In a regulatory circular to Trading Permit Holders (TPHs), the Chicago Board Options Exchange (CBOE) announced that as of August 10 it has made the Book Trade Through Surveillance Reports available to TPHs on its Web Based Surveillance Firm Reports page. The Reports highlight when CBOE Rules 6.45A or B have been violated. These Rules set forth, among other things, the manner in which electronic Hybrid System trades in options are prioritized and allocated. In particular, the Rules prevent order entry firms from executing their own orders without first giving TPHs, that are already bidding or offering, an opportunity to trade with the agency order or to trade at the execution price. Reports are posted if an exception has been generated and are currently posted for trade dates from January 2 through the present.
For additional information regarding Web Based Surveillance Reports click here.