Trading Permit Information for 11/21/2013 through 11/27/2013

Transcription

1 November 29, 2013 Volume 41, Number 48 The Bylaws and Rules of Chicago Board Options Exchange, Incorporated ( Exchange ), in certain specific instances, require the Exchange to provide notice to Exchange Trading Permit Holders. To satisfy this requirement, a copy of the Exchange Bulletin, including the Regulatory Bulletin, is delivered by or by hard copy free of charge to all effective Trading Permit Holders on a weekly basis. Trading Permit Holders are encouraged to receive the Exchange and Regulatory Bulletin and Information Circulars via . subscriptions may be obtained by Trading Permit Holders by submitting your name, firm if applicable, address, and phone number, to registration@cboe.com. If you do sign up for delivery, please remember to inform the Registration Services Department of address changes. Subscriptions by Trading Permit Holders for hard copy delivery may be obtained by submitting your name, firm if any, mailing address and telephone number to: Chicago Board Options Exchange, Registration Services Department, 400 South LaSalle, Chicago, Illinois 60605, Attention: Bulletin Subscriptions. Copyright 2013 Chicago Board Options Exchange, Incorporated Trading Permit Information for 11/21/2013 through 11/27/2013 TERMINATIONS Individuals Nominee: Termination Date Michael D Freund (LYL) 11/25/13 X-Change Financial Access LLC Glenn G. Baytala (BAY) 11/26/13 TJM Investments, LLC November 22, 2013 Volume 41, Number 47 1

2 Research Circulars The following Research Circulars were distributed between November 21, 2013 and. If you wish to read the entire document, please refer to the CBOE website at and click on the Trading Tools Tab. New listings and series information is also available in the Trading Tools section of the website. For questions regarding information discussed in a Research Circular, please call The Options Clearing Corporation at OPTIONS. Research Circular #RS November 21, 2013 Ingersoll-Rand plc ("IR"): Distribution of Shares of Allegion Public Limited Company ("ALLE") Ex-Distribution Date: December 2, 2013 Research Circular #RS November 21, 2013 The First Marblehead Corporation ("FMD") 1-for-10 Reverse Stock Split Ex-Distribution Date: December 3, 2013 Research Circular #RS November 22, 2013 TranSwitch Corporation ( TXCC ) Stock and Option Symbol Change to ("TXCCQ ) Effective Date: November 25, 2013 Research Circular #RS The Nuverra Environmental Solutions, Inc. ("NES") 1-for-10 Reverse Stock Split Ex-Distribution Date: December 3, 2013 Research Circular #RS Bassett Furniture Industries, Incorporated ("BSET") Ex-Date: December 6, 2013 Research Circular #RS Anixer International Inc. ("AXE") Ex-Date: December 9, 2013 Research Circular #RS November 22, 2013 Sterotaxis, Inc. (STXS) Rights Expiration/Position Consolidation Research Circular #RS November 25, 2013 SHFL entertainment, Inc. ("SHFL") Merger COMPLETED with Bally Technologies, Inc. ("BYI") Cash Settlement Research Circular #RS November 25, 2013 Cogo Group, Inc. ("COGO") Name, Stock and Option Symbol Change to Viewtran Group, Inc. ("VIEW") Effective Date: November 26, 2013 Research Circular #RS Date: November 25, 2013 Allegiant Travel Company ("ALGT") Ex-Date: December 11, 2013 Research Circular #RS November 25, 2013 L Brands Incorporated ("LTD") Stock and Option Symbol Change to ("LB") Effective Date: December 2, 2013 Research Circular #RS November 26, 2013 Main Street Capital ("MAIN") Ex-Date: December 17, 2013 Research Circular #RS Oritani Financial Corp. ("ORIT") Ex-Date: December 4, 2013 Research Circular #RS Alcatel - Lucent ("ALU") CASH DISTRIBUTION IN LIEU OF RIGHTS Ex-Date: December 3, 2013 November 29, 2013 Volume 41, Number 48 2

3 November 29, 2013 Volume RB24, Number 48 The Bylaws and Rules of Chicago Board Options Exchange, Incorporated ( Exchange ), in certain specific instances, require the Exchange to provide notice to Trading Permit Holders. The weekly Regulatory Bulletin is delivered to all effective Trading Permit Holders to satisfy this requirement. Copyright 2013 Chicago Board Options Exchange, Incorporated. Regulatory Circulars CBOE Regulatory Circular RG C2 Regulatory Circular RG Date: November 25, 2013 To: Trading Permit Holders From: Market Operations RE: Changes to Obvious Error Provisions This Regulatory Circular updates CBOE RG and C2 RG As a reminder, CBOE and C2 recently filed proposed rule changes to amend CBOE Rule 6.25 and C2 Rule 6.15 to modify how CBOE or C2 (collectively, the Exchanges ) will nullify or adjust an Obvious Error. (See SR-CBOE and SR-C ) These changes will become effective Wednesday,. As amended, transactions on either CBOE or C2 that are determined to be Obvious Errors, as defined in CBOE Rule 6.25 and C2 Rule 6.15, will be: Adjusted to the Theoretical Price (plus or minus an adjustment penalty) if neither party to the transaction is a non-broker-dealer customer, e.g. broker-dealers, market-makers, or other Professionals 1, unless both parties agree to adjust to another price within 10 minutes of notification of the error. Nullified if such transaction involves at least one non-broker-dealer customer unless both parties to the transaction agree to adjust the trade within 30 minutes of notification of the error. 1 The Exchange also proposed to add text to CBOE Exchange Rules 1.1(fff) (Voluntary Professional) and Rule 1.1(ggg) (Professional) and C2 Rule 1.1 to include a reference to Rule 6.25 or Rule 6.15, respectively. These designations are done on the Exchange on an order by order basis. Thus, through reference, Professional orders will be treated as broker dealer orders. In addition certain non broker dealer customers may have their orders treated as broker dealer orders rather than as public customer orders for purposes of CBOE Rule 6.25 or Rule November 29, 2013 Volume RB24, Number 48 1

4 Additional Information: For further information regarding this matter please contact the CBOE Help Desk at or Regulatory Circular RG Date: November 25, 2013 To: Trading Permit Holders From: Market Operations RE: 12:15 pm Special Closing Rotation for SPX Options on Friday, November 29, 2013 Chicago Board Options Exchange, Incorporated (CBOE or Exchange) will close at 12:15 pm (Chicago time) on Friday, November 29, 2013 (the day after Thanksgiving). As a result, the special closing rotation for standard S&P 500 Index (SPX) options will be conducted after the Exchange closes at 12:15 pm (Chicago time) in order to determine the theoretical fair value of such series as of 12 pm (Chicago time). Please refer to CBOE Rule 6.2B.06 and CBOE Regulatory Circular RG for additional information regarding the monthly special closing rotation for SPX options. Additional Information: Questions regarding the operational topics in this circular may be directed to the CBOE Help Desk at or helpdesk@cboe.com. CBOE Regulatory Circular RG C2 Regulatory Circular RG DATE: November 26, 2013 To: From: RE: Trading Permit Holders and TPH Organizations Regulatory Services Division Thanksgiving Holiday Schedule & Expiring Exercise Declaration (EED) Submissions for Friday, November 29, 2013 In observance of the Thanksgiving holiday, CBOE and C2 will be closed on Thursday, November 28, 2013 and will close at the following times on Friday, November 29, 2013: Equities products will close at 12:00 p.m. CT. ETFs and Indices that normally close at 3:00 p.m. will close at 12:00 p.m. CT. ETFs and Indices that normally close at 3:15 p.m. will close at 12:15 p.m. CT. November 29, 2013 Volume RB24, Number 48 2

5 In addition, for non-cash settled equity options that expire on Friday, November 29, 2013 pursuant to CBOE/C2 Rule 11.1, the deadline to submit to the Exchange a final decision to exercise or not exercise an expiration option shall be 1:30 p.m. CT. Additional Information: Please contact the Regulatory Interpretations and Guidance team at RegInterps@cboe.com or (312) for additional information. Regulatory Circular RG Date: To: Trading Permit Holders From: Regulatory Services Division RE: Modification of Options Regulatory Fee On, Chicago Board Options Exchange, Incorporated ( CBOE ) filed with the Securities and Exchange Commission ( SEC ) a rule change to increase the Options Regulatory Fee ( ORF ) from $.0074 to $.0095 per option contract. Subject to SEC review, the operative date of this fee change is January 1, The ORF is assessed to each Trading Permit Holder for all options transactions executed by the Trading Permit Holder or that are cleared by The Options Clearing Corporation ( OCC ) in the customer range of the Trading Permit Holder, regardless of the exchange on which the transaction occurs. The fee is collected indirectly from Trading Permit Holders through their clearing firms by OCC on behalf of CBOE. A copy of the rule filing SR-CBOE is available on the CBOE website at: The complete CBOE Fees Schedule is posted at: Questions on this Regulatory Circular may be directed to the Regulatory Interpretation and Guidance Line (312) or RegInterps@cboe.com. November 29, 2013 Volume RB24, Number 48 3

6 Rule Changes 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 (the Act ). Below, any additions to rule text are underlined and any deletions are [bracketed]. Copies are available on the CBOE public website at The effective date of the rule change is the date of approval unless otherwise noted. SR-CBOE Complex Orders On November 22, 2013, the SEC approved Rule Change File No. SR-CBOE , which filing amends Rule 6.42, Minimum Increments for Bids and Offers, to state that bids and offers on complex orders may be expressed in any net price increment (that may not be less than $0.01) that may be determined by the Exchange on a class-by-class basis and announced to Trading Permit Holders via Regulatory Circular. Any questions regarding the rule change may be directed to Jeff Dritz, Legal Division, at The rule text is shown below and the rule filing is available at Rule Minimum Increments for Bids and Offers * * * * * (4) Except as provided in Rule 6.53C, bids and offers on complex orders, as defined in Interpretation and Policy.01 below, may be expressed in any net price increment (that may not be less than $0.01) that may be determined by the Exchange on a class-by-class basis and announced to the Trading Permit Holders via Regulatory Circular, regardless of the minimum increments otherwise appropriate to the individual legs of the order. Notwithstanding the foregoing sentence, bids and offers on complex orders in options on the S&P 500 Index (SPX), p.m.-settled S&P 500 Index (SPXPM) or on the S&P 100 Index (OEX and XEO), except for box/roll spreads, shall be expressed in decimal increments no smaller than $0.05 or in any increment, as determined by the Exchange on a class-by-class basis and announced to the Trading Permit Holders via Regulatory Circular. In addition: (a) The legs of a complex order may be executed in $0.01 increments; and (b) complex orders are subject to special priority requirements as described in Rules 6.45, 6.45A, 6.45B, 6.53C, and * * * * * EFFECTIVE-ON-FILING RULE CHANGE(S) The following rule filings were submitted to the SEC effective on filing, and may have taken effect pursuant to Section 19(b)(3) of the Act. They will remain in effect barring further action by the SEC within 60 days after publication in the Federal Register. Below, any additions to rule text are underlined, and any deletions are [bracketed]. Copies are available on the CBOE public website at SR-CBOE Fees Schedule On November 26, 2013, the Exchange filed Rule Change File No. SR-CBOE , which filing proposes to amend the CBOE Fees Schedule, d the Fees Schedule to list the correct bandwidth allowance for Market-Maker Trading Permits. The currently-listed bandwidth amount fails to take into account the extra fifteen minutes of index and ETP trading. Any questions regarding the rule change may November 29, 2013 Volume RB24, Number 48 4

7 be directed to Jeff Dritz, Legal Division, at The rule filing is available at SR-CBOE Fees Schedule On, the Exchange filed Rule Change File No. SR-CBOE , which filing proposes to amend the CBOE Fees Schedule, to increase the Options Regulatory Fee from $.0074 to $.0095 per contract, effective January 1, The amount of the fee is $200 per examination waiver request. Any questions regarding the rule change may be directed to Jaime Galvan, Legal Division, at The rule filing is available at pdf. PROPOSED RULE CHANGE(S) Pursuant to Section 19(b)(1) of the Act, and Rule 19b-4 thereunder, the Exchange has filed the following proposed rule change(s) with the SEC. Below, any additions to rule text are underlined and any deletions are [bracketed]. Copies of the rule change filing(s) are available at Trading Permit Holders may submit written comments to the Legal Division. The effective date of a proposed rule change will be the date of approval by the SEC, unless otherwise noted. SR-CBOE Arbitration On November 22, 2013, the Exchange filed Rule Change File No. SR-CBOE , which filing proposes to permit CBOE s Director of Arbitration to appoint to an arbitration panel in Trading Permit Holder controversies arbitrators from either the Arbitration Committee or, if necessary, from a roster of arbitrators provided by FINRA. Any questions regarding the rule change may be directed to Corinne Klott, Legal Division, at The rule text is shown below and the rule filing is available at Rule 18.2 Procedures in Trading Permit Holder Controversies The following procedures shall apply in any dispute, claim or controversy between parties who are Trading Permit Holders or persons associated with a Trading Permit Holder which is submitted for arbitration pursuant to Rule 18.1(a): (a) Selection of Arbitrators. The arbitration panel shall be selected by the Director of Arbitration and shall consist of not less than three [members of the Arbitration Committee] arbitrators. The arbitrators shall be selected from the Arbitration Committee or, if necessary, from a roster provided by the Financial Industry Regulatory Authority, Inc. ( FINRA) of qualified non-public arbitrators and/or nonpublic chairperson-qualified arbitrators, as defined by FINRA s rules governing arbitration industry disputes. (b)-(d) no change. * * * * * November 29, 2013 Volume RB24, Number 48 5