CBOE Exchange, Inc. (CBOE) recently filed a proposal to amend its Rule 6.49A to delete the provisions therein related to on-floor position transfers and amend the provision regarding presidential exemptions. Generally, CBOE Rule 6.49(a) requires that transactions of option contracts listed on the exchange for a premium in excess of $1.00 to be effected on

CBOE Exchange, Inc. (CBOE) has proposed amendments to Chapter 17 of the CBOE Options Rules regarding investigative and disciplinary matters involving CBOE Trading Permit Holders (TPHs) and their associated persons. In particular, the amendments reflect updates to CBOE’s rules and processes related to:

  • complaints and investigations;
  • expedited proceedings;
  • the issuance of charges (and answers thereto);
  • hearings (including decisions made pursuant to a hearing and the review of decisions);
  • summary proceedings;
  • settlements;
  • judgment and sanctions;
  • service of notice;
  • reporting to the Central Registration Depository; and
  • imposition of fines for minor rule violations.


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On September 20, the Securities and Exchange Commission approved a rule proposal filed by Cboe Exchange, Inc. (CBOE) related to the registration categories and qualification examinations required for Trading Permit Holders and associated persons that engage in trading activities on CBOE (Proposal). In light of FINRA’s adoption of the Securities Industry Essentials Examination (SIE), which is a general knowledge examination that all new representative-level applicants will need to take as of October 1 (Implementation Date), CBOE proposed a rule change that would require new applicants seeking to register with CBOE in a representative capacity as of the Implementation Date to pass the SIE. To be eligible for such registration, an individual also must be associated with a firm, pass an appropriate qualification examination for a representative or principal, and satisfy certain other requirements. (For additional information regarding the SIE, please refer to the January 26, 2018 edition of Corporate & Financial Weekly Digest.)
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On November 22, the Chicago Board Options Exchange, Inc. (the “Exchange” or CBOE) filed a proposal to amend CBOE Rules 6.45A, 6.45B and 6.73, specifying that, for transactions between floor brokers and market makers, the “initiator” of an order is the party responsible for ensuring that transactions are executed in accordance with open outcry priority and allocation requirements and trade-through prohibitions. The Exchange’s current rules and interpretations regarding responsibility for trade-throughs were considered ambiguous, and the Exchange has taken the position in enforcement actions that all parties to a trade are liable for any trade-through violation. The filing specifically states that in a typical open outcry transaction, it is the floor broker representing an order and requesting quotes from market makers in the trading crowd. In that circumstance, the floor broker will be deemed to have initiated the transaction.
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The Chicago Board Options Exchange (CBOE) has proposed to offer Extended Trading Hours (ETH) on certain index options contracts.

Starting on March 2, CBOE intends to commence ETH session trading in options on the CBOE Volatility Index (VIX). On March 9, CBOE intends to commence ETH session trading in the end-of-month series of S&P 500

The Chicago Board Options Exchange (CBOE) has issued Regulatory Circular RG14-155 regarding enhancements to its Market-Maker Trade Notification system. When a floor broker uses the CBOE’s Public Automated Routing system to complete the trade endorsement process and a market-maker is a contra party on the transaction, a Market-Maker Trade Notification (MMTN) is generated by CBOE systems and made available to CBOE market-makers and their vendors.
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