Trading Permit Information for 3/21/2013 through 3/27/2013

Transcription

1 March 28, 2013 Volume 41, Number 13 The Bylaws and Rules of Chicago Board Options Exchange, Incorporated ( Exchange ), in certain specific instances, require the Exchange to provide notice to Exchange Trading Permit Holders. To satisfy this requirement, a copy of the Exchange Bulletin, including the Regulatory Bulletin, is delivered by or by hard copy free of charge to all effective Trading Permit Holders on a weekly basis. Trading Permit Holders are encouraged to receive the Exchange and Regulatory Bulletin and Information Circulars via . subscriptions may be obtained by Trading Permit Holders by submitting your name, firm if applicable, address, and phone number, to registration@cboe.com. If you do sign up for delivery, please remember to inform the Registration Services Department of address changes. Subscriptions by Trading Permit Holders for hard copy delivery may be obtained by submitting your name, firm if any, mailing address and telephone number to: Chicago Board Options Exchange, Registration Services Department, 400 South LaSalle, Chicago, Illinois 60605, Attention: Bulletin Subscriptions. Copyright 2013 Chicago Board Options Exchange, Incorporated Trading Permit Information for 3/21/2013 through 3/27/2013 TRADING PERMIT APPLICATIONS RECEIVED FOR WHICH BULLETIN PUBLICATION IS REQUIRED Individual Applicants Michael A Thomas Consolidated Trading LLC 200 W. Jackson Blvd., Suite 2300 Chicago, IL EFFECTIVE TRADING PERMIT HOLDERS Individuals Nominee: Effective Date Brian K Gilbart (BKG) 3/21/13 Belvedere Trading LLC Type of Business to be Conducted: Market Maker Michael W Kivisto WSP Commodity Trading LLC 440 S. LaSalle St. Suite 3600 Chicago, IL TERMINATIONS Individuals Nominee: Termination Date Marc B. Weintraub (MGW) 3/21/13 Bluefin Trading LLC Charles M Jacobson (CJX) 3/25/13 Belvedere Trading LLC Stanton W. Todd (SJR) 3/26/13 Sumo Capital LLC March 28, 2013 Volume 41, Number 13 1

2 Research Circulars The following Research Circulars were distributed between March 25, 2013 and March 28, 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 Direxion Daily Emerging Markets Bull 3x Shares ("EDC & adj. EDC1")3-for-1 ETF Split Ex-Distribution Date: April 2, 2013 Research Circular #RS Direxion Daily Financial Bull 3X Shares ("FAS & adj. FAS1") 3-for-1 ETF Split Research Circular #RS Direxion Daily S&P 500 Bull 3X Shares ("SPXL") 3-for-1 ETF Split Research Circular #RS Direxion Daily Real Estate Bull 3X Shares ("DRN") 2-for-1 Stock Split Research Circular #RS Direxion Daily Latin America Bull 3X Shares ("LBJ") 2-for-1 ETF Split Research Circular #RS Direxion Daily Small Cap Bull 3X Shares ("TNA") 2-for-1 ETF Split Research Circular #RS Direxion Daily 7-10 Year Treasury Bull 3X Shares ("TYD") 2-for-1 ETF Split Research Circular #RS Guggenheim 2x S&P 500 ETF ("RSU"): Cash Settlement Research Circular #RS Direxion Daily Mid Cap Bear 3X Shares ("MIDZ") 1-for-3 Reverse ETF Split Research Circular #RS Direxion Daily Energy Bear 3X Shares ("ERY") 1-for-6 Reverse ETF Split Research Circular #RS Direxion Daily Small Cap Bear 3X Shares ("TZA") 1-for-4 Reverse ETF Split Research Circular #RS Direxion Daily Financial Bear 3X Shares ("FAZ") 1-for-4 Reverse ETF Split Research Circular #RS Banco Bradesco S.A. ("BBD") 10% ADS Dividend Ex-Distribution Date: March 26, 2013 Research Circular #RS Direxion Daily China Bear 3X Shares ("YANG") 1-for-5 Reverse ETF Split Research Circular #RS Direxion Daily Technology Bear 3X Shares ("TECS") 1-for-5 Reverse ETF Split Research Circular #RS Direxion Daily Emerging Markets Bear 3X Shares ("EDZ") 1-for-5 Reverse ETF Split Research Circular #RS Direxion Daily Gold Miners Bull 3X Shares ("NUGT") 1-for-5 Reverse ETF Split Research Circular #RS TELUS Corporation ("TU") 2-for-1 Stock Split Ex-Distribution Date: April 17, 2013 Research Circular #RS Sauer-Danfoss Inc. ("SNY") Tender Offer by Danfoss Acquisition, Inc. Research Circular #RS Date: March 26, 2013 Harry Winston Diamond Corporation ( HWD ) Name, Stock and Option Symbol Change to Dominion Diamond Corporation ( DDC ) Effective Date: March 27, 2013 Research Circular #RS Date: March 27, 2013 Two Harbors Investment Corp. ( TWO ) Distribution Effective Date: March 28, 2013 March 28, 2013 Volume 41, Number 13 2

3 March 28, 2013 Volume RB24, Number 13 The Bylaws and Rules of Chicago Board Options Exchange, Incorporated ( Exchange ), in certain specific instances, require the Exchange to provide notice to Trading Permit Holders. The weekly Regulatory Bulletin is delivered to all effective Trading Permit Holders to satisfy this requirement. Copyright 2013 Chicago Board Options Exchange, Incorporated. Regulatory Circulars Regulatory Circular RG To: CBOE Streaming Markets (CSM) CBOE BBO Data Feed Customers and Trading Permit Holders From: Finance and Administration RE: Data Fee for CBOE BBO Data Feed Data Fee Subject to SEC review, effective April 1, 2013, Chicago Board Options Exchange, Incorporated ("CBOE"), is amending the fees schedule of Market Data Express, LLC ("MDX ), an affiliate of CBOE, for the CSM CBOE BBO Data Feed by eliminating both the direct connect fee and the per user fee and replacing these fees with Data Fees, payable by a Customer, of $5,000 per month for internal use of the BBO Data Feed and $3,000 per month for external redistribution of the BBO Data Fee. A Customer is any entity that receives the BBO Data Feed directly from MDX s system or through a connection to MDX provided by an approved redistributor (i.e., a market data vendor or an extranet service provider) and then distributes it internally and/or externally. The external redistribution fee would entitle a Customer to distribute externally the CBOE BBO Data Feed as well as the BBO Data Feed for C2 Options Exchange listed options and the BBO Data Feed for securities traded on the CBOE Stock Exchange. BBO and last sale data for FLEX options, which are included in the CBOE BBO Data Feed, are available as a separate data feed at no charge. As a result of these changes, the fees for the CBOE BBO Data Feed and the CBOE FLEX BBO Data Feed as of April 1, 2013 are as follows: CBOE: Internal Use... $5,000 External Distribution.. $3,000 CBOE FLEX $ 0 As before, there is not a per-user fee for display and non-display users within a firm. A new MDX Fee Schedule will be sent to all contract holders. ****** Market Data Express, LLC CBOE Streaming Markets Fees Schedule Please do not hesitate to contact us with any questions. March 28, 2013 Volume RB24, Number 13 1

4 Tom Knorring Ginny Kowalczyk V.P. Business Development Senior Business Analyst (312) (312) Regulatory Circular RG To: Trading Permit Holders From: Regulatory Services Division RE: Format change to Market Maker Equity Trade (MMET) and Market Maker Stock (MMSTK) Position Files Overview CBOE Rule 8.9(b) requires clearing firms to submit, on a daily basis and in a manner prescribed by the Exchange, every executed order entered by Market Makers for securities underlying CBOE options traded on the Exchange or convertible into such securities or for securities traded on the exchange as well as Market Maker beginning and end of day stock positions 1. These data files are commonly known as Market Maker Equity Trade ( MMET ) and Market Maker Stock Position ( MMSTK ) files. This circular is to notify submitting firms that the Exchange is changing the format and enhancing the information requested in the daily MMET and MMSTK data files. This circular does not list all of the changes to the MMET and MMSTK files. Market Makers and Firms needing such information should use the link below to obtain further details. One significant change is that pursuant to Rule 15.1, clearing firms will now be required to include every executed order entered by Proprietary Trading firms as well as Proprietary Trading firms beginning and end of day stock positions in the relevant MMET and MMSTK files 2. Additionally, the new file format requires information related to creations and redemptions, and any resulting position change. The file format will also change from a fixed length record layout format to a comma separated value (.csv) format. Details about the new file formats are available via the following link: Firms will continue to be required to submit the requisite files by 2:00 am (Central Time) daily via the current secure FTP transfer process. Firms must submit the data in the new format beginning no later than June 28, Additional Information: Please contact Joan Luckey (luckey@cboe.com) at or Darius Zakeri (zakeri@cboe.com) at for additional information about data submission. Questions about CBOE rules may be directed to the Regulatory Interpretations and Guidance team by telephone at (312) or by at RegInterps@cboe.com. 1 2 To the extent that clearing firms do not report such orders and information, the Exchange requests that the Market Maker reports such information. To the extent that clearing firms do not report such orders and information, the Exchange requests that the Proprietary Trading firm reports such information. March 28, 2013 Volume RB24, Number 13 2

5 Regulatory Circular RG To: Trading Permit Holders From: Regulatory Services Division RE: Format change to Market Maker Equity Trade (MMET) and Market Maker Stock (MMSTK) Position Files Overview CBOE Rule 8.9(b) requires clearing firms ( Firms ) to submit, on a daily basis and in a manner prescribed by the Exchange, every executed order entered by Market Makers for securities underlying CBOE options traded on the Exchange or convertible into such securities or for securities traded on the exchange as well as Market Maker beginning and end of day stock positions 1. These data files are commonly known as Market Maker Equity Trade ( MMET ) and Market Maker Stock Position ( MMSTK ) files. This circular is to notify submitting firms that the Exchange is changing the format and enhancing the information requested in the daily MMET and MMSTK data files. One notable change is that the new file formats require information related to creations and redemptions, and any resulting position change. This circular does not list all of the changes to the MMET and MMSTK files. Market Makers and Firms needing such information should use the following link to obtain further details: Firms will continue to be required to submit the requisite files by 2:00 am (Central Time) daily via the current secure FTP transfer process. Firms must submit the data in the new formats beginning no later than June 28, Additional Information: Please contact Joan Luckey (luckey@cboe.com) at (312) or Darius Zakeri (zakeri@cboe.com) at (312) for additional information. Questions about CBOE or CBSX rules may be directed to the Regulatory Interpretations and Guidance team by telephone at (312) or by at RegInterps@cboe.com. 1 To the extent that clearing firms do not report such orders and information, the Exchange requests that the Market Maker reports such information. March 28, 2013 Volume RB24, Number 13 3

6 Rule Changes EFFECTIVE-ON-FILING RULE CHANGE(S) The following rule filings were 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 ). They will remain in effect barring further action by the SEC within 60 days after publication in the Federal Register. Below, any additions to rule text are underlined, and any deletions are [bracketed]. Copies are available on the CBOE public website at SR-CBOE Mini-Option On, the Exchange filed Rule Change File No. SR-CBOE , which filing proposes to amend the definition of complex order to specify that for the purpose of applying the permissible ratios to complex orders comprised of both mini-options and standard options, ten mini-options will represent one standard option. Any questions regarding the rule change may be directed to Cori Klott, Legal Division, at The rule text is shown below and the rule filing is available at Rule 6.53C. Complex Orders on the Hybrid System (a) Definition: For purposes of the electronic trading of complex orders pursuant to this Rule, a complex order is any order for the same account as defined below: (1) A "complex order" is any order involving the execution of two or more different options series in the same underlying security occurring at or near the same time in a ratio that is equal to or greater than one-to-three (.333) and less than or equal to three-to-one (3.00) (or such lower ratio as may be determined by the Exchange on a class-by-class basis) and for the purpose of executing a particular investment strategy. For the purpose of applying the aforementioned ratios to complex orders comprised of both mini-option contracts and standard option contracts, ten (10) mini-option contracts will represent one (1) standard option contract. Only those complex orders with no more than the applicable number of legs, as determined by the Exchange on a class-byclass basis, are eligible for processing. * * * * * Section E: Order Protection; Locked and Crossed Markets Rule Definitions The following terms shall have the meaning specified in this Rule solely for the purpose of this Section E: * * * * * (4) "Complex Trade" means: (i) the execution of an order in an option series in conjunction with the execution of one or more related order(s) in different option series in the same underlying security occurring at or near the same time in a ratio that is equal to or greater than one-to-three (.333) and less than or equal to three-to-one (3.0) and for the purpose of executing a particular investment strategy (for the purpose of applying the aforementioned ratios to complex trades comprised of both mini-option contracts and standard option contracts, ten (10) mini-option contracts will represent one (1) standard option contract); or (ii) the execution of a stock-option order to buy or sell a stated number of units of an underlying stock or a security convertible into the underlying stock ("convertible security") coupled with the purchase or sale of option contract(s) on the opposite side of the market representing either (A) the same number of units of the underlying stock or convertible security, or (B) the number of units of the underlying stock or convertible security necessary to create a delta neutral position, but in no case in a ratio greater than eight-to-one (8.00), where the ratio represents the total number of units of the underlying stock or convertible security in the option leg to the total number of units of the underlying stock or convertible security in the stock leg (or such lower ratio as may be determined by the Exchange on a class-by-class basis). Only those stock-option orders with no more than the March 28, 2013 Volume RB24, Number 13 4

7 applicable number of legs, as determined by the Exchange on a class-by-class basis, are eligible for processing. * * * * * March 28, 2013 Volume RB24, Number 13 5