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Exchange Bulletin
The Constitution and Rules of the Chicago Board Options Exchange, Incorporated ("Exchange"), in certain specific instances, req uire theExchange to provide notice to the Exchange membership. To satisfy this requirement, a complimentary copy of the Exchange Bulletin ,including the Regulatory Bulletin , is delivered to all effective members on a weekly basis.
Additional subscriptions may be obtained by submitting your name, firm, mailing address, e-mail address and telephone number to : ChicagoBoard Options Exchange, Attention: Investor Services Department, 400 South LaSalle, Chicago, Illinois 60605. The cost of an ann ual sub-scription (July 1 through June 30) is $200 ($100 after January 1) for hard copy delivery or $100 ($50 after January 1) for e-ma il delivery, payablein advance. Non-members are welcome to subscribe.
It’s easy to stay informed about issues at CBOE! CBOE Members can now receive informational and news notices via e-mail or fax .To sign up, simply e-mail your name and desired e-mail address or fax number to: luzzi@cboe.com or contact Doug Luzzi at 312-786-7105.
October 1, 1999 V olume 27, Number 40
Members are required to report any address or telephone number changes to the Membership Department at (312) 786-7449 pursuant toExchange Rule 3.6(b). For Seat Market Quotes, call (312) 786-7456.
SEAT MARKET QUOTES AS OF SEPTEMBER 24, 1999
CLASS BID OFFER LAST SALE AMOUNT LAST SALE DATE
CBOE/FULL $550,000.00 $580,000.00 $570,000.00 SEPTEMBER 23, 1999
CBOE/OTP $75,000.00 $100,000.00 $110,000.00 JULY 15, 1999
CBOT/FULL $545,000.00 $570,000.00 $550,000.00 SEPTEMBER 20, 1999
OPTION TRADING PERMIT- LEASE POOL AS OF SEPTEMBER 24, 1999
Highest Bid: No Bid Highest Monthly Rate: $3,500.00
OTP's Available: None Lowest Monthly Rate: $50.00
Last Lease: $50.00 on September 15, 1999
Membership Sales and Transfers
This notice is given pursuant to Rules 3.15 and 3.16 which permit certain types of claims to be filed with the Membership Depar tmentwithin 20 days from the date of this Exchange Bulletin.
From To Price/Transfer Date
Warburg Dillon Read L.L.C. Jeffry Karsen $575,000 09/20/99
Page 2 October 1, 1999 Volume 27, Number 40 The Chicago Board Options Exchange Bulletin
MEMBERSHIP INFORMATION FOR SEPTEMBER 16, 1999 THROUGH SEPTEMBER 22, 1999
INFORMATION CIRCULAR
Information Circular IC99-89
DATE: August 27, 1999
TO: Membership
FROM: Nominating Committee
SUBJECT: Selection of Nominees for the Board of Directors, Nominating and MTS Appointment Committees
Once again it is time for the Nominating Committee to select nominees for the Board of Directors and the Nominating and MTS Appointment Commit-tees. On August 3, 1999 the membership approved changes to CBOE’s governance structure. In the 1999 Annual Election1 , we will begin implement-ing the changes as approved. Available terms on the Board include 1 "floor” director, 1 “at large” director, 1 “lessor” director, all three positions have 3year terms. 2 “off floor” directors (executive officers of member organizations which primarily conduct a non-member public customer business)positions are available with 3 year terms and 1 “off floor” director position with a 1 year term is available. In addition, the Exchange will be electing 6public directors, with 1, 2 and 3 year terms. The Nominating Committee will also be selecting nominees for 7 expiring terms on the NominatingCommittee and 5 expiring terms on the MTS Committee.
Individuals who are interested in being considered by the Nominating Committee must complete and submit a Candidate Information andStatement of Business Affiliation Form and a brief resume by September 30, 1999, and contact Debora Barnes at (312) 786-7416 to arrange fora personal interview before the Committee. Candidate Information and Statement of Business Affiliation Forms are available at the 4th and7th floor reception desks. Interviews will be scheduled on certain weekdays in September and early October, 1999, in the Execu tive Confer-ence Room, 7th floor. The Nominating Committee will select nominees only from those members who submit their names for nomination. Individualsgenerally nominate themselves and are not nominated by others. The names of individuals who have placed themselves into nomination will be postedon the Exchange’s Bulletin Boards.
During the personal interviews, candidates are questioned about a broad range of relevant issues in an attempt to ascertain what type of experience orexpertise the candidate would bring to the Board or the Nominating and MTS Committees. Previous CBOE Committee experience and the regulatoryhistory of candidates is also reviewed. After these interviews, the Committee selects the nominees that it believes will most adequately fill the upcomingvacancies on the Board, Nominating and MTS Committees. The slate for the Board, Nominating and MTS Appointments Committees will be posted onOctober 19th after which members may petition to run against the slated candidates. Petitions must be submitted to Joanne Moffic-Silver, Secretary ofthe Exchange, by 5 p.m. (CT) by November 1, 1999, and petitioners’ names will also be posted on Exchange Bulletin Boards.
On Friday, November 19, 1999, the membership will be asked to elect candidates to fill the vacancies on the Board of Directors, the NominatingCommittee and the MTS Appointments Committee. The membership makes the final decision in ensuring that CBOE has the best leadership in theindustry.
Persons currently serving on the Nominating Committee are: David Snyder, Chairman; James Kackley, Tony McCormick, Bill McGowan, David Miller,Benjamin Nitka, Brian Novak, Don Phillips, Ilene Resnick, Howard Ring, Ethan Schwartz and Richard Thomas. If you have any questions regarding thenominating process, please call Debora Barnes at (312) 786-7416.
1 Pending SEC approval of SR-CBOE-99-43.
Date PostedMEMBERSHIP APPLICATIONS RECEIVEDThis notice is given persuant to Exchange Rule 3.9. Please send anycomments to the Membership Committee in care of the MembershipDepartment.
Individual Member Applicants Date Posted
Sloan M. Smith, Nominee 09/22/99Botta Trading-Scorpious DPM, L.L.C.2221 W. Charleston St.Evanston, IL 60647
Brian H. Force, Lessee 09/17/991729 W. AltgeldChicago, IL 60614
John M. Regan, Nominee 09/16/99Tague Van der Moolen L.L.C.9730 S. MaplewoodEvergreen Park, IL 60645
Gary L. Bowers, Nominee 09/16/99Specialists DPM, LLC1831 Robert LaneNaperville, IL 60564
Thomas J. Ozga, Nominee 09/16/99Tague Van der Moolen L.L.C.7230 A. Washington StreetForest Park, IL 60130
William R. Halloran, Nominee 09/16/99Susquehanna Investment Group3424 SpringdaleGlenview, IL 60025
Kenneth J. Heinz, CBT Registered For 09/16/99ING TT&S (U.S.) Securities Inc.706 S. Greenwood Ave.Park Ridge, IL 60068
Craig S. Haiser, Nominee 09/16/99Hiland Capital I, L.L.C.1720 Johnson Dr. - #128Buffalo Grove, IL 60089
October 1, 1999 Volume 27, Number 40 The Chicago Board Options Exchange Bulletin Page 3
Lessor: Roger W. Geary 09/16/99Lessee: Brown Trading Group LLC
Jason A. Stamer, NOMINEERate: 1 3/4% Term: Monthly
Lessor: MCP Partners 09/16/99Lessee: Heartland TFM L.L.C.
Eric J. Biernat, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Douglas R. Kaiser 09/16/99Lessee: Beartooth Capital, L.L.C.
Alan Zahtz, NOMINEERate: 1 5/8% Term: Monthly
Lessor: D & J Partnership 09/16/99Lessee: Heartland TFM L.L.C.
Sean M. Mc Grath, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Warburg Dillon Read L.L.C. 09/16/99Lessee: PEAK6 Capital Management LLC
Daniel Perper, NOMINEERate: 1 5/8% Term: Monthly
Lessor: York-Carter Co. 09/16/99Lessee: Lawrentz Associated LLC
David A. Lawrentz, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Larkspur Securities, Inc. 09/16/99Lessee: Calusa, L.L.C.
Paul J. Kren, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Eaton Option Management Co 09/16/99Lessee: Wolverine Trading L.P.
Stephen J. Seal, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Todd D. Riley 09/16/99Lessee: Heartland TFM L.L.C.
Robert F. Konecki, NOMINEERate: 1 5/8% Term: Monthly
Lessor: First Options Of Chicago, Inc. 09/16/99Lessee: Wolverine Trading L.P.
Mark A. Esposito, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Robert A. Barr 09/16/99Lessee: Calusa, L.L.C.
Robert A. Barr, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Thomas C. Taylor 09/16/99Lessee: Midway Securities, L.L.C.
Thomas C. Taylor, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Larkspur Securities, Inc. 09/16/99Lessee: Bel Options Limited Partnership
Bruce D. Drevets, NOMINEERate: 1 3/4% Term: Two Days
Lessor: Marc A. Brown 09/16/99Lessee: Brown Trading Group LLC
Marc A. Brown, NOMINEERate: 1 5/8% Term: Monthly
John H. Tocks, CBT Individual 09/16/99123 S. Stonegate RoadLake Forest, IL 60045
Daniel J. Walsh, Nominee 09/16/99PJH Options Inc.16615 Fairfax CourtTinley Park, IL 60477
Paul A. Gregory, CBT Registered For 09/17/99Gregory Allen Limited Partnership2515 N. Racine - #3SChicago, IL 60614
Peter J. Vallone, Nominee 09/17/99OTA Limited Partnership116 Hamilton CourtWheaton, IL 60187
Lorry A. Lichtenstein, Nominee 09/20/99Blue Capital Group L.L.C.1869 Crescent CourtHighland Park, IL 60035
Thomas G. Weston, Nominee 09/20/99Timber Hill LLC542 S. Blackstone AvenueLaGrange, IL 60525
Albert Simon III, CBT Registered For 09/20/99Alsco Investments Inc.843 Bluff StreetGlencoe, IL 60022
John P. Buss, Nominee 09/22/99Susquehanna Investment Group3100 N. SouthportChicago, IL 60657
Thomas P. Shanahan, Nominee 09/22/99KFT DPM, LLC790 N. HighlandGlen Ellyn, IL 60137
MEMBERSHIP LEASESThis notice is given pursuant to Exchange Rules 3.15 and 3.16 whichpermit certain types of claims to be filed with the Membership De-partment within 20 days from the date of this Exchange Bulletin.
New Leases Effective Date
Lessor: Robert K. Ellis 09/16/99Lessee: RMB Trading, Inc.
David C. Adent, NOMINEERate: $300.00 Term: Two Days
Lessor: Catbarann Partners 09/16/99Lessee: Brown Trading Group LLC
Jennifer M. Trumpis, NOMINEERate: 1 1/2% Term: Monthly
Lessor: Larkspur Securities, Inc. 09/16/99Lessee: Heartland TFM L.L.C.
John T. Conroy, NOMINEERate: 1 3/4% Term: Monthly
Effective Date Effective Date
Page 4 October 1, 1999 Volume 27, Number 40 The Chicago Board Options Exchange Bulletin
Effective DateLessor: Leslie Riman 09/16/99Lessee: Wolverine Trading L.P.
A. Robert Vismantas, NOMINEERate: $11,419.00 Term: Monthly
Lessor: Douglas S. Winter Inc 09/20/99Lessee: Flatirons Trading LLC
David A. Green Jr., NOMINEERate: 1 5/8% Term: Monthly
Lessor: Spear, Leeds & Kellogg 09/20/99Lessee: Alpart Trading LP
Michael S. O’Gorman, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Robert K. Ellis 09/20/99Lessee: Joseph D. Heard, Jr., L.L.C.
D. Brooke Gottshall, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Jerold A. Kopf 09/20/99Lessee: Susquehanna Investment Group
Jeffery I. Fried, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Q Investments, L.P. 09/20/99Lessee: Susquehanna Investment Group
Kathleen A. McCullough, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Stephen Koch 09/20/99Lessee: DBS Partners L.P.
Jonathan Yeager, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Merrill Lynch, Pierce, Fenner & Smith, Inc. 09/20/99Lessee: Susquehanna Investment Group
Bruce D. Drevets, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Seats Exchange Inc. 09/20/99Lessee: The Arbitrage Group, L.P.
Thomas G. Weston, NOMINEERate: 1 5/8% Term: Monthly
Lessor: The Arbitrage Group, L.P. 09/20/99Lessee: AK Limited Partnership
Robert M. Friedlander, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Robert K. Farkas 09/21/99Lessee: Copper Trading, J.V.
Nicole P. Marcoux, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Merrill Lynch Professional Clearing Corp. 09/21/99Lessee: Copper Trading, J.V.
Orlando J. Alfonso, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Merrill Lynch Professional Clearing Corp. 09/21/99Lessee: ZH Partners, JV
Edmund J. Zarek, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Ritter Investment Company 09/21/99Lessee: ZH Partners, JV
Michael B. Hoban, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Donaldson Lufkin Jenrette Securities 09/21/99Corporation/Pershing
Lessee: ZH Partners, JVDenise M. Fantetti, NOMINEE
Rate: 1 5/8% Term: Monthly
Lessor: Merrill Lynch Professional Clearing Corp. 09/21/99Lessee: Revord Trading LLC
Christopher J. Revord, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Merrill Lynch Professional Clearing Corp. 09/21/99Lessee: Susquehanna Investment Group
John T. Kark, NOMINEERate: 1 5/8% Term: Monthly
Lessor: John F. Newhouse & Company 09/22/99Lessee: Blackhawk Financial L.L.C.
Todd J. Schwartz, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Victor Grevious 09/22/99Lessee: A.B. Financial L.L.C.
Thomas P. Tiernan, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Anthony Partipilo 09/22/99Lessee: KFT DPM, LLC
Michael A. Favia, NOMINEERate: 1 5/8% Term: Monthly
Lessor: Seats Exchange Inc. 09/22/99Lessee: The Arbitrage Group, L.P.
Thomas G. Weston, NOMINEERate: 1 5/8% Term: Daily
Terminated Leases Termination Date
Lessor: Robert K. Ellis 09/16/99Lessee: Cornerstone Partners
Lessor: Catbarann Partners 09/16/99Lessee: Bel Options Limited Partnership
Jennifer M. Trumpis (JEN), NOMINEE
Lessor: Larkspur Securities, Inc. 09/16/99Lessee: Heartland Trading, L.L.C.
John T. Conroy (TDJ), NOMINEE
Lessor: Roger W. Geary 09/16/99Lessee: JES Securities Ltd.
Jason A. Stamer (STM), NOMINEE
Lessor: MCP Partners 09/16/99Lessee: Heartland Trading, L.L.C.
Eric J. Biernat (EZB), NOMINEE
Lessor: Warburg Dillon Read L.L.C. 09/16/99Lessee: DBS Partners L.P.
Jonathan Yeager (WYE), NOMINEE
Lessor: Douglas R. Kaiser 09/16/99Lessee: QTN Partnership
Alan Zahtz (AZ), NOMINEE
Lessor: D & J Partnership 09/16/99Lessee: Heartland Trading, L.L.C.
Sean M. Mc Grath (MCG), NOMINEE
Effective Date
October 1, 1999 Volume 27, Number 40 The Chicago Board Options Exchange Bulletin Page 5
Effective DateTermination DateLessor: York-Carter Co. 09/16/99Lessee: Bel Options Limited Partnership
Thomas J. Ozga (TOZ), NOMINEE
Lessor: Larkspur Securities, Inc. 09/16/99Lessee: Lawrentz Associated LLC
David Lawrentz (LRZ), NOMINEE
Lessor: Eaton Option Management Co. 09/16/99Lessee: Prime International Equities, Ltd.
Stephen J. Seal (SEL), NOMINEE
Lessor: Todd D. Riley 09/16/99Lessee: Todd D. Riley Limited Partnership
Robert F. Konecki (RFK), NOMINEE
Lessor: First Options Of Chicago, Inc. 09/16/99Lessee: Olcott Enterprises, Inc.
Mark A. Esposito (SPO), NOMINEE
Lessor: Robert A. Barr 09/16/99Lessee: BEL Options Limited Partnership
Jeffrey Fried (FRE), NOMINEE
Lessor: Larkspur Securities, Inc. 09/16/99Lessee: Wolverine Trading L.P.
Matthew F. Monge (MFM), NOMINEE
Lessor: Thomas C. Taylor 09/16/99Lessee: BEL Options Limited Partnership
Robert A. Barr (RAB), NOMINEE
Lessor: Leslie Riman 09/16/99Lessee: D.M. Fantetti, Inc.
Diane M. Fantetti (DFX), NOMINEE
Lessor: Douglas S Winter Inc. 09/20/99Lessee: David A. Green Jr. (DVE)
Lessor: Spear, Leeds & Kellogg 09/20/99Lessee: Terrapin Trading Group, L.L.C.
Brian J. Haag (BRH), NOMINEE
Lessor: Robert K. Ellis 09/20/99Lessee: RMB Trading, Inc.
David C. Adent (SUN), NOMINEE
Lessor: Jerold A. Kopf 09/20/99Lessee: Bel Options Limited Partnership
Jeffery I. Fried (FRE), NOMINEE
Lessor: Robert K. Farkas 09/20/99Lessee: Terrence M. Stafford Jr. (KST)
Lessor: Q Investments, L.P. 09/20/99Lessee: PJH Options Inc.
William R. Halloran (WVH), NOMINEE
Lessor: Larkspur Securities, Inc. 09/20/99Lessee: BEL Options Limited Partnership
Bruce D. Drevets (DVT), NOMINEE
Lessor: Merrill Lynch, Pierce, Fenner & Smith, Inc. 09/20/99Lessee: Susquehanna Securities
John P. Finnegan (JPF), NOMINEE
Lessor: Seats Exchange Inc. 09/20/99Lessee: Timber Hill LLC
Thomas J. Mitchell (TMJ), NOMINEE
Lessor: Merrill Lynch Professional Clearing Corp. 09/21/99Lessee: Orlando J. Alfonso (ORR)
Lessor: Merrill Lynch Professional Clearing Corp. 09/21/99Lessee: Samuelson Trading Corporation
Edmund J. Zarek (EJZ), NOMINEE
Lessor: Ritter Investment Company 09/21/99Lessee: GPZ Trading, L.L.C.
Michael B. Hoban (HOB), NOMINEE
Lessor: Donaldson Lufkin Jenrette Securities 09/21/99Corporation/Pershing
Lessee: D.M. Fantetti, Inc.Diane M. Fantetti (DFX), NOMINEE
Lessor: Gary G. Knight 09/21/99Lessee: Commodore Capital Management, L.L.C.
Peter J. Kosanovich (PJK), NOMINEE
Lessor: Merrill Lynch Professional Clearing Corp. 09/21/99Lessee: Christopher J. Revord (CUE)
Lessor: Merrill Lynch Professional Clearing Corp. 09/21/99Lessee: Roger W. Geary Inc.
John T. Kark (KRK), NOMINEE
Lessor: Victor Grevious 09/22/99Lessee: Blackhawk Financial L.L.C.
Todd J. Schwartz (IMT), NOMINEE
Lessor: John F. Newhouse & Company 09/22/99Lessee: Blackhawk Financial L.L.C.
David W. Fennema (FEN), NOMINEE
Lessor: Anthony Partipilo 09/22/99Lessee: FVA Limited Partnership
Michael A. Favia (FVA), NOMINEE
Lessor: Seats Exchange Inc. 09/22/99Lessee: Timber Hill LLC
Thomas J. Mitchell (TMJ), NOMINEE
LEASE POOL OPTION TRADING PERMIT LEASES
New OTP Leases Effective Date
Lessor: Chicago Board Options Exchange 09/21/99Lessee: Commodore Capital Management, L.L.C.
Peter J. Kosanovich, NOMINEERate: $50.00 Term: 10/31/99
Terminated OTP Leases Termination Date
This notice is given pursuant to Exchange Rules 3.15 and 3.27 whichpermit certain types of claims to be filed with the Membership De-partment within 20 days from the date of this Exchange Bulletin.
Lessor: Chicago Board Options Exchange 09/21/99Lessee: Spear, Leeds & Kellogg
Page 6 October 1, 1999 Volume 27, Number 40 The Chicago Board Options Exchange Bulletin
MEMBERSHIP TERMINATIONS
Individual Members Termination Date
CBT Exercisers:
Arnold L. Levinson (ALL) 09/20/99440 S. LaSalle - Ste 3100Chicago, IL 60605
CBT Registered For:
Kenneth J. Heinz (JRZ) 09/16/99Anteros Capital Markets L.L.C.440 S. LaSalle - Ste. 2800Chicago, IL 60605
John F. Mc Dermott (LTD) 09/20/99Professional Edge Fund, L.P.440 S. LaSalle, Suite 1124Chicago, IL 60605
Bruce A. Martin (BRM) 09/20/99Mesirow Financial, Inc.350 N. ClarkChicago, IL 60504
James T. Anstrand (BAG) 09/21/99Pyramid Trading Limited Partnership440 S. LaSalle, Suite 700Chicago, IL 60605
Lessee(s):
Terrence M. Stafford Jr. (KST) 09/20/99440 S. LaSalle, Suite 2800Chicago, IL 60605
Nominee(s) / Inactive Nominee(s):
Robert M. O’Leary (RPO) 09/16/99Wolverine Trading L.P.311 S. Wacker Ste. #1865Chicago, IL 60606
Peter Connor (CNR) 09/16/99G-Bar Limited Partnership440 S LaSalle #650Chicago, IL 60605
Ralph E. Burkee (BUP) 09/20/99ABN AMRO Incorporated208 S. LaSalleChicago, IL 60604
Rodney D. Jennings (RDN) 09/20/99Panos Trading Limited Partnership440 S. LaSalle #700Chicago, IL 60605
Brian J. Haag (BRH) 09/20/99Terrapin Trading Group, L.L.C.111 Broadway, 2nd FloorNew York, IL 10006
Thomas M. Pulice (SNO) 09/20/99PJV Options, Inc.400 S. LaSalleChicago, IL 60605
Gary D. Garlich (GDG) 09/20/99Lehman Brothers Inc.440 S. LaSalle - Suite 700Chicago, IL 60605
John P. Buss (BUS) 09/20/99JSS Investments, L.L.C.141 W. Jackson Blvd. - Ste. 2201AChicago, IL 60604
Kirk Roggensack (RGY) 09/20/99Donaldson Lufkin Jenrette SecuritiesCorporation/Pershing440 S. LaSalle - Suite 1600Chicago, IL 60605
Lawrence J. Hanson (LJH) 09/21/99ABN AMRO Incorporated208 S. LaSalleChicago, IL 60604
Bruce I. Andrews (BIA) 09/21/99Commercial Crush Inc.440 S. LaSalle - Suite 1596Chicago, IL 60605
Diane M. Fantetti (DFX) 09/21/99D.M. Fantetti, Inc.6709 19th St. Apt.4Berwyn, IL 60402
Thomas P. Tiernan (TJT) 09/21/99Revcon Inc.401 S. LaSalle #1200Chicago, IL 60605
David W. Fennema (FEN) 09/22/99Blackhawk Financial L.L.C.401 S. LaSalle-Ste 1200Chicago, IL 60605
Aidan E. Wagner (AEH) 09/22/99FVA Limited Partnership10727 S. TroyChicago, IL 60655
Member Organizations
Barry & Gianone Securities L.L.P. 09/16/99400 S. LaSalle - CBOE Box 235Chicago, IL 60605
QTN Partnership 09/16/99Attn: Douglas Kaiser440 S. LaSalle-16th FlrChicago, IL 60605
Heartland Trading, L.L.C. 09/16/99440 S. LaSalle #618Chicago, IL 60605
Hincks Trading Limited Partnership 09/16/99Attn: Kevin J Hincks440 S. LaSalle-Ste 1617Chicago, IL 60605
Termination Date
October 1, 1999 Volume 27, Number 40 The Chicago Board Options Exchange Bulletin Page 7
Dennis K Holvay, Inc 09/16/99Attn: Dennis K. Holvay400 S. LaSalle-CBOE Box 288Chicago, IL 60605
Todd D. Riley Limited Partnership 09/16/99Attn: Todd D Riley801 Tisbury LaneLake Forest, IL 60045
Olcott Enterprises, Inc. 09/16/99Attn: Frank C Calabrese4600 N. OlcottHarwood Heights, IL 60650
Terrapin Trading Group, L.L.C. 09/20/99111 Broadway 2nd FlrNew York, NY 10006
D.M. Fantetti, Inc. 09/21/99440 S. LaSalle - Ste. 2800Chicago, IL 60605
Roger W. Geary Inc. 09/21/99Attn: Roger W. Geary1214 Sheridan Rd.Lake Forest, IL 60045
FVA Limited Partnership 09/22/99Attn: Michael A. Favia1659 W. ErieChicago, IL 60622
EFFECTIVE MEMBERSHIPSThis notice is given pursuant to Exchange Rule 3.11.
Individual Members
CBT Exercisers:
Michael A. Montin (GBT) 09/20/99440 S. LaSalle, Ste. 607Chicago, IL 60605Type of Business to be Conducted: Market Maker
CBT Registered For:
Eric A. Gichner (GSH) 09/16/99ING TT&S (U.S.) Securities Inc.440 S. LaSalleChicago, IL 60605Type of Business to be Conducted: Market Maker
Donald A. Cook (OOK) 09/17/99Lakota Trading, Inc.401 S. LaSalle - Suite 200Chicago, IL 60605Type of Business to be Conducted: Floor Broker Market Maker
Jeffrey W. Arnold (JWA) 09/20/99BOG Arnold, LLC440 S. LaSalleChicago, IL 60605Type of Business to be Conducted: Market Maker
Nominee(s) / Inactive Nominee(s):
Daniel Perper (PRP) 09/16/99PEAK6 Capital Management LLC401 S. LaSalle St. - Suite 1500Chicago, IL 60605Type of Business to be Conducted: Market Maker
Lawrence J. Hanson (LJH) 09/20/99ABN AMRO Incorporated208 S. LaSalleChicago, IL 60604Type of Business to be Conducted: Floor Broker
Teresa M. Majsterek (TSK) 09/20/99Option Resource Group, LLC440 S. LaSalle - Ste.700Chicago, IL 60605Type of Business to be Conducted: Floor Broker Market Maker
Michael S. O’Gorman (ARO) 09/20/99Alpart Trading LP30 S. Wacker Dr. - Ste. 1413Chicago, IL 60606Type of Business to be Conducted: Market Maker
D. Brooke Gottshall (GOT) 09/20/99Joseph D. Heard, Jr., L.L.C.400 S. LaSalle - Suite 2500Chicago, IL 60605Type of Business to be Conducted: Market Maker
Anthony J. Accardo (ACC) 09/20/99Calusa, L.L.C.401 S. LaSalle Ste. 200Chicago, IL 60605Type of Business to be Conducted: Floor Broker Market Maker
Michael D. Turvey (TRV) 09/20/99RTB Derivatives, LLC440 S. LaSalle - Suite 2500Chicago, IL 60605Type of Business to be Conducted: Floor Broker Market Maker
Tom G. Sideris (TGS) 09/20/99Option Capital Group, LLC401 S. LaSalle - Suite 1600Chicago, IL 60680Type of Business to be Conducted: Market Maker
Robert M. Friedlander (RMF) 09/20/99AK Limited Partnership220 Bush - Ste. 545San Francisco, CA 94104Type of Business to be Conducted: Market Maker
Nicole P. Marcoux (NCK) 09/21/99Copper Trading, J.V.230 S. LaSalle - Ste. 688Chicago, IL 60604Type of Business to be Conducted: Floor Broker Market Maker
Patrick M. Seguin (SGZ) 09/21/99Big Blue Trading, J. V.230 S. LaSalle Ste. 688Chicago, IL 60604Type of Business to be Conducted: Floor Broker Market Maker
Termination Date
Effective Date
Effective Date
Page 8 October 1, 1999 Volume 27, Number 40 The Chicago Board Options Exchange Bulletin
Scott I. Andrews (SIA) 09/21/99Commercial Crush Inc440 S. LaSalle - Ste. 1500Chicago, IL 60605Type of Business to be Conducted: Market Maker
Thomas P. Tiernan (TJT) 09/22/99A.B. Financial L.L.C.401 S Lasalle #1200Chicago, IL 60605Type of Business to be Conducted: Market Maker
Member Organizations
Brown Trading Group LLC 09/16/99440 S. LaSalle - Ste. 1700Chicago, IL 60605Type of Business to be Conducted: Floor Broker Market Maker
Heartland TFM LLC 09/16/99440 S. LaSalle - Ste. 618Chicago, IL 60605Type of Business to be Conducted: Floor Broker Market Maker
Midway Securities LLC 09/16/99440 S. LaSalle - Ste. 620Chicago, IL 60605Type of Business to be Conducted: Floor Broker Market Maker
Calusa, LLC 09/16/99401 S. LaSalle - Ste. 200Chicago, IL 60605Type of Business to be Conducted: Floor Broker Market Maker
BOG Arnold, LLC 09/20/991439 S. Michigan - Ste. 107Chicago, IL 60605Type of Business to be Conducted: Market Maker
Flatirons Trading LLC 09/20/99401 S. LaSalle - Ste. 200Chicago, IL 60605Type of Business to be Conducted: Floor Broker Market Maker
ZH Partners, JV 09/21/99230 S. LaSalle - Ste. 688Chicago, IL 60604Type of Business to be Conducted: Floor Broker Market Maker
Copper Trading, JV 09/21/99230 S. LaSalle - Ste. 688Chicago, IL 60604Type of Business to be Conducted: Floor Broker Market Maker
Revord Trading LLC 09/21/99230 S. LaSalle - Ste. 688Chicago, IL 60604Type of Business to be Conducted: Market Maker
JOINT ACCOUNTSThis notice is given pursuant to Exchange Rule 8.9.
New Participants Acronym Effective Date
Jennifer M. Trumpis QBT 09/16/99
Eric A. Gichner QDX 09/16/99
Paul J. Kren QET 09/16/99
Craig S. Haiser QHC 09/16/99
Thomas C. Taylor QSW 09/16/99
Daniel C. Perper QXP 09/16/99
Robert F. Konecki QZH 09/16/99
William R. Bergey QLX 09/16/99
James E. McNulty QXP 09/16/99
A. Robert Vismantas QOW 09/16/99
Christopher G. Larkin QUT 09/17/99
Andrew J. Hodgman QUT 09/17/99
Paul A. Oldani QUT 09/17/99
Donald A. Cook QET 09/17/99
Scott A. Snyder QBY 09/20/99
Edward M. Reid QKN 09/20/99
Anthony J. Accardo QET 09/20/99
Michael S. O’Gorman QJC 09/20/99
Michael D. Turvey QQW 09/20/99
Douglas R. Kaiser QTB 09/20/99
Timothy J. Smock QLS 09/20/99
Brian P. Kelly QTP 09/21/99
Denise M. Fantetti QHZ 09/21/99
Joseph S. Nelkin QRX 09/21/99
Edmund J. Zarek QHZ 09/21/99
Kevin G. Kennedy QRX 09/21/99
David L. Cohen QTS 09/21/99
John T. Kark QUT 09/21/99
John T. Kark QEW 09/21/99
David R. Melam QEW 09/21/99
Nicole P. Marcoux QCO 09/21/99
Francis J. Navickas QNY 09/21/99
Michael A. Favia QFK 09/22/99
New Accounts Acronym Effective Date
Scott J. O’Connell QYE 09/16/99
John S. Henkel QYE 09/16/99
Stuart D. Saltzberg QWW 09/16/99
James L. Slykas QWW 09/16/99
Lincoln W. Brewer QWW 09/16/99
William P. Kollada Jr. QWW 09/16/99
Effective Date Acronym Effective Date
October 1, 1999 Volume 27, Number 40 The Chicago Board Options Exchange Bulletin Page 9
Joshua G. Ortego QYS 09/20/99
Key G. O’Neill QYS 09/20/99
Jerry R. Steinborn QJY 09/20/99
John T. Kark QJY 09/20/99
Jeffrey Fried QJY 09/20/99
Paul A. Oldani QJY 09/20/99
Kathleen A. McCullough QJY 09/20/99
Spencer E. Young QTO 09/20/99
Dennis M. Wetzel QTO 09/20/99
Christine J. Lopau QTO 09/20/99
Christopher P. Cribari QTO 09/20/99
Allan E. Welby QTO 09/20/99
Thomas A. Ascher QTO 09/20/99
Barton D. Bergman QTO 09/20/99
Thomas G. Weston QTO 09/20/99
Elan A. Strominger QYS 09/20/99
Nicholas P. Borrelli QYS 09/20/99
Jonathan E. Kaplan QYS 09/20/99
Bradley A. Cohn QYS 09/20/99
Jerry R. Steinborn QYS 09/20/99
Paul A. Oldani QYS 09/20/99
Kathleen A. McCullough QYS 09/20/99
James W. Schiavitti QJY 09/20/99
Joseph G. Feldman QBU 09/20/99
Steven J. Petrosky QBU 09/20/99
Scotlond T. Ernsting QBU 09/20/99
Richard M. Kucera QBU 09/20/99
Geoff A. Crement QBU 09/20/99
J. David Huskin II QZB 09/20/99
David A. Green Jr. QZB 09/20/99
John T. Kark QYS 09/21/99
Terminated Participants Acronym Termination Date
Michael T. Coghlan QZH 09/16/99
Randy N. Chandra QZH 09/16/99
Kenneth J. Heinz QAP 09/16/99
Robert M. O’Leary QWV 09/16/99
Robert M. O’Leary QTR 09/16/99
Rodney D. Jennings QTF 09/20/99
John F. Mc Dermott QML 09/20/99
Thomas G. Weston QCB 09/20/99
Wendy A. Fawcett QHZ 09/21/99
Bruce I. Andrews QPA 09/21/99
Bruce I. Andrews QHM 09/21/99
John S. Stafford Jr. QCO 09/21/99
James W. Gottschalk QHM 09/21/99
James T. Anstrand QFY 09/21/99
James T. Anstrand QLK 09/21/99
David W. Fennema QDS 09/22/99
David W. Fennema QAS 09/22/99
Terminated Accounts
David W. Fennema QBL 09/22/99
Jeffery J. Vandersteeg QBL 09/22/99
CHANGES IN MEMBERSHIP STATUS
Individual Member Applicants Effective Date
Frank A. Brodlo 09/16/99From: CBT Exerciser Registered For Heartland Trading,
L.L.C.; Market MakerTo: CBT Exerciser Registered For Heartland TFM
L.L.C.; Floor Broker Market Maker
Robert F. Konecki 09/16/99From: Nominee For Todd D. Riley Limited Partnership;
Floor BrokerTo: Nominee For Heartland TFM L.L.C.; Floor Broker
Market Maker
Kevin J. Hincks 09/16/99From: CBT Exerciser Registered For Hincks Trading,
Limited Partnership; Market MakerTo: CBT Exerciser Registered For Heartland TFM
L.L.C.; Floor Broker Market Maker
Sean M. Mc Grath 09/16/99From: Nominee For Heartland Trading, L.L.C.;
Market MakerTo: Nominee For Heartland TFM L.L.C.;
Floor Broker Market Maker
Jason A. Stamer 09/16/99From: Nominee For Jes Securities Ltd.;
Floor Broker Market MakerTo: Nominee For Brown Trading Group LLC;
Floor Broker Market Maker
Eric J. Biernat 09/16/99From: Nominee For Heartland Trading, L.L.C.;
Market MakerTo: Nominee For Heartland TFM L.L.C.;
Floor Broker Market Maker
Acronym Effective Date Acronym Termination Date
Page 10 October 1, 1999 Volume 27, Number 40 The Chicago Board Options Exchange Bulletin
Brian P. DeBruin 09/16/99From: CBT Exerciser Registered For Heartland Trading,
L.L.C.; Market MakerTo: CBT Exerciser Registered For Heartland TFM
L.L.C.; Floor Broker Market Maker
Paul J. Kren 09/16/99From: Nominee For BEL Options Limited Partnership;
Floor BrokerTo: Nominee For Calusa, L.L.C.; Floor Broker
Market Maker
John T. Conroy 09/16/99From: Nominee For Heartland Trading, L.L.C.;
Market MakerTo: Nominee For Heartland TFM L.L.C.;
Floor Broker Market Maker
Stephen J. Seal 09/16/99From: Nominee For Prime International Equities, Ltd.;
Market Maker Floor BrokerTo: Nominee For Wolverine Trading L.P.;
Floor Broker Market Maker
Jennifer M. Trumpis 09/16/99From: Nominee For BEL Options Limited Partnership;
Floor Broker Market MakerTo: Nominee For Brown Trading Group LLC;
Floor Broker Market Maker
Daniel F. O’Neill 09/16/99From: CBT Exerciser; Market MakerTo: CBT Exerciser Registered For Midway Securities,
L.L.C.; Floor Broker Market Maker
Marc A. Brown 09/16/99From: Membership Owner; Market MakerTo: Lessor to Brown Trading Group LLC/
Nominee for Brown Trading Group LLC;Market Maker, Floor Broker
Peter J. Gancer 09/16/99From: CBT Exerciser; Market MakerTo: CBT Exerciser Registered For Midway Securities, L.L.C.;
Floor Broker Market Maker
Steven R. Baer 09/16/99From: CBT Exerciser; Market MakerTo: CBT Exerciser Registered For Heartland TFM
L.L.C.; Floor Broker Market Maker
Mark A. Esposito 09/16/99From: Nominee For Olcott Enterprises, Inc.;
Market MakerTo: Nominee For Wolverine Trading L.P.;
Floor Broker Market Maker
A. Robert Vismantas 09/16/99From: Nominee For D.M. Fantetti, Inc.;
Floor Broker Market MakerTo: Nominee For Wolverine Trading L.P.;
Floor Broker Market Maker
William R. Bergey 09/16/99From: Nominee For Ilene Resnick Inc.; Floor BrokerTo: Nominee For Ilene Resnick Inc.;
Market Maker, Floor Broker
William P. Kollada Jr. 09/16/99From: Nominee For William P Kollada, Jr., Inc.;
Floor BrokerTo: Nominee For William P Kollada, Jr., Inc.;
Market Maker, Floor Broker
Douglas R. Kaiser 09/16/99From: Lessor To QTN Partnership/Nominee for QTN
Limited Partnership; Market Maker, Floor BrokerTo: Lessor To Beartooth Capital, L.L.C.
Alan Zahtz 09/16/99From: Lessor To QSA, L.L.C./Nominee for QTN
Partnership; Market Maker, Floor BrokerTo: Lessor To QSA, L.L.C./Nominee For Beartooth
Capital, L.L.C.; Market Maker, Floor Broker
Robert A. Barr 09/16/99From: Lessor To BEL Options Limited Partnership/
Nominee For BEL Options Limited Partnership;Market Maker, Floor Broker
To: Lessor To Calusa, L.L.C./Nominee For Calusa,L.L.C.; Market Maker, Floor Broker
Thomas C. Taylor 09/16/99From: Lessor To BEL Options Limited Partnership, L.L.C.;
Market Maker, Floor BrokerTo: Lessor To Midway Securities, L.L.C./Nominee For
Midway Securities, L.L.C.; Market Maker, FloorBroker
Dennis K. Holvay 09/16/99From: Registered For Dennis K. Holvay, Inc;
Market Maker, Floor BrokerTo: Lessor
Robert B. Gianone 09/16/99From: Nominee For Barry & Gianone Securities LLP;
Market Maker, Floor Broker/Lessor to Big BlueTrading JV
To: Lessor to Big Blue Trading JV
Todd D. Riley 09/16/99From: Nominee For Todd D. Riley Limited Partnership; Floor Broker/
Lessor to Todd D. Riley Limited PartnershipTo: Lessor to Heartland TFM LLC
James W. Schiavitti 09/20/99From: CBT Exerciser Registered For Susquehanna
Securities; Floor Broker Market MakerTo: CBT Exerciser Registered For Susquehanna
Investment Group; Floor Broker Market Maker
Edward T illy 09/16/99From: CBT Exerciser Registered For Lakota Trading Inc.;
Floor Broker Market MakerTo: CBT Exerciser Registered For Calusa L.L.C.;
Floor Broker Market Maker
Gregory R. Tilly 09/16/99From: CBT Exerciser Registered For Lakota Trading Inc.;
Floor Broker Market MakerTo: CBT Exerciser Registered For Calusa L.L.C.;
Floor Broker Market Maker
Bruce D. Drevets 09/20/99From: Nominee For Bel Options Limited Partnership;
Floor Broker Market MakerTo: Nominee For Susquehanna Investment Group;
Floor Broker Market Maker
Jeffery I. Fried 09/20/99From: Nominee For Bel Options Limited Partnership;
Floor BrokerTo: Nominee For Susquehanna Investment Group;
Floor Broker Market Maker
Effective Date Effective Date
October 1, 1999 Volume 27, Number 40 The Chicago Board Options Exchange Bulletin Page 11
Marc I. Beilinson 09/20/99From: Membership Owner; Market MakerTo: Registered For ING (US) Securities,
Futures & Options, Inc.; Market Maker
Patrick T. Koehler 09/20/99From: Nominee For PJH Options Inc.;
Floor Broker Market MakerTo: CBT Exerciser Registered For PJH Options Inc.;
Floor Broker Market Maker
J. David Huskin II 09/20/99From: CBT Registered For Lakota Trading Inc.;
Floor Broker Market MakerTo: CBT Exerciser Registered For Flatirons Trading
LLC; Floor Broker Market Maker
Douglas R. Kaiser 09/20/99From: Lessor to Beartooth Capital LLCTo: Nominee for Beartooth Capital LLC; Market Maker,
Floor Broker/Lessor to Beartooth Capital LLC
Stephen Koch 09/20/99From: Registered For ING (US) Securities, Futures &
Options, Inc.; Floor Broker Market MakerTo: Lessor to DBS Partners LP
David A. Green Jr. 09/20/99From: Lessee From Douglas S. Winter Inc.;
Floor Broker Market MakerTo: Nominee For Flatirons Trading LLC;
Floor Broker Market Maker
Kathleen A. McCullough 09/20/99From: Nominee For LETCO Trading L.P.; Market MakerTo: Nominee For Susquehanna Investment Group;
Floor Broker Market Maker
Geoff A. Crement 09/20/99From: Nominee For Crement-Youatt G.P.; Floor BrokerTo: Nominee For Crement-Youatt G.P.; Market Maker,
Floor Broker
Roger W. Geary 09/21/99From: Nominee For Roger W. Geary Inc; Floor Broker/
Lessor to Roger W. Geary Inc.To: Lessor Brown Trading Group L.L.C.
William J. Gorman 09/21/99From: CBT Exerciser; Market MakerTo: CBT Exerciser Registered For Copper Trading, J.V.;
Floor Broker Market Maker
Orlando J. Alfonso 09/21/99From: Lessee From Merrill Lynch Professional
Clearing Corp; Market MakerTo: Nominee For Copper Trading, J.V.;
Floor Broker Market Maker
Christopher J. Revord 09/21/99From: Lessee From Merrill Lynch Professional
Clearing Corp; Market MakerTo: Nominee For Revord Trading LLC; Market Maker
Denise M. Fantetti 09/21/99From: Nominee For D.M. Fantetti, Inc.;
Floor Broker Market MakerTo: Nominee For ZH Partners, JV;
Floor Broker Market Maker
Edmund J. Zarek 09/21/99From: Nominee For Samuelson Trading Corporation;
Floor Broker Market MakerTo: Nominee For ZH Partners, JV; Floor Broker Market Maker
Jeffery E. Christian 09/21/99From: Nominee For Arbitrade, L.L.C.; Market MakerTo: CBT Exerciser Registered For Arbitrade, L.L.C.; Floor Broker
Market Maker
John T. Kark 09/21/99From: Nominee For Roger W. Geary Inc.; Floor Broker
Market MakerTo: Nominee For Susquehanna Investment Group:
Floor Broker Market Maker
Michael B. Hoban 09/21/99From: Nominee For Gpz Trading, L.L.C.; Market MakerTo: Nominee For ZH Partners, JV; Floor Broker
Market Maker
Michael A. Favia 09/22/99From: Nominee For Fva Limited Partnership;
Floor Broker Market MakerTo: Nominee For KFT DPM, LLC; Floor Broker
Market Maker
John Favia 09/22/99From: Lessor To Blue Capital Group L.L.C./CBT Exerciser
Registered For Blue Capital Group L.L.C.; Market MakerTo: Lessor To Blue Capital Group L.L.C./CBT Registered For
Crescent Court Corp.; Market Maker
MEMBER ADDRESS CHANGES
Individual Members Effective Date
David P. Erickson 09/16/99440 S. LaSalle, Suite 1124Chicago, IL 60605
Paul A. Gregory 09/16/99440 S. LaSalle-Ste 2500Chicago, IL 60605
John M. Regan 09/20/99440 S. LaSalle, Suite 1519Chicago, IL 60605
Bruce A. Martin 09/20/99350 N. ClarkChicago, IL 60504
William R. Halloran 09/20/99141 W. Jackson, Ste. 2201-AChicago, IL 60604
Kenneth J. Heinz 09/20/99440 S. LaSalle, Ste. 2800Chicago, IL 60605
Peter J. Kosanovich 09/22/99401 S. LaSalle, Ste. 1600Chicago, IL 60605
Stephen M. Kosanovich 09/22/99401 S. LaSalle, Ste. 1600Chicago, IL 60605
Effective Date Effective Date
Page 12 October 1, 1999 Volume 27, Number 40 The Chicago Board Options Exchange Bulletin
POSITION LIMITS
For all equity options classes except those listed below, the standard position and exercise limits pursuant to Exchange Rule 4 .11 and 4.12will be applicable. For a complete list of all applicable limits, check 2nd floor data information bins or contact the Departme nt of MarketRegulation. If you wish to receive regular updates of the position limit list, please contact Candice Nickrand at (312) 786-77 30 of theDepartment of Market Regulation.
Class Limit DateAA 150,000 contracts 10/16/99AOL/AOO/AOE/ZAN/ZOL 275,000 contracts 10/16/99 ZFK/ZKS/NWY CQV/CZV 9,000,000 shares 10/16/99BZT/LBG/USB/ZBU 88,500 contracts 10/16/99DWQ 45,000 contracts 10/16/99FQW/FWW 3,375,000 shares 10/16/99ISU 63,000 contracts 10/16/99JNQ 63,000 contracts 10/16/99KMG 91,500 contracts 10/16/99MGG/PVR 45,000 contracts 10/16/99NQA 94,500 contracts 10/16/99NWQ/QUK 150,000 contracts 10/16/99NWY/AOL/AOO/AOE/ZAN/ 275,000 contracts 10/16/99 ZOL/ZFK/ZKSPVR/MGG 45,000 contracts 10/16/99QEB/PXW 1,417,500 shares 10/16/99QKW 63,000 contracts 10/16/99QTD/QWE/TDU 150,000 contracts 10/16/99QTN/TNW 150,000 contracts 10/16/99QUK/NWY 150,000 contracts 10/16/99QXB 225,000 contracts 10/16/99SQX 150,000 contracts 10/16/99TBH/BHZ 75,000 contracts 10/16/99USB/LBG/ZBU/BZT 88,500 contracts 10/16/99VCI/YVC 3,375,000 shares 10/16/99AAS 45,000 contracts 11/20/99AHQ/AHU/ZHO/ZHA/ 30,600,000 shares 11/20/99 WHO/XKB/XWBAQU 63,000 contracts 11/20/99AUP/TYC/ZPA 150,000 contracts 11/20/99BOV/QFN/ZFB/WOF 20,775,000 shares 11/20/99FQ 54,000 contracts 11/20/99FQF/IZP 54,000 contracts 11/20/99GZA/WLA 135,000 contracts 11/20/99HGU/LOW/ZOY 106,500 contracts 11/20/99IZP/FQF 54,000 contracts 11/20/99LOW/ZOY/HGU 106,500 contracts 11/20/99QDQ 27,000 contracts 11/20/99QFN 120,000 contracts 11/20/99QFN/ZFB/WOF/BOV 20,775,000 shares 11/20/99QLF 120,000 contracts 11/20/99QRN/RNO/RNW 150,000 contracts 11/20/99RQZ/RFZ 126,000 contracts 11/20/99SEI/SBM 13,500 contracts 11/20/99TYC/ZPA/AUP 150,000 contracts 11/20/99XKB/XWB/AHQ/AHU/ 30,600,000 shares 11/20/99ZHO/ZHA/WHOBBC/XXU 135,000 contracts 12/18/99COF 180,000 contracts 12/18/99COU/KOV 7,500,000 shares 12/18/99COX/TXH 106,500 contracts 12/18/99IP/ZNP/UCY 12,162,000 shares 12/18/99MEL 150,000 contracts 12/18/99PWQ 150,000 contracts 12/18/99QVR/YVR 120,000 contracts 12/18/99SKM/SKW 31,500 contracts 12/18/99SSV/UTX/ZXU 181,500 contracts 12/18/99
James D. Michalik 09/20/99440 S. LaSalle, Ste. 1400Chicago, IL 60605
Paul J. Gnap 09/20/991 E. Delaware Pl., #12FChicago, IL 60611
Thomas G. Weston 09/20/99440 S. LaSalle Street, Suite 2601Chicago, IL 60605
Class Limit Date TXH/COX 106,500 contracts 12/18/99UCY/IP/ZNP 12,162,000 shares 12/18/99UTX/ZXU/SSV 181,500 contracts 12/18/99XXU/BBC 135,000 contracts 12/18/99BAC/ZNB/LBZ/ZZC 8,150,000 shares 1/22/00BSW/BYV/OGZ/YHQ/YHU/ 300,000 contracts 1/22/00 YHV/YMM/ZYH/YZY/YHZ/ ZGH/ZYO/ZYM/WYHCD/VFS/LFZ/VUC/LUL 8,500,000 shares 1/22/00CDN/TYB 10,357,500 shares 1/22/00CNC/UNG/VJS/LLG 7,500,000 shares 1/22/00CPB/VLL/LLL/ 75,000 contracts 1/22/00 VXL/ULLCYQ/LYL/LYZ/ZYZ/ 18,213,000 shares 1/22/00 WCY/ZCYDCX/LZY 7,500,000 shares 1/22/00DT/DTT 22,500 contracts 1/22/00DVN/PZU 54,000 contracts 1/22/00EL 63,000 contracts 1/22/00ELN 150,000 contracts 1/22/00F/VFO/LFO/VFV/LFV 75,000 contracts 1/22/00GQI 150,000 contracts 1/22/00GTQ 150,000 contracts 1/22/00GZQ/EGW 75,000 contracts 1/22/00GZY/CYQ/LYL/LYZ/ZYZ/ 18,213,000 shares 1/22/00 WCY/ZCYIBI/IUI 6,300,000 shares 1/22/00IPG 63,000 contracts 1/22/00LDQ/ZQM/LYI 7,500,000 shares 1/22/00LLG/CNC 7,500,000 shares 1/22/00LMG 150,000 contracts 1/22/00LTD/VLD/TDU/ 75,000 contracts 1/22/00 VUD/LDXLUV/ZUV/LVW/LVO/ 20,250,000 shares 1/22/00 ZVO/XUV/ZVA/WUVLYI/LDQ/ZQM 7,500,000 shares 1/22/00LZY/DCX 7,500,000 shares 1/22/00LRO/LRZ/ZOR 15,000,000 shares 1/22/00MQD/MQG 150,000 contracts 1/22/00MTC/VM/LYC 75,000 contracts 1/22/00MXT 63,000 contracts 1/22/00OGR/OGZ 150,000 contracts 1/22/00OGZ/YHQ/YHU/YHV/ 300,000 contracts 1/22/00 YMM/ZYH/YZY/YHZ/ZGH/ ZYO/ZYM/WYH/BZW/BYVPEP/VP/LDV 75,000 contracts 1/22/00PUC 27,000 contracts 1/22/00PZU/DVN 54,000 contracts 1/22/00QKW/QKZ 150,000 contracts 1/22/00QXF 63,000 contracts 1/22/00QMD 63,000 contracts 1/22/00QWL/QWW 150,000 contracts 1/22/00SFX/SFJ 4,725,000 shares 1/22/00SLM/VRM/VZL/LYM 7,500,000 shares 1/22/00SNW/SBC/LFE/ZFE 7,500,000 shares 1/22/00STM 63,000 contracts 1/22/00TAN 120,000 contracts 1/22/00TSM/TVM 9,225,000 shares 1/22/00TYB/CDN 10,357,000 shares 1/22/00
Effective DateAllan B. Bluestone 09/21/9915331 Hillside Dr.Fountain Hills, AZ 85268
John P. Buss 09/22/99141 W. Jackson Blvd.Ste. 2201AChicago, IL 60604
Steven A. Moran 09/22/991351 W. AltgeldChicago, IL 60614
Effective Date
October 1, 1999 Volume 27, Number 40 The Chicago Board Options Exchange Bulletin Page 13
Class Limit DateClass Limit DateYHQ/YHU/YHV/YMM/ 300,000 contracts 1/22/00 ZYH/YZY/YHZ/ZGH/ZYO/ ZYM/WYH/OGZ/BZW/BYVDSS/QNU 150,000 contracts 2/19/00HDD/QNU 106,500 contracts 2/19/00HQB/HVB 3,465,000 shares 2/19/00INQ/NQ/ZNL/WNL 225,000 contracts 2/19/00MIQ 45,000 contracts 2/19/00QLL 63,000 contracts 2/19/00QNU/DSS 150,000 contracts 2/19/00QNU/HDD 106,500 contracts 2/19/00RLQ 150,000 contracts 2/19/00TQN/TVN 3,375,000 shares 2/19/00TRB 63,000 contracts 2/19/00UER 63,000 contracts 2/19/00UFS 45,000 contracts 2/19/00UNC 45,000 contracts 2/19/00VUQ 150,000 contracts 2/19/00CQR 45,000 cotracts 3/18/00EQN 150,000 contracts 3/18/00GD/GZC 63,000 contracts 3/18/00GZC/GD 63,000 contracts 3/18/00JQM/JZM 3,375,000 shares 3/18/00LQT 63,000 contracts 3/18/00QED/EXF 150,000 contracts 3/18/00QHS/UAB 63,000 contracts 3/18/00QVL 45,000 contracts 3/18/00QWS 63,000 contracts 3/18/00UQD/UNQ 150,000 contracts 3/18/00XQL 60,000 contracts 3/18/00QFG 63,000 contracts 4/22/00CNW/YIT 54,000 contracts 4/22/00QNF 63,000 contracts 4/22/00UML 27,000 contracts 4/22/00YIT/CNW 54,000 contracts 4/22/00BGL/BGX 1,417,500 shares 5/20/00AIG/LVJ/YGA/ 7,500,000 shares 1/20/01 LZJ/ZAF/ZFAAMQ 150,000 contracts 1/20/01ANF/ZFQ 120,000 contracts 1/20/01AX/ZOU/BPA 150,000 contracts 1/20/01AYV/ZYE/VOD 150,000 contracts 1/22/01BAY/LBN/ZBN/BZY/LZW/ 7,500,000 shares 1/20/01 ZZN/NT/ZOOBBY/ZBY 150,000 contracts 1/20/01BMY/ZBM 150,000 contracts 1/20/01BPA/AX/ZOU 150,000 contracts 1/20/01C/LTY/LVZ/LXW/ZRV/ 15,000,000 shares 1/20/01 ZUZ/CIW/ZZV/ZVI/ ZCY/WCY/WIVCOL/ZYS/CZL/ZVS 75,000 contracts 1/20/01CWQ/ZWC 300,000 contracts 1/20/01DAL/ZDA 40,000 contracts 1/20/01DLQ/DLY/ZN/ZDE/WDQ 200,000 contracts 1/20/01EMC/EMB/ZUE 150,000 contracts 1/20/01FDX/ZFX 150,000 contracts 1/20/01GDT 150,000 contracts 1/20/01GM/LGZ/GU/ZWV 75,000 contracts 1/20/01
GPS/LYP/ZGS/ 11,250,000 shares 1/20/01 LXB/ZVG/GPV/ZKGGZZ/MDT/ZVY 300,000 contracts 1/20/01IBM/IBZ/WIB/ZVB 150,000 contracts 1/20/01INQ 150,000 contracts 1/20/01KRB/LZK/ZK/LKW 7,500,000 shares 1/20/01LTQ/ZZT 150,000 contracts 1/20/01LTY/LRV/LTY/LVZ/LXW/ 15,000,000 shares 1/20/01 ZRV/ZUZ/C/CRW/ZZVLU/ULU/WEU/YZA/ 27,375,000 shares 1/20/01 ZDV/ZEULYY/YZD/CPQ 14,850,000 shares 1/20/01MAT/TZC/ZVC 16,500,000 shares 1/20/01MCD/ZMC 150,000 contracts 1/20/01MDQ 150,000 contracts 1/20/01MDT/ZVY/ZKD/WKV/GZZ 300,000 contracts 1/20/01MRK/ZMK/WMR 150,000 contracts 1/20/01NGH/RU/ZRJ/ZRY 75,000 contracts 1/20/01NOK/NAY/ZOK/ZAK 150,000 contracts 1/20/01NT/LZW/WNT/ZOO/ZZN 15,000,000 shares 1/20/01NT/ZOO/BAY/LBN/ 7,500,000 shares 1/20/01 ZBN/BZY/LZW/ZZNOIL/LOI/ZOI 60,000 contracts 1/20/01PQO/ZPQ/POY/ZQW 75,000 contracts 1/20/01PVN/LNX/ZLA/LXC/ZKU 7,500,000 shares 1/20/01QAQ/AAW/ZLU/LXW/ZYL 150,000 contracts 1/20/01QGC/QGW/ZCK/QCB/ 300,000 contracts 1/20/01 QCD/ZBORQ/LRZ/ORV/ZOR/ZWM 11,250,000 shares 1/20/01RCQ/LGJ/ZGJ 63,000 contracts 1/20/01SCH/LWE/LWZ/ 15,000,000 shares 1/20/01 ZWS/ZWZSLR/ZSR 120,000 contracts 1/20/01T/ZT/TZ/ZYT 11,250,000 shares 1/20/01TZC/ZVC/MAT 16,500,000 shares 1/20/01UTX/LUD/ZXU 150,000 contracts 1/20/01VMB/ZVM 150,000 contracts 1/20/01VOD/AY/ZYE 150,000 contracts 1/20/01WFC 130,000 contracts 1/20/01WMT/LWT/ZWT 150,000 contracts 1/20/01XLQ/ZXJ 150,000 contracts 1/20/01XRX/ZXR 150,000 contracts 1/20/01YZA/LU/ULU/WEU/ 27,375,000 shares 1/20/01 ZDV/ZEUZQN/QZN/YZZ/YQN/ 450,000 contracts 1/20/01 ZWE/ZCR/ZCM/WXW/ YMA/ZQQAIG/LVJ/LZJ/WAP/ZAF/ZFA/ 9,375,000 shares 1/19/02 AYG/WAJ/ZPWBGQ/WGN/ZGB 150,000 contracts 1/19/02CL/WTP/ZGO 150,000 contracts 1/19/02ENE/ZOZ/WUM 150,000 contracts 1/19/02GP 120,000 contracts 1/19/02GTW/ZWB/WGB 150,000 contracts 1/19/02LTD/LDX/KLX/WKX/ZOF 75,000 contracts 1/19/02TOM/ZSO/WSV 63,000 contracts 1/19/02TXN/TNZ/ZTN/WTN/ 150,000 contracts 1/19/02 ZZI/WGZ
Position Limit Circular: PL99-109
DATE: September 22, 1999
TO: Members and Member Organizations
FROM: Department of Market Regulation
RE: Equity Option Position and Exercise Limits
As a result of a review of trading statistics, the following class now qualifies for a higher position and exercise limit:
Option Class Stock Symbol New Tier TIU TIBX 31,500
For additional information, please contact Melissa Becker at (312) 786-7362 in the Department of Market Regulation.
Page 14 October 1, 1999 Volume 27, Number 40 The Chicago Board Options Exchange Bulletin
RESEARCH CIRCULARS
The following Research Circulars were distributed between September 20, 1999 and September 24, 1999 . If you wish to read the entire document, andhave access to a fax machine, please call the CBOE FaxLine at 1-800-OPTIONS, choose option “4” and then option “1”. Please have your fax numberand the corresponding FaxLine document number ready. The FaxLine number is listed adjacent to each circular. To receive a list of all availabledocuments, use the FaxLine number 000. You may also access the Research Circulars on our Web Site at http://www.cboe.com Questions regardingany of the information that is discussed in any Research Circular may be directed to the CBOE Investor Services Department at 1-800-OPTIONS.
CBOE Research Circular #RS99-633 Faxline Document #967September 20, 1999Diamond Multimedia Systems, Inc. (“DIMD/DAQ”) Proposed Merger with S3, Inc.
CBOE Research Circular #RS99-634 Faxline Document #900September 20, 1999New Listings: 4Kids Entertainment, Inc. KIDE/IUK
CBOE Research Circular #RS99-635 Faxline Document #965September 20, 1999Herbalife International, Inc. Class A (“HERBA/HQR”);Herbalife International, Inc. Class B (“HERBB/QTB”):Tender Offer by MH Millennium Acquisition Corp.
CBOE Research Circular #RS99-636 Faxline Document #956September 21, 1999Viasoft, Inc. (“VIAS/QVV”): Tender Offer FURTHER EXTENDED by CV Acquisition, Inc.
CBOE Research Circular #RS99-637 Faxline Document #957September 21, 1999Canadian National Railway Company (“CNI/ZOP”) 2-for-1 Stock Split / Ex-Distribution September 28, 1999
CBOE Research Circular #RS99-638 Faxline Document #900September 21, 1999New Listings
CBOE Research Circular #RS99-639 Faxline Document #958 September 21, 1999CustomTracks Corporation (“CUST/HQU”) Name and Underlying Symbol Change ZixIt Corporation (“ZIXI”)Effective October 1, 1999
CBOE Research Circular #RS99-640 Faxline Document #959September 21, 1999HyperFeed Technologies, Inc. (“PQT”) Stock Symbol Change to “HYPR” / Effective September 23, 1999
CBOE Research Circular #RS99-641 Faxline Document #964September 22, 1999Medtronic, Inc. (“MDT/ZKD/WKV & adj. GZZ/ZVY”) 2-for-1 Stock Split / Ex-Distribution September 27, 1999
CBOE Research Circular #RS99-642 Faxline Document #966September 22, 1999Frontier Corporation (“FRO”) Proposed Merger with Global Crossing Ltd. (“GBLX/QGV”)
CBOE Research Circular #RS99-643 Faxline Document #960September 22, 1999Intuit Inc. (“INTU/IQU”) 3-for-1 Stock Split / Ex-Distribution October 1, 1999
CBOE Research Circular #RS99-644 Faxline Document #961September 22, 1999AXA Financial, Inc. (“AXF”) 2-for-1 Stock Split / Ex-Distribution October 4, 1999
CBOE Research Circular #RS99-645 Faxline Document #962September 24, 1999Just for Feet, Inc. (“FEET/JQF”)Underlying Symbol Change to “FEETE” / Effective September 24, 1999
CBOE Research Circular #RS99-646September 23, 1999 Faxline Document #963Ameritech Corporation (“AIT/ZIA/WFP”) Proposed Merger with SBC Communications, Inc. (“SBC/ZFE/WFE”)
CBOE Research Circular #RS99-647 Faxline Document #964September 24, 1999******CORRECTION TO RESEARCH CIRCULAR #RS99-641******Medtronic, Inc. (“MDT/ZKD/WKV & adj. GZZ/ZVY”) 2-for-1 Stock Split / Ex-Distribution September 27, 1999
CBOE Research Circular #RS99-648 Faxline Document #900September 24, 1999New Listings
RegulatoryBulletin
October 1, 1999 Volume RB10, Number 40
The Constitution and Rules of the Chicago Board Options Exchange, Incorporated (“Ex-change”), in certain specific instances, require the Exchange to provide notice to themembership. The weekly Regulatory Bulletin is delivered to all effective members tosatisfy this requirement.
RegulatoryCirculars
Regulatory Circular RG99-182
Date: September 16, 1999
To: Membership
From: Legal DivisionRegulatory Services Division
Re: Impact of Hurricane Floyd on Options Trading and Exercise
The Exchange has been advised that the impact of Hurricane Floyd on the east coastmay result in the early closing of one or more primary stock markets today, and mayprevent one or more of these markets from opening on Friday. No decision has yetbeen made as to whether any markets may close early today or not open tomorrow.
CBOE has determined to also modify its trading hours for affected classes if primarymarkets for underlying securities close early today.
In the event of an early close of trading today, with respect to OEX options contracts,exercise will be permitted during trading and for five (5) minutes after the close oftrading in OEX. For American-style FLEX Index options, exercise will also be permit-ted during trading and for five (5) minutes after the close of index options trading.Assuming underlying futures markets remain open, OEX and all other broad-basedindex options, international index options, including American-style FLEX index con-tracts, will continue to trade for the normal 15 minutes following the close of theunderlying markets. Today’s exercise settlement values for OEX and all American-style FLEX Index options will be based upon today’s last reported index values.
If the primary securities markets do not open for trading on Friday, September 17th,expiration settlement values for all CBOE index products, including both a.m.- settledand p.m.- settled, are expected to be based upon today’s last reported index valuesin accordance with the rules of CBOE and OCC.
RB2 October 1, 1999, Volume RB10, Number 40
Regulatory Circularscontinued
Regulatory Circular RG99-183
Date: September 16, 1999
To: Members and Member Firms
Re: Re-Balance of the GSTI Composite Index (GTC) and GSTI Sub-Indexes (Hardware (GHA), Internet (GIN), Semiconductor (GSM),Services (GSV), Software (GSO) and Multimedia Networking(GIP))
From: Bill Speth
CBOE has been informed that Goldman, Sachs & Co. (“Goldman Sachs”) will revisecertain of its guidelines for the GSTI Composite (GTC) and the weighting criteria for thesix GSTI Sub-Indexes (Hardware (GHA), Internet (GIN), Semiconductor (GSM), Ser-vices (GSV), Software (GSO) and Multimedia Networking (GIP)). These changes willbecome effective after the close on Friday, September 17.
Outstanding options series for the GSTI Composite Index and the six Sub-Indexes willcontinue to settle based on the present rules and calculation method, but will be tradedunder new ticker symbols. No new series will be added. GHA and GIN are the onlyindexes with open interest beyond September expiration and will be the only indexesfor which CBOE will run parallel calculations.
CBOE will continue to calculate the GSTI Hardware and GSTI Internet Indexes usingthe current index methodology (the “Old Indexes”) until the open interest in these classesexpires in order to facilitate options trading. The “Old Indexes” will be disseminated bythe CBOE under the symbols GHO - GSTI Hardware Index “Old” and GIO - GSTIInternet Index “Old” . The index levels based on the revised methodology (the “NewIndexes”) will be traded under the current set of symbols.
Adjustment to Current Option Series
All GSTI Hardware and GSTI Internet options series outstanding on September 17 willcontinue to settle based on the “Old Indexes” (GHO and GIO). The settlement valuesymbols for GHO contracts will be GMO; and GIO will be GPO.
New Option Series
Options based on the “New Indexes” will be listed on September 20, 1999 under thefollowing symbols:
Current ExpirationSymbol Strikes MonthsGTC 290 - 380 Oct, Nov, Dec 1999GHA 380 - 460 Oct, Nov, Dec 1999GIN 330 - 550, 400, 500 Oct, Nov, Dec 1999
350 - 550 Mar 2000GSM 280 -360 Oct, Nov, Dec 1999GSV 130 - 150 Oct, Nov 1999GSO 260 - 320 Oct, Nov, Dec 1999GIP 290 - 340 Oct, Nov, Dec 1999
October 1, 1999, Volume RB10, Number 40 RB3
Regulatory Circular RG99-183 continuedRegulatory Circularscontinued Additional symbols may have to be used for other strike prices. The settlement value
symbols for options based on the “New Indexes” will be current settlement symbols. Thenew series to be listed will be determined by the Exchange and disseminated by Thurs-day, September 16.
Position Limits
Any combination of options based on the “Old Indexes,” GHO and GIO, and optionsbased on the “New Indexes,” GHA and GIN, can not exceed 9,000 contracts.
Calculation of the New Index
The new index methodology is intended to expand the universe of technology stocksthat can be considered for inclusion in the indexes and to make the indexes more diver-sified. To implement the change, CBOE will conduct a “special re-balancing,” in whichthe maximum weight cap of each Sub-Index component is limited to 12.5% of the aggre-gate index weight. After the “special re-balancing,” CBOE will continue to re-balance theindex semi-annually, in January and July. On Wednesday, September 15, CBOE madethe new index shares available to interested parties.
Questions regarding this memo can be addressed to the CBOE Investor Services De-partment at 1-800-OPTIONS (1-800-678 4667).
Regulatory Circular RG99-184
Date: September 20, 1999
To: Members and Member Firms
From: Market Performance Committee
Re: Modified Bid/Ask Differentials
The Market Performance Committee (MPC), by its authority under the provisions ofExchange Rule 8.7(b)(iv), has temporarily established modified bid/ask differentials inthe option series of the following option classes. Due to the volatility in the underlyingstocks, options on these securities may be wider than the markets allowed under theprovisions of Rule 8.7. This relief is granted from the opening of business on September20, 1999 through the October 1999 Expiration Cycle unless withdrawn by the Committeeprior to that time.
The Market Performance Committee will continue to monitor the activity in the underly-ing securities of these options, and will modify the bid/ask differentials in the respectiveoptions accordingly.
Any questions regarding this memorandum should be directed to Daniel Hustad at (312)786-7715.
RB4 October 1, 1999, Volume RB10, Number 40
Regulatory Circular RG99-184 continuedRegulatory Circularscontinued
Bid/Ask Relief is granted as follows:
Crowd/DPM Option Class Relief Granted
Apollo DPM Broadcast.com, Inc. (BZW/BYV) Double Width
Be Partners DPM Go2Net, Inc. (GQI) Double Width
Lacerta DPM DoubleClick, Inc. (QTD) Double Width
Eclipse DPM CNet, Inc. (QKW) Double Width
Letco DPM eBay, Inc. (QXB) Double WidthYPF Sociedad Anonima (YPF) Double Width
Platinum DPM Net.B@nk, Inc. (NQA) Double WidthCustom Tracks, Corp. (HQU) Double Width
Susquehanna DPM Ameritrade Holdings Corp. (TQA) Double WidthCMGI, Inc. (QGC) Double WidthInktomi Corporation (QYK) Double Width
Timber Hill DPM Goldman Sachs Internet Index (GIN) Triple Width
TradeNet DPM CBOE Technology Index (TXX) Double Width
Replaces Regulatory Circular RG99-166
Regulatory Circular RG99-185
Date: September 20, 1999
To: Members and Member Firms
From: The Market Performance Committee
Re: Long-Term Equity Option Series (LEAPS) on Yahoo! Inc. (YHQ)
The Market Performance Committee (“Committee”), by its authority under the provi-sions of Exchange Rule 8.7(b)(iv), has temporarily established modified bid/ask differ-entials in the Long-Term Equity Option Series (“LEAPS”) on YAHOO! Inc (YHQ). TheseLEAPS expire in the years 2000 and 2001. Due to the volatility in the underlying stock,the Market Performance Committee has determined to modify the bid/ask differentialsas they apply to these LEAPS. The modified bid/ask differentials for the Yahoo! Inc.LEAPS are as follows:
If the bid is from $0 to $20, the bid/ask spread may be up to 2 pointswide. If the bid is from $20 1/8 to $50, the bid/ask spread may be upto 3 points wide. If the bid is greater than $50, the bid/ask spreadmay be up to 4 points wide.
The above bid/ask differentials are the maximum allowable for the Yahoo! Inc. LEAPS.In many instances, however these differentials may be narrower than the above stated.
October 1, 1999, Volume RB10, Number 40 RB5
Regulatory Circularscontinued
Regulatory Circular RG99-185 continued
This relief is granted from the opening of business on September 20, 1999 through theOctober Expiration Cycle unless withdrawn by the Committee prior to that time.
Any questions regarding this memorandum may be directed to Daniel Hustad at (312)786-7715.
Replaces Regulatory Circular RG99-167
Regulatory Circular RG99-186
Date: September 22, 1999
To: Options Managers, Trade Checkers
From: T rade Processing Department
Re: Abbreviated Processing Schedule
On Friday, December 31, 1999 CBOE will close its interest rate options at 12:00 p.m.Chicago time. Equity options and sector index options will end trading at 12:02 p.m.OEX, SPX, DJX and other broad based index and international index options will endtrading at 12:15 p.m. The following modified trade processing schedule will be in effectfor that date:
INTRADAY DATA AND REPORT TRANSMISSIONS will occur at 10:15 and 11:15.
INTRADAY PAPER REPORTS will be produced at 11:15.
1:00 p.m. - RAES trade files will be available for extraction via outbound network.Final market maker terminal trade files will also be available via outbound
network.
1:15 p.m. - End of day price summary reports will be available.
1:30 p.m. - Input cutoff for First Pass.
2:00 p.m. - First Pass unmatched reports and outbound network files will be available.
3:00 p.m. - Input cutoff for Second Pass.
Please inform your systems and operations staff. Questions may be directed to HughO’Neill at (312) 786-7952.
RB6 October 1, 1999, Volume RB10, Number 40
Regulatory Circularscontinued
Regulatory Circular RG99-188
Date: September 22, 1999
To: Members and Member Firms
From: Y2K Planning Team
Re: Y2K Weekend Plans
The CBOE is aware of the potential impact of the Year 2000 problem on its informationtechnology infrastructure as well as that of its firms, members, vendors and variousbusiness providers. Accordingly, the Exchange has embarked on a contingency plan-ning process to handle a wide variety of Year 2000 scenarios. CBOE has leveraged itssignificant investment in its Crisis Management Plan and its Business Recovery Plan,and as a result CBOE’s Year 2000 Contingency Plan draws largely upon these twoplans.
As part of the Year 2000 Contingency Plan, the Y2K Planning Team has prepared aschedule for the weekend surrounding January 1, 2000. The following pages providedetails from that plan and also provide a summary barchart of weekend activities. Pleasenote that the CBOE trading floor will be open to all members and member firm person-nel on Saturday, January 1, 2000 to verify that their proprietary systems are functioningas expected. The floor will be open between the hours of 7:30 A.M. and 3:00 P.M., andthere will be a provision for more time if it becomes necessary.
If you have any questions regarding Y2K planning or the schedule surrounding theJanuary 1, 2000 weekend schedule, contact Andy Lowenthal at 786-7180 or LarryPfaffenbach at 786-7914.
CHICAGO BOARD OPTIONS EXCHANGE Y ear 2000 Contingency Plan
January 1, 2000 Weekend Action Plans
Building OperationsThe CBOE building can be powered by a set of generators that are located on-site. Asa precautionary measure, CBOE will start the generators at approximately 11:30 p.m.on Friday, December 31, 1999. Once it is determined that there is a stable powersupply on Saturday, January 1, 2000, CBOE will shut down its generators. In anyevent, CBOE’s generators engage within 10 seconds of a power interruption. Onceengaged, full conversion to generator power is accomplished in ten minutes. As aprotective measure, critical areas of the Exchange are on a battery back-up systemwhich will last thirty minutes.
On Saturday morning, January 1, 2000 the Building Operations department will have afull contingent of staff and vendors present to handle any problems that may occur. TheElectrical, Building Automation System (BAS), Escalators, Elevators, Food Serviceand Security systems have all been tested and/or updated to be Y2K compliant. Anydeviation from expected results will engage CBOE’s senior management via the Corpo-rate Recovery Team as defined in the Business Recovery Plan.
In order to allow its members and firms to perform tests on non-Exchange equipment,CBOE is planning on making its building available from 7:30 a.m. to 3:00 p.m. onSaturday, January 1, 2000. A procedure will be in place for firms to request additionaltime. Lastly, the CBOE building will open earlier than normal on Monday, January 3,2000, at 6:00 a.m. to allow members and firm personnel sufficient time to review theirsystems.
October 1, 1999, Volume RB10, Number 40 RB7
Regulatory Circular RG99-188 continuedRegulatory Circularscontinued
Trading SystemsOn Friday, December 31, 1999, normal end-of-day processing will be performed and allfiles, databases, etc. will be copied off-site, as is normally done. The CBOE will performa detailed test of its trading systems on Saturday, January 1, 2000, to determine if anydate-related problems occurred due to the millennium change. All trading systems willbe brought up with the current date. Although unexpected, due to the extensive testingcurrently being performed, any deviation from expected results will engage the CBOE’ssenior management via the Corporate Recovery Team. Appropriate measures will thenbe taken to ensure all trading systems are corrected prior to Monday, January 3, 2000.Communication and escalation procedures have been identified.
Regulatory ServicesRegulatory Services will be monitoring the firms for which it is the DEA during the latterhalf of 1999. A detailed set of millennium related questions have been developed inconjunction with the NASD and NYSE. These questions will be distributed to CBOE’sDEA firms no later than December 1999. Firms will be required to respond to thesequestions for a range of time from December 28, 1999 through January 31, 2000.
On Saturday, January 1, 2000, Regulatory Services will contact each DEA firm to obtainanswers to the previously distributed questions. Any deviation from expectations will becommunicated to the Help Desk, SEC and other appropriate DEAs. As a pro-activemeasure Regulatory Services is planning to have CBOE personnel present at a numberof firms Monday, January 3, 2000 and Tuesday, January 4, 2000. These individuals willmonitor the firms and report to the Regulatory Services Command Center informationpertaining to each firm’s financial and operational health. Regulation will share anydeviation from expected results with the Trading Operations Help Desk and the SEC.
2.1 Weekend Schedule By Time
Friday, December 31, 1999
10:00 P.M. Michael Todorofsky, Vice President, Trading Operations will be the se-nior Exchange officer present and responsible for initiating all crisis communication.Escalation Procedures are provided in the in the Year 2000 Contingency Plan appendix.
11:00 P.M. Building Operations, Systems Operations and Telecommunicationspersonnel are on-site. Building Operations will have its entire contingent of personnelpresent. Systems Operations will have its normal shift present plus additional hardwaretechnicians. Telecommunications will have a contingent of staff necessary to completeits verification.
Cursory checks of building and systems operations equipment will begin prior to mid-night, to ensure any existing problems are not misinterpreted to be Y2K issues.
RB8 October 1, 1999, Volume RB10, Number 40
Regulatory Circularscontinued
Regulatory Circular RG99-188 continued
Saturday, January 1, 2000
12:01 A.M. Building Operations will verify that the following has occurred:· Commonwealth Edison power supply has continued uninterrupted· All high voltage systems are functioning as expected· All low voltage systems are functioning as expected· The BAS (Building Automation System) is functioning as expected.
This includes UPS, escalators, elevators, chillers, water supply, fire pumps,sump pumps and HVAC systems.
Should any interruption in power occur, CBOE’s generators will automatically be en-gaged, supplying the data centers with power. Trading and office floors will require apower up by the staff. Procedures for this are found in the Building Operations manualsand recovery plans.
Telecommunications will verify that the following has occurred:· All inbound voice circuits are operational· All outbound voice circuits are operational· The ROLM switch is functioning as expected· The IPC equipment is functioning as expected· The paging system is functioning as expected
Vendors will also be on-site, testing their proprietary equipment.
Systems Operations - Normal nightly, month-end, quarter-end and year-end process-ing will be running as the clock rolls over to Saturday. Any incidents will be immedi-ately reported to Systems Management, at their homes, and to Michael Todorofsky.The hardware technicians will begin a verification process on all data center equipmentand data lines to ensure operations are functioning as expected.
1:30 A.M. Initial verification completeMichael Todorofsky will verify with all personnel present that theinitial Y2K verification was completed successfully.
7:30 A.M. CBOE Building Open for Members and FirmsCBOE will make its building and telecommunications areas availableto members and firm personnel so that they may ensure theirsystems are functioning as expected. CBOE will not performtesting with its members or firms. CBOE’s testing will be limitedsolely to its own system verification.
8:00 A.M. CBOE Building StaffedRepresentatives from CBOE’s Regulatory Services, Systems andTrading Operations Divisions will be present.
9:00 A.M. CBOE System T esting CommencesSystems Development, Systems Operations and Trading Operationsstaff will perform a limited function test to ensure that all productionsystems are functioning as expected. All other Departments arestrongly encouraged to test any system for which they are responsible. Any derivation from expected results will be reported to CurtSchumacher, Vice President of Systems Operations.
October 1, 1999, Volume RB10, Number 40 RB9
Regulatory Circular RG99-188 continuedRegulatory Circularscontinued
Regulatory V erification of DEA FirmsRegulatory staff will contact DEA firms to verify their Y2K health.
1:00 P.M. CBOE System T esting EndsThe limited function test of all production systems should becompleted.
3:00 P.M. Member Firm, V endor ContactCBOE staff will communicate with members, firms or vendors presentto determine their status. CBOE intends to close the building at17:00. Should an extension be necessary, member and firm personnel will be required to request one no later than 15:00. Requests forextensions must be approved by Michael Todorofsky, Vice President,Trading Operations.
5:00 P.M. CBOE Building ClosesCBOE will close its building, all Exchange, member, firm and vendorpersonnel should be completed with their work.
Sunday, January 2, 2000
8:00 A.M. CBOE Building is ClosedOnly scheduled Data Center staff will be on site.
CBOE Systems Operations Normal month-end, quarter-end and year-end processingwill continue. Any derivation from expected results will be reported to Curt Schumacher,Vice President of Systems Operations.
Possible ChangesAny changes identified from the previous day will be made. If necessary, the communi-cation and escalation procedures will be followed.
Monday, January 3, 2000
6:00 A.M. CBOE Opens for Normal Business HoursCBOE Systems will be available earlier than usual, and CBOE willopen its order lines so that member firms may send orders and verifythat all systems are operating as expected. Additionally, MarketMaker Terminal, Stock Order Routing and Vendor Quote systems willbe available.
CBOE floor systems (Reconfigurable displays, auto quote, etc.) willbe available for members to access.
7:00 A.M. Regulatory V erification of DEA FirmsRegulatory staff will contact DEA firms to verify their Y2K health.
7:30 A.M. Member, Firm or V endor CommunicationsAll communications with respect to trading systems are to be directedto the CBOE Help Desk, (312) 786-7100.
8:30 A.M. Trading OpensCBOE is planning “business as usual” on the first trading day afterthe millenium weekend.
RB10 October 1, 1999, Volume RB10, Number 40
Figure 1: Y2K Weekend Plans
Regulatory Circular RG99-188 continued
October 1, 1999, Volume RB10, Number 40 RB11
Rule Changes,Interpretationsand Policies
APPROVED RULE CHANGE(S)
The Securities and Exchange Commission (“SEC”) has approved the following change(s)to Exchange Rules pursuant to Section 19(b) of the Securities Exchange Act of 1934,as amended (“the Act”). Copies are available from the Legal Division.
The effective date of the rule change is the date of approval unless otherwise noted.
SR-CBOE-99-17 – Variable RAES
On September 1, 1999, the SEC approved Rule Change File No. SR-CBOE-99-17, whichamends Exchange rules governing the operation of RAES. (Securities Exchange ActRelease No. 41821, 64 FR 50313 (September 16, 1999)
The rule change increases from 20 contracts to 50 contracts the maximum size oforders for equity options and certain classes of index options that are eligible to beexecuted through RAES. Additionally, the rule change better defines the authority of theappropriate Floor Procedure Committees of the Exchange to establish procedures forassigning RAES orders to individual market-makers for execution, and reflects the presentdetermination of the appropriate Floor Procedure Committees to institute a modifiedassignment procedure, referred to as “Variable RAES”. Members are referred to Regula-tory Circular RG99-180 (printed in the September 24, 1999 issue of the Regulatory Bul-letin) regarding the implementation of Variable RAES.
The rule change also eliminates the one “tick” limit applicable to the RAES automaticstep up procedure, which provides for the automatic improvement of the price at whichan order is executed on RAES in order to match a better price in another market. Therule change allows the appropriate Floor Procedure Committees to authorize automaticRAES step-ups for price differentials greater than the one “tick” differential currentlyspecified in the rules. Finally, the rule change makes a number of editorial revisions toclarify or update the language of the rules governing RAES operations.
Any questions regarding the rule change may be directed to Tim Thompson, Legal Divi-sion, at 312-786-7070. The text of the amended rules set forth below. New language isitalicized.
Rule 6.8 RAES Operations
This Rule governs RAES operations in all classes of options, except to the extent other-wise expressly provided in this or other Rules in respect of specified classes of options.
(a)(i) Firms on the Exchange’s Order Routing System (“ORS”) will automatically be onthe Exchange’s Retail Automatic Execution System (“RAES”) for purposes of routingsmall public customer market or marketable limit orders into the RAES system. Thoseorders which are eligible for routing to RAES may be subject to such contingencies asthe appropriate Floor Procedure Committee (“FPC”) shall approve. Public customerorders are orders for accounts other than accounts in which a member, non-memberparticipant in a joint-venture with a member, or any non-member broker-dealer (includinga foreign broker-dealer as defined in Rule 1.1 (xx)) has an interest. The appropriate FPCshall determine the size of orders eligible for entry into RAES in accordance with para-graph (e) of this Rule. For purposes of determining what a small customer order is, acustomer’s order cannot be split up such that its parts are eligible for entry into RAES.Firms on ORS have the ability to go on and off ORS at will. Firms not on ORS that wishto participate will be given access to RAES from terminals at their booths on the floor.
(ii) When RAES receives an order, the system automatically will attach to the order itsexecution price, determined by the prevailing market quote at the time of the order’s
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entry to the system, except as otherwise provided in Interpretation and Policy .02under this Rule 6.8 in respect of multiply-traded options. A buy order will pay the offer;a sell order will sell at the bid. A Market-Maker logged on to participate in RAES (a“Participating Market-Maker”) will be designated as contra-broker on the trade. A tradeexecuted on RAES at an erroneous quote should be treated as a trade reported at anerroneous price and adjusted to reflect the accurate market after receiving a FloorOfficial’s approval.
(iii) This rule shall apply to RAES in classes handled by DPM’s except that the MTSAppointments Committee may make available additional series or raise the size ofeligible orders in a DPM’s classes pursuant to Rule 8.80.
(b) It is possible that the prevailing market bid or offer may be equal to the best bidor offer on the Exchange’s book. In those instances, a RAES order cannot be ex-ecuted at a price where the best bid or offer on the book equals the prevailing market.Ordinarily, a RAES sell order never can be filled at a price lower than the best book bid,nor can a RAES buy order be filled at a price higher than the best book offer. However,in the case of IBM, OEX or DJX option classes, and in the case of unusual marketconditions for other option classes, as determined by the Exchange’s Vice Chairmanand Chairman of the appropriate Market Performance Committee (“MPC”), a transac-tion can take place at the price of the best bid or offer reflected by a booked order.
(c) Under ordinary circumstances, in option classes other than IBM, OEX or DJX,if a RAES order would be executed at the price of one or more booked orders, the orderwill be rerouted on ORS under the existing ORS parameters. Ordinarily, such an orderwould be routed electronically to a Floor Broker’s terminal or work station in the crowd,or to a printer, as determined upon the volume parameters of each firm. In the eventthat the firm routing the order is not routing orders to the crowd, the order would berouted to the firm’s booth. The representation, execution and reporting of such an orderwould occur as it does for all orders so routed.
(d)(i) Participating Market-Makers will be assigned trades by RAES on a rotatingbasis, with the first Market-Maker selected at random from the list of ParticipatingMarket-Makers, in accordance with procedures adopted by the appropriate FPC. Par-ticipating Market-Makers are obligated to trade at the displayed market quote at thetime an order enters the system. Exchange rules shall not apply to the extent thatthey are inconsistent with these terms, including but not limited to Rule 6.45 (Priority ofBids and Offers), Rule 6.43 (Manner of Bidding and Offering), and Rule 8.1 (Market-Maker Defined). Applicable position and exercise limits will remain in effect for RAEStransactions. Transactions executed through RAES orders will count towards fulfill-ment of the in-person requirement of Rule 8.7.
(ii) All participants will be informed of trades immediately upon execution. A fill reportmay be generated to the firm at the firm’s point of entry into the system (i.e., either itsbranch office or floor booth), and a trade acknowledgment ticket (“TAT”) will be madeavailable. A log for all transactions will be available throughout the day for review byparticipants. Audit reports will be sent to the Exchange’s Regulatory Services Divi-sion.
(e) Eligible orders must be for fifty or fewer contracts on series placed on thesystem, except that eligible orders for interest rate options or for options on the S&P500 Index, the Nasdaq 100 Index or the Dow Jones Industrial Average must be for onehundred or fewer contracts on series placed on the system. The appropriate FPC, inits discretion, may determine to restrict the size and kind of eligible orders, includingbut not limited to, lowering contract limits. Announcements concerning the size andkind of eligible orders will be made promptly as these are adjusted. The appropriateFPC will have discretion to place on the system such series in classes of optionssubject to its jurisdiction as it determines is appropriate.
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(f) Each day the system is available, a post director or his representative will startthe system, after quotes in the eligible series have been updated following opening rota-tion. If the system is or becomes unavailable, for any reason, eligible orders will behandled as they are handled currently in non-eligible option series.
(g) A marketable limit order is a limit order where the specified price at which to sellis below or at the current bid, or if to buy is above or at the current offer. Marketable limitorders will not be executed to sell for less or buy for more than the specified price, butthe order can be executed to sell for a higher price or buy for a lower price. However, ifthe order’s limit price is under $3, RAES will execute the order only if the necessary bidor offer is ½ point or less from the limit price. If the order’s limit price is $3 or more,RAES will execute the order only if the necessary bid or offer is one dollar or less fromthe limit price.
... Interpretations and Polices
.01 Notwithstanding the provisions of paragraph (e) of this Rule, the appropriate FPCmay increase the size of orders in one or more classes of multiply-traded options eligiblefor entry into RAES to the extent necessary to match the size of orders in options of thesame class or classes eligible for entry into the automated execution system of anyother options exchange, provided that the effectiveness of any such increase shall beconditioned upon its having been filed with the Securities and Exchange Commissionpursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934.
.02 Orders to buy or sell options that are multiply traded in one or more markets inaddition to the Exchange will not be automatically executed on RAES at prices inferiorto the current best bid or offer in any other market, as such best bids or offers areidentified in RAES. In respect of those classes of options that have been specificallydesignated by the appropriate Floor Procedure Committee as coming within the scope ofthis sentence (“automatic step-up classes”), under circumstances where the Exchange’sbest bid or offer is inferior to the current best bid or offer in another market by no morethan the “step-up amount” as defined below, such orders will be automatically executedon RAES at the current best bid or offer in the other market. In respect of automaticstep-up classes of options under circumstances where the Exchange’s best bid or offeris inferior to the current best bid or offer in another market by more than the step-upamount, or in respect of specified automatic step-up classes or series of options orspecified markets under circumstances where the Chairman of the appropriate FloorProcedure Committee or his designee has determined that automatic step-up should notapply because quotes in such options or markets are deemed not to be reliable, or inrespect of classes of options other than automatic step-up classes where the Exchange’sbest bid or offer is inferior to the current best bid or offer in another market by anyamount, such orders will be rerouted to the DPM or OBO for that class of options for non-automated handling. The DPM or OBO will report the execution or non-execution ofsuch orders to the firm that originally forwarded the order to RAES. As used in thisInterpretation and Policy .02, the term “step-up amount” shall mean the minimum incre-ment for options of that series established pursuant to Rule 6.42, or any greater amountestablished by the appropriate Floor Procedure Committee in respect of specified auto-matic step-up classes or series of options. The procedures described in this Interpreta-tion .02 shall not apply in circumstances where a “fast market” in the options that are thesubject of the orders in question has been declared on the Exchange or where compara-ble conditions exist in the other market such that firm quote requirements do not apply.
.03 The senior person then in charge of the Exchange’s Control Room shall have theauthority to turn off RAES with respect to a class of options if there is a system malfunc-tion that affects the Exchange’s ability to disseminate or update market quotes. Oncethe system malfunction has been corrected and the market quotes have been updated,either the senior person then in charge of the Exchange’s Control Room, or the OrderBook Official, or the RAES Supervisor may re-start RAES.
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.04 Under ordinary circumstances, when one or more RAES eligible orders in a classof options is re-routed on ORS to the trading station (but not in cases when the ordersare routed to the firm’s booth) pursuant to paragraph (c) of this rule because the priceat which such orders would otherwise have been executed is the same as the price ofone or more booked orders, the crowd will be obligated to sell (buy) the rerouted order(or the first order in any group of rerouted orders at the same price) up to the number ofcontracts equal to applicable maximum size of RAES-eligible orders for that class ofoptions at the offer (bid) which existed at the time of the order’s entry into the RAESsystem. Because the first such rerouted order will be entitled to a price that existedwhen the order was initially entered into the RAES system, it is imperative that such anorder be represented by the floor brokers as quickly as possible. Orders re-routed tothe firm’s booth and orders rerouted to the trading station that are not entitled to theabove protection will be entitled to be filled by the trading crowd at the bid or offerexisting when the Floor Broker represents the order in open outcry in the crowd, pursu-ant to Rule 8.51.
.05 The Chairman of the appropriate Floor Procedure Committee or the Chairman’sdesignee may exercise the authority of the appropriate FPC under paragraph (a)(i) ofthe Rule to increase the size of orders in one or more classes of options eligible forRAES when the Chairman or his designee believes that the action is in the interest ofalleviating a potential backlog of unexecuted orders in situations where a particularclass of options is experiencing a large influx of orders and provided the decision ismade for no more than one trading day. To the extent the conditions exist on thefollowing trading day, the Chairman or his designee must review the situation and makean independent decision to increase the RAES eligible order size for that subsequentday. Any decisions made by the Chairman or his designee to increase the RAESeligible order size for a particular option class for consecutive days will be reviewed bythe appropriate FPC at its next regularly scheduled meeting.
.06 In the exercise of their authority to determine the procedure for assigning RAES-eligible orders to Participating Market-Makers for execution, the appropriate FPCs havedetermined that in the absence of any specified alternative assignment methodology,an assigned Participating Market-Maker is required to buy/sell the entirety of eachRAES order assigned to him up to the maximum size of RAES-eligible orders in thatclass of options. Alternatively, the appropriate FPC may specify that some or all op-tions classes are subject to “Variable RAES”. Other than immediately after the Com-mission initially approves the Exchange to use Variable RAES (in which case VariableRAES may be implemented without the requisite notice), any time the appropriate FPCintends to discuss an issue related to the RAES allocation method the FPC mustprovide at least three days’ advance notice to the Exchange’s membership and mustprovide members with either the opportunity to provide written comments or the oppor-tunity to appear at the meeting, or both regarding the proposed change. Under Vari-able RAES, each Participating Market-Maker is required to designate the maximumnumber of contracts in a class that he is willing to buy or sell each time he is assigneda RAES order. The designated maximum may not be less than the minimum numberof contracts for that class as specified by the appropriate Floor Procedure Committee.An assigned market-maker is required to buy or sell all or a portion of each assignedRAES order up to his designated maximum. If the number of unassigned contracts ina RAES order is less than or equal to the assigned market-maker’s designated limit,the market-maker is obligated to buy or sell all of the unassigned contracts in theorder, and the next RAES order will be assigned to the next market-maker on theRAES assignment rotation. If the number of unassigned contracts in an order ex-ceeds the specified limit, the first assigned market-maker is obligated to buy or sellthe number of contracts equal to his designated limit, and the remainder of the order isassigned to the next market-maker on the RAES assignment rotation, who is obligatedto buy or sell the number of remaining unassigned contracts in the order up to thatmarket-maker’s specified limit. The assignment rotation continues in this manner untilall of the contracts in the order have been assigned to one or more market-makers,
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even if this necessitates making more than one assignment to the same market-makeras the assignment rotation continues. The appropriate FPC will notify the membershipof each class of options that is subject to Variable RAES. The effectiveness of anyother methodology for assigning RAES orders to Participating Market-Makers that maybe adopted by an appropriate FPC shall be conditioned upon its having been filed withthe Securities and Exchange Commission pursuant to Section 19(b) of the SecuritiesExchange Act of 1934.
Rule 23.7 RAES Operations in Interest Rate Options
The operations of the Retail Automated Execution System (RAES) for interest rate op-tions are subject to Rule 6.8.
Rule 24.15 RAES Operations in Index Options
The operations of the Retail Automated Execution System (RAES) for Index options aresubject to Rule 6.8.
Rule 24.17A Deleted September 1 , 1999
SR-CBOE-99-52 – Market Maker Surcharge for Brokerage
Rule Change File Nos. SR-CBOE-99-52 amends the fee schedule pursuant to Rule 2.40,Market Maker Surcharge For Brokerage. Pursuant to Section 19(b)(3) of the Act, the feechanges set forth below became effective September 2, 1999.
Option Class Market-Maker Surcharge OBO Brokerage (per contract) Rate (per contract)
The Boeing Company (BA) $0.14 $0.00Friede Goldman International (FGI) $0.02 $0.00Northwest Airlines Corporation (NAQ) $0.02 $0.00Open Market, Inc. (OQM) $0.02 $0.00Orbital Science Corp. (ORB) $0.02 $0.00Onsale, Inc. (QOL) $0.02 $0.00Prime Medical Services, Inc. (QSI) $0.02 $0.00Synovous Financial Corp. (SNV) $0.02 $0.00Wackenhut Corrections Corp. (WHC) $0.02 $0.00Zebra Technologies Corp. (ZBQ) $0.02 $0.00
All of the fees will remain in effect until such time as the Equity Floor Procedure Commit-tee or the Board determines to change these fees and files the appropriate rule changewith the Securities and Exchange Commission.
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Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934, as amended (“theAct”), and Rule 19b-4 thereunder, the Exchange has filed the following proposed rulechange(s) with the Securities and Exchange Commission (“SEC”). A copy of the rulechange filing(s) is available from the Legal Division. Members may submit writtencomments to the Legal Division.
The effective date of a proposed rule change will be the date of approval by theSEC, unless otherwise noted.
SR-CBOE-99-51 – RAES and Firm Quote
On August 31, 1999, the Exchange filed Rule Change File No. SR-CBOE-99-51, whichthe proposes to increase to 75 contracts the maximum size of orders for equity optionsand certain classes of index options that are eligible to be executed through RAES.Additionally, the proposed rule change makes certain complementary changes to theExchange’s firm quote rule.
Any questions regarding the proposed rule change may be directed to Tim Thompson,Legal Division, at 312-786-7070. The text of the proposed rule change is set forthbelow. Proposed new language is underlined; proposed deleted language is indicatedby strikethrough.
Rule 6.8 RAES Operations
(a) - (d) No change.
(e) Eligible orders must be market or marketable limit orders for [twenty] seventy-five or fewer contracts on series placed on the system, except that eligible orders forinterest rate options or for options on the S&P 500 Index, the Nasdaq 100 Index, theDow Jones Industrial Average, or the High Yield Select Ten must be for one hundred orfewer contracts on series placed on the system . The appropriate FPC, in its discre-tion, may determine to restrict eligible orders, including but not limited to, loweringcontract limits. Announcements concerning the size and kind of eligible orders will bemade as these are adjusted. The appropriate FPC will have discretion to place on thesystem such series in classes of options as it determines is appropriate. Announce-ments concerning eligible series will be made daily by the Exchange in the same waynew strike prices are currently announced (i.e., by memoranda or taped telephonemessages).
(f) - (g) No change.
Rule 8.51 Trading Crowd Firm Disseminated Market Quotes
(a) The classes and series which shall be subject to the requirements of this rule willbe determined at the discretion of the appropriate Market Performance Committee.
(1) Only non-broker-dealer customer orders shall be entitled to an execution pur-suant to the provisions of this paragraph (a). For purposes of this Rule, the termbroker-dealer includes foreign broker-dealers as defined in Rule 1.1 (xx).
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PROPOSED RULE CHANGE(S)
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(2) The firm quote requirement shall be no less than the RAES contract limit appli-cable to that class of options, except where the RAES contract limit is more than fiftycontracts for a particular option class then the firm quote requirement shall be fifty con-tracts. However, for those classes where the RAES contract limit is fifty or less, theappropriate Floor Procedure Committee, in its discretion, may establish a different firmquote requirement for a particular class of options that is no less than the RAES contractand no more than 50 contracts. For classes or series that are not traded on RAES, theappropriate Floor Procedure Committee may establish a firm quote requirement of be-tween 10 and 50 contracts. The firm quote requirement applies at all times other thanduring rotation, unless there is a contrary Floor Official ruling as described below in8.51(a)(3). The firm quote requirement obligates a trading crowd to sell (buy) at least theestablished number of contracts at the offer (bid) which is displayed when a buy (sell)customer order reaches the trading station where the particular option class is locatedfor trading. The Exchange may establish a higher firm quote requirement, of up to 100contracts, for the trading crowd for options on the Dow Jones Industrial Average. Exceptin the case of rerouted RAES orders that are eligible for the RAES kickout price inaccordance with Interpretation .04 to Rule 6.8, an order ordinarily will be deemed toreach the trading station when a Floor Broker represents the order in open outcry at thetrading station.
(3) - (4) No change.
(b) No change.
Interpretation .03 In broad-based index options, market-maker orders and otherbroker-dealer proprietary orders that in each case are for less than the firm quote require-ment applicable for that class of options, and are represented in the crowd by a FloorBroker or DPM should not be reflected in the displayed market quote. In all optionclasses other than broad-based index option classes, market-maker orders that in eachcase are for less than ten contracts, and are represented in the crowd by a Floor Brokeror DPM should not be reflected in the displayed market quote. However, a Floor Brokeror DPM remains obligated to use due diligence in the representation of such orders asset forth in Rule 6.73.
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