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13.14. Reporting to the Central Registration Depository13.15. Imposition of Fines for Minor Rule Violations13.16. Ex Parte CommunicationsCHAPTER 14. 14.34.14.35.14.36.Matters Subject to ArbitrationFINRA Jurisdiction over Arbitrations against Trading Permit HoldersProcedures in Trading Permit Holder ControversiesArbitrationClass Action ClaimsSimplified ArbitrationWaiver of HearingTime Limitation Upon SubmissionDismissal or Termination of ProceedingsSettlementsTolling of Time Limitation(s) for the Institution of Legal Proceedings and Extensionof Time Limitation(s) for Submission to ArbitrationDesignation of Number of ArbitratorsNotice of Selection of ArbitratorsChallengesDisclosures Required of ArbitratorsDisqualification or Other Disability of ArbitratorsInitiation of ProceedingsDesignation of Time and Place of HearingsRepresentation by CounselAttendance at HearingsFailure to AppearAdjournmentsAcknowledgement of PleadingsGeneral Provisions Governing Pre-Hearing ProceedingEvidenceInterpretation of Code and Enforcement of Arbitrator RulingsDeterminations of ArbitratorsRecord of ProceedingsOaths of the Arbitrators and WitnessesAmendmentsReopening of HearingsAwardsMiscellaneousSchedule of FeesRequirements When Using Pre-Dispute Arbitration Agreements with CustomersFailure to Honor AwardCHAPTER 15. HEARINGS AND REVIEWxi

15.1.15.2.15.3.15.4.15.5.15.6.15.7.Scope of ChapterSubmission of Application to ExchangeProcedure Following Applications for HearingHearingReviewMiscellaneous ProvisionsRequests for Verification of Fees and Other Chargesxii

CHAPTER 1. GENERAL PROVISIONSSECTION A. DEFINITIONSRule 1.1.DefinitionsWhen used in the Rules, unless the context otherwise requires:ABBOThe term “ABBO” means the best bid(s) or offer(s) disseminated by other Eligible Exchanges (asdefined in Rule 5.65) and calculated by the Exchange based on market information the Exchangereceives from OPRA.Adjusted Option SeriesThe term “adjusted option series” means a series in which, as a result of a corporate action by theissuer of the underlying security, one option contract in the series represents the delivery of otherthan 100 shares of the underlying security.Affiliate and Affiliated withThe terms “affiliate” of and a person “affiliated with” another person mean a person who, directlyor indirectly, controls, is controlled by, or is under common control with, such other person.Aggregate Exercise PriceThe term “aggregate exercise price” means the exercise price of an option contract multiplied by(a) for equity options, the number of units of the underlying security or (b) for index options, theindex multiplier for the underlying index covered by the option contract.All Sessions ClassThe term “All Sessions class” means an options class the Exchange lists for trading during both GTHand RTH.American-Style OptionThe term “American-style option” means an option contract that, subject to the provisions of Rule6.20 and to the Rules of the Clearing Corporation, may be exercised on any business day prior toand on its expiration date.Application Programming Interface and APIThe terms “Application Programming Interface” and “API” mean the computer interface that allowsUsers to interface electronically with the Exchange.1

Associated Person and Person Associated with a Trading Permit HolderThe terms “associated person” and “person associated with a Trading Permit Holder” mean anypartner, officer, director, or branch manager of a Trading Permit Holder (or any person occupying asimilar status or performing similar functions), any person directly or indirectly controlling, controlledby, or under common control with a Trading Permit Holder, or any employee of a Trading PermitHolder.BBOThe term “BBO” means the best bid or offer disseminated on the Exchange.BidThe term “bid” means the price of a limit order or quote to buy one or more options contracts.BoardThe term “Board” means the Board of Directors of the Exchange.Book and Simple BookThe terms “Book” and “Simple Book” mean the electronic book of simple orders and quotesmaintained by the System, which single book is used during both the RTH and GTH trading sessions.Broker-DealerThe term “broker-dealer” means a Trading Permit Holder, a non-Trading Permit Holder broker ordealer in securities (including a foreign broker-dealer), or a joint venture with a Trading Permit Holderand non-Trading Permit Holder participants.Broker-Dealer OrderThe term “broker-dealer order” means an order for an account in which a broker-dealer or aProfessional has an interest.Bulk MessageThe term “bulk message” means a single electronic message a User submits with an M Capacity tothe Exchange in which the User may enter, modify, or cancel up to an Exchange-specified number ofbids and offers. A User may submit a bulk message through a bulk port as set forth in Rule 5.6(c)(3).The System handles a bulk message bid or offer in the same manner as it handles an order or quote,unless the Rules specify otherwise.2

Business Day and Trading DayThe terms “business day” and “trading day” mean a day on which the Exchange is open for tradingduring Regular Trading Hours. A business day or trading day includes both trading sessions on thatday. If the Exchange is not open for Regular Trading Hours on a day, then it will not be open forGlobal Trading Hours on that day.BylawsThe term “Bylaws” means the Bylaws of the Exchange, as amended from time to time.CallThe term “call” means an option contract under which the holder of the option has the right, inaccordance with the terms of the option and the Rules of the Clearing Corporation, to purchase fromthe Clearing Corporation (a) for equity options, the number of units of the underlying security coveredby the option contract, at a price per unit equal to the exercise price, or (b) for index options, thecurrent index value times the index multiplier upon the timely exercise of the option.CapacityThe term “Capacity” means the capacity in which a User submits an order, which the User specifiesby applying the corresponding code to the order, and includes:CodeCapacity TypeBFor the account of a broker or dealer, including a Foreign BrokerDealerCFor the account of a Public CustomerFFor an OCC clearing member firm proprietary accountJFor a joint back office accountLFor the account of a non-Trading Permit Holder affiliateMFor the account of a Market-MakerNFor the account of a market-maker on another options exchangeUFor the account of a ProfessionalCapped-Style OptionThe term “capped-style option” means an option contract that is automatically exercised when (a) forequity options, the cap price is reached or (b) for index options, the cap price is less (greater) than or3

equals the closing index value for calls (puts). If this does not occur prior to expiration, it may beexercised, subject to the provisions of Rule 11.1 and to the Rules of the Clearing Corporation, onlyon its expiration date. CAPS refers to capped- style options traded on the Exchange.Cboe TradingThe term “Cboe Trading” means Cboe Trading, Inc.ClassThe term “class” means all option contracts with the same unit of trading covering the sameunderlying security or index.Clearing Corporation and OCCThe terms “Clearing Corporation” and “OCC” mean The Options Clearing Corporation.Clearing Trading Permit HolderThe term “Clearing Trading Permit Holder” means a Trading Permit Holder that has been admittedto membership in the Clearing Corporation pursuant to the provisions of the Rules of the ClearingCorporation and is self-clearing or that clears transactions for other Trading Permit Holders.Closing Purchase TransactionThe term “closing purchase transaction” means an Exchange transaction that reduces or eliminates ashort position in an option contract.Closing Writing TransactionThe term “closing writing transaction” means an Exchange transaction that reduces or eliminatesa long position in an option contract.Complex OrderThe term “complex order” means an order involving the concurrent execution of two or more differentseries in the same class (the “legs” or “components” of the complex order), for the same account,occurring at or near the same time and for the purpose of executing a particular investment strategywith no more than the applicable number of legs (which number the Exchange determines on a classby-class basis). The Exchange determines in which classes complex orders are eligible for processing.Unless the context otherwise requires, the term complex order includes stock-option orders andsecurity future-option orders. For purposes of Rules 5.33 and 5.85(b)(1), the term “complex order”means a complex order with any ratio equal to or greater than one-to-three (.333) and less than orequal to three-to-one (3.00), an Index Combo order, a stock-option order, or a security future-optionorder. For the purpose of applying these ratios to complex orders comprised of legs for both minioptions and standard options, ten mini-option contracts represent one standard option contract.4

ControlThe term “control” means the power to exercise a controlling influence over the management orpolicies of a person, unless that power is solely the result of an official position with the person. Anyperson who owns beneficially, directly or indirectly, more than 20% of the voting power in theelection of directors of a corporation, or more than 25% of the voting power in the election of directorsof any other corporation that directly or through one or more affiliates owns beneficially more than25% of the voting power in the election of directors of the corporation, is presumed to control thecorporation.CoveredThe term “covered” in respect of a short position in a call option contract means that the writer’sobligation is secured by a “specific deposit” or an “escrow deposit” meeting the conditions ofRule 610(f) or 610(h), respectively, of the Rules of the Clearing Corporation, or the writer holds inthe same account as the short position, on a share-for-share basis, a long position either in theunderlying security or in an option contract of the same class of options where the exercise price ofthe option contract in such long position is equal to or less than the exercise price of the option contractin such short position. The term “covered” in respect of a short position in a put option contract meansthat the writer holds in the same account as the short position, on a share-for-share basis, a longposition in an option contract of the same class of options where the exercise price of the optioncontract in such long position is equal to or greater than the exercise price of the option contract insuch short position.CustomerThe term “customer” means a Public Customer or a broker-dealer.Customer OrderThe term “customer order” means an agency order for the account of a customer.DEAThe term “DEA” means designated examining authority.Designated Primary Market-Maker and DPMThe terms “Designated Primary Market-Maker” and “DPM” mean a TPH organization that isapproved by the Exchange to function in appointed securities as a Market-Maker and is subject tothe obligations under Rule 5.54 or as otherwise provided under the Rules. A DPM generally willoperate on the Exchange’s trading floor (“On-Floor DPM”). However, as provided in Rule 5.53, aDPM can request that the Exchange authorize the DPM to function remotely away from theExchange’s trading floor (“Off-Floor DPM”) on a class-by-class basis. Unless otherwise specified,references to DPM in the Rules include both “On-Floor DPM” and “Off-Floor DPM.” TheExchange makes determinations concerning whether to grant or withdraw the approval to act as a5

DPM in accordance with Rule 3.54. The Exchange appoints securities to DPMs in accordance withRule 5.50.DiscretionThe term “discretion” means the authority of a broker or dealer to determine for a Customer the typeof option, class or series of options, the number of contracts, or whether options are to be bought orsold.DPM DesigneeThe term “DPM Designee” has the meaning set forth in Rule 3.54.EFIDThe term “EFID” means an Executing Firm ID.Equity OptionThe term “equity option” means an option on an equity security (including Units (or ETFs) and IndexLinked Securities (or ETNs)).European-Style OptionThe term “European-style option” means an option contract that, subject to the provisions of Rule6.20 and to the Rules of the Clearing Corporation, may be exercised only on its expiration date.Exchange or Cboe OptionsThe terms “Exchange” or “Cboe Options” mean Cboe Exchange, Inc.Exchange ActThe term “Exchange Act” means the Securities Exchange Act of 1934, as amended, and Rules andRegulations thereunder.Executive OfficerThe term “executive officer” of a TPH organization means the chairman of the board, president,executive vice president, any other vice president engaged in the management of the TPHorganization’s business pertaining to options, treasurer, secretary, or any other person who performsfor a TPH organization functions corresponding to those performed by the foregoing officers.6

Exercise PriceThe term “exercise price” means the specified price per unit at which (a) for equity options, theunderlying security or (b) for index options, the current index value may be purchased or sold uponthe exercise of an option contract.Expiration DateUnless separately defined elsewhere in the Rules, the term “expiration date” means the third Fridayof the expiration month of an option contract, or if t Friday is a day on which the exchange on whichsuch option is listed is not open for business, the preceding day on which such exchange is open forbusiness.Federal Reserve BoardThe term “Federal Reserve Board” means the Board of Governors of the Federal Reserve System.FINRAThe term “FINRA” means the Financial Industry Regulatory Authority, Inc.FLEX OptionThe term “FLEX Option” means a flexible exchange option. A FLEX Option on an equity securitymay be referred to as a “FLEX Equity Option,” and a FLEX Option on an index may be referred toas a “FLEX Index Option.”Floor BrokerThe term “Floor Broker” has the meaning set forth in Rule 3.50.Floor OfficialThe term “Floor Official” means an individual appointed by the Exchange who is granted certainduties and authorities under the Rules with respect to trading issues and market actions.Foreign Broker-DealerThe term “foreign broker-dealer” means any person or entity that is registered, authorized, or licensedby a foreign governmental agency or foreign regulatory organization (or is required to be soregistered, authorized, or licensed) to perform the function of a broker or dealer in securities, or both.For the purposes of this definition, the terms “broker” and “dealer” have the same meaning asprovided in Section 3(a)(4) and 3(a)(5) of the Exchange Act, except that a “broker” or “dealer” maybe a bank.7

Global Trading Hours and GTHThe terms “Global Trading Hours” and “GTH” mean the trading session consisting of the hoursoutside of Regular Trading Hours during which transactions in options may be effected on theExchange and are set forth in Rule 5.1.Good StandingThe term “good standing” means that a Trading Permit Holder or associated person is not delinquentrespecting Exchange fees or other charges and is not suspended or barred from being a Trading PermitHolder or from being associated with a Trading Permit Holder.He, Him, and HisThe terms “he,” “him,” and “his” will be deemed to refer to persons of female as well as male gender,and to include organizations, as well as individuals, when the context so requires.In-Crowd Market Participant and ICMPThe terms “in-crowd market participant” and “ICMP” mean an in-crowd Market-Maker, an on-floorDPM or LMM with an allocation in a class, or a Floor Broker or PAR Official representing an orderin the trading crowd on the trading floor.Index OptionThe term “index option” means an option on a broad-based, narrow-based, micro narrow-based, orother index of equity securities prices.Index Portfolio Receipts and IPRsThe terms “index portfolio receipts” and “IPRs” mean securities that (a) represent an interest in a unitinvestment trust which holds the securities that comprise an index on which a series of IPRs is based;(b) are issued by the trust in a specified aggregate minimum number in return for a “Portfolio Deposit”consisting of specified numbers of shares of stock plus a cash amount; (c) when aggregated in thesame specified minimum number, may be redeemed from the trust, which will pay to the redeemingholder the stock and cash then comprising the Portfolio Deposit; and (d) pay holders a periodic cashpayment corresponding to the regular cash dividends or distributions declared and paid with respectto the component securities of the stock index on which the IPRs are based, less certain expenses andother charges as set forth in the trust prospectus. IPRs are “UIT interests” within the meaning of theRules.Index Portfolio Shares and IPSsThe terms “Index Portfolio Shares” and “IPSs” mean securities that (a) are issued by an open-endmanagement investment company based on a portfolio of stocks or fixed income securities designedto provide investment results that correspond generally to the price and yield performance of a8

specified foreign or domestic stock index or fixed inco

Binary Options. 4.17. End-of-Day Indicative Values. SECTION C. FLEX OPTIONS. 4.20. FLEX Option Classes. 4.21. Series of FLEX Options. 4.22. . Approval of Underlying Treasury Securities for Specific Coupon Options (Treasury Bonds and Notes) 4.53. Terms of Treasury Security Options (Treasury Bonds and Notes)