TRADING PERMIT INFORMATION FOR 10/21/10 THROUGH 10/27/10

ExchangeBulletinOctober 29, 2010 Volume 38, Number 44

The Bylaws and Rules of Chicago Board Options Exchange, Incorporated (“Exchange”), in certain specific instances, require the Exchange to provide notice to Exchange Trading Permit Holders. To satisfy this requirement, a copy of the Exchange Bulletin, including the Regulatory Bulletin, is delivered by e-mail or by hard copy free of charge to all effective Trading Permit Holders on a weekly basis.

Trading Permit Holders are encouraged to receive the Exchange and Regulatory Bulletin and Information Circulars via e-mail. E-mail subscriptions may be obtained by submitting your name, firm if applicable, e-mail address, and phone number, to registration@cboe.com. If you do sign up for e-mail delivery, please remember to inform the Registration Services Department of e-mail address changes. Sub-scriptions for hard copy delivery may be obtained by submitting your name, firm if any, mailing address and telephone number to: Chicago Board Options Exchange, Registration Services Department, 400 South LaSalle, Chicago, Illinois 60605, Attention: Bulletin Subscriptions.

For access to the CBOE Trading Permit Holder Web Site, please also notify the Registration Services Department by sending an e-mail to registration@cboe.com or by phone at 312-786-7449.

Copyright © 2010 Chicago Board Options Exchange, Incorporated

TRADING PERMIT APPLICATIONS RECEIVED FOR WHICH BULLETIN PUBLICATION IS REQUIRED

Individual Applicants Matt Ryan Nico Securities, LLC 531 W. deming Pl., Apt. 102 Chicago, IL 60614 Charles C Harrold IVGroup One Trading, L.P.2026 N. Kenmore Ave., South CHChicago, IL 60614

Charles A RockToro Capital Management LLC125 South Green Street, Unit 506AChicago, IL 60607

TERMINATIONS

Individuals Nominees: Termination Date John S Stafford (GPZ) 10/22/10Ronin Capital, LLC Timothy Bilmanis (BDS) 10/22/10BDS Trading, LLC

Terrence J Moran (TER) 10/25/10Ronin Capital, LLC TPH Organizations

BDS Trading, LLC 10/22/10

EFFECTIVE TRADING PERMIT HOLDERS

Individuals Nominees: Effective Date Terrence J Moran (TER) 10/22/10Ronin Capital, LLC Type of Business to be Conducted: Market Maker Rodrigo H Levy (RLV) 10/27/10J.T. Limited PartnershipType of Business to be Conducted: Market Maker

*****Addendum to Bulletin Dated 10/15/10*****

Sharon E. Jensen 10/15/10Robert W. Baird & Co. IncorporatedType of Business to be Conducted:No Trading Function

CHANGES IN TRADING FUNCTION

Individuals Effective Date Sean P McKeough 10/22/10From: Nominee For Hybrid Trading & Resources, LLC; Floor BrokerTo: Nominee For PTR, Incorporated; Floor Broker

Martin P Rohrich 10/22/10From: Nominee For PTR, Incorporated; Floor BrokerTo: Nominee For Hybrid Trading & Resources, LLC; Floor Broker

Page 2 October 29, 2010 Volume 38, Number 44 Chicago Board Options Exchange

Research Circular #RS10-597October 26, 2010The Progressive Corporation (“PGR”)CONTRACT ADJUSTMENT FOR SPECIAL CASH DIVIDENDEx-Date: December 16, 2010 Research Circular #RS10-598October 26, 2010Riverbed Technology, Inc. (“RVBD”) 2-for-1 Stock SplitEx-Distribution Date: November 9, 2010

Research Circular #RS10-599October 26, 2010Diamond Offshore Drilling, Inc. (“DO/DO1”)CONTRACT ADJUSTMENT FOR SPECIAL CASH DIVIDENDEx-Date: October 28, 2010 Research Circular #RS10-600October 26, 2010*****UPDATE – DETERMINATION OF SPECIAL CASH DIVIDEND AMOUNT***** Infosys Technologies Limited (“INFY & adj. INFY1”) Research Circular #RS10-601October 26, 2010Mariner Energy, Inc. (“ME”) Proposed Election Merger with Apache Corporation (“APA”)

Research Circular #RS10-602October 26, 2010Scholastic Corporation (“SCHL”)Partial Self Tender Offer

Research Circular #RS10-604October 27, 2010YRC Worldwide, Inc. (YRCWD)Underlying Symbol Change to: (“YRCW”)Effective Date: October 28, 2010

Research Circular #RS10-605October 28, 2010Tutor Perini Corporation (“TPC”)CONTRACT ADJUSTMENT FOR SPECIAL CASH DIVIDENDEx-Date: November 2, 2010 Research Circular #RS10-606October 28, 2010Pain Therapeutics, Inc. (“PTIE”)CONTRACT ADJUSTMENT FOR SPECIAL CASH DIVIDENDEx-Date: December 13, 2010

RESEARCH CIRCULARS The following Research Circulars were distributed between October 22, and October 28, 2010. If you wish to read the entire document, please refer to the CBOE website at www.cboe.com and click on the “Trading Tools” Tab. New listings and series information is also available in the Trading Tools section of the website. For questions regarding information discussed in a Research Circular, please call The Options Clearing Corporation at 1-888-OPTIONS.

Research Circular #RS10-585October 22, 2010ArcSight, Inc. (“ARST”)Merger Completed -- Cash Settlement

Research Circular #RS10-586October 22, 2010ATC Technology Corporation (“ATAC”) Merger COMPLETEDwith Genco Distribution System, Inc. – Cash Settlement

Research Circular #RS10-587October 25, 2010Lions Gate Entertainment Corp. (“LGF”)Tender Offer EXTENDED by Icahn Partners LP, Icahn Partners Master Fund LP, Icahn Partners Master Fund II LP, Icahn Partners Master Fund III LP, High River Limited Partnership, Icahn Fund S.A R.L., Daazi Hold-ings B.V., 7508921 Canada Inc., and Ronald G. Atkey, in his capacity as the sole trustee of the LGE Trust

Research Circular #RS10-588October 25, 2010MDS Inc. (“MDZ”)Name, Stock and Option Symbol Change toNordion Inc. (“NDZ”)Effective Date: November 1, 2010

Research Circular #RS10-591October 25, 2010Capitol Federal Financial (“CFFN”)CONTRACT ADJUSTMENT FOR SPECIAL CASH DIVIDENDEx-Date: October 27, 2010

Research Circular #RS10-592October 25, 2010Waste Connections, Inc. (“WCN”) 3-for-2 Stock SplitEx-Distribution Date: November 15, 2010

Research Circular #RS10-593October 25, 2010MSC Industrial Direct Co., Inc. (“MSM”)CONTRACT ADJUSTMENT FOR SPECIAL CASH DIVIDENDEx-Date: October 29, 2010 Research Circular #RS10-594October 26, 2010King Pharmaceuticals, Inc. (“KG”)Tender Offer by Parker Tennessee Corp.

Research Circular #RS10-595October 26, 2010The Gymboree Corporation (“GYMB”)Tender Offer by Giraffe Acquisition Corporation

Research Circular #RS10-596October 26, 2010Ameron International Corporation (“AMN”)CONTRACT ADJUSTMENT FOR SPECIAL CASH DIVIDENDEx-Date: November 8, 2010

October 29, 2010 Volume RB21, Number 44

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The Bylaws and Rules of Chicago Board Options Exchange, Incorporated (“Exchange”), in certain specific instances, require the Exchange to provide notice to Trading Permit Holders. The weekly Regulatory Bulletin is delivered to all effective Trading Permit Holders to satisfy this requirement. Copyright © 2010 Chicago Board Options Exchange, Incorporated.

REGULATORY CIRCULARS

Regulatory Circular RG10-110

To: Trading Permit Holders (TPH)

From: Regulatory Services Division

Date: October 27, 2010

Re: Delta Position Limit Hedge Exemption

This Regulatory Circular provides guidance on delta hedge exemption for position limit purposes. The Regulatory Division is re-issuing this Circular, which includes various updates, to provide guidance to TPHs that wish to utilize the delta hedge exemption. Frequently Asked Questions

1. What is a delta hedge exemption?

The delta hedge exemption allows an eligible TPH or non-TPH affiliate of a TPH to apply a delta to an equity option position to calculate its overall net position for position limit purposes. This is an additional hedge exemption to the approved exemptions listed in CBOE Rule 4.11.04.

2. Who is eligible to use the delta hedge exemption?

A TPH or non-TPH broker-dealer and certain other financial institutions that use a “permitted pricing model” as defined in CBOE Rule 4.11 are eligible to use the exemption.

In support of the delta position limit effort, the Options Clearing Corporation ("OCC") will provide subscribers with an OCC generated delta value for each option series.

Customer accounts are not eligible to apply the delta hedge exemption (see: Regulatory Circular RG 09-103).

3. When will the delta hedge exemption become effective?

The delta hedge exemption became effective on February 1, 2008.1 1 On May 27, 2010, the delta hedge exemption was expanded to include correlated securities.

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4. What do I need to do to apply the delta hedge exemption?

An entity that is eligible to rely on the delta hedge exemption must first provide the CBOE with a written certification that the entity uses a “permitted pricing model” and is therefore eligible to apply this exemption. A TPH carrying an account of a non-TPH affiliate that intends to rely on this exemption must first obtain from such non-TPH:

1. A written certification to the CBOE that it is using a “permitted pricing model” and is therefore eligible to apply this exemption; and,

2. A written statement confirming that the non-TPH affiliate:

is relying on this exemption;

will use only a permitted pricing model for purposes of net delta calculations;

will promptly notify the TPH if it ceases to rely on this exemption;

authorizes the TPH to provide information to the CBOE or the OCC;

if using the OCC pricing model, has duly executed and delivered to CBOE such documents as the CBOE may require as a condition for reliance on the exemption.

At this time the CBOE expects that TPHs and/or non-TPH affiliates electing to use the delta hedge exemption will inform the CBOE of the specific account or entity identifying information that it intends to use to satisfy the reporting obligations of the exemption. Other options exchanges and the Financial Industry Regulatory Authority (“FINRA”) include position limits, including the use of the delta hedge exemption, in a coordinated regulatory program pursuant to the “17d-2 arrangement.”2 Common members of the 17d-2 participants are allocated to one of the regulatory participants. After notification of such assignment, the common member will provide any such written certification to its assigned regulator.

5. Does the delta hedge exemption apply to the firm’s overall position or can the firm use this exemption for specific accounts?

A firm can apply the delta hedge exemption either to its entire position in a particular security or to the positions in a particular security held by one or more of its’ approved “aggregation units.” Within each aggregation unit there can be several trading units, as described in CBOE Rule 4.11. (See bullet 9 for additional information on trading units) In order for an “aggregation unit” to be approved, the firm must submit a written request to the Regulatory Division of the CBOE or to the TPH’s assigned regulator, as applicable (see bullet 4 above) describing the aggregation units (reporting structure within each aggregation unit and the control aspects of the management for each unit citing any overlaps in responsibilities). This should be followed with an explanation as to why the unit should be separated from the rest of the firm for position limit purposes. The request must satisfy the provisions of CBOE Regulatory Circular RG08-12 (previously RG04-45).

2 The NYSE Amex LLC (AMEX); BATS Exchange, Inc. (BATS); C2 Options Exchange, Inc. (C2); the Chicago Board Options

Exchange, Inc. (CBOE); the International Securities Exchange LLC (ISE); Financial Industry Regulatory Authority, Inc. (FINRA); NYSE Arca, Inc. (ARCA); NASDAQ OMX BX, Inc. (BX); and NASDAQ OMX PHLX, Inc. (PHLX), participate in an arrangement for allocation of regulatory responsibility pursuant to SEC Rule 17d-2.

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6. What is an “Option Contract Equivalent of the Net Delta (OCEND)?”

The OCEND is an aggregate position number adjusted for a series delta and is subject to the appropriate position limit, and is calculated by taking the net delta divided by the number of shares that equate to one option contract on a delta basis. The OCEND should be submitted using the same specific account or entity identifying information that the firm provided to CBOE upon notice of intent to elect the delta hedge exemption.

7. What are the reporting requirements if the delta hedge exemption is applied to the firm’s entire position in a particular security (no separate aggregation units)?

A) For OCC members, the requirement is: Report the OCEND to the OCC through the “Delta Based Position Limit Aggregator Report” when the firm’s equity option position in a particular security exceeds the position limit on a contract basis.

B) For non-OCC members, the requirements are: i) Report the OCEND to the OCC through the “Delta Based Position Limit Aggregator Report”

when the firm’s equity option position in a particular security exceeds the position limit on a contract basis.

ii) Report to the Large Option Position Report (“LOPR”) when a position is greater than or equal to 200 contracts on the same side of the market (no change to the current reporting requirements). The LOPR should also be submitted using the same specific account or entity identifying information that it provided to CBOE upon notice of intent to elect the delta exemption.

8. What are the reporting requirements if a firm wants to apply the delta hedge exemption to different aggregation units?

For OCC and non-OCC members, the requirements are: A) Report the OCEND to the OCC through the “Delta Based Position Limit Aggregator Report” when the

aggregation unit's equity option position in a particular security exceeds the position limit on a contract basis.

B) Report to the LOPR when a position is greater than or equal to 200 contracts on the same side of the market for each aggregation unit.

C) The account or entity identifying information on these reports should be consistent with the specific account or entity identifying information provided to CBOE upon notice of intent to elect the delta hedge exemption.

9. What should I report if an aggregation unit has one or more trading units that do not use the delta hedge exemption?

The entity must combine the OCEND of the trading units using the delta hedge exemption with the positions on a contract basis of the trading units not using the exemption. For example, if Aggregation Unit A has an OCEND of long 200,000 deltas, and a trading unit within Aggregation Unit A that is not using delta is long 60,000 contracts (unhedged) and short 20,000 contracts, the firm should report 260,000 deltas to the “Delta Based Position Limit Aggregator Report.” Since the

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trading unit is not using delta, the firm may not net the 260,000 contract equivalent long position with the 20,000 contract short position to lessen the net deltas reported.

10. Is there a technical document that describes how to submit the OCEND to the “Delta Based Position Limit Aggregator Report?”

The OCC has published a user guide that provides technical specifications on how to submit position information to the “Delta Based Position Limit Aggregator Report.”

http://www.optionsclearing.com/clearing/industry-services/delta-position-limits.jsp Failure to report the OCEND may result in regulatory action. 11. Does the Delta Hedge Exemption apply both to standardized and conventional options? Yes, the delta hedge exemption applies to standardized and conventional options separately. For example, IBM options would have a 250,000 contract position limit in the standardized options and, under NASD rules, a separate 250,000 contract position limit in the conventional options. 12. Does the Delta Hedge Exemption apply to correlated securities other than the underlying? Yes, the delta hedge exemption applies to correlated securities. This exemption allows ETFs to be hedged with their underlying index. Some examples include: SPDRs (SPY) and the S&P 500 Index (SPX), iShares Russell 2000 Index (IWM) and the Russell 2000 Index (RUT), and Powershares QQQ (QQQQ) and the Nasdaq 100 Index (NDX) (See Exchange Rule 24.4 Interpretations and Policies .05).

Any questions regarding the CBOE delta position limit hedge exemption may be directed to the Department of Market Regulation at (312) 786-7730.

Replaces Regulatory Circular RG08-18 ___________________________________________________________________________________

Regulatory Circular RG10-111 To: Trading Permit Holders From: Trading Operations Date: October 28, 2010 Re: SPX “Weeklys” and End of Week (i.e. “Week-End”) Options In the first week of December 2010, CBOE will transition from the current AM-settled SPX “Weeklys” product to a PM-settled SPX “Week-End” product. The last AM-settled “Weeklys” will expire on Friday, December 3, 2010. The first PM-settled SPX Week-End options will begin on Thursday, December 2, 2010 and expire on Friday, December 10, 2010, thus allowing overlap of one trading day between the two. Following this transition, no further AM-settled SPX “Weeklys” will be listed. The trading symbol for the new PM-settled SPX Week-End product will be “SPXW” which will be tied to the SPX index underlying. A separate circular defining product specifications for the new PM-settled Week-End options will be disseminated separately. Additionally, CBOE has submitted a rule filing to enable the trading of a subset of series in an individual options class on the Hybrid platform while trading all other series of that options class on the Hybrid 3.0

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platform, which currently supports the SPX. As proposed, CBOE would be able to trade some SPX options series using the Hybrid platform, which allows Market-Makers to submit competing individual electronic quotes in their appointed class, while leaving other series on the current Hybrid 3.0 platform, which allows appointed LMMs to submit electronic quotes that represent the aggregate Market-Maker quoting interest for the trading crowd. Once the rule change is effective, it is the intention of the Exchange to launch the new SPX Week-End options, and only that sub-set of the SPX option class, on the Hybrid platform. CBOE expects the rule to become effective in the fourth quarter of 2010, allowing for a launch of the Week-End options on the Hybrid platform on December 2, 2010. Related points of interest are as follows:

1) The Market-Maker appointment cost for SPX will change from .95 to 1.0, effective December 1. 2) Only those Market-Maker Trading Permit Holders (TPHs) with an SPX appointment will be able to

stream electronic quotes in the Week-End options. 3) Market-Maker TPHs with an SPX appointment will not be able to have other class appointments

under the same trading acronym. Quote bandwidth associated with such a Trading Permit can only be used for quoting SPX (LMMs only) and SPXW.

4) A Market-Maker TPH with an SPX appointment will incur an obligation to provide electronic quotes in 60% of the End of Week option series if, during any calendar quarter, the Market-Maker TPH trades more than 20% of its Week-End options contract volume electronically. The obligation will begin the quarter following the quarter in which the 20% threshold was reached.

To prepare any interested and existing TPHs for this initiative, CBOE will conduct education sessions the weeks of November 1, 2010 and November 8, 2010. At these sessions, an overview of the Hybrid platform will be presented, with Market-Makers and Floor Brokers assigned to separate sessions. Third-party vendors that provide Market-Maker technology will be invited to attend the Market-Maker sessions. Over the upcoming weeks, as the anticipated launch date approaches, additional individual training sessions will be held in the CBOE test lab with each brokerage group. The schedule for the training sessions is as follows: November 2, 2010, 3:30 – 4th floor conference room 4B (Market-Maker session) November 3, 2010, 3:30 – 4th floor conference room 4B (Floor Broker session) November 4, 2010, 3:30 – 4th floor conference room 4B (Market-Maker session) November 9, 2010, 3:30 – 4th floor Auditorium (Market-Maker session) November 10, 2010, 3:30 – 4th floor conference room 4B (Floor Broker session) November 11, 2010, 3:30 – 4th floor conference room 4B (Market-Maker session) The matching algorithm and other Hybrid platform settings for the Week-End options will be announced by circular prior to the start-date of December 2, 2010. Questions regarding this matter may be directed to Anthony Montesano at (312) 786-7365 or montesan@cboe.com, or to Eric Frait at (312) 786-7747 or frait@cboe.com. ___________________________________________________________________________________

Regulatory Circular RG10-112

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TO: Trading Permit Holders FROM: CBOE Research and Product Development DATE: October 28, 2010 SUBJECT: Launch of P.M.-Settled End of Week (i.e. “Week-End”) SPX Options on Thursday, December 2, 2010

OVERVIEW

On Thursday, December 2, 2010, CBOE will commence trading of PM-settled End of Week (“Week-Ends”) SPX Options for expiration on Friday, December 10, 2010.

With the commencement of trading in Week-End SPX Options, CBOE will discontinue the listing

of AM-settled SPX Weeklys options, although they will be available during the month of November (expiring November 5, November 12 and November 26), with the last expiring on Friday, December 3.

The listing of the initial Week-End SPX options on Thursday, December 2 will allow for a one-day

roll period between the SPX Weeklys options that expire on December 3 and the initial Week-End SPX options that expire on Friday, December 10.

Initially, Week-End SPX Options will be listed on Thursdays of the week prior to their expiration.

END OF WEEK (i.e. “WEEK-END”) S&P 500 INDEX OPTIONS PRODUCT DESCRIPTION

Symbol: SPXW Description: Week-End SPX options are PM-settled, European-style exercise options that may be listed for trading to expire on any Friday of the month, other than the third Friday of the month. The Standard & Poor's 500 Index is a capitalization-weighted index of 500 stocks from a broad range of industries. The component stocks are weighted according to the total market value of their outstanding shares. The impact of a component's price change is proportional to the issue's total market value, which is the share price times the number of shares outstanding. These are summed for all 500 stocks and divided by a predetermined base value. The base value for the S&P 500 Index is adjusted to reflect changes in capitalization resulting from mergers, acquisitions, stock rights, substitutions, etc. Multiplier: $100.

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Premium Quote: Stated in decimals. One point equals $100. Minimum tick for options trading below 3.00 is 0.05 ($5.00) and for all other series, 0.10 ($10.00). Strike Prices: In-,at- and out-of-the-money strike prices are initially listed. New series are generally added when the underlying trades through the highest or lowest strike price available.

Strike Price Intervals: Five points.

Expiration Dates: Any Friday of the month, other than the third Friday of the month.

Exercise Style: European – Week-End SPX options generally may be exercised only on the expiration date.

Last Trading Day: Trading in End of Week SPX options ordinarily cease trading on the business day (usually a Friday) that the options expire.

Settlement Value: The exercise-settlement value, SPX, is calculated using the last (closing) reported sales price in the primary market of each component stock on the last trading day. The exercise-settlement amount is equal to the difference between the exercise-settlement value, SPX, and the exercise price of the option, multiplied by $100. Exercise will result in delivery of cash on the business day following the day the exercise notice is properly submitted.

Position and Exercise Limits, Reporting Requirements: As part of the SPX options class, there are no position limits for End of Week SPX options.

Positions in Week-End SPX options shall be aggregated with positions in SPX options for the purposes of satisfying the reporting requirements under Interpretation and Policy .03 to Rule 24.4, which, among other things, requires each TPH (other than a market maker) to submit a report to the CBOE whenever they maintain an aggregated position in SPX options in excess of 100,000 contracts. The TPH must report information as to whether such position is hedged and, if so, a description of the hedge employed, e.g., stock portfolio current market value, other stock index option positions, stock index futures positions, options on stock index futures; and for customer accounts, provide the account name, account number and tax ID or social security number. Thereafter, if the position is maintained at or above the reporting threshold, a subsequent report is required on Monday following expiration and when any change to the hedge results in the position being either unhedged or only partially hedged. Reductions below these thresholds do not need to be reported.

Position and exercise limits are subject to change.

Margin: Purchases of puts or calls with 9 months or less until expiration must be paid for in full. Writers of uncovered puts or calls must deposit / maintain 100% of the option proceeds* plus 15% of the aggregate contract value (current index level x $100) minus the amount by which the option is out-of-the-money, if any, subject to a minimum for calls of option proceeds* plus 10% of the aggregate contract value and a minimum for puts of option proceeds* plus 10% of the aggregate exercise price amount. (*For calculating

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maintenance margin, use option current market value instead of option proceeds.) Additional margin may be required pursuant to Exchange Rule 12.10.

Cusip Number: TBD

Trading Hours: 8:30 a.m. - 3:15 p.m. Central Time (Chicago time).

If you have any questions about this memorandum may be directed to the Help Desk at 1-866-728-2263.

R U L E C H A N G E S EFFECTIVE-ON-FILING RULE CHANGE(S) The following rule filing(s) were submitted to the Securities and Exchange Commission (“SEC”) “effective on filing,” and may have taken effect pursuant to Section 19(b)(3) of the Securities Exchange Act of 1934 (the “Act”). They will remain in effect barring further action by the SEC within 60 days after publication in the Federal Register. Below, any additions to rule text are underlined, and any deletions are [bracketed]. Copies are available on the CBOE public website at www.cboe.org/legal/effectivefiling.aspx. _________________________________________________________________________________ SR-CBOE-2010-097 Pilot Program for Additional Expirations On October 26, 2010, the Exchange filed Rule Change File No. SR-CBOE-2010-097, which filing proposes to establish a pilot program to list two (2) additional expirations for equity and ETF options. Any questions regarding the rule change may be directed to Jennifer Klebes, Legal Division, at 312-786-7466. The rule text is shown below and the rule filing is available at https://www.cboe.org/publish/RuleFilingsSEC/SR-CBOE-2010-097.pdf.

Rule 5.5—Series of Option Contracts Open for Trading RULE 5.5 No change. …Interpretations and Policies: .01 - .17 .18 Additional Expiration Months Pilot Program (“Pilot Program”). For a Pilot Program expiring on October 31, 2011, the Exchange may select up to 20 options classes for which it may list up to two (2) additional expiration months in addition to the expiration months the Exchange currently lists pursuant to Interpretation and Policy .03 to this Rule 5.5. Additional expiration months listed pursuant to this Interpretation and Policy .08 will be the nearest months that were not previously listed. The Exchange may also list additional expiration months for option classes that are selected by other securities exchanges that employ a similar program under their respective rules.

_________________________________________________________________________________ SR-CBOE-2010-098 SPX Tier Appointments

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On October 25, 2010, the Exchange filed Rule Change File No. SR-CBOE-2010-098, which filing proposes to increase the Market-Maker appointment cost for options on the Standard and Poor’s 500 Index (SPX) from .95 back to 1.0 effective December 1, 2010. Any questions regarding the rule change may be directed to Jennifer Lamie, Legal Division, at 312-786-7576. The rule text is shown below and the rule filing is available at https://www.cboe.org/publish/RuleFilingsSEC/SR-CBOE-2010-098.pdf.

Rule 8.3 - Appointment of Market-Makers RULE 8.3.

* * * * * (c)

* * * * * (iii) Hybrid 3.0 Class. In addition to paragraphs (i) and (ii) above, and subject to paragraphs (c)(iv) and (e) below, a Market-Maker can select as the Market-Maker’s appointment a Hybrid 3.0 class traded on the Exchange, which confers the right to trade in open outcry in the Hybrid 3.0 class as described below. Each Hybrid 3.0 class is assigned an “appointment cost”, which is set forth below.

Hybrid 3.0 Class Appointment Cost

Options on the Standard & Poor’s 500 (SPX) [.95]1.0* * This appointment cost also confers the right to trade any group of series of SPX that the Exchange has authorized for trading on the Hybrid Trading System pursuant to Rule 8.14.

* * * * * _________________________________________________________________________________ SR-CBOE-2010-099 Short Sale Order Handling On October 26, 2010, the Exchange filed Rule Change File No. SR-CBOE-2010-099, which filing proposes to amend CBSX’s rules to describe the manner in which the CBSX System will handle short sell orders in relation to Rule 201 of Regulation SHO and to amend CBOE’s rules to include order marking requirements for stock-option orders. Any questions regarding the rule change may be directed to Jennifer Lamie, Legal Division, at 312-786-7576. The rule text is shown below and the rule filing is available at https://www.cboe.org/publish/RuleFilingsSEC/SR-CBOE-2010-099.pdf.

Rule 6.53C – Complex Orders on the Hybrid System * * * * *

…Interpretations and Policies: * * * * *

.06 Special Provisions applicable to Stock-Option Orders * * * * *

(g) Marking Requirement. If the stock leg of a Stock-Option Order submitted to COB or COA is a sell order, then the stock leg must be marked “long,” “short,” or “short exempt” in compliance with Regulation SHO under the Exchange Act.

* * * * * Rule 51.8 – Types of Orders Handled

* * * * * …Interpretations and Policies:

* * * * *

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.02 Sell orders submitted to the CBSX System must be marked “long,” “short,” or “short exempt” in compliance with Regulation SHO under the Exchange Act. If a short sale “circuit breaker” is triggered in an NMS stock under Regulation SHO, then: (a) sell orders marked “short” will be handled by the CBSX System as follows: (1) short sell orders that are resting in the CBSX Book at the time a circuit breaker is triggered will be permitted to continue resting and/or execute; (2) short sell orders that are received by the CBSX System after the time a circuit breaker is triggered that are: (A) priced above the National Best Bid will be permitted to rest and/or execute; or (B) priced at or below the National Best Bid will be rejected/cancelled; and (b) sell orders marked “short exempt” will be permitted to rest and/or execute without regard to when the order is received or whether the order is priced above, at or below the National Best Bid.

* * * * * Rule 53.5 – “Long,” [and] “Short,” and “Short Exempt” Sales No Trading Permit Holder shall effect a sell order or sale of any security unless such sell order or sale is effected in compliance with [SEC Rule 10a-1 and] Regulation SHO [promulgated] under the Exchange Act.

_________________________________________________________________________________ SR-CBOE-2010-100 Fees Schedule On October 28, 2010, the Exchange filed Rule Change File No. SR-CBOE-2010-100, which filing proposes to amend the Fees Schedule as it relates to the PULSe workstation. Any questions regarding the rule change may be directed to Jennifer Lamie, Legal Division, at 312-786-7576. The rule filing is available at https://www.cboe.org/publish/RuleFilingsSEC/SR-CBOE-2010-100.pdf. _________________________________________________________________________________