TRADING PERMIT INFORMATION FOR 12/01/2011 THROUGH 12/07/2011 TRADING PERMIT APPLICATIONS RECEIVED FOR WHICH BULLETIN PUBLICATION IS REQUIRED

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1 Exchange December 9, 2011 Volume 39, Number 49 Bulletin 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 2011 Chicago Board Options Exchange, Incorporated TRADING PERMIT INFORMATION FOR 12/01/2011 THROUGH 12/07/2011 TRADING PERMIT APPLICATIONS RECEIVED FOR WHICH BULLETIN PUBLICATION IS REQUIRED Individual Applicants Richard B McCain Penson Financial Services, Inc Kenwood Avenue Dallas, TX Mitchell D Skinner Akuna Securities LLC 2057 North Orleans Chicago, IL Gary L Anderson White Bay PT, LLC 465 Gateswood Drive West Chester, PA TPH Organization Applicants Wedbush Securities, Inc. Jeffrey M. Bell 1000 Wilshire Blvd. Los Angeles, CA Wedbush Inc. - Corporate Parent Wedbush, Edward W. - Shareholder, Director Wedbush, Edward W. - President Wedbush, Gary L. - Executive Vice President Bell, Jeffrey M. - Executive Vice President Wedbush, Eric D. - Director Richards, R James - Executive Vice President Segall, Eric S. - Senior Vice President, Co-Chief Compliance Officer, ROFSP Long, Wesley R. - Senior Vice President, Division Manager Gardner, Michael G. - Executive Vice President Lanni, Richard A. - Senior Vice President David, Darryl G. - Vice President, Division Manager, ROFSP Guillou, James B. - Senior Vice President, Division Manager, ROFSP Moy, Vincent J. - Vice President, Co-Chief Compliance Officer Keagy, Shawn T. - CFO, Executive Vice President Langdon, Harry L. - Director TERMINATIONS Individuals Nominee: Christopher D. Kantner (JRZ) 12/1/11 Toro Capital Management LLC Stephen W Nelson (NLE) 12/1/11 Rosenthal Global Securities, L.L.C. Jason A. Milton (DRJ) 12/1/11 Sallerson-Troob LLC TPH Organizations Rosenthal Global Securities, L.L.C. 12/1/11 Termination Date EFFECTIVE TRADING PERMIT HOLDERS Individuals Nominee: Effective Date David G Goldberg (AUE) 12/1/11 Consolidated Trading, LLC Type of Business to be Conducted: Market Maker Michael Ryan Draper (MSU) 12/1/11 Toro Capital Management LLC Type of Business to be Conducted: Market Maker Michael G. Tuft (MGT) 12/6/11 Ronin Capital, LLC Type of Business to be Conducted: Market Maker TPH Organizations Trinity Executions, LLC 12/1/11 Type of Business to be Conducted: Associated with a Floor Broker CHANGES IN TRADING FUNCTION Individuals Effective Date John E McGinnis 12/1/11 From: Nominee For MNR Executions LLC; Floor Broker To: Nominee For Trinity Executions, LLC; Floor Broker

2 Page 2 December 9, 2011 Volume 39, Number 49 Chicago Board Options Exchange RESEARCH CIRCULARS The following Research Circulars were distributed between December 5 and December 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 December 5, 2011 Daktronics, Inc. ("DAKT") CONTRACT ADJUSTMENT FOR SPECIAL CASH DIVIDEND Ex-Date: December 6, 2011 Research Circular #RS December 6, 2011 Retail HOLDRs Trust ( RTH ) Cash Distribution Ex-Distribution Date: December 8, 2011 Research Circular #RS December 5, 2011 Joy Global Inc. ( JOYG ) Stock and Option Symbol Change to JOY Effective Date: December 6, 2011 Research Circular #C2-RS December 5, 2011 Joy Global Inc. ( JOYG ) Stock and Option Symbol Change to JOY Effective Date: December 6, 2011 Research Circular #RS December 5, 2011 PharMerica Corporation ( PMC ) Tender Offer FURTHER EXTENDED by Philadelphia Acquisition Sub, Inc. Research Circular #RS December 5, 2011 Pharmaceutical Product Development, Inc. ( PPDI ) Merger COMPLETED with Jaguar Holdings, LLC Cash Settlement Research Circular #RS December 5, 2011 PharMerica Corporation ( PMC ) Tender Offer FURTHER EXTENDED by Philadelphia Acquisition Sub, Inc. Research Circular #RS December 5, 2011 Brigham Exploration Company ( BEXP ) Subsequent Tender Offer by Fargo Acquisition Inc. Research Circular #RS December 6, 2011 Limited Brands, Inc. ( LTD ) CONTRACT ADJUSTMENT FOR SPECIAL CASH DIVIDEND Ex-Date: December 8, 2011 Research Circular #RS December 6, 2011 American Tower Corporation Class A ( AMT ) CONTRACT ADJUSTMENT FOR SPECIAL CASH DIVIDEND Ex-Date: December 8, 2011 Research Circular #RS December 6, 2011 Ross Stores, Inc. ( ROST ) 2-for-1 Stock Split Ex-Distribution Date: December 16, 2011 Research Circular #RS December 6, 2011 *****UPDATE*****UPDATE*****UPDATE***** Telecom Corporation of New Zealand Limited ( NZT & adj. NZT1 ) Distribution of American Depositary Shares of Chorus Limited ( CHRYY ) Research Circular #RS December 6, 2011 j2 Global Communications Inc. ( JCOM ) Name Change to: j2 Global, Inc. Effective Date: December 7, 2011 Research Circular #RS December 7, 2011 Medco Health Solutions, Inc. ( MHS ) Proposed Merger with Express Scripts, Inc. ( ESRX ) Research Circular #RS December 9, 2011 YRC Worldwide, Inc. ( YRCWD/YRCW1 ) Determination of Cash-in-Lieu Amount Research Circular #RS December 9, 2011 Brigham Exploration Company ( BEXP ): Merger Completed -- Cash Settlement Research Circular #RS December 9, 2011 *****UPDATE DETERMINATION OF ADJUSTED ECL1 CONTRACT DELIVERABLE***** Nalco Holding Company ( NLC/ECL1 ) - Cash Settlement

3 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 2011 Chicago Board Options Exchange, Incorporated. REGULATORY CIRCULARS Regulatory Circular RG TO: FROM: CBOE Trading Permit Holders Trading Operations Division and Legal Division DATE: December 2, 2011 RE: December 9, 2011 Volume RB22, Number 49 CBOE Complex Order Processing Deactivation of Percentage Distance Price Check and Re-COA Please be advised that effective Monday, December 5, 2011, the following two features within the CBOE complex order auction ( COA ) processing system will be temporarily deactivated: The percentage distance price check parameter (a price drill-through feature that automatically cancels a marketable complex order if, following COA, the execution would be at a price that is not within an acceptable percentage distance from the derived net price of the individual series legs at the start of COA); and The re-coa feature (process by which orders resting in the complex order book will be eligible to automatically re-auction once they are within a number of ticks from the displayed strategy quote, comprised of the individual CBOE quotes for the component series). CBOE is in the process of filing rule changes with the Securities and Exchange Commission that will allow CBOE to reactivate these features. Another circular will be issued announcing when these features will be available again. Questions regarding this circular may be directed to Anthony Montesano, Trading Operations, at , to the CBOE Help Desk at , or to Jennifer Lamie, Legal Division, at December 9, 2011 Volume RG22, Number 49 1

4 Regulatory Circular RG DATE: December 2, 2011 TO: FROM: RE: Trading Permit Holders Market Operations Department Restrictions on Transactions in Evergreen Energy Inc. ( EEE ) Effective December 2, 2011, the NYSE Arca will suspend Evergreen Energy Inc ( EEE ). Trading in Evergreen Energy Inc will commence on the Other OTC market under the symbol EVEI. Trading on the CBOE in existing series of EVEI options will be subject to the following restrictions. Only closing transactions may be affected in any series of EVEI options except for (i) opening transactions by Market-Makers executed to accommodate closing transactions of other market participants and (ii) opening transactions by CBOE TPH organizations to facilitate the closing transactions of public customers executed as crosses pursuant to and in accordance with CBOE Rule 6.74(b) or (d). The execution of opening transactions in EVEI options, except as permitted above, and/or the misrepresentation as to whether an order is opening or closing, will constitute a violation of CBOE rules, and may result in disciplinary action. TPH organizations should ensure that they have appropriate procedures in place to prevent their customers from entering opening orders in this restricted option class. In addition, transactions in contravention of this restriction may be subject to nullification pursuant to Exchange Rule There are no restrictions in place with respect to the exercise of EVEI options. The provisions of this circular apply to any options on EVEI traded on CBOE. Any questions regarding this circular may be directed to Kerry Winters at (312) or Regulatory Services Division at (312) or (312) CBOE restricted class memos can be accessed from CBOE.org at the following web address: December 9, 2011 Volume RG22, Number 49 2

5 Regulatory Circular RG To: Trading Permit Holders From: Finance and Administration Date: December 5, 2011 Re: 2012 Fee Changes Explanatory Note: The Exchange is reissuing the 2012 Fee Changes circular to reflect clarification language with respect to the 2012 Clearing Trading Permit Holder Proprietary Orders and to add a fee change for the PULSe on-floor workstation. The clarification language reflects the exclusion of SPX, VIX or other volatility indexes, OEX or XEO for facilitation orders and the addition of QCC and FLEX for inclusion in both non-facilitation and facilitation transactions. Otherwise, the content of the 2012 Fee Changes Circular remains unchanged. This circular replaces CBOE Regulatory Circular RG This circular explains 2012 changes to the Fees Schedule for Chicago Board Options Exchange, Inc. (the Exchange or CBOE). The CBOE Volume Incentive Program is discussed in Regulatory Circular RG11-152, available here: Subject to rule filings with the Securities and Exchange Commission (SEC), the changes summarized below will be effective January 3, Liquidity Provider Sliding Scale For All Products Except SPX, VIX or other volatility indexes, OEX or XEO Summary of Changes: The Exchange is amending the existing Liquidity Provider (LP) Sliding Scale, which currently applies to transaction fees in all products, so that it will apply only to transaction fees in all products except SPX, VIX or other volatility indexes, OEX or XEO. In connection with this change in applicable products, the Exchange is also reducing the existing contract volume sliding scale tiers, as well as the annual prepayment amounts and the prepayment discount incentive to prepay tiers one through four for the entire year. Effective January 3, 2012, a LP s rate per contract is reduced if certain volume thresholds are reached in a month. Contracts traded in all products except SPX, VIX or other volatility indexes, OEX and XEO are eligible for the plan. Tiers Contracts per Month Rate First Contracts 1 51, cents Second Contracts 51, , cents Third Contracts 810,001 2,055, cents Fourth Contracts 2,055,001 3,285, cents Fifth Contracts 3,285,001 6,300,000 3 cents Sixth Contracts 6,300,001 and above 1 cent Prepayment Incentives - In order to capture the lower rates in tiers three through six, a LP must prepay transaction fees as noted below: To be eligible to participate in the sliding scale above 810,000 contracts per month, a LP must prepay their entire fees for the first two levels of the sliding scale for the entire year ($1,761,840). Pro-rated prepayments are accepted later in the year, as long as the payment is received at least five business days prior to the month in which the application of the discount is to begin. For LP s interested in participating in the sliding scale for all of 2012, prepayment elections and wired payments must take place during the period January 3 through January 7, Another incentive option is to prepay tiers one through four for the entire year to capture a $410,913 (7.5%) prepayment discount. After deducting the discount, a net payment amount of $5,067,927 must be paid in early December 9, 2011 Volume RG22, Number 49 3

6 January Clearing Trading Permit Holder Proprietary Orders Non-Facilitation and Facilitation Transactions Summary of Changes: a. Non-Facilitation Transactions Option Fee Cap in all classes except SPX, VIX or other volatility indexes, OEX or XEO: The Exchange is amending the existing Multiply-Listed Option Fee Cap for Clearing Trading Permit Holder Proprietary and/or their Non-Trading Permit Holder Affiliates which currently applies to all non- AIM electronic and open outcry transactions in all products except SPX, VIX or other volatility indexes, OEX or XEO. The new cap will apply only to non-facilitation business executed in AIM, open outcry, QCC or FLEX in all products except SPX, VIX or other volatility indexes, OEX or XEO. In addition, AIM Execution Fees, previously excluded from the cap, will now be included for transactions in all products except SPX, VIX or other volatility indexes, OEX or XEO. b. Facilitation Transactions: For facilitation orders 1 in all products except SPX, VIX or other volatility indexes, OEX or XEO, whether executed in AIM, open outcry, QCC or FLEX, the Exchange will not assess Clearing Trading Permit Holder Proprietary transaction fees. Effective January 3, 2012, for all non-facilitation business executed in AIM, open outcry or QCC, transaction fees for Clearing Trading Permit Holder Proprietary and/or their Non-Trading Permit Holder Affiliates in all products except SPX, VIX or other volatility indexes, OEX or XEO in the aggregate are capped at $75,000 per month per Clearing Trading Permit Holder. For facilitation orders in all products except SPX, VIX or other volatility indexes, OEX or XEO, whether executed in AIM, open outcry, QCC or FLEX, the Exchange will not assess Clearing Trading Permit Holder Proprietary transactions fees and, accordingly, these trades will not count towards the cap. AIM Execution Fees on non-facilitation AIM volume will not be charged after reaching the cap in a month. JBO firms are not eligible for the Multiply-Listed Option Fee Cap or the facilitation fee waiver. Surcharge fees on certain licensed products are not subject to the fee cap or the facilitation fee waiver CBOE Proprietary Products Sliding Scale For Clearing Trading Permit Holder Proprietary Orders The CBOE Proprietary Products Sliding Scale For Clearing Trading Permit Holders Proprietary Orders was implemented in A Firm s (F origin code) rate per contract on proprietary product (SPX, VIX or other volatility indexes, OEX and XEO) execution is reduced provided the Firm attains certain monthly contract volume in multiplylisted contracts. The 2012 Firm CBOE proprietary product sliding scale and the monthly threshold in multiply-listed contract volume is the same as that for 2011, except that AIM volume in multiply-listed classes will now count towards these thresholds. For Firms with multiply-listed contracts of at least 375,000 in the month but less than 1,500,000 contracts in the month, transaction fees will be reduced to the following: Tiers Contracts per Month Rate First Contracts 1 750, cents Second Contracts 750,001 1,000,000 5 cents Third Contracts 1,000,001 and above 2 cents 1 The Exchange defines facilitation orders for purposes of the fee waiver to be any paired order in which a Clearing Trading Permit Holder (F) origin code is contra to any other origin code, provided the same executing broker and clearing firm are on both sides of the order. December 9, 2011 Volume RG22, Number 49 4

7 For Firms with multiply-listed contracts of 1,500,000 or greater in the month, transaction fees will be reduced to the following: Tiers Contracts per Month Rate First Contracts 1 750, cents Second Contracts 750,001 and above 1 cent Firms with less than 375,000 multi-listed contracts in the month are not eligible for the reduced fees on proprietary products transactions and will pay the per contract rate of 25 cents. JBO firms are not eligible for the Proprietary Products Transaction Fee Sliding Scale. Surcharge fees on certain licensed products are in addition to the sliding scale Marketing Fee for SPY Previously, effective July 1, 2011 through December 31, 2011, CBOE suspended the collection of the marketing fee on electronic transactions in SPY options, with the exception of those electronic transactions conducted in AIM. CBOE continued to collect the marketing fee for open outcry transactions in SPY. The level of the marketing fee in SPY options for qualifying transactions remained at $0.25 per contract. CBOE is extending the suspension of the collection of the marketing fee as described above through March 31, Options Transactions Fees 1) Equity Options There are no changes to options transaction fees for Equity Options. Per Equity Options Contract Customer $0.00 Voluntary Professional $0.20 Professional $0.20 Market Maker/DPM/E-DPM $0.20 Clearing Trading Permit Holder Proprietary $0.20 Broker-Dealer Manual (open outcry) $0.25 Electronic $0.45 Qualified Contingent Cross $0.20 AIM Agency/Primary $0.20 CFLEX Surcharge Fee $0.10 AIM Contra Execution Fee $0.05 2) ETF, ETN and HOLDRs Options Summary of Changes: a. QQQQ Customer Orders The customer transaction fee is increased from $0.00 to $0.18 per contract. b. Customer Orders Executed in Open Outcry or in Automated Improvement Mechanism (AIM) or as Qualified Contingent Cross (QCC) The Exchange is expanding the waiver of transaction fees for public customer orders from only SPY and XLF to all ETF, ETN and HOLDRs options executed in open outcry, AIM, or QCC and is eliminating the waiver termination date (which was December 31, 2011). December 9, 2011 Volume RG22, Number 49 5

8 As a result of the above changes, the Fees Schedule for ETF, ETN and HOLDRs as of January 3, 2012 is as follows: Per ETF, ETN and HOLDRs Options Contract Customer Any Order Size Executed in Open Outcry, AIM or QCC $0.00 Order Size of 99 or less (electronic, non-aim, non-qcc) $0.00 Order Size of 100 or more (electronic, non-aim, non-qcc) $0.18 Voluntary Professional $0.20 Professional $0.20 Market Maker/DPM/E-DPM $0.20 Clearing Trading Permit Holder Proprietary $0.20 Broker-Dealer Manual (open outcry) $0.25 Electronic $0.45 QCC $0.20 AIM Agency/Primary $0.20 CFLEX Surcharge Fee $0.10 AIM Contra Execution Fee $0.05 3) Cash Settled Index Options There are no changes to options transaction fees for Cash Settled Index Options. CBOE Proprietary Cash Settled Index Options SPX, VIX, OEX and XEO Per Contract Customer SPX, premium > = $1 $0.44 SPX, premium < $1 $0.35 VIX, OEX, DVS and XEO $0.40 OEX and XEO Weeklys $0.30 Professional $0.40 Market Maker/DPM/E-DPM/LMM $0.20 Clearing Trading Permit Holder Proprietary $0.25 Broker-Dealer $0.40 CFLEX Surcharge Fee $0.10 Floor Brokerage Fee-SPX, OEX and XEO (crossed orders $0.02) $0.04 Floor Brokerage Fee VIX (crossed orders $0.015) $0.03 Surcharge Fee (customer orders not assessed) $0.10 CBOE Licensed and Other Cash Settled Index Options DJX, MNX, RUT, NDX, XSP, MVR, Other Per Contract Customer $0.18 Professional $0.20 Market Maker/DPM/E-DPM $0.20 Clearing Trading Permit Holder Proprietary $0.20 Broker-Dealer Manual (open outcry) $0.25 Electronic $0.45 QCC $0.20 AIM Agency/Primary $0.20 CFLEX Surcharge Fee $0.10 December 9, 2011 Volume RG22, Number 49 6

9 2012 Facility Fees AIM Contra Execution Fee $0.05 Surcharge Fee DJX (customer orders not assessed) $0.10 MNX, RUT, NDX (customer orders not assessed) $0.15 4) Trading Floor Terminal Rentals Monthly fee changes are as follows: a. Floor Broker Workstation (FBW) (per login ID) Increase from $225 to $350 b. PULSe On-Floor Workstation (per login ID) Increase from $225 to $ Trading Permit, Tier Appointment and Bandwidth Packet Fees Effective January 3, 2012, the Exchange is modifying trading permit and tier appointment monthly fees for Market- Maker Trading Permits (decrease), VIX Tier Appointments (increase) and Floor Broker Trading Permits (increase). In addition, Quoting and Order Entry Bandwidth Packet monthly fees are decreasing from $3,000 to $2,750. In connection with the reduction in the monthly Market-Maker Trading Permit fee, the Exchange is modifying the existing Market- Maker Trading Permit Sliding Scale. In connection with the increase in the monthly Floor Broker Trading Permit fee, the Exchange is implementing a Floor Broker Trading Permit Sliding Scale. 5) Trading Permit and Tier Appointment Fees Monthly fee changes are as follows: a. Market-Maker Trading Permit Decrease from $6,000 to $5,500 b. VIX Tier Appointment Increase from $1,000 to $2,000 c. Floor Broker Trading Permit Increase from $6,000 to $12,000 d. VIX Floor Broker Surcharge Increase from $1,000 to $2,000 As a result of the above changes, the fee schedule for Trading Permit, Tier Appointment and Bandwidth Packet Fees as of January 3, 2012 is as follows: Trading Permit and Tier Appointment Fees Per Month Market-Maker Trading Permit (subject to sliding scale) $ 5,500 SPX Tier Appointment $ 3,000 VIX Tier Appointment (1) $ 2,000 Floor Broker Trading Permit (subject to sliding scale) $12,000 VIX Floor Broker Surcharge (2) $ 2,000 Electronic Access Permit $ 1,600 Bandwidth Packet Fees Per Month Quoting and Order Entry Bandwidth Packet $ 2,750 Order Entry Bandwidth and Packet Fees for Trading Permit Holders 1 st 5 th Packet $ 1,600 6th 8th Packet $ 800 9th 13th Packet $ th Packet and each additional Packet $ 200 Fees for Order Entry Bandwidth Packet(s) Assigned to Sponsored User 1 st 6 th Packet $ 1,600 7 th 9 th Packet $ th 14 th Packet $ 400 December 9, 2011 Volume RG22, Number 49 7

10 15 th Packet and Each Additional Packet $ 200 (1) Assessed to any Market-Maker Trading Permit Holder that either (a) has a VIX Tier Appointment at any time during a calendar month and trades at least 100 VIX contracts electronically during the calendar month; or (b) trades at least 1,000 VIX options contracts in open outcry during a calendar month. (2) An additional monthly fee will apply when any affiliated firm, through their affiliated Floor Brokers, executes more than 20,000 VIX contracts during a calendar month. The additional monthly fee is capped at $2,000 per affiliated firm regardless of the number of affiliated Floor Brokers. Market-Maker Trading Permit Sliding Scale The following sliding scale will be available for all Market- Maker Trading Permits held by affiliated Trading Permit Holders and TPH organizations that are used for appointments in any options classes other than SPX, VIX, OEX and XEO. Any Market-Maker Trading Permits used for these four classes, whether in whole or in part, are excluded from this sliding scale and will be at $5,500 per month. To qualify for the rates set forth in Tiers 1 and 2 in the sliding scale, the applicable Trading Permit Holder(s) and/or TPH organization must commit in advance to a specific tier that includes a minimum number of eligible Market-Maker Trading Permits for each calendar year (either eleven permits or twenty-one permits). To do so, a Market-Maker Trading Permit Holder must notify the Registration Services Department of the Tier of eligible Market-Maker Trading Permits committed to by that Market-Maker Trading Permit Holder for that year. Market-Makers are not obligated to commit to either tier. However, the discounts will apply only to those that do commit to Tier 1 or Tier 2 for the calendar year. Amount Per Month Per Permit Market-Maker Permit Sliding Scale From To permit 10 permits $5,500 $6,000 Tier 1 11 permits 20 permits $4,000 $4,800 Tier 2 21 or more permits $2,500 $3,000 Market-Makers may commit at any time during the year and will be responsible for the minimum number of permits in the commitment tier for the remainder of the calendar year. Floor Broker Trading Permit Sliding Scale The Exchange is implementing a sliding scale for Floor Broker Trading Permits effective January 3, 2012 for all Floor Broker Trading Permits held by affiliated Trading Permit Holders and TPH organizations. To qualify for the rates set forth in Tiers 1 and 2 in the sliding scale, the applicable Trading Permit Holder(s) and/or TPH organization must commit in advance to a specific tier that includes a minimum number of eligible Floor Broker Trading Permits for the calendar year (either two permits or eight permits). To do so, a Floor Broker Trading Permit Holder must notify the Registration Services Department of the Tier of Floor Broker Trading Permits committed to by that Floor Broker Trading Permit Holder for that year. Floor Brokers are not obligated to commit to either tier. However, the discounts will apply only to those that do commit to Tier 1 or Tier 2 for the calendar year. Floor Broker Trading Permit Sliding Scale From To Amount per Month Per Permit 1 permit 1 permit $12,000 Tier 1 2 permits 7 permits $ 6,000 Tier 2 8 or more permits $ 3,000 Floor Brokers may commit at any time during the year and will be responsible for the minimum number of permits in the commitment tier for the remainder of the calendar year. December 9, 2011 Volume RG22, Number 49 8

11 2012 Trading Permit Holder Application Fees 6) Proprietary Trader (PT) Registration Fees The Exchange is implementing fees for the proprietary trader (PT) registration consisting of an initial proprietary trader registration fee of $50 and an annual proprietary trader registration fee of $25. In addition to the implementation of a proprietary trader registration fee, Trading Permit Holder Application Fees will change as follows: a. Individual Increase from $2,500 to $3,000 b. Non-Trading Permit Holder Customer Business Increase from $2,500 to $3,000 c. Associated Person Increase from $350 to $500 d. TPH Organization Application Increase from $4,000 to $5,000 e. Subject to Statutory Disqualification Increase from $2,750 to $5,000 f. Inactive Nominee Status Change (Trading Permit Swap) a. Submission before 4pm (day prior to effective date) Increase from $50 to $55 b. Submission after 4pm (day prior to effective date) Increase from $100 to $110 c. Submission after effective date Increase from $200 to $220 g. TPH Organization Renewal Fee Increase from $2,000 to $2, CBOEdirect Connectivity Charges 7) CBOEdirect Connectivity Charges Monthly fee changes are as follows: a. Network Access Port (1Gigabyte) Increase from $250 to $500 b. Network Access Port (1Gigabyte) (Sponsored User) Increase from $500 to $1,000 c. CMI Login ID Increase from $80 to $500 d. CMI Login ID (Sponsored User) Increase from $160 to $1,000 e. FIX Login ID Increase from $80 to $500 f. FIX Login ID (Sponsored User) Increase from $160 to $1,000 The complete January 2012 Fees Schedule will be posted on the Exchange website at Transaction fee questions may be directed to Don Patton at (312) or patton@cboe.com, Colleen Laughlin at or laughlin@cboe.com, or John Mavindidze at (312) or mavindidze@cboe.com. Questions on Trading Permits, Tier Appointments, Bandwidth Packages, the Market-Maker Permit Sliding Scale and Floor Broker Trading Permit Sliding Scale may be directed to Stan Leimer at or leimer@cboe.com. Questions on CBOEdirect Connectivity Charges may be directed to Mathew Danaher (network access) at or danaher@cboe.com or Matt Vliet (logins) at or vliet@cboe.com. December 9, 2011 Volume RG22, Number 49 9

12 Regulatory Circular RG DATE: December 6, 2011 FROM: RE: Market Operations Department Restrictions on Transactions in Telecom Corporation of New Zealand Adjusted Symbol (NZT1) On November 21, 2011, Telecom Corporation of New Zealand adjusted symbol (NZT1) required delivery of 100 ADS of NZT plus 20 ADS of Chorus Limited (CHRYY). On December 2, 2011, Chorus Limited (CHRYY) was listed on the Over-The-Counter (OTC) market; therefore, shares of adjusted symbol NZT1 will be subject to restrictions. Trading on the CBOE in existing series of NZT1 options will be subject to the following restrictions. Only closing transactions may be affected in any series of NZT1 options except for (i) opening transactions by Market-Makers executed to accommodate closing transactions of other market participants and (ii) opening transactions by CBOE TPH organizations to facilitate the closing transactions of public customers executed as crosses pursuant to and in accordance with CBOE Rule 6.74(b) or (d). The execution of opening transactions in NZT1 options, except as permitted above, and/or the misrepresentation as to whether an order is opening or closing, will constitute a violation of CBOE rules, and may result in disciplinary action. TPH organizations should ensure that they have appropriate procedures in place to prevent their customers from entering opening orders in this restricted option class. In addition, transactions in contravention of this restriction may be subject to nullification pursuant to Exchange Rule There are no restrictions in place with respect to the exercise of NZT1 options. The provisions of this circular apply to any options on NZT1 traded on CBOE. Any questions regarding this circular may be directed to Kerry Winters at (312) or Regulatory Services Division at (312) or (312) CBOE restricted class memos can be accessed from CBOE.org at the following web address: December 9, 2011 Volume RG22, Number 49 10

13 Regulatory Circular RG To: Trading Permit Holders and Trading Permit Holder Organizations From: Registration Services Department Date: December 8, 2011 Re: Trading Permit Sliding Scale Programs A Trading Permit Holder (TPH) that wishes to participate in either the Market-Maker Trading Permit Sliding Scale program or the Floor Broker Trading Permit Sliding Scale program as discussed below must complete the attached Market-Maker Election to Participate for 2012 form or the Floor Broker Election to Participate for 2012 form (Election Form), as applicable. The Election Form must be signed by an authorized signatory for the Trading Permit Holder and may be ed to registration@cboe.com or faxed to (312) Questions can be directed to Regina Millison at (312) or millison@cboe.com or to Stan Leimer at (312) or leimer@cboe.com. Market-Maker Trading Permit Sliding Scale - The following sliding scale will be available for all Market-Maker Trading Permits held by affiliated Trading Permit Holders and TPH organizations that are used for appointments in any options classes other than SPX, VIX, OEX and XEO. Any Market-Maker Trading Permits used for these four classes, whether in whole or in part, are excluded from this sliding scale and will be at $5,500 per month. To qualify for the rates set forth in Tiers 1 and 2 in the sliding scale for 2012, the applicable Trading Permit Holder(s) and/or TPH organization must commit in advance to a specific tier that includes a minimum number of eligible Market-Maker Trading Permits (either eleven permits or twenty-one permits). To do so, a Market-Maker Trading Permit Holder must notify the Registration Services Department of the tier of eligible Market-Maker Trading Permits committed to by that Market-Maker Trading Permit Holder. Market-Makers may commit at any time during the year and will be responsible for the minimum number of permits in the commitment tier for the remainder of the year. For Market-Makers interested in participating in the Market-Maker Trading Permit Sliding Scale for all of 2012, tier commitments must be completed by December 23, Market-Makers are not obligated to commit to either tier. However, the discounts will apply only to those that do commit to Tier 1 or Tier 2 for the calendar year. Amount per Market-Maker Permit Sliding Scale From To Month per Permit 1 permit 10 permits $5,500 Tier 1 11 permits 20 permits $4,000 Tier 2 21 or more permits $2,500 Floor Broker Trading Permit Sliding Scale - The Exchange is implementing a sliding scale for Floor Broker Trading Permits effective January 3, 2012 for all Floor Broker Trading Permits held by affiliated Trading Permit Holders and TPH organizations. To qualify for the rates set forth in Tiers 1 and 2 in the sliding scale for 2012, the applicable Trading Permit Holder(s) and/or TPH organization must commit in advance to a specific tier that includes a minimum number of eligible Floor Broker Trading Permits for the calendar year (either two permits or eight permits). To do so, a Floor Broker Trading Permit Holder must notify the Registration Services Department of the tier of Floor Broker Trading Permits committed to by that Floor Broker Trading Permit Holder. Floor Broker Trading Permit December 9, 2011 Volume RG22, Number 49 11

14 Holders may commit at any time during the year and will be responsible for the minimum number of permits in the commitment tier for the remainder of the year. Floor Broker Trading Permit Holders interested in participating in the Floor Broker Trading Permit Sliding Scale for all of 2012, tier commitments must be completed by December 23, Floor Brokers are not obligated to commit to either tier. However, the discounts will apply only to those that do commit to Tier 1 or Tier 2 for the calendar year. Floor Broker Trading Permit Sliding Scale From To Amount per Month Per Permit 1 permit 1 permit $12,000 Tier 1 2 permits 7 permits $ 6,000 Tier 2 8 or more permits $ 3,000 Market-Maker Trading Permit and Floor Broker Trading Permit Sliding Scale Programs - If a Trading Permit Holder chooses to commit to either Tier 1 or Tier 2, that Trading Permit Holder will be responsible for the minimum number of permits in the commitment tier for the remainder of the calendar year. Even if a Trading Permit Holder does not maintain the minimum level of eligible Trading Permits in the tier, the Trading Permit Holder is still responsible for the minimum payment for that commitment tier for the remainder of the calendar year. Trading Permit Holders will be able to commit to a higher tier of the sliding scale for the remainder of a calendar year, during the commitment year, if the Trading Permit Holder obtains enough eligible Market-Maker Trading Permits or Floor Broker Trading Permits, as applicable, and provides the Election Form to the Registration Services Department by the 25 th day of the month preceding the month in which the higher tier will become effective (or the preceding business day if the 25 th is not a business day). December 9, 2011 Volume RG22, Number 49 12

15 MARKET-MAKER SLIDING SCALE ELECTION TO PARTICIPATE FOR TO OR FAX TO Trading Permit Holder Information Firm Name: Date: Address: Street Address Suite/Unit # Contact Name: Last First M.I. Phone: ( ) Address: Market-Maker Sliding Scale Trading Permit Tier Election for 2012 Tier 1 Tier 2 Please Indicate by check mark the Tier Election Election and Signature The Trading Permit Holder elects to participate in the Market-Maker Trading Permit Sliding Scale at the Tier level noted above. We understand that upon election we are responsible for the minimum number of permits in the commitment tier for the remainder of the calendar year, subject to the terms and conditions set forth in the CBOE Fees Schedule. Authorized Signature: Date: December 9, 2011 Volume RG22, Number 49 13

16 FLOOR BROKER TRADING PERMIT SLIDING SCALE ELECTION TO PARTICIPATE FOR TO OR FAX TO Trading Permit Holder Information Firm Name: Date: Address: Street Address Suite/Unit # Contact Name: Last First M.I. Phone: ( ) Address: Floor Broker Trading Permit Tier Election for 2012 Tier 1 Tier 2 Please Indicate by check mark the Tier Election Election and Signature The Trading Permit Holder elects to participate in the Floor Broker Trading Permit Sliding Scale at the Tier level noted above. We understand that upon election we are responsible for the minimum number of permits in the commitment tier for the remainder of the calendar year, subject to the terms and conditions set forth in the CBOE Fees Schedule. Authorized Signature: Date: December 9, 2011 Volume RG22, Number 49 14

17 EFFECTIVE-ON-FILING RULE CHANGE(S) R U L E C H A N G E S The following rule filing(s) was submitted to the Securities and Exchange Commission ( SEC ) effective on filing, and may have taken effect pursuant to Section 19(b)(3) of the Securities Exchange Act of 1934 (the Act ). The rule filing(s) 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 Penny Pilot Program On December 2, 2011, the Exchange filed Rule Change File No. SR-CBOE , which filing proposes to amend Rule 6.42 to extend the Penny Pilot Program until June 30, Any questions regarding the rule change may be directed to Laura Dickman, Legal Division, at The rule filing is available at Rule 6.42 Minimum Increments for Bids and Offers RULE The Board of Directors may establish minimum increments for options traded on the Exchange. When the Board of Directors determines to change the minimum increments, the Exchange will designate such change as a stated policy, practice, or interpretation with respect to the administration of Rule 6.42 within the meaning of subparagraph (3)(A) of subsection 19(b) of the Exchange Act and will file a rule change for effectiveness upon filing with the Commission. Until such time as the Board of Directors makes a change to the minimum increments, the following minimum increments shall apply to options traded on the Exchange: (1) No change. (2) No change. (3) The decimal increments for bids and offers for all series of the option classes participating in the Penny Pilot Program are: $0.01 for all option series quoted below $3 (including LEAPS), and $0.05 for all option series $3 and above (including LEAPS). For QQQQs, IWM, and SPY, the minimum increment is $0.01 for all option series. The Exchange may replace[, on a semi-annual basis,] any option class participating in the Penny Pilot Program that has been delisted with the next most actively-traded, multiply-listed option class, based on national average daily volume in the preceding six calendar months, that is not yet included in the Pilot Program. Any replacement class would be added on the second trading day following January 1, 2012[2011 and July 1, 2011]. The Penny Pilot shall expire on [December 31, 2011]June 30, (4) No change.... Interpretations and Policies: No change. SR-CBOE Complex Order Processing On December 5, 2011, the Exchange filed Rule Change File No. SR-CBOE , which filing proposes to amend the complex order processing rules to describe a complex order auction (COA) feature for complex orders resting in the complex order book (referred to as re-coa). Any questions regarding the rule change may be directed to Jennifer Lamie, Legal Division, at The rule text is December 9, 2011 Volume RG22, Number 49 15

18 shown below and the rule filing is available at pdf. Rule 6.53C Complex Orders on the Hybrid System * * * * *... Interpretations and Policies: * * * * *.04 (a) With respect to the initiation of a COA (as described in Rule 6.53C(d)(ii)), Trading Permit Holders routing complex orders directly to the COB may request that the complex orders be COA d on a class-by-class basis and Trading Permit Holders with resting complex orders on PAR may request that complex orders be COA d on an order-by-order basis. (b) For each class where COA is activated, the Exchange may also determine to activate COA for complex orders resting in COB. For such classes, any non-marketable order resting at the top of COB may be automatically subject to COA if the order is within a number of ticks away from the current market (calculated based on the derived net price of the individual series legs). The Exchange may also determine on a class-by-class and strategy basis to limit the frequency of COAs initiated for complex orders resting in COB. * * * * * 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 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 CBOE S&P 500 AM/PM Basis Options On December 1, 2011, the Exchange filed Rule Change File No. SR-CBOE , which filing proposes to list and trade CBOE S&P 500 AM/PM Basis (SPBAS) options. SPBAS options reflect the difference between the Special Opening Quotation (SOQ) of the S&P 500 Index and the closing level of the S&P 500 Index on the third Friday of each month. Any questions regarding the rule change may be directed to Jenny Klebes, Legal Division, at The rule text is shown below and the rule filing is available at Rule 5.5 Series of Option Contracts Open for Trading RULE 5.5 (a) (e) No change. Interpretations and Policies No change..20 Notwithstanding Interpretation and Policy.01 above, the intervals between strike prices for CBOE S&P 500 AM/PM Basis option series shall be determined in accordance with Interpretation and Policy.01(e) to Rule * * * * * CHAPTER XXIV Index Options December 9, 2011 Volume RG22, Number 49 16

19 Rule 24.1 Definitions RULE No change. Interpretations and Policies:.01 The reporting authorities designated by the Exchange in respect of each index underlying an index option contract traded on the Exchange are as follows: Index Reporting Authority (Add the following to the current list:) CBOE S&P 500 AM/PM Basis.... Standard & Poor s. * * * * * Rule 24.4 Position Limits for Broad-Based Index Options RULE (a) In determining compliance with Rule 4.11, there shall be no position limits for broad-based index option contracts (including reduced-value option contracts) on CBOE S&P 500 AM/PM Basis, CBOE S&P 500 Three-Month Realized Variance, CBOE S&P 500 Three-Month Realized Volatility and on the BXM (1/10th value), DJX, OEX, XEO, NDX, RUT, VIX, VXN, VXD, S&P 500 Dividend Index and SPX classes. All other broad-based index option contracts shall be subject to a contract limitation fixed by the Exchange, which shall not be larger than the limits provided in the chart below. * * * * * (b) (e) No change. Interpretations and Policies: No change..03 Reporting Requirement Each Trading Permit Holder (other than CBOE Market-Makers) or TPH organization that maintains a broad-based index option position on the same side of the market in excess of 100,000 contracts for OEX, XEO, NDX, RUT, VIX, VXN, VXD, S&P 500 Dividend Index, SPX, CBOE S&P 500 AM/PM Basis, CBOE S&P 500 Three-Month Realized Variance or CBOE S&P 500 Three-Month Realized Volatility and 1 million contracts for BXM (1/10th value) and DJX, for its own account or for the account of a customer, shall report information as to whether the positions are hedged and provide documentation as to how such contracts are hedged, in the manner and form required by the Department of Market Regulation. In calculating the applicable contract-reporting amount, reduced-value contracts will be aggregated with full-value contracts and counted by the amount by which they equal a full-value contract (e.g., 10 XSP options equal 1 SPX full-value contract). The Exchange may specify other reporting requirements of this interpretation as well as the limit at which the reporting requirement may be triggered..04 Margin and Clearing Firm Requirements Whenever the Exchange determines, based on a report by the Department of Market Regulation or otherwise, that additional margin is warranted in light of the risks associated with an underhedged BXM (1/10th value), SPX, OEX, XEO, NDX, RUT, DJX, VIX, VXN, VXD, S&P 500 Dividend Index, CBOE S&P 500 AM/PM Basis, CBOE S&P 500 Three-Month Realized Variance or CBOE S&P 500 Three-Month Realized Volatility option position, the Exchange may consider imposing additional margin upon the account maintaining such under-hedged position pursuant to its authority under Exchange Rule Additionally, it should be noted that the clearing firm carrying the account will be subject to capital charges under SEC Rule 15c3-1 to the extent of any margin deficiency resulting from the higher margin requirements. * * * * * December 9, 2011 Volume RG22, Number 49 17

20 Rule 24.5 Exercise Limits RULE In determining compliance with Rule 4.12, exercise limits for index option contracts shall be equivalent to the position limits prescribed for option contracts with the nearest expiration date in Rule 24.4, 24.4A, or 24.4C. There shall be no exercise limits for broad-based index options (including reduced-value option contracts) on CBOE S&P 500 AM/PM Basis,CBOE S&P 500 Three-Month Realized Variance, CBOE S&P 500 Three-Month Realized Volatility and on the BXM (1/10th value), DJX, OEX, XEO, NDX, RUT, VIX, VXN, VXD, S&P 500 Dividend Index, or SPX. Interpretations and Policies: No change. * * * * * Rule 24.6 Days and Hours of Business RULE No change. Interpretations and Policies: No change..03 On their last trading day, transactions in expiring CBOE S&P 500 AM/PM Basis options may be effected on the Exchange between the hours of 8:30 a.m. (Chicago time) and 3:00 pm (Chicago time). * * * * * Rule 24.9 Terms of Index Option Contracts RULE (a) General. (1) No change. (2) Expiration Months. Index option contracts may expire at three-month intervals or in consecutive months. The Exchange may list up to six expiration months at any one time, but will not list index options that expire more than twelve months out. Notwithstanding the preceding restriction, the Exchange may list up to twelve expiration months at any one time for any broadbased security index option contracts, including reduced-value and jumbo option contracts, (e.g., DJX, NDX, RUT and SPX) upon which the Exchange calculates a volatility index and for CBOE S&P 500 AM/PM Basis options. (3) European-Style Exercise. The following European-style index options, some of which are A.M.-settled as provided in paragraph (a)(4), are approved for trading on the Exchange: (i)- (civ) No change. (cv) CBOE S&P 500 AM/PM Basis (P.M.-settled) (4) (5) No change. Interpretations and Policies:.01 The procedures for adding and deleting strike prices for index options are provided in Rule 5.5 and Interpretations and Policies related thereto, as otherwise generally provided by Rule 24.9, and include the following: (a) - (d) No change. (e) [Reserved.] The interval between strike prices for CBOE S&P 500 AM/PM Basis options will be $1 or greater where the strike price is $200 or less and $5 or greater where the strike price is greater than $200. (f) (l) No change No change. * * * * * Rule 24A.7 Position Limits for FLEX Narrow-Based Index Options; Reporting Requirements for Flex Broad-Based Index Options and Flex Equity Options Exercise Limits December 9, 2011 Volume RG22, Number 49 18

21 RULE 24A.7. (a) No change. (b) Certain Broad-Based FLEX Index Options. There shall be no position limits for FLEX BXM (1/10th value), DJX, OEX, XEO, NDX, RUT, VIX, VXN, VXD, CBOE S&P 500 AM/PM Basis, CBOE S&P 500 Three-Month Realized Variance, CBOE S&P 500 Three-Month Realized Volatility, S&P 500 Dividend Index or SPX option contracts (including reduced-value option contracts). However, each Trading Permit Holder or TPH organization (other than CBOE Market- Makers) that maintains a FLEX broad-based index option position on the same side of the market in excess of 100,000 contracts for OEX, XEO, NDX, RUT, S&P 500 Dividend Index, CBOE S&P 500 AM/PM Basis or SPX and 1 million contracts for BXM (1/10th value) and DJX, for its own account or for the account of a customer, shall report information as to whether the positions are hedged and provide documentation as to how such contracts are hedged, in the manner and form prescribed by the Exchange. In calculating the applicable contract-reporting amount, reduced-value contracts will be aggregated with full-value contracts and counted by the amount by which they equal a full- value contract (e.g., 10 XSP options equal 1 SPX full-value contract). The Exchange may specify other reporting requirements of this interpretation as well as the limit at which the reporting requirement may be triggered. In addition, whenever the Exchange determines that a higher margin is warranted in light of the risks associated with an under-hedged FLEX BXM (1/10th value), DJX, OEX, XEO, NDX, RUT, VIX, VXN, VXD, CBOE S&P 500 AM/PM Basis, CBOE S&P 500 Three-Month Realized Variance, CBOE S&P 500 Three-Month Realized Volatility, S&P 500 Dividend Index or SPX option position, the Exchange may consider imposing additional margin upon the account maintaining such under-hedged position, pursuant to its authority under Exchange Rule Additionally, it should be noted that the clearing firm carrying the account will be subject to capital charges under 15c3-1 under the Exchange Act to the extent of any margin deficiency resulting from the higher margin requirements. Rule 24A.8 Exercise Limits RULE 24A.8. (a) In determining compliance with Rules 4.12 and 24.5, exercise limits for FLEX Index and FLEX Individual Stock or ETF Based Volatility Index Options shall be equivalent to the FLEX position limits prescribed in Rule 24A.7. There shall be no exercise limits for broad-based FLEX Index Options (including reduced-value option contracts) on BXM (1/10th value), DJX, NDX, OEX, RUT, S&P 500 Dividend Index, SPX, VIX, VXN, VXD, CBOE S&P 500 AM/PM Basis, CBOE S&P 500 Three-Month Realized Variance, CBOE S&P 500 Three-Month Realized Volatility and XEO. (b) (d) No change. * * * * * Rule 24B.7 Position Limits and Reporting Requirements RULE 24B.7. (a) No change. (b) Certain Broad-Based FLEX Index Options. There shall be no position limits for FLEX BXM (1/10th value), DJX, NDX, OEX, RUT, S&P 500 Dividend Index, SPX, VIX, VXN, VXD, CBOE S&P 500 AM/PM Basis,CBOE S&P 500 Three-Month Realized Variance, CBOE S&P 500 Three-Month Realized Volatility or XEO option contracts (including reduced-value option contracts). However, each Trading Permit Holder or TPH organization (other than a FLEX Market-Maker) that maintains a FLEX broad-based index option position on the same side of the market in excess of 100,000 contracts for NDX, OEX, RUT, S&P 500 Dividend Index, SPX, VIX, VXN, VXD, CBOE S&P 500 AM/PM Basis,CBOE S&P 500 Three-Month Realized Variance, CBOE S&P 500 Three-Month Realized Volatility or XEO and 1 million contracts for BXM (1/10th value) and DJX, for its own account or for the account of a customer, shall report December 9, 2011 Volume RG22, Number 49 19