The Chicago Board Option Exchange submitted a proposed rule change amending CBOE’s accommodation liquidation procedures to allow transactions to take place at a price that is below $1 per option contract. The proposed rule change temporarily amends the procedures through January 30 to allow transactions to take place in open outcry at a price of at least $0 but less than $1 per option contract. These lower-priced transactions would be traded pursuant to the same procedures applicable to $1 cabinet trades, except that (i) bids and offers for opening transactions would only be permitted to accommodate closing transactions in order to limit use of the procedure to liquidations of existing positions, and (ii) the procedures would also be made available for trading in option classes participating in the Penny Pilot Program. The Securities and Exchange Commission has designated this rule change proposal operative upon filing.  

http://sec.gov/rules/sro/cboe/2008/34-59188.pdf