Regulatory Circular RG Date: 22 June From: Office of the Secretary. Bulletins

Transcription

1 Regulatory Circular RG98-69 Date: 22 June 1998 To: Members From: Office of the Secretary Re: Bulletins Beginning July 1, 1998, the Exchange Bulletin and the Regulatory Bulletin ("Bulletins") will be available either electronically via or in hardcopy via U.S. Mail or other means of delivery. Effective Members, who currently receive one copy of the Bulletins free-of-charge, must submit an Informed Consent to Notice (attached) to the Membership Department in order to receive the Bulletins via . delivery to members who currently receive under the pilot program will be discontinued on or about July 1, 1998, if a Consent is not on file with the Membership Department. All members are encouraged to elect delivery. is a quick and efficient means of delivery and it reduces the Exchange's printing and mailing expenses. Bulletins are available according to the following schedule: Recipient Effective Members (In the case of a Member Organization, the Bulletins are sent to the Nominee or Registered-For) Delivery Hardcopy Delivery or Subscription Fee to Free Free Additional copies to Members, Subscriptions for Associated Persons and Non-Members Hardcopy Delivery Delivery $100 $50 Members that wish to subscribe to additional copies of the Bulletins (and associated persons who wish to subscribe) must submit the appropriate subscription fee and their name, mailing address, address and telephone number to: Investor Services Department Chicago Board Options Exchange 400 South LaSalle Chicago, IL Any questions regarding Bulletin distribution may be directed to:

2 Carolyn Mitchell, Nancy Nielsen Rae Pancake-Tapia Investor Services Office of the Secretary Membership Department

3 Informed Consent to Notice The Constitution and Rules of the Chicago Board Options Exchange, Incorporated ("Exchange" or "CBOE"), in certain specific instances, require the Exchange to provide notice to the membership. To satisfy this requirement, the Exchange publishes the weekly Exchange Bulletin and the bi-monthly Regulatory Bulletin (jointly "newsletters"). A list of the required notices that are currently published in the newsletters is set forth below. The Exchange provides a complimentary copy of each newsletter, via U.S. Mail or other means of delivery, to all individual members and all nominees and registered-fors of member organizations at the address maintained on the books and records of the Exchange pursuant to CBOE Rule 3.6(b). The undersigned member hereby requests and consents to substitute receipt by electronic mail (" Notice") for physical delivery of the hardcopy newsletters. The undersigned member agrees that Notice constitutes full, valid and sufficient notice and service of all Exchange notifications included in the newsletters, pursuant to Section 10.2 of the Exchange's Constitution. CBOE encourages the undersigned to retain either a printed or electronic copy of each Notice for future reference. As an additional resource for members, CBOE is evaluating retention of the newsletters for a minimum of 2 years on a password protected Members Only Page on the CBOE Web Site ( CBOE will apprise the membership when and if such Members Only Page becomes operational. The undersigned further agrees to file with the Membership Department and keep current an electronic mail address to which the Notice may be delivered and to hold the CBOE harmless from any and all liability incurred as a result of substituting receipt of Notice for physical delivery of the newsletters. This consent will remain in effect until such time as the undersigned provides written notice to the Membership Department to resume physical delivery of the newsletters. Address: (Print Legibly) (Print Name) (Acronym) Member Organization, if applicable (Sign) If you receive the newsletters for more than one membership, please indicate the name of each membership for which you are electing Notice: No. of Memberships: Name Name Date: Return this form to the Membership Department

4 Following is a summary of the primary types of notices that are currently published in the Exchange Bulletin or the Regulatory Bulletin pursuant to the Constitution and Rules. The above consent will apply to any new notice requirement that the CBOE elects to fulfill by including information in the newsletters. Constitution 12.2, "Rules", requires the Exchange to serve notice to each member promptly upon the adoption of an amendment to the Rules. (Regulatory Bulletin) Rule 3.9, "Application Procedures and Approval or Disapproval", requires the Membership Department to publish the name of an applicant for membership in the Exchange Bulletin and to post the name on the Exchange Bulletin Board. (Exchange Bulletin) Rule 3.11, "Notice of Membership Effectiveness", requires the Membership Department to promptly mail a notice of each membership that becomes effective to all members and to post a copy of the notice on the bulletin board of the Exchange. (Exchange Bulletin) Rule 3.15, "Proceeds from Sale of Membership" requires the Exchange to post notice of the sale of a membership in the Exchange Bulletin and on the Exchange bulletin board(s). Certain types of claims may be filed with the Membership Department within 20 days from the date of the Exchange Bulletin. (Exchange Bulletin) Rule 3.16(a), "Surrender of Memberships", requires the Exchange to mail a notice of the termination of a nontransferable membership (Board of Trade Exerciser) and to post such notice on the bulletin board of the Exchange. (Exchange Bulletin) Rule 3.16(b), "Leased Memberships", requires the Exchange to post notice of the lease of a regular membership and the reversion of a previously leased membership to a lessor in the Exchange Bulletin and on the Exchange bulletin board(s). Certain types of claims may be filed with the Membership Department within 20 days from the date of the Exchange Bulletin. (Exchange Bulletin) Rule 3.14, "Sale and Transfer of Memberships", requires the Membership Department to post the lowest written offer of sale of a regular membership (with the earliest submission date) on the Exchange Bulletin board. (Exchange Bulletin) Rule 3.27, "Membership Options Trading Permits", subjects the lease, sale or transfer of an Option Trading Permit to the same posting requirements as the lease, sale or transfer of a regular CBOE membership. (Exchange Bulletin) Interpretation.02 to Rule 8.9, "Securities Accounts and Orders of Market-Makers", requires the Exchange to mail to all Exchange members a notice of the Membership Department's determination not to disapprove a joint account application. Rule 17.9, "Decision", requires the Exchange to publish a summary of all final disciplinary decisions. (Regulatory Bulletin) In addition to the above notices, current Exchange policy provides that the newsletters contain, among other things: Notice of each new equity position limit fixed by the Exchange pursuant to Rule (Exchange Bulletin) A listing of all Research Circulars issued by the Exchange. (Exchange Bulletin) All Regulatory Circulars issued by the Exchange. (Regulatory Bulletin)

5 A summary of all arbitration Awards issued pursuant to Exchange Rule (Regulatory Bulletin) A summary of final Appeals Committee Decisions and any Board of Directors decision relating to the appeal. This policy is only applicable to appeals that are filed on or after June 15, (Regulatory Bulletin) (6/98)