October 16, 1998 Volume 26, Number 41 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 to all effective members on a weekly basis. Additional subscriptions may be obtained by submitting your name, firm, mailing address, e-mail address and telephone number to : Chicago Board Options Exchange, Attention: Investor Services Department, 400 South LaSalle, Chicago, Illinois 60605. The cost of an annual subscription (July 1 through June 30) is $100 ($50 after January 1) for hard copy delivery or $50 ($25 after January 1) for e-mail delivery, payable in advance. Non-members are welcome to subscribe. Exchange Bulletin Information Circulars Information Circular 98-75 Date: September 24, 1998 To: Membership From: Nominating Committee Subject: Selection of Nominees for the Board of Directors and the Nominating and MTS Committee It is again time for the Nominating Committee to select nominees for the Board of Directors and the Nominating and MTS Committees. Expiring terms on the Board include 2 ”floor” directors, one “at large” director and 2 “off floor” directors (executive officers of member organizations which primarily conduct a non-member public customer business). In addition, we will be selecting nominees for 2 “off floor” directors to serve one year terms as a result of Board resignations. The Nominating Committee will also be selecting nominees for 2 expiring terms on the Nominating Committee and 4 expiring terms on the MTS Committee. Circumstances, including dates, may change if the proposed merger with the Pacific Exchange is approved. Individuals who are interested in being considered by the Nominating Committee must complete and submit a Candidate Information and Statement of Business Affiliation Form and a brief resume and contact Barbara Casey at (312) 786-7712 to arrange for a personal interview before the Committee. The cut-off time for submissions has been extended to October 20, 1998. Candidate Information and Statement of Business Affiliation Forms are available at the 4th and 7th floor reception desks. Interviews will be scheduled on September 15, 17, 22, 24 and October 6, 8, 13, 14, 15, 19 and 20, 1998, in the Executive Conference Room, 7th floor. The Nominating Committee will select nominees only from those members who submit their names for nomination. Individuals generally nominate themselves and are not nominated by others. The names of individuals who have placed themselves into nomination will be posted on the Exchange’s Bulletin Boards. During the personal interviews, candidates are questioned about a broad range of relevant issues in an attempt to ascertain what type of experience or expertise the candidate would bring to the Board or the Nominating and MTS Committees. Previous CBOE Committee experience and the regulatory history of candidates is also reviewed. After these interviews, the Committee selects the nominees that it believes will most adequately fill the upcoming vacancies on the Board and the Nominating and MTS Committee. The slate for the Board and Nominating Committee will be posted in October after which members may petition to run against the slated candidates. MTS nominees will be presented to the Board of Directors for approval. The Membership will be asked to vote on the candidates for the Board and Nominating Committee. Members who serve on the Nominating Committee are: James Sauser, Chairman; Richard Bruder, Merrill Ferguson, Paul Jiganti, David Miller, Ben- jamin Nitka and David Snyder. If you have any questions regarding the nominating process, please feel free to contact any of the Committee members or call Barbara Casey at (312) 786-7712.
Transcript
October 16, 1998 V olume 26, Number 41
The Constitution and Rules of the Chicago Board Options Exchange, Incorporated ("Exchange"), in certain specific instances, req uirethe Exchange to provide notice to the Exchange membership. To satisfy this requirement, a complimentary copy of the ExchangeBulletin , including the Regulatory Bulletin , is delivered to all effective members on a weekly basis.
Additional subscriptions may be obtained by submitting your name, firm, mailing address, e-mail address and telephone number to :Chicago Board Options Exchange, Attention: Investor Services Department, 400 South LaSalle, Chicago, Illinois 60605. The cost o f anannual subscription (July 1 through June 30) is $100 ($50 after January 1) for hard copy delivery or $50 ($25 after January 1) for e-maildelivery, payable in advance. Non-members are welcome to subscribe.
Exchange Bulletin
Information CircularsInformation Circular 98-75
Date: September 24, 1998
To: Membership
From: Nominating Committee
Subject: Selection of Nominees for the Board of Directors and the Nominating and MTS Committee
It is again time for the Nominating Committee to select nominees for the Board of Directors and the Nominating and MTS Committees. Expiring termson the Board include 2 ”floor” directors, one “at large” director and 2 “off floor” directors (executive officers of member organizations which primarilyconduct a non-member public customer business). In addition, we will be selecting nominees for 2 “off floor” directors to serve one year terms as aresult of Board resignations. The Nominating Committee will also be selecting nominees for 2 expiring terms on the Nominating Committee and 4expiring terms on the MTS Committee.
Circumstances, including dates, may change if the proposed merger with the Pacific Exchange is approved.
Individuals who are interested in being considered by the Nominating Committee must complete and submit a Candidate Information andStatement of Business Affiliation Form and a brief resume and contact Barbara Casey at (312) 786-7712 to arrange for a personal interviewbefore the Committee. The cut-off time for submissions has been extended to October 20, 1998. Candidate Information and Statement ofBusiness Affiliation Forms are available at the 4th and 7th floor reception desks. Interviews will be scheduled on September 1 5, 17, 22, 24and October 6, 8, 13, 14, 15, 19 and 20, 1998, in the Executive Conference Room, 7th floor. The Nominating Committee will select nominees onlyfrom those members who submit their names for nomination. Individuals generally nominate themselves and are not nominated by others. The namesof individuals who have placed themselves into nomination will be posted on the Exchange’s Bulletin Boards.
During the personal interviews, candidates are questioned about a broad range of relevant issues in an attempt to ascertain what type of experience orexpertise the candidate would bring to the Board or the Nominating and MTS Committees. Previous CBOE Committee experience and the regulatoryhistory of candidates is also reviewed. After these interviews, the Committee selects the nominees that it believes will most adequately fill the upcomingvacancies on the Board and the Nominating and MTS Committee. The slate for the Board and Nominating Committee will be posted in October afterwhich members may petition to run against the slated candidates. MTS nominees will be presented to the Board of Directors for approval. TheMembership will be asked to vote on the candidates for the Board and Nominating Committee.
Members who serve on the Nominating Committee are: James Sauser, Chairman; Richard Bruder, Merrill Ferguson, Paul Jiganti, David Miller, Ben-jamin Nitka and David Snyder. If you have any questions regarding the nominating process, please feel free to contact any of the Committee membersor call Barbara Casey at (312) 786-7712.
Page 2 October 16, 1998 Volume 26, Number 41 The Chicago Board Options Exchange Bulle tin
Informational Circular 98-80
Date: October 9, 1998
To: Membership
From: Nominating Committee
Subject: Persons Who Have Submitted Their Names to Fill Vacancies on the Board of Directors, the Nominating Committee and theMTS Committee
To date, the following individuals have submitted their names to fill the vacancies on the Board of Directors:
Bruce Andrews Leo LibfeldJohn Favia Martin O’ConnellRoss Kaminsky Jesse StamerScott Kilrea Alvin WilkinsonDaniel Koutris
To date, the following individuals have submitted their name to fill the vacancies on the Nominating Committee:
Timothy Boyd Howard RingLeo Libfeld
To date, the following individuals have submitted their names to fill the vacancies on the MTS Committee:
Raymond Barone Randy ChandraMarc Brown Steve ChilowPatrick Caffrey Leo LibfeldCabot Caldwell
MEMBERSHIP INFORMATION FOR OCTOBER 1, 1998 THROUGH OCTOBER 7, 1998
Members are required to report any address or telephone number changes to the Membership Department at (312) 786-7449 pursuant toExchange Rule 3.6(b). For Seat Market Quotes, call (312) 786-7456.
CLASS BID OFFER LAST SALE AMOUNT LAST SALE DATE
CBOE/FULL $435,000.00 $495,000.00 $460,000.00 September 28, 1998
CBOE/OTP $72,000.00 $110,000.00 $130,000.00 May 6, 1998
CBOT/FULL $435,000.00 $450,000.00 $431,100.00 October 6, 1998
OPTION TRADING PERMIT- LEASE POOL AS OF SEPTEMBER 18, 1998
This notice is given pursuant to Rules 3.15 and 3.16 which permit certain types of claims to be filed with the Membership Depar tmentwithin 20 days from the date of this Exchange Bulletin.
From To Price/Transfer Date
SBC Warburg Dillon Reed Inc. Warburg Dillon Reed L.LC. 10/01/98
SBC Warburg Dillon Reed Inc. Warburg Dillon Reed L.LC. 10/01/98
SBC Warburg Dillon Reed Inc. Warburg Dillon Reed L.LC. 10/01/98
SBC Warburg Dillon Reed Inc. Warburg Dillon Reed L.LC. 10/01/98
SBC Warburg Dillon Reed Inc. Warburg Dillon Reed L.LC. 10/01/98
October 16, 1998 Volume 26, Number 41 The Chicago Board Options Exchange Bulletin Page 3
From To Price/Transfer DateSBC Warburg Dillon Reed Inc. Warburg Dillon Reed L.LC. 10/01/98
SBC Warburg Dillon Reed Inc. Warburg Dillon Reed L.LC. 10/01/98
SBC Warburg Dillon Reed Inc. Warburg Dillon Reed L.LC. 10/01/98
SBC Warburg Dillon Reed Inc. Warburg Dillon Reed L.LC. 10/01/98
MEMBERSHIP APPLICATIONS RECEIVEDThis notice is given persuant to Exchange Rule 3.9. Please send anycomments to the Membership Committee in care of the MembershipDepartment.
Individual Member Applicants Date Posted
Lanny I. Brooks, CBT Registered For 10/01/98Brave Sky Trading, LLC1232 Lincoln Ave. SouthHighland Park, IL 60035
Karl J. Quinn, Nominee 10/01/98PTR, Incorporated1407 W. 171st StreetE. Hazel Crest, IL 60429
Lance S. Allen, CBT Individual 10/01/98925 Runyan Dr.Lockport, IL 60441
Edmund P. Mahoney, Nominee 10/01/98Mokena Partnership817 W. DickensChicago, IL 60614
Patrick J. Mc Guire, Nominee 10/01/98Schroder & Co. Incorporated1940 N. SheffieldChicago, IL 60614
Larry D. Mertz, CBT Registered For 10/01/98Furman Trading Group, L.L.C.8425 Omaha DriveBurr Ridge, IL 60521
David O. Smith, Nominee 10/01/98Hull Trading Company, L.L.C.1936 North Clark, #215Chicago, IL 60614
Steven I. Carlson, Lessee 10/02/981444 W. RascherChicago, IL 60640
Matthew R. Tonelli, Nominee 10/02/98DBS Partners L.P.540 West Lake Shore Drive #202Chicago, IL 60611
Vincent B. Gavin, CBT Registered For 10/02/98New Concepts L.L.C.801 South WellsChicago, IL 60607
Christopher M. Wegren, Nominee 10/05/98DiSomma & Gurinas Trading Co.30 S. Wacker Drive, #1418Chicago, IL 60606
Courtney T. Andrews, CBT Registered For 10/05/98Timber Hill LLC11038 S. Artesian, #3Chicago, IL 60655
Marcelo G. Madariaga, CBT Registered For 10/05/98Letco DPM L.P.338 S. SageBrush CircleRound Lake, IL 60073
Michael W. Stretti, CBT Registered For 10/05/98Caledonia Partners, L.P.6419 Lyra LaneRacine, WI 53406
John E. Balderson, Nominee 10/05/98Botta Trading, Inc.2730 N. Wayne, #2FRHChicago, IL 60614
Michael M. Simpson, Nominee 10/05/98Timber Hill LLC2270 North Lincoln Avenue #3Chicago, IL 60614
Corey L. Fisher, Nominee 10/05/98Botta Trading, Inc.1749 N. Wells, #627Chicago, IL 60614
John K. Kim, Nominee 10/05/98DRW Securities, LLC505 North Lake Shore Drive, #2212Chicago, IL 60611
Timothy N. Tatum, Nominee 10/05/98Jacob Trading, L.L.C.440 S. LaSalle, Suite #2800Chicago, IL 60605
Michael E. Stodden, CBT Registered For 10/05/98Letco DPM L.P.3608 N. Sigwalt StreetRolling Meadows, IL 60008
Patrick M. Danly, Nominee 10/05/98Saratoga Derivatives, L.L.C.4514 Franklin Ave.Western Springs, IL 60558
Curtis D. Newingham, Nominee 10/06/98Panos Trading Limited Partnership116 W. ElmRoselle, IL 60172
Timothy G. Mac Namara, CBT Individual 10/06/981223 JacksonRiver Forest, IL 60305
Date Posted
Page 4 October 16, 1998 Volume 26, Number 41 The Chicago Board Options Exchange Bulle tin
David D. Paloyan, CBT Registered For 10/06/98Surrey Securities, Inc.440 S. LaSalle, #700Chicago, IL 60605
James H. Thomasson, Nominee 10/06/98Sparta Group Of Chicago, L.P.595 Carrico RoadFlorissant, MO 63034
Kyle M. Ryberg, Nominee 10/06/98Option Capital Group LLC401 S. LaSalle, Suite 1600Chicago, IL 60605
Thomas R. Prainito, Nominee 10/06/98Option Capital Group LLC401 S. LaSalle, Suite 1600Chicago, IL 60605
Matthew Q. Sagui, CBT Individual 10/06/981837 BalmoralGlenview, IL 60025
Franz F. Paul, Nominee 10/06/98Option Capital Group LLC401 S. LaSalle, Suite 1600Chicago, IL 60605
Edward P. Mc Fadden III., Nominee 10/06/98Arlington Trading, LLC603 West Arlington PL., #1Chicago, IL 60614
Mark J. Harlan, Nominee 10/06/98Option Capital Group LLC401 S. LaSalle, Suite 1600Chicago, IL 60605
Michael W. Thompson, Nominee 10/06/98Option Capital Group LLC401 S. LaSalle, Suite 1600Chicago, IL 60605
Matthew W. Shapiro, CBT Registered For 10/06/98WJC Trading Co., Inc.125 Washington Street, Apt. 4Hobolen, NJ 07030
Member Organization Applicants Date Posted
DiSomma & Gurinas Trading Co. 10/05/98Christopher M. Wegren, Nominee30 S. Wacker Drive, #1418Chicago, IL 60606
William J. Disomma - Secretary/DirectorPaul A. Gurinas - President/Director
Caledonia Partners, L.P. 10/05/98Michael W. Stretti, CBT Registered For6419 Lyra LaneRacine, WI 53406
Michael W. Stretti - General PartnerCharles H. Deinken - Limited PartnerHenry T. Suchlak - Limited PartnerLouis W. Catton - Limited PartnerSalli G. Stretti - Limited Partner
,
Jacob Trading, L.L.C. 10/05/98Timothy Tatum, Nominee440 S. LaSalle Suite 2800Chicago, IL 60605
Timothy N. Tatum - PresidentChris N. Diamondidis - SecretaryHarold P. McLarnon - Executive Vice President
Surrey Securities, Inc. 10/06/98David D. Paloyan , CBT Registered For440 S. LaSalle #700Chicago, IL 60605
Thomas J. Corbett - President
Option Capital Group LLC 10/06/98Mark J. Harlan , NomineeFranz F. Paul, NomineeThomas R. Prainito, NomineeKyle M. Ryberg, NomineeMichael W. Thompson, Nominee401 S. LaSalle Suite 1600Chicago, IL 60605
James K. Murphy - Managing PartnerMark A. Severin - ShareholderJeffrey H. Melgard - ShareholderEric A. Conlon - ShareholderRandy R. Dalby - Shareholder
Arlington Trading, LLC 10/06/98Edward P. McFadden III, Nominee603 West Arlington PL. #1Chicago, IL 60614
Edward P. McFadden III - Managing MemberLouis S. Panos - Managing Member
MEMBERSHIP LEASESThis notice is given pursuant to Exchange Rules 3.15 and 3.16 whichpermit certain types of claims to be filed with the Membership De-partment within 20 days from the date of this Exchange Bulletin.
Lessor: American Options Corp. 10/07/98Lessee: Saliba Partners, L.L.C.
Robert J. Allen (BZA), NOMINEE
Lessor: John R. Power 10/07/98Lessee: Norman C. Peterson (NCP)
OPTION TRADING PERMIT LEASES
New OTP Leases Effective Date
This notice is given pursuant to Exchange Rules 3.15 and 3.27 whichpermit certain types of claims to be filed with the Membership De-partment within 20 days from the date of this Exchange Bulletin.
Lessor: Terence Hayden & Co. 10/01/98Lessee: BE Partners
Timothy M. Sommerfield, NOMINEERate: $2500.00 Term: Monthly
Termination Date Termination Date
October 16, 1998 Volume 26, Number 41 The Chicago Board Options Exchange Bulletin Page 9
Kevin D. Powers, NOMINEERate: $1000.00 Term: Monthly
Terminated OTP Leases Termination Date
This notice is given pursuant to Exchange Rules 3.15 and 3.27 whichpermit certain types of claims to be filed with the Membership De-partment within 20 days from the date of this Exchange Bulletin.
Lessor: Terence Hayden & Co. 10/01/98Lessee: RPS Trading Inc.
LEASE POOL OPTION TRADING PERMIT LEASES
New OTP Leases Effective Date
Lessor: Chicago Board Options Exchange 10/02/98Lessee: BE Partners
Clare M. Danek, NOMINEERate: 500.00 Term: Monthly
Lessor: Chicago Board Options Exchange 10/01/98Lessee: Spear, Leeds & Kellogg
Timothy D. Ritschel, NOMINEERate: $750.00 Term: Monthly
Terminated OTP Leases Termination Date
This notice is given pursuant to Exchange Rules 3.15 and 3.27 whichpermit certain types of claims to be filed with the Membership De-partment within 20 days from the date of this Exchange Bulletin.
Lessor: Chicago Board Options Exchange 10/01/98Lessee: Letco Trading L.P.
Michael Weingart (VIX), NOMINEE
Lessor: Chicago Board Options Exchange 10/01/98Lessee: Harold D. Jacobson (HDJ)
MEMBERSHIP TERMINATIONS
Individual Members Termination Date
CBT Exercisers:
Brian Stucka (BRS) 10/01/98440 S. LaSalle, Suite 2500Chicago, IL 60605
Richard S. Jaffe (JFE) 10/01/98701 Forum SquareGlenview, IL 60025
Sondra C. Rabin (SCR) 10/05/981000 N. Lake Shore Drive, Apt. 2309Chicago, IL 60611
Matthew Q. Sagui (MQS) 10/06/98440 S. LaSalle, #2800Chicago, IL 60605
CBT Registered For:
Timothy R. Mullen (MTX) 10/01/98LIT Clearing Services Inc.440 S. LaSalle Street, 16th FloorChicago, IL 60605-
Brett T. Boscarino (BOZ) 10/05/98Hull Trading Company, L.L.C.Hull Trading311 S. Wacker - Ste. 1400Chicago, IL 60606
Patricia J. Ahern (AAA) 10/05/98Group One Trading, L.P.440 S. LaSalle - Ste 1108Chicago, IL 60605
Lessee(s):
Dimitrios Cholevas (GRE) 10/01/98440 S. LaSalle, #700Chicago, IL 60605
Kenneth W. Tatz (KNE) 10/01/98868 Edgewood Ct.Highland Park, IL 60035
Mark D. O’Brien (MOB) 10/01/98221 GreenleafWilmette, IL 60091
Thad J. Cole (CLE) 10/01/98160 Cranston Ct.Glen Ellyn, IL 60137
Harold D. Jacobson (HDJ) 10/01/98c/o Sage Clearing440 S. LaSalle, Ste. 2500Chicago, IL 60605
Norman C. Peterson (NCP) 10/07/98440 S. LaSalle, Ste. 2500Chicago, IL 60604
Nominee(s) / Inactive Nominee(s):
Julie L. Luger (JLS) 10/01/98Hull Trading Company, L.L.C.600 W Diversey Pkwy - Apt. 1505Chicago, IL 60614
Stephen G. Nellissen (SGN) 10/01/98Middlemiss Partners, L.P.440 S. LaSalle, Ste. 3100Chicago, IL 60605
Ira J. Holz (IJH) 10/01/98The Option Resource GroupOption Resource440 S. LaSalle-Ste 700Chicago, IL 60605
Robert E. Williger (REW) 10/01/98The Option Resource Group440 S. LaSalle, Ste. 700Chicago, IL 60605
David M. Wheaton (WTN) 10/01/98The Option Resource Group440 S. LaSalle, Ste 700Chicago, IL 60605
Effective Date Termination Date
Page 10 October 16, 1998 Volume 26, Number 41 The Chicago Board Options Exchange Bull etin
Matthew R. Tonelli (TNL) 10/01/98DBS Partners L.P.311 S. Wacker Dr., Ste. 4848Chicago, IL 60606
Amy K. Butler (AMY) 10/01/98Emerald Isle Trading Inc.10004 S. Fairfield AvenueChicago, IL 60655
Brian J. Vetter (VTR) 10/01/98G-Bar Limited PartnershipG Bar Limited Partnership440 S. LaSalle - Ste. 650Chicago, IL 60605
Joshua M. Brimberry (YOS) 10/01/98Mercury Trading, Inc.440 S. LaSalle St., Ste. 1522Chicago, IL 60605
Amy Ann Spejewski (AMI) 10/01/98Bel Options Limited Partnership7641 HohmanMunster, IN 46321
Donald G. Hough (HJD) 10/01/98Mercury Trading, Inc.24324 Shady OaksCrete, IL 60417
Brady W. Barth (BDY) 10/05/98Sallerson-Troob L.L.C.2028 N. OakleyChicago, IL 60647
W. Mitchell Schilling (SEE) 10/06/98Gill & Company, L.P.223 W. Jackson Blvd, 1014Chicago, IL 60606
David B. Carman (CAN) 10/06/98Sallerson-Troob L.L.C.440 S. LaSalle - Ste. 2110Chicago, IL 60605
Kenneth L. Schwartz (KNY) 10/06/98JRG Enterprises, Inc2800 N. Lake Shore Dr - #3803Chicago, IL 60657
Member Organizations
LIT Clearing Services Inc. 10/01/98Attn: Timothy R. Mullen141 W. Jackson-Ste. 1320aChicago, IL 60604
The Option Resource Group 10/01/98Attn: Benjamin Nitka440 S. LaSalle-Ste. 700Chicago, IL 60605
SBC Warburg Dillon Read Inc. 10/01/98Attn: George H. Howard III535 Madison AvenueNew York, NY 10022
ETJ Partners Ltd 10/01/98Attn: E. Thomas Jung141 W. Jackson-Ste 2175Chicago, IL 60604
EFFECTIVE MEMBERSHIPSThis notice is given pursuant to Exchange Rule 3.11.
Individual Members Effective Date
CBT Exercisers:
Norman D. Gershon (NGN) 10/01/98440 S. LaSalle, Ste. 2500Chicago, IL 60605Type of Business to be Conducted: Market Maker
Sondra C. Rabin (SCR) 10/02/981000 N. Lake Shore Drive, Apt. 2309Chicago, IL 60611Type of Business to be Conducted: Floor Broker, Market Maker
CBT Registered For:
Timothy R. Mullen (MTX) 10/02/98First Options Of Chicago, Inc.440 S. LaSalle Street, 16th FloorChicago, IL 60605Type of Business to be Conducted: Market Maker
John A. Possidoni (JAP) 10/06/98LaRocque Trading Group L.L.C.440 S. LaSalle Street, Suite 700Chicago, IL 60605Type of Business to be Conducted: Market Maker
Lessee(s):
Christopher Warren (WAR) 10/02/981650 N. OrchardChicago, IL 60614Type of Business to be Conducted: Market Maker
Michael B. Bittner (MYC) 10/05/983939 N. SeeleyChicago, IL 60618Type of Business to be Conducted: Market Maker
Norman C. Peterson (NCP) 10/06/98440 S. LaSalle, Ste. 2500Chicago, IL 60604Type of Business to be Conducted: Market Maker
Daniel M. Epstein (SMP) 10/07/98440 S. LaSalle, Ste. 1700Chicago, IL 60605Type of Business to be Conducted: Market Maker
Nominee(s) / Inactive Nominee(s):
J. Samuel Merriott (IDD) 10/01/98Rathunas Trading, L.L.C.401 S. LaSalle, Ste. 1701Chicago, IL 60605Type of Business to be Conducted: Market Maker
Termination Date Termination Date
October 16, 1998 Volume 26, Number 41 The Chicago Board Options Exchange Bulletin Page 11
Richard Judson Pyle (PYL) 10/01/98Peak6 Capital Management LLC401 S. LaSalleChicago, IL 60605Type of Business to be Conducted: Market Maker
Marios K. Sinapoglou (GRK) 10/01/98MKS Associated LLC440 S. LaSalle Street, Room 713Chicago, IL 60605Type of Business to be Conducted: Market Maker
Jeffrey D. Maher (JMR) 10/01/98Lakota Trading, Inc.401 S. LaSalle St., Suite 200Chicago, IL 60605Type of Business to be Conducted: Floor Broker, Market Maker
Garett J. Nesbitt (NEZ) 10/01/98Botta Trading, Inc.440 S. LaSalle, Ste. 3100Chicago, IL 60605Type of Business to be Conducted: Market Maker
John C. Parrilli (JCP) 10/01/98Parrilli Associated, LLC1445 N. State Park Way, Apt. 406Chicago, IL 60610Type of Business to be Conducted: Market Maker
Donald C. Clark (DBC) 10/01/98Lakota Trading, Inc.4515 N. Malden Street, #2CChicago, IL 60640Type of Business to be Conducted: Floor Broker, Market Maker
Edward P. Barr (EBR) 10/01/98Letco Trading L.P.440 S. LaSalle, Ste. 3012Chicago, IL 60605Type of Business to be Conducted: Market Maker
Joseph Kie Chul Chung (JKC) 10/01/98Lakota Trading, Inc.401 S. LaSalle St., Suite 200Chicago, IL 60605Type of Business to be Conducted: Floor Broker, Market Maker
Rod W. Bare (BRE) 10/01/98Lakota Trading, Inc.401 S. LaSalle St., Suite 200Chicago, IL 60605Type of Business to be Conducted: Floor Broker, Market Maker
Mobius N. Waller (MBY) 10/01/98Waller Associated, L.L.C.440 S. LaSalle, #713Chicago, IL 60605Type of Business to be Conducted: Market Maker
Matthew M. Van Aken (MMT) 10/01/98Wolverine Trading L.P.Wolverine Trading, L.P.311 S. Wacker Dr, Ste. 1865Chicago, IL 60606Type of Business to be Conducted: Market Maker
Effective Date Effective DateJohn F. Kienzle Jr. (JBK) 10/01/98T G Options, Inc.9517 S. Ridgeland Ave.Oak Lawn, IL 60453Type of Business to be Conducted: Floor Broker, Market Maker
James M. Walsh (JAW) 10/01/98Walsh Associated, L.L.C.440 S. LaSalle St, Ste. 700Chicago, IL 60605Type of Business to be Conducted: Market Maker
Curt T. Largent (CTL) 10/01/98Blenheim - Largent L.P.Timber Hill Inc.223 W Jackson-Ste. 1014Chicago, IL 60606Type of Business to be Conducted: Market Maker
Claybourne C. Engleman lll (KGB) 10/01/98Lakota Trading, Inc.401 S. LaSalle St., Suite 200Chicago, IL 60605Type of Business to be Conducted: Floor Broker, Market Maker
Kevin D. Powers (PRS) 10/02/98Furman Trading Group, L.L.C.3424 Sheffield, Ave. #2Chicago, IL 60657Type of Business to be Conducted: Market Maker
Steven J. Lim (LIM) 10/02/98Archelon LLC411 S. Wells, Suite 1200Chicago, IL 60605Type of Business to be Conducted: Market Maker
Anthony Hozian (HOZ) 10/02/98Hull Trading Company, L.L.C.311 South Wacker Dr., Suite 1400Chicago, IL 60606Type of Business to be Conducted: Floor Broker, Market Maker
David B. Carman (CAN) 10/05/98Sallerson-Troob L.L.C.440 S. LaSalle - Ste. 2110Chicago, IL 60605Type of Business to be Conducted: Floor Broker, Market Maker
John J. Fox (FOX) 10/06/98Gill & Company, L.P.401 S. LaSalle, Suite 1300Chicago, IL 60605Type of Business to be Conducted: Market Maker
Brady W. Barth (BDY) 10/06/98Sallerson-Troob L.L.C.2028 N. OakleyChicago, IL 60647Type of Business to be Conducted: Floor Broker, Market Maker
Robert E. Williger (REW) 10/07/98Option Resource Group, LLC440 S. LaSalle, Ste. 700Chicago, IL 60605Type of Business to be Conducted: Floor Broker, Market Maker
Todd A. Sweet (SWT) 10/07/98Professional Edge Fund, L.P.440 S. LaSalle, #1121Chicago, IL 60605Type of Business to be Conducted: Market Maker
Page 12 October 16, 1998 Volume 26, Number 41 The Chicago Board Options Exchange Bull etin
W. Mitchell Schilling (SEE) 10/07/98Timber Hill LLC223 W. Jackson Blvd., #1014Chicago, IL 60606Type of Business to be Conducted: Market Maker
Charles F. Imburgia (PUX) 10/07/98Larocque Trading Group L.L.C.440 S. LaSalle, Suite 700Chicago, IL 60605Type of Business to be Conducted: Market Maker
David C. Coupe (VIG) 10/07/98Tradenet, L.P.401 S. LaSalle-Ste. 1600Chicago, IL 60605Type of Business to be Conducted: Floor Broker, Market Maker
Amy K. Butler (AMY) 10/07/98H & P Trading Limited Partnership10004 S. Fairfield AvenueChicago, IL 60655Type of Business to be Conducted: Market Maker
Member Organizations
MKS Associated LLC 10/01/983950 N. LakeShore, Apt. 1502Chicago, IL 60661Type of Business to be Conducted: Market Maker
Parrilli Associated, LLC 10/01/98440 S. LaSalle, Suite 713Chicago, IL 60605Type of Business to be Conducted: Market Maker
Option Resource Group, LLC 10/01/98440 S. LaSalle, Suite 700Chicago, IL 60605Type of Business to be Conducted: Floor Broker, Market Maker
Walsh Associated, L.L.C. 10/01/98440 S. LaSalle, Suite 713Chicago, IL 60605Type of Business to be Conducted: Market Maker
Waller Associated, L.L.C. 10/01/98440 S. LaSalle, Suite 713Chicago, IL 60605Type of Business to be Conducted: Market Maker
T G Options, Inc. 10/01/981220 Cambridge CourtHighland Park, IL 60035Type of Business to be Conducted: Floor Broker, Market Maker
Blenheim - Largent L.P. 10/01/9827 W. 163 ChartwellWinfield, IL 60190
Warburg Dillon Read L.L.C. 10/01/98677 Washington Blvd.Stanford, CT 06901Type of Business to be Conducted: Market Maker,Non Member Customer Business, ClearingFirm
Atlas Trading L.L.C. 10/01/98401 S. LaSalle, Suite 1200Chicago, IL 60605Type of Business to be Conducted: Market Maker
JOINT ACCOUNTSThis notice is given pursuant to Exchange Rule 8.9.
New Participants Acronym Effective Date
Mark E. Westcott QJM 10/01/98
Matthew M. Van Aken QWV 10/01/98
Garett J. Nesbitt QSK 10/01/98
Anthony J. Hozian QLL 10/02/98
Steven J. Lim QAR 10/02/98
Norman D. Gershon QGQ 10/05/98
Thomas S. White QDA 10/06/98
Brady W. Barth QHS 10/06/98
John A. Possidoni QQL 10/06/98
John A. Possidoni QJP 10/06/98
John A. Possidoni QSC 10/06/98
John A. Possidoni QAM 10/06/98
Charles F. Imburgia QQL 10/07/98
David C. Coupe QTN 10/07/98
David C. Coupe QTX 10/07/98
Robert E. Williger QFL 10/07/98
Charles F. Imburgia QAM 10/07/98
Charles F. Imburgia QSC 10/07/98
Charles F. Imburgia QJP 10/07/98
New Accounts
Bryon H. Brand QAT 10/01/98
Brian J. Dowling QAT 10/01/98
Jeremy T. Nau QAT 10/01/98
Craig J. King QJB 10/05/98
Jeff A. Buending QJB 10/05/98
Robert E. Williger QAD 10/07/98
Terminated Participants Acronym Termination Date
Matthew R. Tonelli QDB 10/01/98
Ira J. Holz QBI 10/01/98
Robert E. Williger QBI 10/01/98
Joshua M. Brimberry QRM 10/01/98
Joshua M. Brimberry QYM 10/01/98
Donald G. Hough QYM 10/01/98
Effective Date
October 16, 1998 Volume 26, Number 41 The Chicago Board Options Exchange Bulletin Page 13
Donald G. Hough QMT 10/01/98
Donald G. Hough QNJ 10/01/98
Ira J. Holz QFL 10/01/98
Jay J. Ritz QIN 10/01/98
Julie L. Luger QHU 10/01/98
Julie L. Luger QPT 10/01/98
Julie L. Luger QLL 10/01/98
Brady W. Barth QHS 10/05/98
Brett T. Boscarino QHT 10/05/98
Brett T. Boscarino QLL 10/05/98
Patricia J. Ahern QGO 10/05/98
Robert M. Murphy QHO 10/06/98
Richard M. Gordon QSO 10/06/98
Kristopher P. Kozub QSO 10/06/98
David L. Larocque QQL 10/07/98
Michael A. Duffin QQL 10/07/98
Timothy P. Hughes QRH 10/07/98
Terminated Accounts
Sidney K. Wiener QQS 10/01/98
Scott K. Kilrea QQS 10/01/98
Daniel A. Stucka QWA 10/02/98
Brian A. Stucka QWA 10/02/98
CHANGES IN MEMBERSHIP STATUS
Individual Member Applicants Effective Date
Terrence J. Andrews 10/01/98From: CBT Exerciser Registered For SBC
For all equity options classes except those listed below, the standard position and exercise limits pursuant to Exchange Rule 4 .11 and4.12 will be applicable. For a complete list of all applicable limits, check 2nd floor data information bins or contact the Dep artment ofMarket Regulation. If you wish to receive regular updates of the position limit list, please contact Candice Nickrand at (312) 786-7730 ofthe Department of Market Regulation.
Page 16 October 16, 1998 Volume 26, Number 41 The Chicago Board Options Exchange Bull etin
POSITION LIMIT CIRCULARSPOSITION LIMIT CIRCULAR PL98-72
DATE: October 1, 1998
TO: Members and Member Organizations
RE: Long Island Bancorp, Inc. (“LISB/LBQ”) Merger with Astoria Financial Corporation (“ASFC/AQR”)Effective Date October 1, 1998
The Exchange has established that the position and exercise limits following this merger will be any combination of YLJ and AQR option contractson the same side of the market not to exceed 1,957,500 shares of the underlying security through April 17, 1999. Following the April 1999 expira-tion, the position and exercise limits will revert to the standard limit of 7,500 contracts of AQR.
For additional information, please contact Candice Nickrand at (312) 786-7730 in the Department of Market Regulation.
POSITION LIMIT CIRCULAR PL98-73
DATE: October 1, 1998
TO: Members and Member Organizations
RE: BankAmerica Corporation (“BAC/LBA/ZBC”) Merger with NationsBank Corporation (“NB/LNB/ZNB”)Effective Date October 1, 1998
In conjunction with the above merger, the combined company’s name is BankAmerica Corporation (“BAC”). The Exchange has established that theposition and exercise limits following this merger will be any combination of BZC, LBZ, ZZC, BAC, LNB, and ZNB option contracts on the same side ofthe market not to exceed 10,650,000 shares of the underlying security through January 16, 1999. Following the January 1999 expiration and continuingthrough January 22, 2000, the position and exercise limits will be any combination of LBZ, ZZC, BAC, LNB, and ZNB option contracts on the same sideof the market not to exceed 8,150,000 shares of the underlying security. Following the January 2000 expiration and continuing through January 20,2001, the position and exercise limits will be any combination of LBZ, ZZC, BAC, LNB, and ZNB option contracts on the same side of the market notto exceed 5,325,000 shares of the underlying security. Following the January 2001 expiration, the position and exercise limits will revert to the standardlimit of 25,000 contracts of BAC.
For additional information, please contact Candice Nickrand at (312) 786-7730 in the Department of Market Regulation.
POSITION LIMIT CIRCULAR PL98-74
DATE: October 2, 1998
TO: Members and Member Organizations
RE: First Chicago NBD Corporation (“FCN/LCD/ZNC”) Merger with BANC ONE CORPORATION (“ONE/LBE/ZBE”)Effective Date October 2, 1998
In conjunction with the above merger, the new corporation’s name is BANK ONE CORPORATION (“ONE”). The Exchange has established that theposition and exercise limits following this merger will be any combination of FQU, LVX, ZNU, ONE, LBE, and ZBE option contracts on the same sideof the market not to exceed 6,550,000 shares of the underlying security through January 20, 2001. Following the January 2001 expiration, the positionand exercise limits will revert to the standard limit of 25,000 contracts of ONE.
For additional information, please contact Candice Nickrand at (312) 786-7730 in the Department of Market Regulation.
POSITION LIMIT CIRCULAR PL98-75
DATE: October 1, 1998
TO: Members and Member Organizations
RE: Physio-Control International Corporation (“PHYS/QBK”) Merger withPC Merger Corp., a wholly-owned subsidiary of Medtronic, Inc. (“MDT”)Effective Date October 1, 1998
The Exchange has established that the position and exercise limits following this merger will be any combination of QBY and MDT option contracts onthe same side of the market not to exceed 2,860,000 shares of the underlying security through March 20, 1999. Following the March 1999 expiration,the position and exercise limits will revert to the standard limit of 25,000 contracts of MDT.
For additional information, please contact Candice Nickrand at (312) 786-7730 in the Department of Market Regulation.
October 16, 1998 Volume 26, Number 41 The Chicago Board Options Exchange Bulletin Page 17
Position Limit Circular PL98-76
DATE: October 5, 1998
TO: Members and Member Organizations
FROM: Department of Market Regulation
RE: Equity Option Position and Exercise Limits
As a result of a review of trading statistics, the following classes now qualify for a higher position and exercise limit:
Option Class New Tier PPH 7,500
SAP 10,500
QVY 20,000
LEH 25,000
For additional information, please contact Karen Charleston at (312) 786-7724 in the Department of Market Regulation.
RESEARCH CIRCULARS
The following Research Circulars were distributed between October 5, 1998 and October 8, 1998 . If you wish to read the entire document, and haveaccess to a fax machine, please call the CBOE FaxLine at 1-800-OPTIONS, choose option “4” and then option “1”. Please have your fax number andthe corresponding FaxLine document number ready. The FaxLine number is listed adjacent to each circular. To receive a list of all available documents,use the FaxLine number 000. You may also access the Research Circulars on our Web Site at http://www.cboe.com Questions regarding any of theinformation that is discussed in any Research Circular may be directed to the CBOE Investor Services Department at 1-800-OPTIONS.
CBOE Research Circular #RS98-517 FaxLine Document #808October 5, 1998Boston Chicken, Inc. (“BOST/BQN/LPN”) Underlying Symbol Change to “BOSTQ”Effective Date: October 6, 1998
CBOE Research Circular #RS98-518 FaxLine Document #809October 5, 1998New LEAPS® Listing: Amazon.com, Inc. (“AMZN/ZQN & YZN”) — LOH & ZWE
CBOE Research Circular #RS98-519 FaxLine Document #810October 6, 1998AMP Incorporated (“AMP”): OFFER FURTHER EXTENDED GUARANTEE PERIOD ELIMINATEDPartial Tender Offer by PMA Acquisition Corporation
CBOE Research Circular #RS98-520 FaxLine Document #900October 6, 1998New Listing: HEMISPHERx BIOPHARMA, Inc. (“HEB”)
CBOE Research Circular #RS98-521 FaxLine Document #900October 6, 1998New Listing: Citigroup Inc. (“CCI/LRV/ZRV & adj. VRN/LVZ/VHU”)
CBOE Research Circular #RS98-523 FaxLine Document #811October 7, 1998Rent-Way, Inc. (“RWAY/QCC”) Stock and Option Symbol Change to “RWY”Effective Date: October 8, 1998
CBOE Research Circular #RS98-527 FaxLine Document #812October 8, 1998AMP Incorporated (“AMP”): OFFER FURTHER EXTENDED GUARANTEE PERIOD ELIMINATEDPartial Tender Offer by PMA Acquisition Corporation
CBOE Research Circular #RS98-528 FaxLine Document #813October 8, 1998Southern Pacific Funding Corporation (“SFC”) Stock Symbol Change to “SFCFQ”Effective Date: October 8, 1998
RegulatoryBulletin
October 16, 1998 Volume RB9, Number 27
The Constitution and Rules of the Chicago Board Options Exchange, Incorporated (“Ex-change”), in certain specific instances, require the Exchange to provide notice to themembership. The weekly Regulatory Bulletin is delivered to all effective members tosatisfy this requirement.
Re: Quarterly Closing Rotation on September 30, 1998
The Floor Officials Committee is hereby giving notice that pursuant to its authority underInterpretation .02 of Exchange Rule 6.2 to call a closing rotation in the interests of a fairand orderly market, a closing rotation will be held in all equity and narrow-basedindex options WEDNESDAY, September 30, 1998 .
Commencing at 3:02 P.M. (Chicago Time) or after a closing price of the stock in itsprimary market is established, whichever is later, a closing rotation will be held. Alloption orders must be received on the trading floor prior to the 3:02 P.M. close oftrading in order to participate in the closing rotation. However, the rotation may com-mence at or after the 3:02 P.M. closing depending on the establishment of a closing priceof the stock in its primary market.
Questions concerning the above may be directed to a member of the Floor OfficialsCommittee, to a member of the Equity Floor Procedure Committee, or to John Johnston,Vice President, Execution Services at 786-7303.
(See Regulatory Circulars RG97-121 and RG98-34, RG98-67)
When S&P 500 futures contract reaches12 points below previous day’s close:Side Car restrictions on program trading andstop orders or stop limit orders.
When the DJIA advances (or declines)50 points from the previous day's close:Index arbitrage orders for S&P® componentstocks must be entered with buy-minus(or sell-plus) instruction until the advanceor decline returns to within 25 points fromprevious day's close.
None required.Limit comes into effect: On CMEopening (8:30 a.m.).
Trading halt: For 2 minutes if the offer isat limit 10 minutes after limit is reached orat 2:30 p.m.
Limit no longer in effect: After the2 minute halt or, if no halt, 10 minutesafter the limit is reached or otherwise at2:30 p.m.
50 POINTS (5%) BELOWPREVIOUS DAY’S SETTLEMENT
Limit comes into effect: After the 25point (2.5%) limit.
Trading halt: For 2 minutes if the offeris at limit 10 minutes after limit is reachedor at 2:30 p.m.
Limit no longer in effect: After the2 minute halt or, if no halt, 10 minutesafter the limit is reached or otherwise at2:30 p.m.
100 POINTS (10%) BELOWPREVIOUS DAY’S SETTLEMENT
Limit comes into effect: After the 50point (5%) limit or at 2:30 p.m.
Trading halts (Normal Limits): Tradingwill halt for the following time periods if thefutures contract is limit offered under thefollowing circumstances:
During an NYSE trading halt: UntilNYSE ends its trading halt and 50% ofthe underlying stocks (capitalizationweighted) have resumed trading.
After 1:30 p.m., if no NYSE tradinghalt is declared: For 2 minutes if thecontract is limit offered 10 minutesafter the limit is reached.
Limit no longer in effect (NormalLimits): After a mandated futurestrading halt.
(Continued on back)
800 DJIA POINTS (10%)BELOW PREVIOUS DAY'S
CLOSING VALUETrading halts: Trading in all stocks haltsfor the following time periods when theDJIA reaches this value at the followingtimes:
Before 1:00 p.m.: for one hour;From 1:00 p.m. but before 1:30 p.m.:for 30 minutes;From and after 1:30 p.m.:no mandated trading halt
Limit comes into effect: On CBOTopening (7:20 a.m.).
Trading halt: If the futures contract islimit offered during an NYSE trading halt,futures trading will halt until NYSE ends itstrading halt and 50% of the underlyingstocks (capitalization weighted) haveresumed trading.
Limit no longer in effect: After futurestrading has resumed following an NYSEtrading halt or at 1:30 p.m.
800 POINTS (10%) BELOWPREVIOUS DAY'S SETTLEMENT
Because CME or CBOT limit is reached:None required; discretionary action in-clude trading halts and suspensions (withthe exercise restrictions described above).
Because NYSE declares floor-widecircuit breaker halt: Trading in allsecurities halted during NYSE circuitbreaker halt (with the exerciserestrictions described above).
None required because of CME or CBOTlimit or NYSE actions; discretionary actionsinclude, trading halts and suspensions.
Except on the last business day beforeexpiration, CBOE normally will restrictexercise of American style, cash settledindex options during any trading halt.CBOE may restrict exercise in equityoptions (other than during the 10 businessdays before expiration), but it normally willnot do so because of trading halts.
None required; discretionary actionsinclude trading halts and suspensions(with the exercise restrictions describedabove).
This information has been compiled by CBOE for general information purposes only, and therefore should not be considered complete or precise. Most matters discussed are subject to detailed exchange rules and to the discretionof exchange officials. The rules of the various exchanges are subject to change and may not be reflected in this information. CBOE assumes no responsibility for any errors or omissions in the information presented. In addition, thiscircular does not address specialized circumstances, such as the times that would be applicable on days when one or more underlying equity markets is scheduled to close trading earlier than normal or the rules applicable toChapter 30 securities. These specialized matters are covered in detail by exchange rules. All times listed are Central times.
“S&P” and “S&P 500” are trademarks of Mc-Graw Hill, Inc., and "DJIA" is a service mark of Dow Jones & Company, Inc., and neither company assumes any liability in connection with the trading of any contract based on its indexes.
(Date of issuance: October 1, 1998)
None required; discretionary actions includetrading halts in individual stocks.
(See front)Trading halts on a day after the futurescontract was limit offered at the 200point (20%) level (Second Day Limits):
Trading will halt:
During an NYSE trading halt(regardless whether the futurescontract is limit offered): UntilNYSE ends its trading halt and 50% ofthe underlying stocks (capitalizationweighted) have resumed trading.
If no NYSE trading halt is declared:For 2 minutes if the contract is limitoffered 10 minutes after the limit isreached or at 2:30 p.m.
Limit no longer in effect (Second DayLimits): After a mandated futures tradinghalt or, if no halt, 10 minutes after thelimit is reached or otherwise at 2:30 p.m.
200 POINTS (20%) BELOWPREVIOUS DAY’S SETTLEMENT
Limit comes into effect: After the 100point (10%) limit.
Limit remains in effect for the remainderof the trading day.
Trading halt:
(Normal Limits): If the futurescontract is limit offered during anNYSE trading halt.
(Second Day Limits): If there is anNYSE trading halt, regardless whetherthe futures contract is limit offered.
Trading will resume when NYSE ends itstrading halt and 50% of the underlyingstocks (capitalization weighted) haveresumed trading.
Settlement value will not be less than thelimit value, regardless of the value of thecash index.
(See front) (See front) (See front)
For more information on the inter-exchange procedures in volatile marketsor on CBOE options products,
call 1-800-OPTIONS or visit our Web site at http://www.cboe.com
2350 DJIA POINTS (30%)BELOW PREVIOUS DAY'S
CLOSING VALUE
Trading halts and does not reopen for theday.
The 200 point (20%) limit remains ineffect.
Settlement value will not be less than thelimit value, regardless of the value of thecash index.
Limit comes into effect: After the 1600point (20%) limit.
Limit remains in effect for the remainder ofthe trading day.
Trading halt: Trading shall halt for the restof the day if the futures contract is limitoffered at any time during the trading dayand the NYSE declares a trading halt forthe rest of the trading day.
2350 POINTS (30%)BELOW PREVIOUS DAY'S
SETTLEMENT
If NYSE declares floor wide tradinghalt for the remainder of the day:CBOE halts trading for the remainder ofthe day (with the exercise restrictionsdescribed above).
Because CBOT limit is reached: Nonerequired; discretionary actions includetrading halts and suspensions (with theexercise restrictions described above).
1600 DJIA POINTS (20%)BELOW PREVIOUS DAY'S
CLOSING VALUE
Trading halts: Trading in all stocks haltsfor the following time periods when theDJIA reaches this value at the followingtimes:
Before 12:00 p.m.: for two hoursFrom 12:00 p.m. but before 1:00p.m.: for one hourFrom and after 1:00 p.m.: for theremainder of the day
Limit comes into effect: After the 800point (10%) limit or at 1:30 p.m.
Trading halt: If the futures contract islimit offered during an NYSE trading halt,futures trading will halt until NYSE ends itstrading halt and 50% of the underlyingstocks (capitalization weighted) haveresumed trading.
Limit no longer in effect: After futurestrading has resumed following an NYSEtrading halt.
Because CME or CBOT limit isreached: None required; discretionaryactions include trading halts andsuspensions (with the exerciserestrictions described above).
Because NYSE declares a floor widecircuit breaker halt: Trading in allCBOE securities halted during NYSEcircuit breaker halt (with the exerciserestrictions described above).
1600 POINTS (20%) BELOWPREVIOUS DAY'S SETTLEMENT
INTER-EXCHANGE PROCEDURES IN VOLATILE MARKETS(continued)
October 16, October 16, October 16, October 16, October 16, 1998, 1998, 1998, 1998, 1998, VVVVVolume RB9,olume RB9,olume RB9,olume RB9,olume RB9, Number 27 Number 27 Number 27 Number 27 Number 27 RB1 RB1 RB1 RB1 RB1
Regulatory Circular RG98-105
Date: October 5, 1998
To: Members and Member Firms
From: Market Performance Committee
Re: Limited RAES exemption involving merger between Northern Telecomand Bay Networks, Inc.
On August 27, 1998, the Market Performance Committee (MPC), by its authority under theprovisions of Exchange Rule 8.16(a)(iii), granted the members of the Bay Networks, Inc.crowd (“BAY”) and the members of the Northern Telecom crowd (“NT”) a limited exemptionfrom the RAES in-person requirement. This exemption was granted in consideration of themerger between NT and BAY. The exemption provides that market-makers, while they arepresent and trading in person in the BAY crowd, may sign onto RAES in the surviving NToption class and market-makers, while they are present and trading in person in the NTcrowd, may sign onto RAES in the BAY option class. In determining to grant this exemp-tion, MPC considered the fact that the Allocation Committee determined to move NT andBAY adjacent to each other in order to facilitate the orderly transfer of business to the NToption class. This exemption will only be effective for as long as the adjusted series of putsand calls are available for trading. This exemption will not be extended to the expiration ofany LEAPS traded on the underlying security.
Any questions regarding this memorandum should be directed to Daniel Hustad at (312)786-7715.
PROPOSED RULE CHANGE(S)Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934, as amended (“theAct”), and Rule 19b-4 thereunder, the Exchange has filed the following proposed rule change(s)with the Securities and Exchange Commission (“SEC”). A copy of the rule change filing(s)is available from the Legal Department. Members may submit written comments to theLegal Department.
The effective date of a proposed rule change will be the date of approval by the SEC,unless otherwise noted.
SR-CBOE-98-43 – Nasdaq-100 Index
On October 1, 1998, the Exchange submitted Rule Change File No. SR-CBOE-98-43,which informs the SEC that the Nasdaq Stock Market, Inc., has determined to change theweighting methodology of its Nasdaq-100 Index® (NDX). The filing also seeks continuedapproval to list and trade NDX options after the change. Any questions regarding the filingmay be directed to Tim Thompson, Legal Department, at 312-786-7070. A copy of the filingis available from the Legal Department.
SR-CBOE-98-44 – Equity RAES Rejects
On October 1, 1998, the Exchange submitted Rule Change File No. SR-CBOE-98-44,which proposes to amend Rule 6.8(b) to allow either the Exchange’s Vice Chairman or theChairman of the appropriate Market Performance Committee to determine to allow a trans-action on RAES to be executed at the price of the best bid or offer in the Exchange’scustomer limit order book. Currently, Rule 6.8(b) requires both these individuals to makethis decision. Absent such a determination, Exchange Rules do not permit a trade to beexecuted on RAES when the prevailing market bid or offer equals the best bid or offer on the
Rule ChangesInterpretationsand Policies
Regulatory Circularscontinued
RB2RB2RB2RB2RB2 October 16, October 16, October 16, October 16, October 16, 1998, 1998, 1998, 1998, 1998, VVVVVolume RB9,olume RB9,olume RB9,olume RB9,olume RB9, Number 27 Number 27 Number 27 Number 27 Number 27
book, and instead require that related RAES orders will be rejected and re-routed by ORS tothe broker for manual representation.
Any questions regarding the proposed amendment to Rule 6.8(b) may be directed to TimThompson, Legal Department, at 312-786-7070. The text of the proposed amendment toparagraph (b) of Rule 6.8, RAES Operations in Equity Options, is set forth below. Proposednew language is underlined; proposed deleted language is indicated by strikethrough.
Rule 6.8(b)
It is possible that the prevailing market bid or offer may be equal to the best bid oroffer on the Exchange’s book. In those instances, a RAES order cannot be ex-ecuted at a price where the best bid or offer on the book equals the prevailingmarket. A RAES sell order never can be filled at a price lower than the best bookbid, nor can a RAES buy order be filled at a price higher than the best book offer.However, in the case of options on IBM, and in the case of unusual market condi-tions for other option classes, as determined by the Exchange’s Vice Chairmanand or Chairman of the appropriate Market Performance Committee (“MPC”), atransaction can take place at the price of the best bid or offer reflected by a bookedorder.
