On May 23rd, the SEC provided notice of the Chicago Board Options Exchange's filing of a proposal to amend CBOE Rule 6.42 - Minimum Increments for Bids and Offers. The amendment would provide that bids and offers on complex orders, as defined in Interpretation and Policy .01 to Rule 6.42, may be expressed in any net price increment that may not be less than $0.01 (as determined by the Exchange on a class-by-class basis and announced to the Trading Permit Holders via Regulatory Circular) regardless of the minimum increments otherwise appropriate to the individual legs of the order. The addition of the "(as determined by the Exchange on a class-by-class basis and announced to the Trading Permit Holders via Regulatory Circular)" language will allow the Exchange to establish such minimum increments on a class-by-class basis in order to ensure uniformity of minimum bid and offer increments within a class (as the Exchange may already do for bids and offers on complex orders in options on the S&P 500 Index p.m.-settled S&P 500 Index or on the S&P 100 Index) as well as ensure that Trading Permit Holders are notified of such minimum increments via Regulatory Circular. Comments should be submitted on or before June 20, 2013. SEC Release No. 34-69629.
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Amendment to Rule 6.42 proposed
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