Exchange Bulletin - CBOE.org · SonoSite, Inc. (“SONO”) Tender Offer by Salmon Acquisition...

ExchangeBulletinJanuary 20, 2012 Volume 40, Number 3

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 e-mail 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 e-mail. E-mail subscriptions may be obtained by Trading Permit Holders by submitting your name, firm if applicable, e-mail address, and phone number, to [email protected]. If you do sign up for e-mail delivery, please remember to inform the Registration Services Department of e-mail 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 © 2012 Chicago Board Options Exchange, Incorporated

TRADING PERMIT INFORMATION FOR 01/12/2012 THROUGH 01/18/2012

TRADING PERMIT APPLICATIONS RECEIVED FOR WHICH BULLETIN PUBLICATION IS REQUIRE

Individual ApplicantBrian M. HagemannCMZ Trading LLC 2326 74th Ave.Elmwood Park, IL 60707

TERMINATION

Individual

Nominee: Termination Date

Brian A. Zielinski (BZN) 1/18/12Ronin Capital LLC EFFECTIVE TRADING PERMIT HOLDERS

Individuals

Nominees: Effective Date

John T Boyle (JTB) 1/12/12Newedge USA LLC Type of Business to be Conducted: Floor Broker

Ranjit Sood (RON) 1/17/12Belvedere Trading LLC Type of Business to be Conducted: Market Maker

January 20, 2012 Volume 40, Number 3 Chicago Board Options Exchange

RESEARCH CIRCULARS The following Research Circulars were distributed between January 13 and January 20, 2012. If you wish to read the entire document, please refer to the CBOE website at www.cboe.com 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 1-888-OPTIONS.

Research Circular #RS12-016January 13, 201299¢ Only Stores ("NDN") Merger COMPLETEDwith Number Holdings, Inc.

Research Circular #RS12-017January 17, 2012SonoSite, Inc. (“SONO”)Tender Offer by Salmon Acquisition Corporation

Research Circular #RS12-018January 17, 2012Inhibitex, Inc. (“INHX”)Tender Offer by Inta Acquisition Corporation

Research Circular #RS12-019January 17, 2012Pharmasset, Inc. (“VRUS”):Merger Completed -- Cash Settlement

Research Circular #RS12-020January 18, 2012Cantel Medical Corp. (“CMN”) 3-for-2 Stock SplitEx-Distribution Date: February 2, 2012

Research Circular #RS12-022January 18, 2012Hanmi Financial Corporation (“HAFCD/HAFC1”)Underlying Symbol Change to “HAFC”Effective Date: January 18, 2012

Research Circular #RS12-023January 18, 2012Trident Microsystems, Inc. (“TRID”)Change in Marketplace and Underlying Symbol Change/Option Symbol Change to “TRIDQ”

Research Circular #RS12-024January 18, 2012Monster Beverage Corporation (“MNST”) 2-for-1 Stock SplitEx-Distribution Date: February 16, 2012

Research Circular #RS12-025January 19, 2012Eastman Kodak Company (“EK”)Change in Marketplace and Underlying Symbol Change/Option Symbol Change to “EKDKQ”

Research Circular #C2-RS12-005January 19, 2012Eastman Kodak Company (“EK”)Change in Marketplace and Underlying Symbol Change/Option Symbol Change to “EKDKQ”

Research Circular #RS12-026January 19, 2012PharMerica Corporation (“PMC”)Tender Offer FURTHER EXTENDED by Philadelphia Acquisition Sub, Inc.

Research Circular #RS12-027January 19, 2012Permit HoldersSuccessFactors, Inc. (“SFSF”)Tender Offer EXTENDED by Saturn Expansion Corporation

Research Circular #RS12-028January 19, 2012China Sunergy Co., Ltd. (“CSUND/CSUN1”)ADS Symbol Change to “CSUN”Effective Date: January 20, 2012

Research Circular #RS12-031January 20, 2012*****UPDATE*****UPDATE*****UPDATE*****Telephone and Data Systems, Inc. (“TDS”)Share ConsolidationAnticipated Effective Date: January 24, 2012

January 20, 2012 Volume RB23, Number 3 1

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 © 2012 Chicago Board Options Exchange, Incorporated.

REGULATORY CIRCULARS

Regulatory Circular RG12-015

DATE: January 13, 2012

To: Trading Permit Holders

From: Business Development

RE: SPX Operational Systems Settings

This circular updates RG11-149

Effective Tuesday January 17, 2012, CBOE will adjust the Opening Exchange Prescribed Width (OEPW)

in SPX, SPXW and SPQ. OEPWs for all other classes will remain at their current levels.

SPX series will not open if the opening price is not within an acceptable price range. The calculation for

the acceptable price range will be the midpoint of the highest quote bid and lowest quote offer plus/minus

half of the OEPW.

The OEPW will be based on the table below:

Opening Exchange Prescribed Width

Bid Price SPX, SPXW, SPXQ

0.00 – 1.99 1.00

2.00 – 5.00 1.60

5.01 – 10.00 2.00

10.01 – 20.00 2.60

20.01 – 50.00 4.00

50.01 – 100.00 8.00

100.01 – 200.00 16.00

> =200.01 24.00

Questions regarding this circular may be directed to:

Doreen Scholla 312-786-7529, [email protected]; or

CBOE Help Desk at (866)728-2263 or [email protected]

January 20, 2012 Volume RB23, Number 3

mailto:[email protected]

mailto:[email protected]




TO: Trading Permit Holders

FROM: Market Operations Department

RE: Restrictions on Transactions in

Trident Microsystems, Inc. (“TRID”)

Effective January 19, 2012, NASDAQ will delist Trident Microsystems Inc (TRID). Trading in Trident

Microsystems, Inc. will commence on the Other OTC market under the symbol TRIDQ.

Trading on the CBOE in existing series of TRIDQ options will be subject to the following restrictions.

Only closing transactions may be affected in any series of TRIDQ 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 TRIDQ 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 6.25.

There are no restrictions in place with respect to the exercise of TRIDQ options.

Any questions regarding this circular may be directed to Kerry Winters at (312) 786-7312 or Regulatory

Services Division at (312) 786-7730 or (312) 786-8460.

CBOE restricted class memos can be accessed from CBOE.org at the following web address:

http://www.cboe.org/Restrictions





TO: Trading Permit Holders

FROM: Market Operations Department

RE: Restrictions on Transactions in

Eastman Kodak Company (“EKDKQ”)

Effective January 19, 2012, NYSE has delisted Eastman Kodak Company (“EK”).

Eastman Kodak Company will commence on the Other OTC market under the symbol EKDKQ.

Trading on the CBOE in existing series of EKDKQ options will be subject to the following restrictions.

Only closing transactions may be affected in any series of EKDKQ 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 EKDKQ 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 6.25.

There are no restrictions in place with respect to the exercise of EKDKQ options.

Any questions regarding this circular may be directed to Kerry Winters at (312) 786-7312 or Regulatory

Services Division at (312) 786-7730 or (312) 786-8460.

CBOE restricted class memos can be accessed from CBOE.org at the following web address:




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 www.cboe.com/legal/effectivefiling.aspx.

The effective date of the rule change is the date of approval unless otherwise noted.

_________________________________________________________________________________

SR-CBOE-2012-007 Credit Options Margin Pilot Program

On January 17, 2012, the SEC approved Rule Change File No. SR-CBOE-2012-007 on an accelerated

basis. The rule filing decouples CBOE’s Credit Options Margin Pilot Program from FINRA’s program,

extends the Credit Options Margin Pilot Program through January 17, 2013 and adopts alternative tables

to the existing margin tables that may be used by Trading Permit Holders to compute the required

margins. Any questions regarding the rule change may be directed to Jenny Klebes, Legal Division, at

312-786-7466. The rule text is shown below and the rule filing is available at

http://www.cboe.com/publish/RuleFilingsSEC/SR-CBOE-2012-007.pdf.

Rule 12.3—Margin Requirements

RULE 12.3

(a) – (k) No changes.

(l) Credit Options.

(1) Risk Monitoring Procedures and Guidelines

Trading Permit Holders are required to monitor the risk of customer and broker-dealer

accounts with exposure to Credit Options and must implement and maintain a comprehensive

written risk analysis methodology for assessing the potential risk to the Trading Permit Holder’s

capital over a specified range of possible market movements over a specified time period. For

purposes of complying with this rule, Trading Permit Holders must employ the risk monitoring

procedures and guidelines set forth below in sub-paragraphs (i) through (viii) of this Rule

12.3(l)(1). The Trading Permit Holder must review, in accordance with the Trading Permit

Holder’s written procedures, at reasonable periodic intervals, the Trading Permit Holder’s credit

extension activities for consistency with the risk monitoring procedures and guidelines set forth in

this Rule 12.3(l)(1), and must determine whether the data necessary to apply the risk monitoring

procedures and guidelines is accessible on a timely basis and information systems are available to

adequately capture, monitor, analyze and report relevant data, including:

(i) obtaining and reviewing the required account documentation and financial

information necessary for assessing the amount of credit to be extended to customers and

broker-dealers;

(ii) assessing the determination, review and approval of credit limits to each

customer and broker-dealer, and across all customers and broker-dealers, engaging in

Credit Option transactions;

(iii) monitoring credit risk exposure to the Trading Permit Holder from Credit

Options, including the type, scope and frequency of reporting to senior management;

(iv) the use of stress testing of accounts containing Credit Option contracts in

order to monitor market risk exposure from individual accounts and in the aggregate;

(v) managing the impact of credit extended related to Credit Option contracts on

the Trading Permit Holder’s overall risk exposure;

(vi) determining the need to collect margin from a particular customer or broker-

dealer in addition to the amount required by this Rule 12.3(l), including whether such

http://www.cboe.com/legal/effectivefiling.aspx

http://www.cboe.com/publish/RuleFilingsSEC/SR-CBOE-2012-007.pdf


determination was based upon the credit worthiness of the customer or broker-dealer

and/or the risk of the specific Credit Option contracts;

(vii) monitoring the credit exposure resulting from concentrated positions within

both individual accounts and across all accounts containing Credit Option contracts: and

(viii) maintaining sufficient margin in each customer and broker-dealer account

to protect against the default of the largest individual exposure in the account as

measured by computing the largest maximum possible loss.

(2) Requiring Additional Margin. Trading Permit Holders shall, based on the risk

monitoring procedures and guidelines required above, determine whether the margin required by

this Rule 12.3(l) is adequate with respect to their customer and broker-dealer accounts and, where

appropriate, increase such requirements.

(3) Margin Account --Credit Default Options.

(i) The initial and maintenance margin required on a Credit Default Option

carried long in a customer or broker-dealer’s account is a percentage of the option’s cash

settlement amount (as defined in Rule 29.1) according to the table below.

Length of Time Until Expiration of the Option

Average Credit Default

Swap (“CDS”) Spread* for

the Reference Entity

Underlying the Credit

Default Option

1 Year or

Less

Greater

Than 1 Year

/ Less Than

or Equal to

3 Years

Greater Than 3

Years / Less Than

or Equal to 7

Years

Greater Than

7 Years

0 – 100 .5% 1% 2% 3.5%

100 – 300 1% 2.5% 3.5% 5%

300 – 500 2.5% 5% 7.5% 10%

500 – 700 5% 7.5% 10% 12.5%

700 & above 7.5% 10% 12.5% 15%

* Over LIBOR, in basis points.

(ii) Alternative Table. As an alternative to the table under paragraph (l)(3)(i)

above, Trading Permit Holders may use the table below.


Average

Credit

Default

Swap

(“CDS”)

Spread* for

the

Reference

Entity

12

Mos.

or Less

Greater

Than

12

Mos. /

Less

Than

or

Equal

to 24

Greater

Than

24

Mos. /

Less

Than

or

Equal

to 36

Greater

Than

36

Mos. /

Less

Than

or

Equal

to 48

Greater

Than

48

Mos. /

Less

Than

or

Equal

to 60

Greater

Than

60

Mos. /

Less

Than

or

Equal

to 72

Greater

Than

72

Mos. /

Less

Than

or

Equal

to 84

Greater

Than

84

Mos. /

Less

Than

or

Equal

to 120

Greater

Than

121

Mos.


Underlying

the Credit

Default

Option

Mos. Mos. Mos. Mos. Mos. Mos. Mos.

0 – 100 .5% .75% 1.00% 1.50% 2.00% 2.75% 3.50% 4.25% 5.00%

100 - 300 1.00% 1.75% 2.50% 3.00% 3.50% 4.25% 5.00% 7.50% 10.00%

300 - 400 2.50% 3.75% 5.00% 6.25% 7.50% 8.75% 10.00% 11.25% 12.50%

400 - 500 3.75% 5.00% 6.25% 7.50% 8.00% 10.00% 11.25% 12.50% 13.75%

500 - 700 5.00% 6.25% 7.50% 8.75% 10.00% 11.25% 13.75% 15.00% 17.50%

700 &

above

7.50% 8.75% 10.00% 11.25% 12.50% 13.75% 15.00% 20.00% 25.00%

[(ii)] (iii) The initial and maintenance margin required on any Credit Default

Option carried short in a customer or broker-dealer’s account is a percentage of the

option’s cash settlement amount (as defined in Rule 29.1) according to the table below.


(iv) Alternative Table. As an alternative to the table under paragraph (l)(3)(iii)



Average Credit Default

Swap (“CDS”) Spread* for

the Reference Entity

Underlying the Credit

Default Option

1 Year or

Less

Greater

Than 1 Year

/ Less Than

or Equal to

3 Years

Greater Than 3

Years / Less Than

or Equal to 7

Years

Greater Than

7 Years

0 – 100 1% 2% 4% 7%

100 – 300 2% 5% 7% 10%

300 – 500 5% 10% 15% 20%

500 – 700 10% 15% 20% 25%

700 & above 15% 20% 25% 30%



Average

Credit

Default

Swap

(“CDS”)

Spread* for

the

Reference

Entity

Underlying

the Credit

Default

Option

12

Mos.

or Less

Greater

Than

12

Mos. /

Less

Than

or

Equal

to 24

Mos.

Greater

Than

24

Mos. /

Less

Than

or

Equal

to 36

Mos.

Greater

Than

36

Mos. /

Less

Than

or

Equal

to 48

Mos.

Greater

Than

48

Mos. /

Less

Than

or

Equal

to 60

Mos.

Greater

Than

60

Mos. /

Less

Than

or

Equal

to 72

Mos.

Greater

Than

72

Mos. /

Less

Than

or

Equal

to 84

Mos.

Greater

Than

84

Mos. /

Less

Than

or

Equal

to 120

Mos.

Greater

Than

121

Mos.

0 – 100 1.00% 1.50% 2.00% 3.00% 4.00% 5.50% 7.00% 8.50% 10.00%

100 – 300 2.00% 3.50% 5.00% 6.00% 7.00% 8.50% 10.00% 15.00% 20.00%

300 – 400 5.00% 7.50% 10.00% 12.50% 15.00% 17.50% 20.00% 22.50% 25.00%

400 – 500 7.50% 10.00% 12.50% 15.00% 16.00% 20.00% 22.50% 25.00% 27.50%

500 – 700 10.00% 12.50% 15.00% 17.50% 20.00% 22.50% 27.50% 30.00% 35.00%

700 &

above

15.00% 17.50% 20.00% 22.50% 25.00% 27.50% 30.00% 40.00% 50.00%


[(iii)] (v) Debt Security Offset. If an account is short a Credit Default Option and

also has a short position in a debt security issued by the Reference Entity underlying the

option, and the principal amount of the debt security is equal to: the cash settlement

amount of the option multiplied by 1.33, no margin is required on the Credit Default

Option.

(4) Margin Account - Credit Default Basket Options.

(i) The initial and maintenance margin required on a Credit Default Basket

Option carried long in a customer or broker-dealer’s account is a percentage of the

option’s cash settlement amount (as defined in Rule 29.1) according to the table below. In

the case of a Single Payout Credit Default Basket Option, the cash settlement amount to

be used is the one that is the highest among the basket components, and in the case of a

Multiple Payout Credit Default Basket Option, the cash settlement amount to be used is

50% of the sum of each basket component’s cash settlement amount.



Average

Credit

Default Swap

(“CDS”)

Spread* of

the Basket

Component

Reference

Entities

1 Year or

Less

Greater

Than 1

Year /

Less

Than or

Equal to

3 Years

Greater Than 3

Years / Less

Than or Equal

to 5 Years

Greater Than 5

Years / Less Than

or Equal to 7

Years

Greater Than

7 Years

0 - 200 .5% .5% 1% 2% 2.5%

200 - 500 1% 1.5% 2% 2.5% 3.5%

500 & above 1.5% 2.5% 5% 6% 7.5%


(ii) Alternative Table. As an alterative to the table under paragraph (l)(4)(i)



Average Credit

Default Swap

(“CDS”)

Spread* of the

Basket

Component

Reference

Entities

1 Year

or Less

Greater

Than 1

Year /

Less

Than or

Equal to

2 Years

Greater

Than 2

Years /

Less

Than or

Equal to

3 Years

Greater

Than 3

Years /

Less

Than or

Equal to

4 Years

Greater

Than 4

Years /

Less

Than or

Equal to

5 Years

Greater

Than 5

Years /

Less

Than or

Equal to

6 Years

Greater

Than 6

Years /

Less

Than or

Equal to

7 Years

Greater

Than 7

Years /

Less

Than or

Equal to

8 Years

Greater

Than 8

Years /

Less

Than or

Equal to

9 Years

Greater

Than 9

Years

0 – 200 .5% .5% .5% .75% .1% 1.5% 2% 2.25% 2.5% 2.5%

200 – 500 1% 1.25% 1.5% 1.75% 2% 2.25% 2.5% 3% 3.5% 3.5%

500 & above 1.5% 2% 2.5% 3.75% 5% 5.5% 6% 6.5% 7% 7.5%

[(ii)] (iii) The initial and maintenance margin required on a Credit Default Basket

Option carried short in a customer or broker-dealer’s account is a percentage of the

option’s cash settlement amount (as defined in Rule 29.1) according to the table below. In

the case of a Single Payout Credit Default Basket Option, the cash settlement amount to

be used is the one that is the highest among the basket components, and in the case of a

Multiple Payout Credit Default Basket Option, the cash settlement amount to be used is

50% of the sum of each basket component’s cash settlement amount.



Average

Credit

Default Swap

(“CDS”)

Spread* of

the Basket

Component

Reference

Entities

1 Year or

Less

Greater

Than 1

Year /

Less

Than or

Equal to

3 Years

Greater Than 3

Years / Less

Than or Equal

to 5 Years

Greater Than 5

Years / Less Than

or Equal to 7

Years

Greater Than

7 Years

0 - 200 1% 1% 2% 4% 5%

200 - 500 2% 3% 4% 5% 7%

500 & above 3% 5% 10% 12% 15%


(iv) Alternative Table. As an alternative to the table under paragraph (l)(4)(iii)



Average Credit

Default Swap

(“CDS”)

Spread* of the

Basket

Component

Reference

Entities

1 Year

or Less

Greater

Than 1

Year /

Less

Than or

Equal to

2 Years

Greater

Than 2

Years /

Less

Than or

Equal to

3 Years

Greater

Than 3

Years /

Less

Than or

Equal to

4 Years

Greater

Than 4

Years /

Less

Than or

Equal to

5 Years

Greater

Than 5

Years /

Less

Than or

Equal to

6 Years

Greater

Than 6

Years /

Less

Than or

Equal to

7 Years

Greater

Than 7

Years /

Less

Than or

Equal to

8 Years

Greater

Than 8

Years /

Less

Than or

Equal to

9 Years

Greater

Than 9

Years

0 – 200 1% 1% 1% 1.5% 2% 3% 4% 4.5% 5% 5%

200 – 500 2% 2.5% 3% 3.5% 4% 4.5% 5% 6% 7% 7%

500 & above 3% 4% 5% 7.5% 10% 11% 12% 13% 14% 15%

(5) Spreads. If an account is short a Credit Option and is also long a Credit Option with

the same underlying Reference Obligation(s), and the long option is paid for in full, and the long

option does not expire before the short option, no margin is required.

(6) Credit Option margin requirements may be satisfied by a deposit of cash or

marginable securities.

(7) Concentrations. If, across all accounts, the maximum exposure in Credit Option

contracts overlying any single Reference Entity exceeds the Trading Permit Holder’s tentative net

capital, the Trading Permit Holder must deduct from net capital an amount equal to the aggregate


margin requirement for all such accounts on the Credit Option contracts (including Credit Default

Basket Options having the subject Reference Entity as a component) overlying such single

Reference Entity, as specified in this Rule 12.3(l). This deduction from net capital may be

reduced by the amount of excess margin held in [all] such customer and broker-dealer accounts.

(8) Cash Account --Credit Default Options. A Credit Default Option carried short in a

customer’s account is deemed a covered position, and eligible for the cash account, provided any

one of the following either is held in the account at the time the option is written or is received

into the account promptly thereafter:

(i) cash or cash equivalents equal to 100% of the cash settlement amount as

defined in Rule 29.1; or

(ii) an escrow agreement. The escrow agreement must certify that the bank holds

for the account of the customer as security for the agreement (A) cash, (B) cash

equivalents, (C) one or more qualified equity securities, or (D) a combination thereof

having an aggregate market value of not less than 100% of the cash settlement amount as

defined in Rule 29.1 and that the bank will promptly pay the TPH organization the cash

settlement amount in the event of a Credit Event as defined in Rule 29.1.

(9) Cash Account - Credit Default Basket Options. A Credit Default Basket Option

carried short in a customer’s account is deemed a covered position, and eligible for the cash

account, provided any one of the following either is held in the account at the time the option is

written or is received into the account promptly thereafter:

(i) For Multiple Payout Credit Default Basket Options, cash or cash equivalents

equal to 50% of the sum of each Basket Component’s cash settlement amount as defined

in Rule 29.1;

(ii) For Single Payout Credit Default Basket Options, cash or cash equivalents

equal to 100% of the Basket Component cash settlement amount as defined in Rule 29.1

that is the highest; or

(iii) an escrow agreement. The escrow agreement must certify that the bank holds

for the account of the customer as security for the agreement (A) cash, (B) cash

equivalents, (C) one or more qualified equity securities, or (D) a combination thereof

having an aggregate market value of not less than 100% of the sum of each Basket

Component’s cash settlement amount as defined in Rule 29.1 in the case of Multiple

Payout Credit Default Basket Option or 100% of the Basket Component cash settlement

amount as defined in Rule 29.1 that is the highest in the case of a Single Payout Credit

Default Basket Option and that the bank will promptly pay the TPH organization the cash

settlement amount in the event of a Credit Event as defined in Rule 29.1.

(10) Duration of the Credit Option Margin Pilot Program. The Credit Option Margin Pilot

Program shall be through January 17, [2012]2013.

* * * * *

_________________________________________________________________________________

EFFECTIVE-ON-FILING RULE CHANGE(S)

The following rule filing(s) was submitted to the SEC “effective on filing,” and may have taken effect

pursuant to Section 19(b)(3) of the Act. The rule filing(s) 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

www.cboe.org/legal/effectivefiling.aspx.

_________________________________________________________________________________

http://www.cboe.org/legal/effectivefiling.aspx


SR-CBOE-2012-008 Fees Schedule

On January 17, 2012, the Exchange filed Rule Change File No. SR-CBOE-2012-008, which filing

proposes to amend the CBOE Fees Schedule for 2012. Any questions regarding the rule change may be

directed to Jeff Dritz, Legal Division, at 312-786-7070. The rule filing is available at


_________________________________________________________________________________

SR-CBOE-2012-009 Hybrid 3.0 Class Appointments


proposes to amend CBOE Rules to permit the appointment of one or more Lead Market-Makers or

Supplemental Market-Makers for the purposes of participating in modified opening rotations and/or other

opening rotations in Hybrid 3.0 classes. Any questions regarding the rule change may be directed to

Jennifer Lamie, Legal Division, at 312-786-7576. The rule text is shown below and the rule filing is

available at http://www.cboe.com/publish/RuleFilingsSEC/SR-CBOE-2012-009.pdf.

Rule 8.15 - Lead Market-Makers and Supplemental Market-Makers in Hybrid 3.0 Classes

RULE 8.15. The Exchange may appoint, in an option class for which a DPM has not been

appointed, one or more Market-Makers in good standing [with an appointment in an option class

for which a DPM has not been appointed] as Lead Market-Makers (“LMMs”) and Supplemental

Market-Makers (“SMMs”) to participate in the modified opening rotation described in

Interpretation [.02 to Rule 24.13] .01 to Rule 6.2B, [including participating] to participate in other

opening rotations using the Exchange’s [Rapid] Hybrid Opening System described in Rule 6.2B,

and/or to determine a formula for generating automatically updated market quotations during the

trading day as described in paragraph (d) below.

* * * * *

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SR-CBOE-2012-010 Fees Schedule


proposes to amend the CBOE Fees Schedule to eliminate the requirement that firms continue to pay AIM

Execution Fees after reaching the firm Fee Cap. Any questions regarding the rule change may be directed

to Jeff Dritz, Legal Division, at 312-786-7070. The rule filing is available at


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Exchange Bulletin - CBOE.org · SonoSite, Inc. (“SONO”) Tender Offer by Salmon Acquisition...

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Transcript of Exchange Bulletin - CBOE.org · SonoSite, Inc. (“SONO”) Tender Offer by Salmon Acquisition...