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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CFTC Releases Results of CBOE Futures Exchange Rule Enforcement Review
By Kevin M. Foley & Stanley V. Polit on
Posted in CFTC
On June 29, the Commodity Futures Trading Commission’s Division of Market Oversight (DMO) released the results of its trade practice rule enforcement review (Review) of Chicago Board Options Exchange Futures Exchange, LLC (CFE). The review covered a one-year period from March 1, 2014, to February 28, 2015.
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Web Based Surveillance Reports
By James Van De Graaff & Dina Wegh on
Posted in Broker-Dealer
In a regulatory circular to Trading Permit Holders (TPHs), the Chicago Board Options Exchange (CBOE) announced that as of August 10 it has made the Book Trade Through Surveillance Reports available to TPHs on its Web Based Surveillance Firm Reports page.
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CBOE Proposes to Offer Extended Trading Hours for SPX and VIX Options
Posted in Broker-Dealer
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…
CBOE Proposes to Amend Order Ticket Requirements for Certain Orders
By Janet M. Angstadt & James Van De Graaff on
Posted in Broker-Dealer
On January 23, the Chicago Board Options Exchange (CBOE) proposed rule changes that would amend order ticket requirements for certain orders under CBOE Rules 6.53 and 24.20. Specifically, the proposed amendment to CBOE Rule 6.53 would require complex orders of 12 legs or less to be entered on a single order ticket at the time …
CBOE Makes Enhancements to Its Market-Maker Trade Notification System
By James Van De Graaff on
Posted in Broker-Dealer
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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