(c) For those option classes in which a DPM, LMM, SMM, or appointed market-maker do not have the responsibility set forth in paragraph (b) above, the components in the formula used in each trading crowd to generate automatically updated market quotations shall be as agreed upon by the respective trading crowds. For those classes in which a DPM, LMM, or SMM, or a market-maker in good standing has been appointed the responsibility to determine a formula for generating automatically updated market quotations, the DPM, LMM, SMM or appointed market-maker may, but is not required to, consult with and/or agree with members of the trading crowd in setting the components of the formula, but the members of the trading crowd are not required to provide input in these decisions, and in all instances, the DPM, LMM, SMM, or appointed market-maker has the responsibility to make the final determination as to the components. The provisions of this Interpretation .07 shall also apply to the use of automated quotation updating systems to generate indicative prices that are indications of interest and not firm quotes. Adopted June 6, 1988; amended March 15, 2002 (01-64) .08 The Exchange or its authorized agent may calculate bids and asks for various indices for the sole purpose of determining permissible bid/ask differentials on options on these indices. These values will be calculated by determining the weighted average of the bids and asks for the components of the corresponding index. These bids and asks will be disseminated by the Exchange at least every fifteen seconds during the trading day solely for the purpose of determining the permissible bid/ask differential that market-makers may quote on an in-the-money option on the indices. For in-the-money series in index options where the calculated bid/ask differential is wider than the applicable differential set out in Rule 8.7(b)(iv), the bid/ask differential in the index option series may be as wide as the calculated bid/ask differential in the underlying index. The Exchange will not make a market in the basket of stock comprising the indices and is not guaranteeing the accuracy or the availability of the bid/ask values. The bid/ask values for those certain indices, which are calculated by the Exchange or its authorized agent, are disseminated for the purpose of determining permissible bid/ask differentials on in-the-money index option series, in accordance with interpretations to Rule 8.7. As such, the Exchange is not making a market in these indices and these values should not be relied upon as indicative of the market in the indices. The Exchange's liability in connection with the calculation and dissemination of these bid/ask values for indices is limited to the same extent as provided in Rule 24.12 in connection with the calculation and dissemination of current index values. Approved October 25, 1995, effective November 20, 1995 (95-60). .09The obligations and duties of Market-Makers set forth in Rule 8.7 paragraphs (a) and (b) apply to an in-crowd Market-Maker only when the in-crowd Market-Maker is present in the trading crowd and to a Market-Maker electronically quoting from outside of his/her appointed trading station (in accordance with Rule 8.3(c)) or to an RMM only when the Market-Maker or RMM is logged on to the CBOE Hybrid system. Market-Makers remain subject to Rule 7.5 while on the floor of the Exchange. Adopted July 24, 1997 (97-34); amended March 14, 2005 (04-75); March 24, 2005 (04-58). .10 Market-Makers may display indicative spread prices on the websites of member organizations through a system licensed from a third party, developed by the Exchange or otherwise. Such indicative prices shall not be regarded as firm quotes, and a Market-Maker shall not be obligated to execute at the indicative prices spread orders that are entered into the market. Adopted July 19, 2001 (01-41). .11 (a) In classes in which CBOE Rule 6.8 is applicable, the obligation of Market-Makers to make competitive markets under Rule 8.7 does not preclude members in a trading crowd from discussing a request for a market that is greater than the RAES order eligibility size for that option class, for the purpose of making a single bid (offer) based upon the aggregate of individual bids (offers) by members in the trading crowd, but only when the member representing the order asks for a single bid (offer). Whenever a single bid (offer) pursuant to this paragraph is made, such bid (offer) shall be a firm quote and each member of the trading crowd participating in the bid (offer) shall be obligated to fulfill his portion of the single bid (offer) at the single price. (b) In classes in which the CBOE Hybrid System is operational, the obligation of Market-Makers to make competitive markets under Rule 8.7 does not preclude members in a trading crowd from discussing a request for a market that is greater than the disseminated size for that option class, for the purpose of making a single bid (offer) based upon the aggregate of individual bids (offers) by members in the trading crowd, but only when the member representing the order asks for a single bid (offer). Whenever a single bid (offer) pursuant to this paragraph is made, such bid (offer) shall be a firm quote and each member of the trading crowd participating in the bid (offer) shall be obligated to fulfill his portion of the single bid (offer) at the single price. .12 Reserved. Approved April 22, 2002 (2001-65); amended May 30, 2003 (02-05); May 30, 2003 (03-20); amended July 30, 2004 (04-47); amended December 1, 2004 (04-69). .13 Market-Makers will be exempt from the requirements of subparagraph (b)(iv) of this Rule for a period of 30 seconds in cases where the Exchange automatically adjusts one side of the disseminated quote to one minimum increment below (above) the NBBO bid (offer): (1) because the size associated with that quote has been exhausted by automatic executions; or (2) to comply with the terms of the Plan for the Purpose of Creating and Operating an Intermarket Option Linkage. This exemption will be in effect until February 17, 2007 on a pilot basis. Amended September 16, 2003 (03-08); amended August 31, 2004 (04-39); amended December 1, 2004 (04-69); February 17, 2006 (06-17).
In Addition: (d) Each LMM or SMM appointed in accordance with this Rule to determine a formula for generating automatically updated market quotations shall for the period in which it acts as LMM or SMM use the Exchange's AutoQuote system or a proprietary automated quotation updating system to update market quotations during the trading day. In addition, the LMM or SMM shall disclose the following components of the formula to the other members trading at the trading station at which the formula is used: option pricing calculation model, volatility, interest rate, dividend, and what is used to represent the price of the underlying. Notwithstanding the foregoing, the appropriate Market Performance Committee shall have the discretion to exempt LMMs and SMMs using proprietary automated quotation updating systems from having to disclose proprietary information concerning the formulas used by those systems.
Can I pull up a chair and watch this? Day is so much more fun than NoMoreOptions. Agent Scully: Homer, we're going to ask you a few simple yes or no questions. Do you understand? Homer Simpson: Yes. (lie dectector blows up) Day you remind me of Homer kny3
Kny... like I said before, everyone loves a good train wreck, they just cant turn away and this clown Day is a big train wreck
I didn't initiate this. You can't deal with people who are stronger than you every which way. The other idiot CBSWONK, is grazing his horns against a steel wall, just like you are doing my beloved son.
Reported to the moderator. Let them decide if this is appropiate material to post. If threats and violence is a part and parcel of this posting community and if such acts should or should not be moderated. I can answer this very well myself , but with the best of judgment, I have chosen not to. Day7793