The Securities and Exchange Commission has approved a proposed rule change filed by the Chicago Board Options Exchange (CBOE) which permits non-broker-dealer customers to voluntarily have their orders categorized as broker-dealer orders for, among other things, order handling, order execution and cancellation fee calculation purposes, affecting approximately a dozen CBOE rules.

The rule change should allow for the flexibility of those sending orders to the CBOE to voluntarily designate their orders as broker-dealer orders because this is more suitable to their trading strategies, which involve high-volume order submission and cancellation. Those who wish to take advantage of the rule change will be charged a transaction fee, the amount of which has yet to be established.