The Options Disclosure Document (ODD) has been updated to accommodate the listing of relative performance index options where both components of the underlying relative performance index could be an ETF share.  The supplement also clarifies that the ETF share components must be nonleveraged, and adds an example of the calculation of a relative performance index. As with other supplements to the ODD, this should be read in conjunction with the current ODD, Characteristics and Risks of Standardized Options.  To comply with the FINRA requirements [Rule 2360(b)(11)(A)(1)], firms must distribute the ODD supplement.  Two of the various ways that the supplement can be distributed are:

• conducting a mass mailing of the supplement to all of its customers approved to trade options who have already received the ODD; or

• distributing the supplement to a customer who has already received the ODD no later than the time the customer receives a confirmation of a transaction in the category of options to which the amendment pertains.

Broker-Dealer Delivery Requirement. Securities Exchange Act Rule 9b-1 requires firms to deliver the ODD and supplements to customers.  FINRA has similar requirements in its Rules, requiring firms to deliver the current ODD to each customer at or before the time the customer is approved to trade options. FINRA Rule 2360(b)(11)(A)(1) also requires firms to distribute a copy of each ODD supplement to customers who previously received the ODD.  The ODD supplements must be delivered no later than the time a customer receives a confirmation of a transaction in the category of options to which the supplement pertains. Electronic Transmission. FINRA rules permit firms to electronically transmit the required ODD and supplements to customers, provided the firm adheres to the standards contained in the May 1996 and October 1995 SEC Releases, and as discussed in NtM 98-03.  Electronic delivery may also be done through use of a hyperlink - so long as a firm has the customer's consent. FINRA Staff Contacts. Direct questions to:  Kathryn Moore, Office of General Counsel - (202) 974-2974. For further details:  [FINRA InfoNote, 2/9/12].