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Cboe Exchange, Inc.

Rules of Cboe Exchange, Inc.

(Updated as of August 8, 2018)

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TABLE OF CONTENTS

Page

DEFINITIONS .......................................................................................... 1 Definitions................................................................................................... 1

ORGANIZATION AND ADMINISTRATION.................................. 16 Committees of the Exchange .................................................................... 16 Power of the Board to Review Exchange Decisions ................................ 17

Divisions of Exchange .............................................................................. 17 Trading Permit Holder Fees and Charges ................................................. 17 Reserved .................................................................................................... 18 Other Fees or Charges ............................................................................... 18 Liability for Payment ................................................................................ 18 Exchanges Costs of Defending Legal Proceedings ................................. 19 Reserved .................................................................................................... 19 Deleted ...................................................................................................... 19 Reserved .................................................................................................... 19 Reserved .................................................................................................... 19 Reserved .................................................................................................... 19 Reserved .................................................................................................... 20 Regulatory Revenues ................................................................................ 20

TRADING PERMIT HOLDERS ....................................................... 21 Trading Permits ......................................................................................... 21 Qualifications of Individual Trading Permit Holders ............................... 26 Qualifications of TPH Organizations ........................................................ 26 Foreign Trading Permit Holders ............................................................... 27

Rule 3.4A. Additional Trading Permit Holder Qualifications .................................... 27 Denial of and Conditions to Being a Trading Permit Holder or

Associated with a Trading Permit Holder ................................................. 28 Persons Associated with TPH Organizations ........................................... 30

Rule 3.6A. Qualification and Registration of Trading Permit Holders and Associated Persons.................................................................................... 30

Certain Documents Required of Trading Permit Holders, Applicants, and Associated Persons ......................................................... 36

Nominees .................................................................................................. 37 Application Procedures and Approval or Disapproval ............................. 40

Effectiveness of Trading Permit Holder or Approved Associated Person Status ............................................................................................. 42

Reserved. ................................................................................................... 42 Reserved .................................................................................................... 42 Reserved .................................................................................................... 42 Reserved .................................................................................................... 42 Reserved .................................................................................................... 43 Reserved .................................................................................................... 43 Reserved .................................................................................................... 43

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Trading Permit Holders and Associated Persons Who Are or Become Subject to a Statutory Disqualification ....................................... 43

Termination from Trading Permit Holder Status ...................................... 45 Dissolution and Liquidation of TPH Organizations ................................. 46 Obligations of Terminating Trading Permit Holders ................................ 46 Reserved .................................................................................................... 46 Integrated Billing System ......................................................................... 46 Reserved .................................................................................................... 47 Reserved .................................................................................................... 47 Reserved .................................................................................................... 47 Reserved .................................................................................................... 47 Letters Of Guarantee and Authorization ................................................... 47 Membership in OneChicago, LLC ............................................................ 48 Extension of Time Limits ......................................................................... 48 Reserved .................................................................................................... 49 Ownership Concentration and Affiliation Limitation ............................... 49

BUSINESS CONDUCT ....................................................................... 50 Just and Equitable Principles of Trade...................................................... 50 Adherence to Law ..................................................................................... 50 Reserved .................................................................................................... 50 Gratuities ................................................................................................... 50 Nominal Employment ............................................................................... 50 False Statements........................................................................................ 51 Manipulation ............................................................................................. 51 Rumors ...................................................................................................... 52 Disciplinary Action by Other Organizations ............................................ 52

Other Restrictions on Trading Permit Holders ......................................... 52 Position Limits .......................................................................................... 56 Exercise Limits ......................................................................................... 70 Reports Related to Position Limits ........................................................... 71 Liquidation of Positions ............................................................................ 72 Limit on Outstanding Uncovered Short Positions .................................... 72 Other Restrictions on Options Transactions and Exercises ...................... 72 Restriction of Out-of-the-Money Options ................................................ 74 Prevention of the Misuse of Material, Nonpublic Information................. 75 Prohibition Against Harassment ............................................................... 76 Anti-Money Laundering Compliance Program ........................................ 77 Third Party Deposits Prohibited................................................................ 78 Communications to the Exchange or the Clearing Corporation ............... 79 Unbundling of Orders to Maximize Rebates of Fees ................................ 80 Supervision ............................................................................................... 80 Proxy Voting ............................................................................................. 83

SECURITIES DEALT IN ..................................................................... 85 Designation of Securities .......................................................................... 85 Rights and Obligations of Holders and Writers ........................................ 85 Criteria for Underlying Securities ............................................................. 85

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Withdrawal of Approval of Underlying Securities ................................... 96 Series of Option Contracts Open for Trading ......................................... 102

Rule 5.5A. Select Provisions of Options Listing Procedures Plan ............................ 114 Reserved .................................................................................................. 115 Adjustments ............................................................................................ 115 Long-Term Equity Option Series (LEAPS) ............................................ 115 Single Stock Dividend Options ............................................................... 116

DOING BUSINESS ON THE EXCHANGE FLOOR .................... 118 Days and Hours of Business ................................................................... 118

Rule 6.1A. Extended Trading Hours ......................................................................... 120 Hybrid Opening (and Sometimes Closing) System (HOSS)............... 124 Trading Halts .......................................................................................... 133

Rule 6.3A. Equity Market Plan to Address Extraordinary Market Volatility ........... 135 Rule 6.3B. Market-wide Trading Halts Due to Extraordinary Market Volatility ..... 136 Rule 6.3C. Individual Stock Trading Pause Due to Extraordinary Market

Volatility ................................................................................................. 138 Suspension of Trading ............................................................................ 139 Limitation on Dealings ........................................................................... 139 Unusual Market Conditions .................................................................... 140

Rule 6.6A. Order Cancellation/Release .................................................................... 140 Exchange Liability Disclaimers and Limitations .................................... 141

Rule 6.7A. Legal Proceedings Against the Exchange ............................................... 143 Prohibition Against Customers Functioning as Market-Makers ............... 143 Solicited Transactions ............................................................................. 143

Reserved .................................................................................................. 146 Origins Eligible for Book Entry ............................................................... 146 Cboe Options Hybrid Order Handling System ....................................... 147

Rule 6.12A. Public Automated Routing System (PAR) ............................................. 149 Rule 6.12B. PAR Officials ......................................................................................... 150

Cboe Options Hybrid System Automatic Execution Feature ................. 152 Rule 6.13A. Simple Auction Liaison (SAL) ............................................................... 157 Rule 6.13B. Reserved .................................................................................................. 161

Price Protections and Risk Controls ....................................................... 161 Rule 6.14A. Hybrid Agency Liaison (HAL) ............................................................... 164 Rule 6.14C. Routing Service Error Accounts ............................................................. 168

Limitation on the Liability of Index Licensors for Options on Units ..... 169 Back-up Trading Arrangements .............................................................. 170 Authority to Take Action Under Emergency Conditions ....................... 178 Disaster Recovery ................................................................................... 178 Reserved .................................................................................................. 181 Admission to and Conduct on the Trading Floor; Trading Permit

Holder Education .................................................................................... 181 Rule 6.20A. Sponsored Users...................................................................................... 184

Give Up of a Clearing Trading Permit Holder........................................ 187 Trading by Trading Permit Holders on the Floor ................................... 191 Equipment and Communications on the Trading Floor .......................... 191

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Rule 6.23A. Trading Permit Holder Connectivity ...................................................... 193 Rule 6.23B. Bandwidth Packets .................................................................................. 194 Rule 6.23C. Technical Disconnect .............................................................................. 195

Required Order Information ................................................................... 196 Nullification and Adjustment of Options Transactions including

Obvious Errors ........................................................................................ 199 Unit of Trading ....................................................................................... 212 Meaning of Premium Bids and Offers .................................................... 212 Minimum Increments for Bids and Offers .............................................. 213 Manner of Bidding and Offering ............................................................ 215 Bids and Offers in Relation to Units of Trading ..................................... 215 Order and Quote Priority and Allocation ................................................ 216 Transactions Outside Books Last Quoted Range .................................. 224 Priority on Split-Price Transactions Occurring in Open Outcry ............. 224 Contract Made on Acceptance of Bid or Offer ....................................... 226 Transactions Off the Exchange ............................................................... 227

Rule 6.49A. Transfer of Positions ............................................................................... 228 Submission for Clearance ....................................................................... 231 Reporting Duties ..................................................................................... 231

Rule 6.51A. Fines for Failure to Perform Certain Reporting Duties .......................... 234 Price Binding Despite Erroneous Report ................................................ 234 Certain Types of Orders Defined ............................................................ 234

Rule 6.53A. Types of Order Formats .......................................................................... 239 Rule 6.53B. S&P 500 Variance Trades ....................................................................... 240 Rule 6.53C. Complex Orders on the Hybrid System .................................................. 241

Accommodation Liquidations (Cabinet Trades) ..................................... 258 Multiple Representation Prohibited ........................................................ 260 Compression Forums .............................................................................. 261 Submission of Trade Information to the Exchange ................................ 263 Unmatched Trade Reports ...................................................................... 265 Reconciliation and Resolution of Unmatched Trades ............................ 265 Supplementary Unmatched Trade Report ............................................... 267 Reporting of Matched Trades to Clearing Corporation .......................... 267 Reserved .................................................................................................. 268 Written Contracts .................................................................................... 268 Comparison Does Not Create Contract ................................................... 270 Cboe Trade Match System ...................................................................... 270 Floor Broker Defined .............................................................................. 271 Registration of Floor Brokers ................................................................. 271 Letters of Authorization .......................................................................... 271 Responsibilities of Floor Brokers ........................................................... 272 Crossing Orders ...................................................................................... 273

Rule 6.74A. Automated Improvement Mechanism (AIM) ...................................... 280 Rule 6.74B. Solicitation Auction Mechanism............................................................. 286

Discretionary Transactions ..................................................................... 289 Payment for Floor Brokerage Services ................................................... 289

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Rule 6.76A. Automated Billing Process for Market-Maker Brokerage Bills ............. 290 Order Service Firms ................................................................................ 292 Letters of Guarantee Required of Order Service Firms .......................... 293 Floor Broker Practices ............................................................................ 294 Definitions............................................................................................... 297 Order Protection ...................................................................................... 298 Locked and Crossed Markets .................................................................. 300 Reserved .................................................................................................. 300 Deleted .................................................................................................... 301 Definitions............................................................................................... 301 Clock Synchronization ............................................................................ 306 Industry Member Data Reporting ........................................................... 307 Customer Information Reporting ............................................................ 311 Industry Member Information Reporting................................................ 311 Time Stamps ........................................................................................... 311 Clock Synchronization Rule Violation ................................................... 312 Connectivity and Data Transmission ...................................................... 312 Development and Testing ....................................................................... 313 Recordkeeping ........................................................................................ 314 Timely, Accurate and Complete Data ..................................................... 314 Compliance Dates ................................................................................... 315 Fee Dispute Resolution ........................................................................... 315

RESERVED ...................................................................................... 320 MARKET-MAKERS, TRADING CROWDS AND

MODIFIED TRADING SYSTEMS ............................................................................ 321 Market-Maker Defined ........................................................................... 321 Registration of Market-Makers ............................................................... 321 Appointment of Market-Makers ............................................................. 321

Rule 8.3A. Maximum Number of Trading Permit Holders Quoting Electronically Per Product ...................................................................... 326

Reserved .................................................................................................. 328 Letters of Guarantee ................................................................................ 329 Market-Maker Unit ................................................................................. 329 Obligations of Market-Makers ................................................................ 329 Restriction on Acting as Market-Maker and Floor Broker ..................... 337 Securities Accounts and Orders of Market-Makers ................................ 337

Financial Arrangements of Market-Makers ............................................ 340 Reserved .................................................................................................. 340 Preferred Market-Maker Program ........................................................... 340 Hybrid Trading System Platforms & Market-Maker Participants .......... 343 Lead Market-Makers ............................................................................... 345 Reserved .................................................................................................. 349 Stopping of Option Orders ...................................................................... 349 Quote Risk Monitor Mechanism ............................................................. 350 Definitions............................................................................................... 351 Firm Disseminated Market Quotes ......................................................... 351

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Deleted .................................................................................................... 357 Evaluation of Trading Crowd Performance ............................................ 357 Reserved .................................................................................................. 359 DPM Defined .......................................................................................... 359 DPM Designees ...................................................................................... 360 Reserved .................................................................................................. 361 Approval to Act as a DPM ...................................................................... 361 Conditions on the Allocation of Securities to DPMs .............................. 363 DPM Obligations .................................................................................... 364 DPM Financial Requirements ................................................................. 367 Participation Entitlement of DPMs ......................................................... 368 Review of DPM Operations and Performance ........................................ 369 Transfer of DPM Appointments ............................................................. 369 Termination, Conditioning, or Limiting Approval to Act as a DPM...... 371 Allocation of Securities and Location of Trading Crowds and

DPMs ...................................................................................................... 372 DOING BUSINESS WITH THE PUBLIC ...................................... 375

Exchange Approval ................................................................................. 375 Registration of Options Principals .......................................................... 375 Registration and Termination of Representatives ................................... 376

Rule 9.3A. Continuing Education for Registered Persons ........................................ 377 Other Affiliations of Registered Associated Persons.............................. 380 Discipline, Suspension, Expulsion of Registered Persons ...................... 380 Branch Offices of TPH Organizations .................................................... 380 Opening of Accounts .............................................................................. 382 Supervision of Accounts ......................................................................... 385 Suitability of Recommendations ............................................................. 393

Discretionary Accounts ........................................................................... 393 Confirmation to Customers ..................................................................... 394 Statements of Accounts to Customers .................................................... 395 Statements of Financial Condition to Customers.................................... 395 Addressing of Communications to Customers ....................................... 395 Delivery of Current Options Disclosure Documents .............................. 396 Restrictions on Pledge and Lending of Customers Securities ............... 397 Transactions of Certain Customers ......................................................... 398 Prohibition Against Guarantees and Sharing in Accounts ...................... 398 Assuming Losses .................................................................................... 399 Transfer of Accounts............................................................................... 399 Options Communications........................................................................ 401 Brokers Blanket Bonds .......................................................................... 405 Customer Complaints.............................................................................. 408 Telemarketing ......................................................................................... 409 Borrowing From or Lending to Customers ............................................. 417

CLOSING TRANSACTIONS ............................................................ 420 Disagreement on Unmatched Trade........................................................ 420 Contracts of Suspended Trading Permit Holders.................................... 420

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Failure to Pay Premium .......................................................................... 420 Disagreement on Contract....................................................................... 421 Contracts of Suspended Parties ............................................................... 421 Mandatory Closing of Fails .................................................................... 421 Closing of Contracts by Original Party ................................................... 423 Procedure for Closing Defaulted Contract .............................................. 424 Notice of Intention to Successive Parties ................................................ 425 Reserved .................................................................................................. 426 Liability of Succeeding Parties ............................................................... 426 Notice of Closing to Successive Parties.................................................. 426 Duty of Trading Permit Holder Giving Notice to Close ......................... 427 Restrictions on Trading Permit Holders Participation in

Transaction to Close Defaulted Contracts .............................................. 427 Closing Contracts in Suspended Securities............................................. 428 Default in Loan of Money....................................................................... 428

EXERCISES AND DELIVERIES.................................................... 429 Allocation of Exercise Notices ............................................................... 432 Delivery and Payment ............................................................................. 433 Settlement When Delivery of Underlying Stock Is Restricted ............... 433

MARGINS ......................................................................................... 434 General Rule ........................................................................................... 434 Time Margin Must Be Obtained ............................................................. 434 Margin Requirements.............................................................................. 434 Portfolio Margin...................................................................................... 482 Determination of Value for Margin Purposes ......................................... 489 Options Contracts Not Dealt In on Exchange ......................................... 489 When Issued and When Distributed Securities ................................ 490 Guaranteed Accounts .............................................................................. 490 Meeting Margin Calls by Liquidation Prohibited ................................... 490

Margin Required Is Minimum ................................................................ 491 Compliance with Margin Requirements of New York Stock

Exchange ................................................................................................. 491 Daily Margin Record .............................................................................. 491

NET CAPITAL REQUIREMENTS ............................................. 492 Minimum Requirements ......................................................................... 492 Early Warning Notification Requirements .......................................... 492 Power of President to Impose Restrictions ............................................. 492 Joint Back Office Participants ................................................................ 492 Customer Portfolio Margin Accounts ..................................................... 494

COMMISSIONS ............................................................................. 496 Charging and Collection Mandatory ....................................................... 496 Reserved .................................................................................................. 496 Reserved .................................................................................................. 496 Exercised Contracts ................................................................................ 496 Reserved .................................................................................................. 496 Collection of Floor Brokerage ................................................................ 496

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Intra-Member Rates for Clearance.......................................................... 496 Service to Small Investors ...................................................................... 496

RECORDS, REPORTS AND AUDITS .......................................... 497 Maintenance, Retention and Furnishing of Books, Records and

Other Information ................................................................................... 497 Reports of Transactions .......................................................................... 498 Reports of Uncovered Short Positions .................................................... 498 Reserved .................................................................................................. 498 Financial Reports .................................................................................... 498 Audits ...................................................................................................... 499 Automated Submission of Trading Data................................................. 500 Risk Analysis of Market-Maker Accounts ............................................. 501

Rule 15.8A. Risk Analysis of Portfolio Margin Accounts .......................................... 502 Regulatory Cooperation .......................................................................... 503

Fingerprint-Based Background Checks of Exchange Directors, Officers, Employees and Others ............................................................. 504

SUMMARY SUSPENSION ........................................................... 506 Imposition of Suspension ........................................................................ 506 Investigation Following Suspension ....................................................... 506 Reinstatement .......................................................................................... 506 Failure to Obtain Reinstatement ............................................................. 507 Termination of Rights by Suspension ..................................................... 507

DISCIPLINE .................................................................................. 508 Disciplinary Jurisdiction ......................................................................... 508 Complaint and Investigation ................................................................... 509 Expedited Proceeding ............................................................................. 511 Charges ................................................................................................... 511 Answer .................................................................................................... 513 Hearing .................................................................................................... 513 Summary Proceedings ............................................................................ 514 Offers of Settlement ................................................................................ 515 Decision .................................................................................................. 516

Review .................................................................................................... 517 Judgment and Sanction ........................................................................... 518 Service of Notice..................................................................................... 519 Extension of Time Limits ....................................................................... 520 Reporting to the Central Registration Depository .................................. 520 Imposition of Fines for Minor Rule Violations ...................................... 520

ARBITRATION ........................................................................... 534 Matters Subject to Arbitration ................................................................ 534

Rule 18.1A. FINRA Jurisdiction over Arbitrations against Trading Permit Holders .................................................................................................... 535

Procedures in Trading Permit Holder Controversies .............................. 536 Arbitration ............................................................................................... 537

Rule 18.3A. Class Action Claims ................................................................................ 538 Simplified Arbitration ............................................................................. 539

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Waiver of Hearing................................................................................... 541 Time Limitation Upon Submission ......................................................... 541 Dismissal or Termination of Proceedings ............................................... 541 Settlements .............................................................................................. 541 Tolling of Time Limitation(s) for the Institution of Legal

Proceedings and Extension of Time Limitation(s) for Submission to Arbitration ........................................................................................... 541

Designation of Number of Arbitrators .................................................... 542 Notice of Selection of Arbitrators ........................................................... 544 Challenges ............................................................................................... 544 Disclosures Required of Arbitrators ....................................................... 545 Disqualification or Other Disability of Arbitrators ................................. 546 Initiation of Proceedings ......................................................................... 547 Designation of Time and Place of Hearings ........................................... 549 Representation by Counsel ..................................................................... 549 Attendance at Hearings ........................................................................... 549 Failure to Appear .................................................................................... 549 Adjournments .......................................................................................... 549 Acknowledgement of Pleadings ............................................................. 550 General Provisions Governing Pre-Hearing Proceeding ........................ 550 Power to Direct Appearances.................................................................. 552 Evidence .................................................................................................. 552 Interpretation of Code and Enforcement of Arbitrator Rulings .............. 552 Determinations of Arbitrators ................................................................. 552 Record of Proceedings ............................................................................ 552 Oaths of the Arbitrators and Witnesses .................................................. 552 Amendments ........................................................................................... 552 Reopening of Hearings ........................................................................... 553 Awards .................................................................................................... 553 Miscellaneous ......................................................................................... 554 Schedule of Fees ..................................................................................... 554 Payment for Floor Brokerage Services ................................................... 557 Requirements when Using Pre-Dispute Arbitration Agreements

with Customers ....................................................................................... 557 Reserved .................................................................................................. 558 Failure to Honor Award .......................................................................... 558

HEARINGS AND REVIEW .......................................................... 559 Scope of Chapter ..................................................................................... 559 Submission of Application to Exchange ................................................. 559 Procedure Following Applications for Hearing ...................................... 560 Hearing .................................................................................................... 560 Review .................................................................................................... 561 Miscellaneous Provisions........................................................................ 561

Scope of Part B ....................................................................................... 561 Definitions............................................................................................... 562 Requests for Verification ........................................................................ 562

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RANGE OPTION CONTRACTS ................................................... 564 Definitions............................................................................................... 564 Days and Hours of Business ................................................................... 566 Designation of Range Option Contracts ................................................. 566 Maintenance Listing Standards ............................................................... 566 Limitation of Liability of Exchange and of Reporting Authority ........... 566 Position Limits ........................................................................................ 566 Reports Related to Position Limits and Liquidation of Positions ........... 567 Exercise Limits ....................................................................................... 567 Determination of the Settlement Value of the Underlying Index ........... 567

Premium Bids and Offers; Minimum Increments ................................... 567 Exercise of Range Options...................................................................... 567 FLEX Trading ......................................................................................... 567

GOVERNMENT SECURITIES OPTIONS ................................. 569 Definitions............................................................................................... 569 Wire Connections.................................................................................... 571 Position Limits (Treasury Bonds and Notes) .......................................... 571 Exercise Limits (Treasury Bonds and Notes) ......................................... 572 Reports Related to Position Limits and Liquidation of Positions

(Treasury Bonds and Notes) ................................................................... 572 Designation of Government Security Options (Treasury Bonds and

Notes) ...................................................................................................... 572 Approval of Underlying Treasury Securities for Specific Coupon

Options (Treasury Bonds and Notes) ...................................................... 572 Terms of Treasury Security Options (Treasury Bonds and Notes)......... 573 Series of Treasury Security Options Open for Trading (Treasury

Bonds and Notes) .................................................................................... 574 Days and Hours of Business ................................................................... 574 Trading Rotations.................................................................................... 575 Trading Halts and Suspension of Trading .............................................. 575 Meaning of Premium Bids and Offers (Treasury Bonds and Notes) ...... 575 Priority of Bids and Offers ...................................................................... 576 Accommodation Trading ........................................................................ 576 Reconciliation of Unmatched Trades...................................................... 577 Responsibilities of Floor Brokers ........................................................... 577 Post Coordinators for Government Securities Options ........................... 577 Obligations of Market-Makers (Treasury Bonds and Notes) ................. 577

Rule 21.19A. Doing Business with the Public .............................................................. 578 Opening of Accounts .............................................................................. 579 Delivery of Current Basic and Debt Options Disclosure Documents

and Prospectus ........................................................................................ 579 Communications to Customers ............................................................... 579 Allocation of Exercise Assignment Notices ........................................... 579 Delivery and Payment (Treasury Bonds and Notes)............................... 580 Margin Requirements.............................................................................. 581 Exchange Approval ................................................................................. 584

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Supervision of Accounts and Communications ...................................... 584 Government Securities-Qualified Customer Personnel .......................... 584 Approval of Accounts ............................................................................. 584 Furnishing of Books, Records and Other Information............................ 584 Special Rules for Treasury Bill Options ................................................. 585

BINARY OPTIONS ...................................................................... 589 Definitions............................................................................................... 589 Days and Hours of Business ................................................................... 590 Designation of Binary Option Contracts................................................. 590 Maintenance Listing Standards ............................................................... 591 Limitation of Liability of Exchange and of Reporting Authority ........... 591 Position Limits ........................................................................................ 591 Exercise Limits ....................................................................................... 593 Reports Related to Position Limits and Liquidation of Positions ........... 593 Other Restrictions on Binary Option Transactions ................................. 593

Determination of Settlement Value ........................................................ 593 Trading Rotations.................................................................................... 593 Trading Halts and Suspension of Trading .............................................. 594 Premium Bids and Offers; Minimum Increments; Priority and

Allocation ................................................................................................ 594 Maximum Bid-Ask Differentials; Market-Maker Appointments &

Obligations .............................................................................................. 594 Automatic Exercise of Binary Option Contracts .................................... 595 FLEX Trading ......................................................................................... 595

INTEREST RATE OPTION CONTRACTS INTRODUCTION......................................................................................................... 596

Definitions............................................................................................... 596 Wire Connections.................................................................................... 598 Position Limits ........................................................................................ 598 Exercise Limits ....................................................................................... 601 Terms of Interest Rate Option Contracts ................................................ 601 Days and Hours of Business ................................................................... 602 Reserved .................................................................................................. 602 Trading Halts and Suspension of Trading .............................................. 603 Meaning of PremiumBids and Offers ................................................. 603

Accommodation Liquidations ................................................................. 603 Reconciliation of Unmatched Trades...................................................... 603 Responsibilities of Floor Brokers ........................................................... 603 [Reserved] ............................................................................................... 604 Limitation of Liability of Reporting Authority ....................................... 604 Furnishing of Books, Records and Other Information............................ 604

INDEX OPTIONS ........................................................................ 605 Definitions............................................................................................... 605 Designation of the Index ......................................................................... 616 Dissemination of Information ................................................................. 628 Position Limits for Broad-Based Index Options ..................................... 628

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Rule 24.4A. Position Limits for Industry Index Options ............................................ 638 Rule 24.4B. Position Limits for Options on Micro Narrow-Based Indexes As

Defined Under Rule 24.2(d) ................................................................... 641 Rule 24.4C. Position Limits for Individual Stock or ETF Based Volatility Index

Options .................................................................................................... 642 Exercise Limits ....................................................................................... 645 Days and Hours of Business ................................................................... 646 Trading Halts, Suspensions, or Primary Market Closure ....................... 649 Meaning of Premium Bids and Offers .................................................... 651 Terms of Index Option Contracts ........................................................... 651

Restrictions on Contracts ........................................................................ 689 [Reserved] ............................................................................................... 689

Rule 24.11A. Debit Put Spread Cash Account Transactions ........................................ 689 Limitation of Exchange Liability ............................................................ 691 Trading Rotations.................................................................................... 691 Disclaimers ............................................................................................. 692 Automatic Execution of Index Options .................................................. 693 Reserved .................................................................................................. 693 Reserved .................................................................................................. 693 Exercise of American-style Index Options ............................................. 693 Multi-Class Broad-Based Index Option Spread Orders.......................... 694 SPX Combo Orders................................................................................. 695 Index Crowd Space Dispute Resolution Procedures .............................. 696 Allocation of Trading Spaces.................................................................. 700

CHAPTER XXIVA. FLEX HYBRID TRADING SYSTEM INTRODUCTION (RULES 24A.1 24A.16) ............................................................. 702 Rule 24A.1. Definitions............................................................................................... 702 Rule 24A.2. Hours of Trading ..................................................................................... 705 Rule 24A.3. Trading Rotations.................................................................................... 706 Rule 24A.4. Terms of FLEX Options ......................................................................... 706 Rule 24A.5. FLEX Trading Procedures and Principles .............................................. 711 Rule 24A.5A. FLEX Automated Improvement Mechanism.......................................... 721 Rule 24A.5B. FLEX Solicitation Auction Mechanism.................................................. 725 Rule 24A.6. Discretionary Transactions ..................................................................... 728 Rule 24A.7. Position Limits and Reporting Requirements ......................................... 728 Rule 24A.8. Exercise Limits ....................................................................................... 731 Rule 24A.9. FLEX Market-Maker Appointments and Obligations ............................ 732 Rule 24A.10. Related Securities.................................................................................... 733 Rule 24A.11. FLEX Index Appointed Market-Maker Account Equity ........................ 734 Rule 24A.12. FLEX Index Appointed Market-Maker Financial Requirements ........... 734 Rule 24A.13. Letter of Guarantee or Authorization ...................................................... 734 Rule 24A.14. FLEX Official ......................................................................................... 735 Rule 24A.15. Inapplicability of Split Price and Accommodation Liquidation

Rules ....................................................................................................... 735

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RESERVED.................................................................................... 736 RESERVED .................................................................................. 737 RESERVED ................................................................................ 738 CORPORATE DEBT SECURITY OPTIONS....................... 739

Definitions............................................................................................... 739 Position Limits ........................................................................................ 740 Exercise Limits ....................................................................................... 740 Reports Related to Position Limits and Liquidation of Positions ........... 740 Designation of Corporate Debt Security Options ................................... 741 Approval of Underlying Corporate Debt Securities ............................... 741 Terms of Corporate Debt Security Options ............................................ 741 Series of Corporate Debt Security Options Open for Trading ................ 742 Days and Hours of Business ................................................................... 742

Trading Halts and Suspension of Trading .............................................. 742 Meaning of Premium Bids and Offers .................................................... 743 Accommodation Trading ........................................................................ 743 Doing Business with the Public .............................................................. 743 Allocation of Exercise Assignment Notices ........................................... 743 Delivery and Payment ............................................................................. 744 Furnishing of Books, Records and Other Information............................ 744 FLEX Trading ......................................................................................... 745

CREDIT OPTION CONTRACTS ............................................. 746 Definitions............................................................................................... 746 Designation of Credit Default Option Contracts .................................... 749

Rule 29.2A. Designation and Terms of Credit Default Basket Option Contracts ....... 750 Withdrawal of Approval of Underlying Reference Entity ...................... 751 Adjustments ............................................................................................ 751 Position Limits ........................................................................................ 753 Reports Related to Position Limits and Liquidation of Positions ........... 754 Exercise Limits ....................................................................................... 755 Other Restrictions on Credit Option Transactions .................................. 755 Determination of Credit Event, Automatic Exercise and Settlement ..... 755

Disclaimers ............................................................................................. 756 Days and Hours of Business ................................................................... 757 Trading Rotations.................................................................................... 757 Trading Halts and Suspension of Trading .............................................. 757 Premium Bids and Offers; Minimum Increments; Priority and

Allocation ................................................................................................ 757 Nullification and Adjustment of Credit Option Transactions ................. 758 Reserved .................................................................................................. 758 Market-Maker Appointments & Obligations .......................................... 758 FLEX Trading ......................................................................................... 759

CBOE OPTIONS EQUITY LISTING RULES .......................... 760 CBOE OPTIONS EQUITY TRADING RULES ...................... 761

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DEFINITIONS

Definitions

When used in these Rules, unless the context otherwise requires:

(a) Any term defined in the Bylaws and not otherwise defined in this Chapter shall have the meaning assigned to such term in the Bylaws.

Bylaws

(b) The term Bylaws means the Bylaws of the Exchange as the same may be amended from time to time.

Rules

(c) The term Rules means the Rules of the Exchange as the same may be in effect from time to time.

Clearing Corporation

(d) The term Clearing Corporation means The Options Clearing Corporation.

Rules of the Clearing Corporation

(e) The term Rules of the Clearing Corporation means the Certificate of Incorporation, the By- laws and the Rules of the Clearing Corporation, and all written interpretations thereof, as the same may be in effect from time to time.

Clearing Trading Permit Holder

(f) The term Clearing Trading Permit Holder means a Trading Permit Holder who has been admitted to membership in the Clearing Corporation pursuant to the provisions of the Rules of the Clearing Corporation.

Federal Reserve Board

(g) The term Federal Reserve Board means the Board of Governors of the Federal Reserve System.

Executive Officer

(h) The term executive officer of a TPH organization means the chairman of the board, president, executive vice-president, other vice-presidents engaged in the management of the TPH organizations business pertaining to options, treasurer, secretary, and any other person who performs for a TPH organization functions corresponding to those performed by the foregoing officers.

2

Principal Shareholder

(i) The term principal shareholder means any person beneficially owning, directly or indirectly, equity securities representing 5% of the voting power in elections of directors, or 5% of the net worth, or a 5% participation in the net profits, of a corporation.

Affiliate and Affiliated with

(j) The term affiliate of or a person affiliated with another person means a person who, directly or indirectly, controls, is controlled by, or is under common control with, such other person.

Control

(k) The term control means the power to exercise a controlling influence over the management or policies of a person, unless such power is solely the result of an official position with such person. Any person who owns beneficially, directly or indirectly, more than 20% of the voting power in the election of directors of a corporation, or more than 25% of the voting power in the election of directors of any other corporation which directly or through one or more affiliates owns beneficially more than 25% of the voting power in the election of directors of such corporation, shall be presumed to control such corporation.

Exchange Transaction

(l) The term Exchange transaction means a transaction on the Exchange between Trading Permit Holders for the purchase or sale of an option contract or the purchase or sale of any other security admitted to trading on the Exchange, or for the closing out of a long or short position in an option contract.

Option Contract

(m) Except as otherwise provided, the term option contract means a put or a call issued, or subject to issuance, by the Clearing Corporation pursuant to the Rules of the Clearing Corporation.

Put

(n) The term put means an option contract under which the holder of the option has the right, in accordance with the terms and provisions of the option, to sell to the Clearing Corporation the number of shares of the underlying security covered by the option contract.

Call

(o) The term call means an option contract under which the holder of the option has the right, in accordance with the terms of the option, to purchase from the Clearing Corporation the number of shares of the underlying security covered by the option contract.

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Type of Option

(p) The term type of option means the classification of an option contract as either a put or a call.

Class of Options

(q) The term class of options means all option contracts of the same type covering the same underlying security.

Series of Options

(r) The term series of options means all option contracts of the same class having the same exercise price and expiration date.

Exercise Price

(s) The term exercise price means the specified price per unit at which the underlying security may be purchased or sold upon the exercise of an option contract.

Aggregate Exercise Price

(t) The term aggregate exercise price means the exercise price of an option contract multiplied by the number of units of the underlying security covered by the option contract.

Underlying Security

(u) The term underlying security in respect of an option contract means the security which the Clearing Corporation shall be obligated to sell (in the case of a call option contract) or purchase (in the case of a put option contract) upon the valid exercise of the option contract.

Primary Market

(v) The term primary market in respect of an underlying security means the principal market in which the underlying security is traded.

Long Position

(w) The term long position means a persons interest as the holder of one or more units of trading of a given option contract.

Short Position

(x) The term short position means a persons interest as the writer of one or more units of trading of a given option contract.

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Covered

(y) The term covered in respect of a short position in a call option contract means that the writers obligation is secured by a specific deposit or an escrow deposit meeting the conditions of Rule 610(f) or 610(h), respectively, of the Rules of the Clearing Corporation, or the writer holds in the same account as the short position, on a share-for-share basis, a long position either in the underlying security or in an option contract of the same class of options where the exercise price of the option contract in such long position is equal to or less than the exercise price of the option contract in such short position. The term covered in respect of a short position in a put option contract means that the writer holds in the same account as the short position, on a share-for-share basis, a long position in an option contract of the same class of options where the exercise price of the option contract in such long position is equal to or greater than the exercise price of the option contract in such short position.

Uncovered

(z) The term uncovered in respect of a short position in an option contract means that the short position is not covered.

Opening Purchase Transaction

(aa) The term opening purchase transaction means an Exchange transaction which will create or increase a long position in an option contract.

Opening Writing Transaction

(bb) The term opening writing transaction means an Exchange transaction which will create or increase a short position in an option contract.

Closing Purchase Transaction

(cc) The term closing purchase transaction means an Exchange transaction which will reduce or eliminate a short position in an option contract.

Closing Writing Transaction

(dd) The term closing writing transaction means an Exchange transaction which will reduce or eliminate a long position in an option contract.

Outstanding

(ee) The term outstanding in respect of an option contract means an option contract which has been issued by the Clearing Corporation and has neither been the subject of a closing writing transaction nor has reached its expiration date.

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Person

(ff) The term Person means an individual, partnership (general or limited), joint stock company, corporation, limited liability company, trust or unincorporated organization, or any governmental entity or agency or political subdivision thereof.

Trading Permit Holder

(gg) The term Trading Permit Holder shall have the meaning given to that term in Section 1.1 of the Bylaws.

Government Securities Options Permit Holder

(hh) Deleted August 18, 2000 (99-15).

Stock-Option Order

(ii) A stock-option order is an order to buy or sell a stated number of units of an underlying or a related security coupled with either (a) the purchase or sale of option contract(s) on the opposite side of the market representing either the same number of units of the underlying or related security or the number of units of the underlying security necessary to create a delta neutral position or (b) the purchase or sale of an equal number of put and call option contracts, each having the same exercise price, expiration date and each representing the same number of units of stock as, and on the opposite side of the market from, the underlying or related security portion of the order.

Good Standing

(jj) The term good standing means that a Trading Permit Holder or associated person is not delinquent respecting Exchange fees or other charges and is not suspended or barred from being a Trading Permit Holder or from being associated with a Trading Permit Holder.

(kk) Reserved.

Inter-regulatory Spread Order

(ll) An inter-regulatory spread order is an order involving the simultaneous purchase and/or sale of at least one unit in contracts each of which is subject to different regulatory jurisdictions at stated limits, or at a stated differential, or at market prices on the floor of the Exchange.

Exchange Act

(mm) The term Exchange Act or Act means the Securities Exchange Act of 1934, as amended.

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Designated Primary Market-Maker, DPM

(nn) The terms Designated Primary Market-Maker and DPM mean a Designated Primary Market-Maker as described in Rule 8.80.

(oo) Reserved.

Nominee

(pp) The term nominee means an individual who is authorized by a TPH organization, in accordance with Rule 3.8, to represent such TPH organization in all matters relating to the Exchange.

Associated Person or Person Associated with a Trading Permit Holder

(qq) The term associated person or person associated with a Trading Permit Holder means any partner, officer, director, or branch manager of a Trading Permit Holder (or any person occupying a similar status or performing similar functions), any person directly or indirectly controlling, controlled by, or under common control with a Trading Permit Holder, or any employee of a Trading Permit Holder.

UIT Interest

(rr) The term UIT interest means any share, unit, or other interest in or relating to a unit investment trust, including any component resulting from the subdivision or separation of such an interest.

(ss) Reserved

(tt) Reserved

European-style Option

(uu) The term European-style option means an option contract that, subject to the provisions of Rule 11.1 (relating to the cutoff time for exercise instructions) and to the Rules of the Clearing Corporation, can be exercised only on its expiration date.

American-style Option

(vv) The term American-style option means an option contract that, subject to the provisions of Rule 11.1 (relating to the cutoff time for exercise instructions) and to the Rules of the Clearing Corporation, can be exercised on any business day prior to its expiration date and on its expiration date.

Capped-style Option

(ww) The term capped-style option means an option contract that is automatically exercised when the cap price is reached. If this does not occur prior to expiration, it can be exercised, subject to the provisions of Rule 11.1 (relating to the cutoff time for exercise

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instructions) and to the Rules of the Clearing Corporation, only on its expiration date. CAPS TM refers to capped- style options traded on the Exchange.

Foreign Broker-Dealer

(xx) The term foreign broker-dealer means any person or entity that is registered, authorized or licensed by a foreign governmental agency or foreign regulatory organization (or is required to be so registered, authorized or licensed) to perform the function of a broker or dealer in securities, or both. For the purposes of this definition, the terms broker and dealer have the same meaning as provided in Section 3(a)(4) and 3(a)(5) of the Exchange Act, except that a broker or dealer may be a bank.

Minimum Increment

(yy) The term minimum increment means the minimum increment for which bids and offers may be expressed as established pursuant to Rule 6.42 generally.

Security Future-Option Order

(zz) A security future-option order, which shall be deemed a type of Inter-regulatory Spread Order as that term is defined in Rule 1.1(ll), is an order to buy or sell a stated number of units of a security future or a related security convertible into a security future (convertible security future) coupled with either (a) the purchase or sale of option contract(s) on the opposite side of the market representing either the same number of the underlying for the security future or convertible security future or the number of units of the underlying for the security future or convertible security future necessary to create a delta neutral position or (b) the purchase or sale of an equal number of put and call option contracts, each having the same exercise price, expiration date and each representing the same number of the underlying for the security future or convertible security future, as and on the opposite side of the market from, the underlying for the security future or convertible security future portion of the order.

Hybrid Trading System

(aaa) Hybrid Trading System refers to (i) the Exchanges trading platform that allows Market- Makers to submit electronic quotes in their appointed classes and (ii) any connectivity to the foregoing trading platform that is administered by or on behalf of the Exchange, such as a communications hub. Hybrid 3.0 Platform is an electronic trading platform on the Hybrid Trading System that allows one or more quoters to submit electronic quotes which represent the aggregate Market-Maker quoting interest in a series for the trading crowd. Classes authorized by the Exchange for trading on the Hybrid Trading System shall be referred to as Hybrid classes. Classes authorized by the Exchange for trading on the Hybrid 3.0 Platform shall be referred to as Hybrid 3.0 classes. References to Hybrid, Hybrid System, or Hybrid Trading System in the Exchanges Rules shall include all platforms unless otherwise provided by rule.

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Short Term Option

(bbb) Short Term Option Series. A Short Term Option Series is a series in an option class that is approved for listing and trading on the Exchange in which the series is opened for trading pursuant to the Short Term Option Series Program provisions of Rule 5.5(d).

Continuous Electronic Quotes

(ccc) With respect to a Market-Maker who is obligated to provide continuous electronic quotes on the Hybrid Trading System (Hybrid Market-Maker), the Hybrid Market-Maker shall be deemed to have provided continuous electronic quotes if the Hybrid Market-Maker provides electronic two-sided quotes for 90% of the time that the Hybrid Market-Maker is required to provide electronic quotes in an appointed option class on a given trading day during the applicable trading session. Compliance with this quoting obligation applies to all of a Hybrid Market-Makers appointed classes collectively (with respect to each Market-Maker type as the Hybrid Market-Maker is approved to act). The Exchange will determine compliance by a Hybrid Market-Maker with this quoting obligation on a monthly basis. However, determining compliance with this obligation on a monthly basis does not relieve a Hybrid Market-Maker from meeting this obligation on a daily basis, nor does it prohibit the Exchange from taking disciplinary action against a Hybrid Market-Maker for failing to meet this obligation each trading day. Hybrid Market-Maker continuous electronic quoting obligations may be satisfied by Market-Makers either individually or collectively with Market-Makers of the same TPH organization.

If a technical failure or limitation of a system of the Exchange prevents the Hybrid Market- Maker from maintaining, or prevents the Hybrid Market-Maker from communicating to the Exchange, timely and accurate electronic quotes in a class, the duration of such failure shall not be considered in determining whether the Hybrid Market-Maker has satisfied the 90% quoting standard with respect to that option class. The Exchange may consider other exceptions to this continuous electronic quote obligation based on demonstrated legal or regulatory requirements or other mitigating circumstances.

Quarterly Options Series

(ddd) Quarterly Option Series. A Quarterly Option Series is a series in an options class that is approved for listing and trading on the Exchange in which the series is opened for trading on any business day and that expires at the close of business on the last business day of a calendar quarter.

Floor Official

(eee) The term Floor Official means an individual appointed by the Exchange who is granted certain duties and authorities under the Rules with respect to trading issues and market actions.

Voluntary Professional

(fff) The term Voluntary Professional means any person or entity that is not a broker or dealer in securities that elects, in writing, to be treated in the same manner as a broker or dealer

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in securities for purposes of Rules 6.2, 6.8, 6.9, 6.13A, 6.25, 6.45 (except for Interpretation and Policy .02), 6.47, 6.53C(c)(ii), 6.53C(d)(v), subparagraphs (b) and (c) under Interpretation and Policy .06 to Rule 6.53C, 6.74 (except Voluntary Professional orders may be considered public customer orders subject to facilitation under paragraphs (b) and (d)), 6.74A, 6.74B, 8.13, 8.15(d), 8.87, and 24.19, and for cancellation fee treatment. The Voluntary Professional designation is not available in Hybrid 3.0 classes.

Professional

(ggg) The term Professional means any person or entity that (i) is not a broker or dealer in securities, and (ii) places more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s). A Professional will be treated in the same manner as a broker or dealer in securities for purposes of Rules 6.2, 6.8, 6.9, 6.13A, 6.25, 6.45 (except for Interpretation and Policy .02), 6.47, 6.53C(c)(ii), 6.53C(d)(v), subparagraphs (b) and (c) under Interpretation and Policy .06 to Rule 6.53C, 6.74 (except Professional orders may be considered public customer orders subject to facilitation under paragraphs (b) and (d)), 6.74A, 6.74B, 8.13, 8.15(d), 8.87, and 24.19. The Professional designation is not available in Hybrid 3.0 classes. All Professional orders shall be marked with the appropriate origin code as determined by the Exchange.

Trading Permit

(hhh) The term Trading Permit means a license issued by the Exchange that grants the holder or the holders nominee the right to access one or more of the facilities of the Exchange for the purpose of effecting transactions in securities traded on the Exchange without the services of another person acting as broker, and otherwise to access the facilities of the Exchange for purposes of trading or reporting transactions or transmitting orders or quotations in securities traded on the Exchange, or to engage in other activities that, under the Rules, may only be engaged in by Trading Permit Holders, provided that the holder or the holders nominee, as applicable, satisfies any applicable qualification requirements to exercise those rights. A Trading Permit shall not convey any ownership interest in the Exchange, shall only be available through the Exchange, and shall be subject to the terms and conditions set forth in Rule 3.1.

Restructuring Transaction

(iii) The term Restructuring Transaction means the restructuring of the Exchange from a non- stock corporation to a stock corporation and wholly-owned subsidiary of Cboe Global Markets, Inc.

TPH Department

(jjj) The term TPH Department shall refer to the department or division of the Exchange (which may be referred to by the Exchange from time to time by a name other than the TPH Department) that has the functions set forth in the Rules for the TPH Department.

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Proprietary Trading Permit Holder

(kkk) A Trading Permit Holder with electronic access to the Exchange to submit proprietary orders that are not market-maker orders.

Adjusted Option Series

(lll) The term adjusted option series means an option series wherein, as a result of a corporate action by the issuer of the underlying security, one option contract in the series represents the delivery of other than 100 shares of underlying stock or Units.

Expiration Date

(mmm) Unless separately defined elsewhere in these Rules, the term expiration date means:

(i) in the case of such an option expiring prior to February 1, 2015, the Saturday immediately following the third Friday of the expiration month of such option contract; and

(ii) in the case of such an option expiring on or after February 1, 2015, the third Friday of the expiration month of such option contract, or if such Friday is a day on which the Exchange on which such option is listed is not open for business, the preceding day on which such Exchange is open for business. Notwithstanding the foregoing, in the case of certain options expiring on or after February 1, 2015 that the Clearing Corporation has designated as grandfathered, the term expiration date shall mean the Saturday immediately following the third Friday of the expiration month.

API

(nnn) The term Application Programming Interface or API means the computer interface that allows market participants with authorized access to interface electronically with the Exchange.

Order

(ooo) The term order means a firm commitment to buy or sell option contracts.

Quote

(ppp) The term quote or quotation means a bid or offer entered by a Market-Maker that is firm and that updates the Market-Makers previous quote, if any. Electronic quotes may be updated in block quantities.

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OCC Cleared OTC Option Contract

(qqq) The term OCC cleared OTC option contract means an over-the-counter option contract that is issued and guaranteed by the Clearing Corporation. Except as otherwise provided, an OCC cleared OTC option contract is not an options contract as defined in the Rules.

Book

(rrr) The term Book (also referred to as book, electronic book, and EBook in the Rules) means the electronic book of buy and sell orders and quotes maintained by the Hybrid Trading System. Book will refer to the Book used during Regular Trading Hours or Extended Trading Hours, as applicable.

Regular Trading Hours

(sss) Regular Trading Hours are the hours during which the Exchange will be open for trading as set forth in Rule 6.1 and may be referred to as a trading session in the Rules.

Extended Trading Hours

(ttt) Extended Trading Hours are the hours outside of Regular Trading Hours during which the Exchange may be open for trading as set forth in Rule 6.1 and may be referred to as a trading session in the Rules.

Business Days or Trading Days

(uuu) Business days or trading days of the Exchange are the days the Exchange will be open for trading during Regular Trading Hours. A business day or trading day includes the Regular Trading Hours and Extended Trading Hours on that day. If the Exchange is not open for Regular Trading Hours on a day, then it will not be open for Extended Trading Hours on that day.

Broker-Dealer Order

(vvv) A broker-dealer order is an order for an account in which a Trading Permit Holder, a non- Trading Permit Holder broker or dealer in securities (including a foreign broker-dealer), a joint venture with a Trading Permit Holder and non-Trading Permit Holder participants, or, in Hybrid classes for purposes of the Rules listed in paragraphs (fff) and (ggg) of this Rule 1.1, a Voluntary Professional or Professional has an interest.

In-Crowd Market Participant

(www) The term in-crowd market participant or ICMP means an in-crowd Market-Maker, an on-floor DPM or LMM with an allocation or appointment, respectively, in the class, or a floor broker or PAR Official representing orders in the trading crowd.

Priority Customer

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(xxx) In Hybrid classes, a priority customer means a person or entity that is a public customer and is not a Professional or Voluntary Professional. In Hybrid 3.0 classes, a priority customer means a person or entity that is a public customer.

Priority Customer Order

(yyy) A priority customer order is an order for the account of a priority customer.

Public Customer

(zzz) A public customer means a person or entity that is not a broker or dealer in securities.

Public Customer Order

(aaaa) A public customer order is an order for the account of a public customer.

National Spread Market

(bbbb) National spread market is the derived net market based on the NBBOs in the individual series legs comprising a complex order and, if a stock-option order, the NBBO of the stock leg.

Exchange Spread Market

(cccc) Exchange spread market is the derived net market based on the BBOs in the individual series legs comprising a complex order and, if a stock-option order, the NBBO of the stock leg.

Amended January 3, 1975; June 3, 1977; April 23, 1978; October 17 and 21, 1983; September 14, 1987; October 28, 1987; November 10, 1988, June 4, 1990 (90-09); July 9, 1990 (90-22); October 19, 1990 (90-08); February 21, 1992 (90-13); April 6, 1992 (91-41); October 22, 1992 (92-32); October 12, 1994 (93-04); January 30, 1998 (97-66); October 27, 1998 (98-22); July 19, 2000, effective August 18, 2000 (99-15); August 7, 2000 (00-07); March 5, 2004 (04-14); July 12, 2004 (04-24); March 14, 2005 (04-75); July 12, 2005 (04-63); November 22, 2005 (05-69); July 12, 2006 (06-65); July 31, 2006 (05-93); June 7, 2007 (06-101); May 23, 2008 (08-02); July 14, 2008 (08-67); August 7, 2008 (08-09); August 25, 2008 (08-89); October 10, 2008 (08-101); April 2, 2009 (09-009); December 17, 2009 (09-078); April 20, 2010 (10-032); May 24, 2010, effective June 18, 2010 (08-88); November 28, 2011 (11-105); August 6, 2012 (12-064); July 19, 2013 (13-064); September 3, 2013 (13-073); November 27, 2013 (13-103); August 21, 2014 (14-059); October 31, 2014 (14-073); November 28, 2014 (14-062); December 10, 2014 (14-085); March 25, 2016 (16-005); April 7, 2016 (16-009); May 6, 2016 (16-034); August 24, 2016 (16-062); January 24, 2017 (17-009); February 23, 2017 (17-016); January 3, 2018 (18-010); March 27, 2018 (18-021).

Editorial correction March 19, 1991.

. . . Interpretations and Policies:

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.01 Interests in unit investment trusts sponsored by SuperShare Services Corporation and known as SuperShares and SuperUnits are UIT interests within the meaning of the Rules of the Exchange. There are four types of SuperShares: Appreciation SuperShares Priority SuperShares Protection SuperShares and Income and Residual SuperShares. There are two types of SuperUnits: Index Trust SuperUnits and Money Market Trust SuperUnits. The terms SuperShare, SuperUnit, Appreciation SuperShare, Priority SuperShare, Protection SuperShare, Income and Residual SuperShare, Index Trust SuperUnit and Money Market Trust SuperUnit are trademarks of SuperShare Services Corporation.

Approved February 21, 1992 (90-13).

.02 The term index portfolio receipts or IPRs means securities that (a) represent an interest in a unit investment trust (Trust) which holds the securities that comprise an index on which a series of IPRs is based; (b) are issued by the Trust in a specified aggregate minimum number in return for a Portfolio Deposit consisting of specified numbers of shares of stock plus a cash amount; (c) when aggregated in the same specified minimum number, may be redeemed from the Trust which will pay to the redeeming holder the stock and cash then comprising the Portfolio Deposit; and (d) pay holders a periodic cash payment corresponding to the regular cash dividends or distributions declared and paid with respect to the component securities of the stock index on which the IPRs are based, less certain expenses and other charges as set forth in the Trust prospectus. IPRs are UIT interests within the meaning of the Rules of the Exchange.

Approved January 26, 1998 (97-38).

.03 The term Index Portfolio Shares or IPSs means securities that (a) are issued by an open- end management investment company based on a portfolio of stocks or fixed income securities designed to provide investment results that correspond generally to the price and yield performance of a specified foreign or domestic stock index or fixed income securities index; (b) are issued by such an open-end management investment company in a specified aggregate minimum number in return for a deposit of specified number of shares of stock and/or a cash amount, or a specified portfolio of fixed income securities and/or a cash amount, with a value equal to the next determined net asset value; and (c) when aggregated in the same specified minimum number, may be redeemed at a holders request by such open-end management investment company which will pay to the redeeming holder stock and/or cash, or a specified portfolio of fixed income securities and/or cash with a value equal to the next determined net asset value.

Amended August 29, 2002 (02-47).

.04 The term Trust Issued Receipt means a security (a) that is issued by a trust (Trust) which holds specific securities deposited with the Trust; (b) that, when aggregated in some specified minimum number, may be surrendered to the Trust by the beneficial owner to receive the securities; and (c) that pays beneficial owners dividends and other distributions on the deposited securities, if any are declared and paid to the trustee by an issuer of the deposited securities.

Approved May 26, 2000 (00-11); amended August 10, 2000 (00-23).

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.05 The term Index-Linked Exchangeable Note means an exchangeable debt security that is exchangeable at the option of the holder (subject to the requirement that the holder in most circumstances exchange a specified minimum amount of notes), on call by the issuer, or at maturity for a