SEAT MARKET QUOTES AS OF FRIDAY, NOVEMBER 11, 2005 CLASS BID OFFER LAST SALE AMOUNT LAST SALE DATE CBOT FULL MEMBERSHIP

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1 November 11, 2005 Volume 33, Number 45 Exchange Bulletin The Constitution and Rules of the Chicago Board Options Exchange, Incorporated ( Exchange ), in certain specific instances, require the Exchange to provide notice to the Exchange membership. To satisfy this requirement, a complimentary copy of the Exchange Bulletin, including the Regulatory Bulletin, is delivered by hard copy or to all effective members on a weekly basis. CBOE members are encouraged to receive the Exchange and Regulatory Bulletin and Information Circulars via . subscriptions may be obtained by submitting your name, firm if applicable, mailing address, address, and phone number, to members@cboe.com, or, by contacting the Membership Department by phone, at There is no charge for delivery of the Exchange and Regulatory Bulletin or for Information Circulars. If you do sign up for delivery, please remember to inform the Membership Department of address changes. Additional subscriptions for hard copy delivery after the first complimentary copy may be obtained by submitting your name, firm if any, mailing address, address and telephone number to: Chicago Board Options Exchange, Accounting Department, 400 South LaSalle, Chicago, Illinois 60605, Attention: Bulletin Subscriptions. The cost of an annual subscription (January 1 through December 31) is $ ($ after July 1), payable in advance. The Exchange reserves the right to limit subscriptions by nonmembers. For up-to-date Seat Market Quotes, call or refer to CBOE.com and click Seat Market Information under the About CBOE tab. For access to the CBOE Member Web Site, please also notify the Membership Department by sending an to members@cboe.com or by phone at Copyright 2005 Chicago Board Options Exchange, Incorporated SEAT MARKET QUOTES AS OF FRIDAY, NOVEMBER 11, 2005 CLASS BID OFFER LAST SALE AMOUNT LAST SALE DATE CBOE $705, $790, $715, November 11, 2005 CBOT FULL MEMBERSHIP CLASS BID OFFER LAST SALE AMOUNT LAST SALE DATE With CBOE Exercise Right $2,750, $2,950, $2,900, November 9, 2005 Without CBOE Exercise Right $2,400, $3,300, $2,850, October 24, 2005 CBOE Exercise Right $30, $90, $90, October 28, 2005 CBOE MEMBERSHIP SALES AND TRANSFERS From To Price/Transfer Date Lawrence Novak Geneva Stock, LLC $725, /8/05 Richard E. Tobin Ronin Capital, LLC $681, /8/05 Robert A. Zordani Citigroup Derivatives Markets, Inc. $675, /8/05 BNY Brokerage Inc. TRO Trading Group LLC $715, /11/05

2 Page 2 November 11, 2005 Volume 33, Number 45 Chicago Board Options Exchange MEMBERSHIP INFORMATION FOR 11/3/05 THROUGH 11/9/05 MEMBERSHIP APPLICATIONS RECEIVED FOR WHICH A POSTING PERIOD IS REQUIRED Individual Membership Applicants Date Posted Stephen C. Kanavos, Lessor 11/7/ Timberhill Road Highland Park, IL MEMBERSHIP LEASES New Leases Lessor: Gahl & Schwartz Inc. 11/7/05 Lessee: Cutler Group, LP Rate: 1.125% Term: Monthly Lessor: Anthony P. Arciero 11/7/05 Lessee: PEAK6 Capital Management LLC Neel Shah, NOMINEE Lessor: Burt R. Bondy 11/7/05 Lessee: PEAK6 Capital Management LLC Franz F. Paul, NOMINEE Lessor: David Gerstel 11/7/05 Lessee: PEAK6 Capital Management LLC Joseph D. Mueller, NOMINEE Lessor: Ruth I. Kahn 11/7/05 Lessee: PEAK6 Capital Management LLC Gavin M. Lowrey, NOMINEE Lessor: Elliott N. Mirman 11/7/05 Lessor: S & S Options 11/7/05 Lessee: Cutler Group, LP Harilaos S. Mantzoros, NOMINEE Rate: 1.125% Term: Monthly Lessor: Burton P. Bilfeld 11/8/05 Lessee: Hurricane Capital, LLC Stephen K. Fox (FOX), NOMINEE Rate: 1.125% Term: 1 Day Terminated Leases Lessor: Mont R. Wickham 11/7/05 Lessee: Xenos, LLC Harilaos S. Mantzoros (HSM), NOMINEE Lessor: David Gerstel 11/7/05 Lessor: Burt R. Bondy 11/7/05 Lessor: Anthony P. Arciero 11/7/05 John H. Waterfield III (NYO), NOMINEE Lessor: Ruth I. Kahn 11/7/05 Lessor: Richard E. Tobin 11/9/05 Lessee: Ronin Capital, LLC Richard E. Tobin (RJT), NOMINEE Lessor: Burton P. Bilfeld 11/9/05 Lessee: Hurricane Capital, LLC Stephen K. Fox (FOX), NOMINEE MEMBERSHIP TERMINATIONS Individual Members Nominee(s) / Inactive Nominee(s): Brian J. McGrath (BQM) 11/3/05 Timber Hill LLC 209 S. LaSalle - 10th Floor Chicago, IL Michael R. Lossia (MRL) 11/7/05 PEAK6 Capital Management LLC 141 W. Jackson, Suite 400 Chicago, IL Timothy M. Sommerfield (EIS) 11/7/05 SLK-Hull Derivatives LLC 440 S. LaSalle Street - 17th Floor Chicago, IL Stephen K. Fox (FOX) 11/9/05 Hurricane Capital, LLC 5 Greenwood Drive New City, NY Michael R. Moore (CBY) 11/9/05 Ronin Capital, LLC PO Box Chicago, IL Tom G. Sideris (TGS) 11/9/05 TD Options, LLC 230 South LaSalle Chicago, IL Member Organizations Lessee(s): Xenos, LLC 11/7/05 Harilaos S. Mantzoros 4820 Kathleen Ct. Long Grove, IL EFFECTIVE MEMBERSHIPS Nominee(s) / Inactive Nominee(s): Steven M. Bock (WIN) 11/3/05 Futrex Trading LLC 3456 N. Hoyne Chicago, IL Type of Business to be Conducted: Market Maker Stephen K. Fox (FOX) 11/8/05 Hurricane Capital, LLC 5 Greenwood Drive New City, NY Type of Business to be Conducted: Market Maker

3 Page 3 November 11, 2005 Volume 33, Number 45 Chicago Board Options Exchange Michael J. Walsh (MJW) 11/9/05 Ronin Capital, LLC 230 S. LaSalle, Ste. 400 Chicago, IL Type of Business to be Conducted: Market Maker Michael A. Favia (FVA) 11/9/05 Ronin Capital, LLC 8211 W. Catherine Ave. Chicago, IL Type of Business to be Conducted: Market Maker JOINT ACCOUNTS New Participants Acronym Steven M. Bock QED 11/3/05 Michael J. Walsh QHS 11/9/05 Michael J. Walsh QRV 11/9/05 Michael A. Favia QSA 11/9/05 New Accounts Acronym Jonathan M. Costello QPE 11/7/05 Neel Shah QPE 11/7/05 Steven R. Rosen QPE 11/7/05 Vishal Savla QCA 11/7/05 Vishal Savla QIA 11/7/05 Timothy M. Sommerfield QIA 11/7/05 Timothy M. Sommerfield QCA 11/7/05 Tom G. Sideris QBB 11/9/05 Terminated Accounts Acronym David C. Adent QLL 11/7/05 Jonathan M. Costello QLL 11/7/05 Gavin M. Lowrey QLL 11/7/05 Neel Shah QLL 11/7/05 Joseph D. Mueller QLL 11/7/05 Steven R. Rosen QLL 11/7/05 Franz F. Paul QLL 11/7/05 Vishal Savla QLL 11/7/05 Timothy M. Sommerfield QLL 11/7/05 CHANGES IN MEMBERSHIP STATUS Vishal Savla QPE 11/7/05 Individual Members Franz F. Paul QPE 11/7/05 David C. Adent QPE 11/7/05 Gavin M. Lowrey QPE 11/7/05 Joseph D. Mueller QPE 11/7/05 Terminated Participants Acronym Brian J. McGrath QTH 11/3/05 David C. Adent QCA 11/7/05 David C. Adent QIA 11/7/05 Jonathan M. Costello QCA 11/7/05 Jonathan M. Costello QIA 11/7/05 Gavin M. Lowrey QIA 11/7/05 Gavin M. Lowrey QCA 11/7/05 Neel Shah QCA 11/7/05 Neel Shah QIA 11/7/05 Joseph D. Mueller QCA 11/7/05 Joseph D. Mueller QIA 11/7/05 Steven R. Rosen QCA 11/7/05 Steven R. Rosen QIA 11/7/05 Franz F. Paul QCA 11/7/05 Franz F. Paul QIA 11/7/05 Anthony P. Arciero 11/4/05 From: Lessor To: Lessor/ Nominee For Casey Trading LLC; Market Maker Craig R. Luce 11/4/05 From: Lessor/ Nominee For Casey Trading LLC; Market Maker/ To: Lessor David C. Adent 11/7/05 From: CBT Registered For SLK-Hull Derivatives LLC; Market Maker/ To: CBT Registered For PEAK6 Capital Management LLC; Market Maker/ Gavin M. Lowrey 11/7/05 Maker/ Harilaos S. Mantzoros 11/7/05 From: Nominee For Xenos, LLC; Market Maker To: Nominee For Cutler Group, LP; Market Maker Neel Shah 11/7/05 Maker/ Franz F. Paul 11/7/05 Maker/ Vishal Savla 11/7/05 Maker/

4 Page 4 November 11, 2005 Volume 33, Number 45 Chicago Board Options Exchange Member Organizations Jonathan M. Costello 11/7/05 Maker/ Joseph D. Mueller 11/7/05 Maker/ Steven R. Rosen 11/7/05 From: Nominee For SLK-Hull Derivatives LLC; Market Maker Maker/ Anthony P. Arciero 11/8/05 From: Lessor/ Nominee For Casey Trading LLC; Market Maker To: Lessor Craig R. Luce 11/8/05 From: Lessor To: Lessor/ Nominee For Casey Trading LLC; Market Maker Richard E. Tobin 11/9/05 From: Lessor/ Nominee for Ronin Capital, LLC; Market Maker To: Nominee For Ronin Capital, LLC; Market Maker Ronin Capital, LLC 11/9/05 From: Lessee/ Member Organization Affiliated with a CBT Registered For; Associated with a Market Maker To: Owner/ Lessee/ Member Organization Affiliated with a CBT Registered For; Associated with a Market Maker PEAK6 Capital Management LLC 11/7/05 From: Owner; Associated with a Market Maker/ To: Owner/ Lessee/ Member Organization Affiliated with a CBT Registered For; Associated with a Market Maker/ MEMBER ADDRESS CHANGES Individual Members Vern C. Rudnik 11/4/ Olympic Drive Mountain Home, AR Stephen W. Quan 11/4/ N. Hermitage Ave. - #1 Chicago, IL Michael N. Suarez 11/4/ N. Claremont Ave., #1 Chicago, IL Member Organizations Research Circular #RS November 3, 2005 Denbury Resources, Inc. ( DNR ) Ex-Distribution Date: November 8, 2005 Research Circular #RS The Scotts Miracle-Gro Company ( SMG/ORY/WOF ) Ex-Distribution Date: November 10, 2005 Research Circular #RS Fastenal Company ( FAST/FQA ) Ex-Distribution Date: November 14, 2005 Research Circular #RS Southwestern Energy Company ( SWN ) Ex-Distribution Date: November 18, 2005 Research Circular #RS ID Biomedical Corporation ( IDBE/QQ ) Proposed Plan of Arrangement with GlaxoSmithKline Inc. ( GSK ) Research Circular #RS Precision Drilling Corporation ( PDS/ZCD/LPB ) Plan of Arrangement COMPLETED Stuckey LLC 11/4/ W. Ellen St. - Apt. 2 Chicago, IL RESEARCH CIRCULARS The following Research Circulars were distributed between November 3 and November 9, 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 Action Performance Companies, Inc. ( ATN ) with SMISC, LLC Research Circular #RS November 7, 2005 *****UPDATE Determination of Contract Deliverable Precision Drilling Corporation ( PDS/ZCD/LPB ) Plan of Arrangement COMPLETED Research Circular #RS November 8, 2005 Trident Microsystems, Inc. ( TRID/HVU ) Ex-Distribution Date: November 21, 2005 Research Circular #RS November 8, 2005 NII Holdings, Inc. ( NIHD/QHQ/VQD/WZU ) Ex-Distribution Date: November 22, 2005 Research Circular #RS November 8, 2005 Brown & Brown, Inc. ( BRO ) Ex-Distribution Date: November 29, 2005 Research Circular #RS November 9, 2005 *****UPDATE Determination of Contract Deliverable Precision Drilling Corporation ( PDS/ZCD/LPB ) Plan of Arrangement COMPLETED

5 Regulatory Bulletin November 16, 2005 Volume RB16, Number 46 The Constitution and Rules of the Chicago Board Options Exchange, Incorporated ( Exchange ), in certain specific instances, require the Exchange to provide notice to the membership. The weekly Regulatory Bulletin is delivered to all effective members to satisfy this requirement. Copyright 2004 Chicago Board Options Exchange, Incorporated Regulatory Regulatory Circular RG Circulars Date: November 3, 2005 To: From: Re: Members and Member Organizations Regulatory Services Division S&P 100 Index and American-Style FLEX Index Option Exercise Procedures This memorandum describes exercise procedures and requirements of Exchange Rules 11.1 and as they pertain to the exercise of Standard & Poor s 100 Stock Index option contracts, American-Style FLEX Index Option contracts, and any other American-style cash-settled index option contracts, including Short-Term Options ( Weeklys ), which are option series that, generally, are opened on a Friday and that expire on the next Friday. Please refer to Information Circular IC for more information on Weeklys. This regulatory circular also replaces RG Members who prepare their own exercise instruction memoranda must prepare and time stamp such memoranda upon making the decision to exercise. 2. Clearing firms must prepare and time stamp an exercise instruction memorandum upon receipt of instructions to exercise from a customer or Market-Maker or upon making the decision to exercise on behalf of a proprietary account. 3. An exercise advice must be submitted to the Exchange no later than 3:20 p.m. (CT) for all American-style, cash-settled index option contracts exercised. However, exercise advices are not required to be submitted to the Exchange (i) on the business day prior to expiration with respect to expiring non-flex American-style, cash-settled index option contracts, (ii) on the day of expiration with respect to expiring FLEX American-style cash-settled index option contracts that expire on a business day, or (iii) on the business day prior to expiration with respect to expiring FLEX American-style, cash-settled index option contracts that expire on a day other than a business day. 4. An exercise advice must be clearly and accurately completed prior to submission. Staff will not remove an exercise advice for any alteration once it has been deposited in a drop-off box. 5. Clearing firms may enter exercises for any Market-Maker, customer, or proprietary account on OCC s Encore System ( Encore ) in lieu of physically delivering an exercise advice to the Exchange trading floor. Such entries must be made no later than 3:20 p.m. (CT) and serve as both an exercise instruction to OCC and an exercise advice to the Exchange.

6 Regulatory Circulars continued Regulatory Circular RG continued 6. Members acting on their own behalf or on behalf of a customer may only submit an exercise advice and exercise instruction for the net long position open in any series of American-style index options for the account at the time the exercise advice or exercise instruction is submitted. For a complete explanation of this requirement, members should refer to Exchange Rule and Regulatory Circular RG If a member decides not to exercise all or part of the amount indicated on an exercise advice previously submitted to the Exchange, he or she must submit another exercise advice to the Exchange, with the cancel box checked, no later than 3:20 p.m. (CT). ( exercise advice cancellations do not cancel exercise instruction memoranda already submitted to the clearing firm). 8. The exercise advice drop-off boxes are located on the Exchange s trading floor in the OEX trading crowd and behind the OEX Book. Additional boxes may be made available, as need arises and box locations may similarly be moved or removed, as business warrants. The drop-off boxes are removed at 3:20:59 p.m. (CT). Submitting an exercise advice or exercise advice cancellation after this time is a violation of Exchange Rule 11.1, and doing so on the basis of material information released after this time, in addition to violating Rule 11.1, may constitute activity inconsistent with just and equitable principles of trade. If a member inadvertently fails to submit an exercise advice or exercise advice cancellation before the applicable deadline, the member should still consider submitting the advice or cancellation to the Exchange s Department of Market Regulation as soon as possible after the deadline (even though a violation of Rule 11.1 will still exist) in order to help to establish the time at which the exercise decision was made. 9. The joint account participant who makes the decision to exercise on behalf of the joint account must indicate both the joint account acronym and his or her individual acronym on both the exercise instruction memorandum and the exercise advice. 10. The submission of an exercise advice to the Exchange does not initiate an exercise at OCC; members must also submit an exercise instruction memorandum to their clearing firm. 11. In the event that any of the following market conditions are declared, the below provisions will apply (including Encore entries): Delayed Opening or Trading Halt: Exercises of American-style, cash-settled index options (and the submission of corresponding exercise advice and advice cancel forms) shall be prohibited during any time when trading in such options is delayed, halted, or suspended, subject to the following exceptions: (i) The exercise of an American-style, cash-settled index option may be processed and given effect in accordance with and subject to the rules of the Clearing Corporation while trading in the option is delayed, halted, or suspended if it can be documented, in a form prescribed by the Exchange, that the decision to exercise the option was made during allowable time frames prior to the delay, halt, or suspension. Acceptable documentation shall ordinarily be limited to an exercise advice previously transmitted via Encore or a member s copy of an exercise advice previously submitted to the Exchange. RB2 November 16, 2005, Volume RB16, Number 46

7 Regulatory Circulars continued Regulatory Circular RG continued (ii) Exercises of expiring American-style, cash-settled index options shall not be prohibited on the last business day prior to their expiration. (iii) Exercises of American-style, cash-settled index options shall not be prohibited during a trading halt that occurs at or after 3:00 p.m. (CT). In the event of such a trading halt, exercises may occur through 3:20 p.m. (CT). In addition, if trading resumes following a trading halt (such as by closing rotation), exercises may occur during the resumption of trading and for five (5) minutes after the close of the resumption of trading. The provisions of this subparagraph (iii) are subject to the authority of the Board to impose restrictions on transactions and exercises pursuant to Rule 4.16(a). (iv) The President or his designee may determine to permit the exercise of American-style, cash-settled index options while trading in such options is delayed, halted, or suspended. In general, such a determination would be based on extraordinary circumstances. To the extent that exercises of American-style, cash-settled index options are not permitted due to a delayed opening, the exercise advice drop-off boxes will not be placed in the designated areas until trading commences. Exercises may not be effected, nor will exercise advices be accepted until trading commences. To the extent that exercises of American-style, cash-settled index options are not permitted due to a trading halt, the exercise advice drop-off boxes will be immediately removed from the designated areas upon the declaration of the trading halt and will be returned to the designated areas upon the resumption of trading. These restrictions shall remain in place until trading resumes. Closing Rotation: The exercise advice drop-off boxes will remain at the designated areas and exercise advices will be accepted at the box until five minutes after the completion of the closing rotation. Modified Trading Hours: If trading hours are extended or modified, the exercise deadline will be five minutes after the close of trading on that day instead of 3:20 p.m. (CT). The exercise advice drop-off boxes will be removed after the modified exercise deadline, and exercises may not be effected, nor will exercise advices be accepted, after such time. FLEX Index Options: In the case of an American-style, cash-settled FLEX Index Option, the references in this Paragraph 11 to a trading delay, halt, suspension, resumption, closing rotation, or modified trading hours shall mean the occurrence of the applicable condition in the standardized option on the index underlying the FLEX Index Option (rather than the occurrence of the applicable condition in the FLEX Index Option itself). 12. The President or his designee may determine to extend the applicable deadline for the delivery of exercise advice and exercise advice cancellation if unusual circumstances are present. Any questions pertaining to index option exercises can be addressed to Dan Earner at (312) or Tim Mac Donald at (312) (RG Revised) November 16, 2005, Volume RB16, Number 46 RB3

8 Regulatory Circulars continued Regulatory Circular RG Date: November 3, 2005 To: From: Subject: Members and Member Organizations Department of Market Regulation Exercise Advice Requirements for OEX Short Term Options The Securities and Exchange Commission approved a rule change enabling the CBOE to list and trade Short Term Options ( Weeklys ) based on the S&P 100 ( OEX ). OEX Weeklys will be listed on a Friday and expire the following Friday (see SR- CBOE ). OEX Weekly options may be exercised on any business day before the expiration date. As such, OEX Weeklys are subject to the requirements set forth in CBOE Rule 11.1, as it pertains to American-style cash-settled option contracts. Therefore, an exercise advice must be submitted to the Exchange no later than 3:20 p.m. (CT). An exercise advice does not need to be submitted to the Exchange on the Friday the OEX Weekly expires. Be reminded that members may only submit an exercise advice and exercise instruction for the net long position open in any series of American-style index options, including OEX Weeklys, for the account at the time the exercise advice or exercise instruction is submitted. Please refer to CBOE Rule 11.1 for general information regarding exercise procedures, and refer to CBOE Rule and Regulatory Circular RG99-84 for further information regarding the exercise of the net long position open in an account at the time of exercise. For questions regarding exercise obligations, please contact Mike Banker (312) or Tim MacDonald at (312) For general questions regarding Weeklys, please contact Jim Flynn (312) RB4 November 16, 2005, Volume RB16, Number 46

9 Rule Changes, Interpretations and Policies PROPOSED RULE CHANGE(S) Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934, as amended ( the Act ), and Rule 19b-4 thereunder, the Exchange has filed the following proposed rule change(s) with the Securities and Exchange Commission ( SEC ). Copies of the rule change filing(s) are available at Members may submit written comments to the Legal Division. The effective date of a proposed rule change will be the date of approval by the SEC, unless otherwise noted. SR-CBOE Exposure of Orders in Hybrid On, the Exchange filed Rule Change File No. SR-CBOE , which filing proposes to decrease the exposure period for crossing orders in Hybrid from 30 seconds to 10 seconds. Any questions regarding the rule change may be directed to Jennifer Lamie, Legal Division, at The text of the proposed rule amendments is set forth below. Proposed new language is underlined. Proposed deleted language is [stricken out]. Rule 6.45A. - Priority and Allocation of Equity Option Trades on the CBOE Hybrid System (a) (e) No change....interpretations and Policies:.01 Principal Transactions: Order entry firms may not execute as principal against orders they represent as agent unless: (i) agency orders are first exposed on the Hybrid System for at least [thirty (30)]ten (10) seconds, (ii) the order entry firm has been bidding or offering for at least [thirty (30)]ten (10) seconds prior to receiving an agency order that is executable against such bid or offer, or (iii) the order entry firm proceeds in accordance with the crossing rules contained in Rule Solicitation Orders. Order entry firms must expose orders they represent as agent for at least [thirty (30)]ten (10) seconds before such orders may be executed electronically via the electronic execution mechanism of the Hybrid System, in whole or in part, against orders solicited from members and non-member brokerdealers to transact with such orders. * * * * * Rule 6.45B - Priority and Allocation of Trades in Index Options and Options on ETFs on the CBOE Hybrid System (a) (d) No change.... Interpretations and Policies:.01 Principal Transactions: Order entry firms may not execute as principal against orders they represent as agent unless: (i) agency orders are first exposed on the Hybrid System for at least [thirty (30)]ten (10) seconds, (ii) the order entry firm has been bidding or offering for at least [thirty (30)]ten (10) seconds prior to receiving an agency order that is executable against such bid or offer, or (iii) the order entry firm proceeds in accordance with the crossing rules contained in Rule Solicitation Orders. Order entry firms must expose orders they represent as agent for at least [thirty (30)]ten (10) seconds before such orders may be executed electronically via the electronic execution mechanism of the Hybrid System, in whole or in part, against orders solicited from members and non-member brokerdealers to transact with such orders. November 16, 2005, Volume RB16, Number 46 RB5