In a rule filing submitted to the Securities and Exchange Commission on April 8, the Chicago Board Options Exchange, Inc. (CBOE) proposed to amend its rules to create a uniform obvious error approach for options on all equity, index, exchange-traded fund (ETF) and holding company depositary receipts (HOLDRS). As proposed, Rule 24.16 (which currently relates only to options on index, ETF and HOLDRS) would be merged into Rule 6.25 (which currently relates only to equity options). As part of the proposal, Rule 6.25 would be amended with respect to its “Obvious Price Error” provision and to include a provision for a “Catastrophic Error Procedure” (to address certain extreme circumstances). The CBOE also proposed various changes relating to erroneous prints and quotes in the underlying and related instruments, as well as adjustments to the definition of the term “Trading Officials” and the composition of “Obvious Error Panels.” The SEC is accepting comments on this rule proposal through May 15.  

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