[ by Howard Haykin ]

The SEC approved a Supplement to the Options Disclosure Document (“ODD”) on 12/6/12.  The ODD, which contains general disclosures on the characteristics and risks of trading standardized options and has been amended to reflect changes to disclosures regarding adjustments for cash dividends and distributions in respect of options overlying less than 100 shares to accommodate the trading of mini options.

As required by Exchange Rule 9.15, each customer who previously was furnished an ODD must now get a copy of the supplement to the current ODD.  CBOE advises its Trading Permit Holders ("TPHs") that there are various ways to comply with the requirement - including, but not limited to, one of the following:

• deliver the Supplement to all of their approved customers who have already received the ODD.  A firm may deliver the Supplement electronically to its customers, provided that such delivery comports with SEC Rules respecting electronic delivery.

• deliver the Supplement to a customer, who has already received the ODD, with the first confirmation of a transaction involving a mini option.

Each new options customer also must received a copy of the ODD as amended to include the supplement.  Copies of the ODD or the supplement, including information on how to obtain a PDF of the supplement, can be obtained by contacting Dianne Svoboda of The OCC:  call (312) 322-6212, or email dsvoboda@theocc.com.

For further details, contact the Division’s Regulatory Interpretations and Guidance team at RegInterps@cboe.com or (312) 786-8141, or go to:  [CBOE RegCirc 12-173, 12/12/12].