Other Rule Filings Incorporated by Reference

Bats BZX Exchange, Inc. ("BZX"), Bats BYX Exchange, Inc. ("BYX"), Bats EDGA Exchange, Inc. ("EDGA") and Bats EDGX Exchange, Inc. ("EDGX") (collectively known as the "Exchanges") have incorporated certain rules by reference from other self-regulatory organization ("SRO") rulebooks. As such, the Exchanges will periodically provide updates where applicable when there are new proposals or approvals to amend these incorporated rules by the other SROs. The Rule Filings are not effective until approved by the Securities and Exchange Commission ("SEC"), with the exception of certain types of rule filings that may take effect upon filing with the SEC if they meet the conditions specified under Section 19 of the Securities Exchange Act of 1934 and Rule 19b-4 thereunder. Below are descriptions of the Exchanges' rules incorporated by reference from other SROs, along with any current proposals/approvals filed by the SROs.

CBOE Rule Filings to Amend Rules Governing Position and Exercise Limits for Equity and Index Options

Pursuant to BZX and EDGX Rule 18.7:

  • "No Options Member shall make, for any account in which it has an interest or for the account of any Customer, an opening transaction on any exchange if the Options Member has reason to believe that as a result of such transaction the Options Member or its Customer would, acting alone or in concert with others, directly or indirectly:

    1. exceed the applicable position limit fixed from time to time by the Chicago Board Options Exchange for any options contract traded on [BZX Options][EDGX Options] and the Chicago Board Options Exchange;…"

Pursuant to BZX and EDGX Rule 18.9:

  • "No Options Member shall exercise for any account in which it has an interest or for the account of any Customer, a long position in any options contract where such Options Member or Customer, acting alone or in concert with others, directly or indirectly, has or will have:

    1. exceed the applicable exercise limit fixed from time to time by the Chicago Board Options Exchange for any options contract traded on [BZX Options][EDGX Options] and the Chicago Board Options Exchange;…"

As a result of Rules 18.7 and 18.9, changes to CBOE position limits or CBOE exercise limits could have an impact on a member’s compliance with the rules. Accordingly, below are links to pending CBOE rule filings with the SEC seeking to amend position limits or exercise limits as well as any SEC orders approving or disapproving those rule filings.

SR-CBOE-2016-052

Proposal to extend of SPY position limit pilot

SR-CBOE-2015-065

Proposal Extending SPY Position Limit Pilot

SR-CBOE-2015-008

Proposal to Extend SPY Position Limit Pilot Through July 12, 2015.

SR-CBOE-2013-106

Proposal to extend pilot program that eliminates position and exercise limits for SPY options for an additional 14 months. Approval Order

SR-CBOE-2013-001

Proposal to List and Trade Mini Options.

SR-CBOE-2012-099

Proposed rule change to make technical change to SPY position limit pilot program and representation regarding submission of pilot report. Approval Order

SR-CBOE-2012-091

Proposal to establish a 14-month pilot program to eliminate position and exercise limits for physically-settled SPY options. Approval Order

SR-CBOE-2012-066 Amendment 1

Partial amendment to SR-CBOE-2012-066 Approval Order

SR-CBOE-2012-066

Proposal to Increase Position and Exercise Limits for EEM Options

SR-CBOE-2011-065

Proposed rule change will increase position and exercise limits for "SPY" options from 300,000 to 900,000 contracts.Approval Order