOE Help desk confirming that the request has been
processed.
If the Preferred Market-Maker is quoting at the NBBO at the time the order is received, and
if the order is executed electronically by the Hybrid System, the Preferred Market-Maker
will receive a minimum 40% participation entitlement.1 If the Preferred Market-Maker is
not quoting at the NBBO, then the order shall be handled/executed in accordance with
existing processes, which may include use of the standard DPM Complex participation
entitlement provided in Rule 8.87.
1
The Preferred participation entitlement rate is 50% when there is only one other Market-Maker also quoting
at the best price.
RB2
December 14, 2005, Volume RB16, Number 50
Regulatory Circulars
continued
Regulatory Circular RG05-122 continued
Be advised that Exchange Rule 4.18’s prohibition of the misuse of material non-public information also applies to the Preferred Market-Maker Program.
Questions regarding this circular should be addressed to Anthony Montesano, Trading Operations, at (312) 786-7365 or Michael Trees, Trading Operations, at (312) 786-8408.
Regulatory Circular RG05-123
To:
All Exchange Members and Personnel
From: Floor Officials
Re:
Access to the Trading Floor
Date:
December 2, 2005
This circular is intended to summarize the Exchange’s rules and policies concerning access to the Exchange’s trading floor.
Pursuant to Exchange Rule 6.20, admission to the trading floor shall be limited to
members, employees of the Exchange, clerks employed by members and registered with
the Exchange, service personnel and Exchange visitors authorized admission to the floor
pursuant to Exchange policy, and such other persons permitted admission to the floor by the
President of the Exchange.
Absent exemption from the Office of the Chairman, the following policies apply with
respect to visitors to the trading floor:
A visitor may only be signed in by an Exchange member, a floor manager, or a
senior Exchange staff member. Member firm employees and unauthorized Exchange staff
are not permitted to sign in a visitor or to grant a visitor access to Exchange facilities.
For safety reasons, no child under 12 years of age shall be permitted access to the
trading floor.
Each visitor shall be issued a visitor’s pass by the lobby receptionist. Each visitor’s
pass shall be time stamped upon issuance and must be returned to the reception desk.
During the entire time period that a visitor is present on the trading floor, the visitor
must wear, in a visible place, the visitor’s pass that is issued to the visitor.
Each visitor must be escorted and supervised by the person who signed the visitor
in at all times while the visitor is present on the trading floor. A visitor may have escorted
and supervised access to any part of the Exchange’s facilities that the person who signed
the visitor in is permitted access.
Each visitor must abide by the Exchange’s rules of conduct and the Exchange’s
dress code policies which are set forth in Exchange Regulatory Circular RG03-60.
Each visitor is allowed 2 hours on the trading floor from the time that is time stamped
on his or her visitor’s pass and is allowed no more than 5 visits to the trading floor per month.
December 14, 2005, Volume RB16, Number 50
RB3
Regulatory Circulars
continued
Regulatory Circular RG05-123 continued
The Board has determined that any person who has been barred or suspended
from Exchange membership and/or from association with Exchange members shall be
prohibited from having access to the trading floor during the period of his or her bar or
suspension. This policy is applicable regardless of the length of a bar or suspension and
prohibits a barred or suspended person from being signed in as a visitor to the trading floor.
However, the Office of the Chairman shall be permitted to grant exemptions to this policy
upon the written request of a barred or suspended person.
Any member or employee of a member who violates any of the foregoing rules or
policies may be subject to disciplinary action. In addition, a person who signs a visitor in
may be subject to disciplinary action in the event that the visitor violates any Exchange
rules or policies.
Any questions regarding this circular may be directed to any Floor Official or to
the Office of Trading Floor Liaison at (312) 786-7871.
This Regulatory Circular replaces RG95-62.
Regulatory Circular RG05-124
Date:
December 6, 2005
From:
Market Operations Department
Re:
Restrictions on Transactions in
Calpine Corporation (CPN)
On the Opening of business on December 6, 2005, Calpine Corporation,(CPN), was delisted
from the NYSE.
Effective today, trading in CBOE in existing series of CPN options are subject to the
following restrictions: Only closing transactions maybe effected in any series of CPN
options except for (i) opening transactions by Market-Makers executed to accommodate
closing transactions of other market participants and (ii) opening transactions by CBOE
member organizations to facilitate the closing transactions of public customers executed
as crosses pursuant to and in accordance with CBOE Rule 6.74(b) or (d).
The execution of opening transactions in CPN options, except as permitted above, and/or
the misrepresentation as to whether an order is opening or closing, will constitute a violation of CBOE rules, and may result in disciplinary action. Member organizations should
ensure that they have appropriate procedures in place to prevent their customers from
entering opening orders in this restricted option class.
There are no restrictions in place with respect to the exercise of CPN options. The provisions of this circular apply to any options on CPN traded on CBOE.
Any questions regarding this circular may directed to Kerry Winters at (312) 786-7312 or
Joanne Heenan-Hustad at (312) 786-7786.
RB4
December 14, 2005, Volume RB16, Number 50
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-2005-91
Marketing Fee Program
On November 22, 2005, the Exchange filed Rule Change File No. SR-CBOE-2005-91, which
filing amends CBOE’s marketing fee program including to permit a “Preferred Market-Maker”
to direct the Exchange to disburse funds generated by the marketing fee where an order
provider sends an order to the Exchange designating a Preferred Market-Maker. These
changes to the marketing fee program will be effective November 1, 2005. Any questions
regarding the rule change may be directed to Patrick Sexton, Legal Division, at 312-7867467.
SR-CBOE-2005-100
DPM Obligations
On November 27, 2005, the Exchange filed Rule Change File No. SR-CBOE-2005-100,
which filing proposes to issue a regulatory circular that will subject certain DPMs to obligations that were removed upon the approval of the Exchange’s PAR Official proposal. Any
questions regarding the rule change may be directed to James Flynn, Legal Division, at 312786-7070. Proposed new language is underlined. Proposed deleted language is [stricken
out].
Rule 8.92. Electronic DPM Program
(a) - (b) No change.
(c) Allocation of Option Classes. The Board of Directors or a committee designated
by the Board of Directors shall grant e-DPMs allocations in option classes. Factors
to be considered in granting allocations include performance, capacity, performance
commitments, efficiency, competitiveness, and operational factors. In addition, the
following shall apply:
(i) - (iv) No change.
(v) An e-DPM may not be allocated an option class for which the e-DPM organization serves as DPM on the trading floor, [.]
(vi)
The Exchange may remove any option class from the e-DPM Program at
any time if competitive factors no longer warrant its inclusion in the program.
(d) - (e) No change.
December 14, 2005, Volume RB16, Number 50
RB5
Rule Changes,
Interpretations and
Policies continued
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-2005-92
Unbundling of Orders
On November 07, 2005, the Exchange filed Rule Change File No. SR-CBOE-2005-92,
which filing proposes to adopt a rule to prohibit the practice of unbundling in order to
maximize rebate fees. Any questions regarding the rule change may be directed to Patrick
Sexton, Legal Division, at 312-786-7467. The text of the proposed rule amendments is set
forth below. Proposed new language is underlined.
Rule 4.23 – Unbundling of Orders to Maximize Rebates of Fees
Rule 4.23. No member shall divide an order into multiple smaller orders for the
primary purpose of maximizing rebates of fees resulting from the execution of
such orders, or any other similar payment of value to the member.
SR-CBOE-2005-101
Fingerprinting of Membership Applicants
On November 28, 2005, the Exchange filed Rule Change File No. SR-CBOE-2005-101,
which filing revises an Exchange membership rule that relates to the Exchange’s investigation of membership applicants. Any questions regarding the rule change may be directed to David Doherty, Legal Division, at 312-786-7466. Proposed new language is underlined.
Rule 3.9. Application Procedures and Approval or Disapproval
(a) – (e) No change
(f) The Membership Department shall investigate each applicant applying to be a
member organization, each associated person required to be approved by the
Membership Committee pursuant to Rule 3.6(b), and each applicant applying to
be an individual member (with the exception of any associated person applicant
that is a current member, any member applicant that was a member within 9
months prior to the date of receipt of that applicant’s membership application by
the Membership Department, and any member or associated person applicant
that was investigated by the Membership Department within 9 months prior to the
date of receipt of that applicant’s application by the Membership Department). The
Membership Department may investigate any applicant that is not required to be
investigated pursuant to this paragraph (f) and any other person or organization
that submits an application pursuant to paragraph (a) of this Rule. In connection
with an investigation conducted pursuant to this paragraph (f), the Exchange may
(i) conduct a fingerprint based criminal records check of the applicant or (ii) utilize
the results of a fingerprint based criminal records check of the applicant conducted by another self-regulatory organization within the prior year.
(g) – (l)
No change
... Interpretations and Policies:
RB6
December 14, 2005, Volume RB16, Number 50
Rule Changes,
Interpretations and
Policies continued
SR-CBOE-2005-101 continued
No change
*****
(b)
Inapplicable.
(c)
Inapplicable.
SR-CBOE-2005-103
Rules Relating to E-DPMs
On December 5, 2005, the Exchange filed Rule Change File No. SR-CBOE-2005-103, which
filing proposes to amend CBOE rules relating to the Electronic Designated Primary MarketMaker Program. Any questions regarding the rule change may be directed to James Flynn,
Legal Division, at 312-786-7070. Proposed new language is underlined. Proposed deleted
language is [stricken out].
Rule 8.92. Electronic DPM Program
(a) – (b) No change.
Allocation of Option Classes. The Board of Directors or a committee des(c)
ignated by the Board of Directors shall grant e-DPMs allocations in option classes.
Factors to be considered in granting allocations include performance, capacity,
performance commitments, efficiency, competitiveness, and operational factors.
In addition, the following shall apply:
(i) - (iv) No change
(v) An e-DPM may not be allocated an option class for which the e-DPM
organization serves as DPM on the trading floor, [.]
(vii) The Exchange may remove any option class from the e-DPM Program at any time if competitive factors no longer warrant its inclusion in
the program.
(d) – (e) No change.
December 14, 2005, Volume RB16, Number 50
RB7
Rule Changes,
Interpretations and
Policies continued
SR-CBOE-2005-104
Amend Rules Relating to E-DPMs
On December 6, 2005, the Exchange filed Rule Change File No. SR-CBOE-2005-104,
which filing proposes to amend CBOE rules governing the hours of trading in equity options and narrow-based index options. Any questions regarding the rule change may be
directed to Patrick Sexton, Legal Division, at 312-786-7467. Proposed new language is
underlined.
Rule 3.4. Qualifications of Foreign Member Organizations
(a) An organization that is not organized under the laws of one of the states of the
United States must satisfy the following requirements in order to be a member
organization:
(i) – (xiv) No change.
... Interpretations and Policies:
.01 For purposes of eligibility for membership, an entity organized as a limited
liability company under the laws of a country other than the United States shall be
deemed a corporation, its members shall be deemed principal shareholders, and
its members with management responsibility and its managers shall be deemed
executive officers.
.02 A foreign member organization that is approved to act solely as a lessor is not
required to comply with Rules 3.4(a)(iii)(B) and 3.4(a)(xii).
*****
RB8
(b)
Inapplicable.
(c)
Inapplicable.
December 14, 2005, Volume RB16, Number 50