TRADING PERMIT INFORMATION FOR 08/11/2011 THROUGH

Transcription

1 Exchange August 19, 2011 Volume 39, Number 33 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 08/11/2011 THROUGH 08/17/2011 TRADING PERMIT APPLICATIONS RECEIVED FOR WHICH BULLETIN PUBLICATION IS REQUIRED *****Addendum to Bulletin Dated 08/12/2011***** TPH Organization Applicant Eladian Partners Brokerage LLC Shane E. Swanson, Nominee 750 Third Avenue, Suite 2300 New York, NY Eladian Partners LP - Sole Owner Eladian Partners Ltd - GP Peter R. Kent - Shareholder Steven D. Swanson - Shareholder TCV VII, L.P. - Shareholder TCV VII, L.P. - Limited Partner Technology Crossover Management VII, L.P. - GP Technology Crossover Management VII, Ltd. - GP Jennifer L. Hunter - FINOP & VP Shane E. Swanson - President & CCO EFFECTIVE TRADING PERMIT HOLDERS Individuals Nominees: Effective Date James D. Killen (JDK) 8/16/11 CTC XS LLC Type of Business to be Conducted: Floor Broker Kraig D. Koester (KUS) 8/16/11 Turk Kus, Inc. Type of Business to be Conducted: Market Maker Christopher S. Smith (SMI) 8/17/11 Ronin Capital, LLC Type of Business to be Conducted: Market Maker TPH Organizations TERMINATIONS Individuals Effective Date: Turk Kus, Inc. 8/16/11 Type of Business to be Conducted: Market Maker Myles J. Kerrigan (MJK) 8/17/11 Nominees Termination Date Brian J. Dowling (BDO) 8/11/11 G-Bar Limited Partnership John M. Homan (JMH) 8/11/11 G-Bar Limited Partnership Robert B. Duddy (DUD) 8/15/11 Citadel Securities LLC

2 Page 2 August 19, 2011 Volume 39, Number 33 Chicago Board Options Exchange RESEARCH CIRCULARS The following Research Circulars were distributed between August 8 and August 11, 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 Polo Ralph Lauren Corporation ( RL ) Name Change to: Ralph Lauren Corporation Effective Date: August 16, 2011 Research Circular #RS DPL Inc. ( DPL ) Proposed Merger with The AES Corporation ( AES ) Research Circular #RS BJ s Wholesale Club, Inc. ( BJ ) Proposed Merger with Beacon Holding Inc. Research Circular #RS Blackboard Inc. ( BBBB ) Proposed Merger with Bulldog Holdings, LLC Research Circular #RS August 16, 2011 Longtop Financial Technologies Limited ( LFT ) Move and Begin Trading on the Other-OTC Market and Underlying Symbol and Option Symbol Change to ( LGFTY ) Effective Date: August 17, 2011 Ex-Date: August 11, 2011 Research Circular #RS August 17, 2011 Jackson Hewitt Tax Services Inc. ( JHTXQ ) Contract Adjustment to JHTXQ Options Effective Date: August 17, 2011 Research Circular #RS August 17, 2011 optionsxpress Holdings, Inc. ( OXPS ) Proposed Merger with The Charles Schwab Corporation ( SCHW ) Research Circular #RS August 18, 2011 Gerber Scientific, Inc. ( GRB ) Proposed Merger with Vector Knife Holdings (Cayman), Ltd. Research Circular #RS August 18, 2011 Unitrin, Inc. ( UTR ) Name, Stock and Option Symbol Change to Kemper Corporation ( KMPR ) Effective Date: August 25, 2011 Research Circular #RS August 19, 2011 Immucor, Inc. ( BLUD ): Merger Completed -- Cash Settlement

3 August 19, 2011 Volume RB22, Number 33 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 Circular RG DATE: August 17, 2011 REGULATORY CIRCULARS TO: FROM: RE: Trading Permit Holders Market Operations Department Restrictions on Transactions in Longtop Financial Technologies Limited ("LGFTY") Effective August 17, 2011 the NYSE will delist Longtop Financial Technologies Limited, ("LFT"). Trading in Longtop Financial Technologies Limited will commence on the Other OTC market under the symbol LGFTY. Trading on the CBOE in existing series of LGFTY options will be subject to the following restrictions. Only closing transactions may be effected in any series of LGFTY 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 LGFTY 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 August 19, 2011 Volume RG22, Number 33 1

4 There are no restrictions in place with respect to the exercise of LGFTY options. The provisions of this circular apply to any options on LGFTY 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: Regulatory Circular RG DATE: August 18, 2011 TO: FROM: RE: Trading Permit Holders Market Operations Department Restrictions on Transactions in Puda Coal, Inc. ("PUDA") Effective August 17, 2011 the NYSE AMEX delisted Puda Coal, Inc. ("PUDA"). Trading in Puda Coal, Inc. will commence on the Other OTC market under the symbol PUDA. Trading on the CBOE in existing series of PUDA options will be subject to the following restrictions. Only closing transactions may be effected in any series of PUDA 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 PUDA 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 PUDA options. The provisions of this circular apply to any options on PUDA 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: August 19, 2011 Volume RG22, Number 33 2

5 R U L E C H A N G E S 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 CBOE Silver ETF Volatility Index On August 11, 2011, the SEC approved Rule Change File No. SR-CBOE , which filing permits the listing and trading of options that overlie the CBOE Silver ETF Volatility Index. The options will be cash-settled and have European-style exercise. 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 pdf. Rule 24.1 Definitions RULE 24.1 (a) (aa) No change. Individual Stock or ETF Based Volatility Indexes (bb) The term Individual Stock or ETF Based Volatility Indexes means volatility indexes that provide an up-to-the-minute market estimate of the expected volatility of its corresponding underlying stock or ETF calculated by using real-time bid/ask quotes of CBOE listed options overlying that individual stock or ETF. The following Individual Stock or ETF Based Volatility Indexes have been approved for trading on the Exchange: Symbol Underlying Volatility Index VXAPL CBOE Equity VIX on Apple VXAZN CBOE Equity VIX on Amazon VXGS CBOE Equity VIX on Goldman Sachs VXGOG CBOE Equity VIX on Google VXIBM CBOE Equity VIX on IBM GVZ CBOE Gold ETF Volatility Index OVX CBOE Crude Oil ETF Volatility Index VXEEM CBOE Emerging Markets ETF Volatility Index VXFXI CBOE China ETF Volatility Index VXEWZ CBOE Brazil ETF Volatility Index VXGDX CBOE Gold Miners ETF Volatility Index VXSLV CBOE Silver ETF Volatility Index VXXLE CBOE Energy Sector ETF Volatility Index.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:) August 19, 2011 Volume RG22, Number 33 3

6 CBOE Silver ETF Volatility Index.... Chicago Board Options Exchange * * * * * Rule 24.4C Position Limits for Individual Stock or ETF Based Volatility Index Options Rule 24.4C (a) In determining compliance with Rule 4.11, Individual Stock or ETF Based Volatility Index options (as defined in Rule 24.1(bb)) shall have a position limit equal to 50,000 contracts on either side of the market, and no more than 30,000 contracts in the nearest expiration month. (b) In determining compliance with the position limits set forth in paragraph (a), Individual Stock or ETF Based Volatility Index options shall not be aggregated with the index component option contracts on the corresponding underlying security (e.g., individual stock or exchange-traded fund). (c) Positions in Short Term Options Series, Quarterly Options Series, and Delayed Start Options Series will be aggregated with position in options contracts on the same Individual Stock or ETF Based Volatility Index class..01 No change. * * * * * Rule 24.6 Days and Hours of Business RULE No change..01 No change..02 Transactions in ETF Based Volatility Index options may be effected on the Exchange between the hours of 8:30 a.m. (Chicago time) and 3:15 p.m. (Chicago time), except that if the closing time for the index components (i.e., CBOE listed ETF options) [traditional options on the ETF] is earlier than 3:15 p.m. (Chicago time), the earlier closing time shall apply. * * * * * Rule 24.9 Terms of Index Option Contracts RULE (a) General. (1) - (2) No change. (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)- (ciii) No change. (civ) CBOE Silver ETF Volatility Index (VXSLV). (4) A.M.-Settled Index Options. The last day of trading for non-volatility A.M.- settled index options shall be the business day preceding the last day of trading in the underlying securities prior to expiration. The last day of trading for Volatility Index, Individual Stock or ETF Based Volatility Index options is governed by subparagraph (5) below. The current index value at the expiration of an A.M.-settled index option shall be determined, for all purposes under these Rules and the Rules of the Clearing Corporation, on the last day of trading in the underlying securities prior to expiration, by reference to the reported level of such index as derived from the opening prices of the underlying securities on such day, as determined by the market for such security selected by the Reporting Authority pursuant to Interpretation and Policy.09 to Rule 24.9, except that in the event that the primary market for an underlying security does not open for trading, halts trading August 19, 2011 Volume RG22, Number 33 4

7 prematurely, or otherwise experiences a disruption of normal trading on that day, or in the event that the primary market for an underlying security is open for trading on that day, but that particular security does not open for trading, halts trading prematurely, or otherwise experiences a disruption of normal trading on that day, the price of that security shall be determined, for the purposes of calculating the current index value at expiration, as set forth in Rule 24.7(e). The current index level at the expiration of an A.M.- settled S&P 500 Dividend Index option shall be a special quotation of the S&P 500 Dividend Index as determined by the Reporting Authority pursuant to Interpretation and Policy.09 to Rule 24.9, except that in the event that the Reporting Authority is unable to calculate a special quotation of the S&P 500 Dividend Index, the special quotation shall be determined, for the purposes of calculating the current index value at expiration, as set forth in Rule 24.7(e). The following A.M.-settled index options are approved for trading on the Exchange: (i) (xciv) No change. (xcv) CBOE Silver ETF Volatility Index (VXSLV). (5) Method of Determining Day that Exercise Settlement Value will be Calculated and of Determining Expiration Date and Last Trading Day for Volatility Index (e.g., VIX, RVX, VXD, VXN, Individual Stock or ETF Based Volatility Index) options ( Volatility Index options ). The exercise settlement value of a Volatility Index option for all purposes under these Rules and the Rules of the Clearing Corporation, shall be calculated on the Wednesday that is thirty days prior to the third Friday of the calendar month immediately following the month in which the Volatility Index option expires. If the third Friday of the month subsequent to the expiration of the Volatility Index option is an Exchange holiday, the exercise settlement value shall be calculated on the business day that is thirty days prior to the Exchange business day immediately preceding that Friday. The exercise settlement value of a Volatility Index option for such purposes shall be calculated by the Exchange as a Special Opening Quotation (SOQ) of the applicable Volatility Index using the sequence of opening prices of the options that comprise the Volatility Index. The opening price for any series in which there is no trade shall be the average of that option s bid price and ask price as determined at the opening of trading. The expiration date of a Volatility Index option shall be the same day that the exercise settlement value of the Volatility Index option is calculated. The last trading day for a Volatility Index option shall be the business day immediately preceding the expiration date of the Volatility Index option. (b) (e) No change..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) (k) No change. (l) Notwithstanding paragraph (a), the interval between strike prices for Volatility Index options (as defined in Rule 24.9(a)(5)) 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. The Exchange shall not list LEAPS on Volatility Index options at strike price intervals less than $1. August 19, 2011 Volume RG22, Number 33 5