SIFMA Submits Comments Regarding CBOE-Proposed Rule to Amend Option Stock Orders

SIFMA has submitted comments to the SEC about the Chicago Board Options Exchange's ("CBOE") proposal to amend CBOE Rule 6.53 regarding option orders that are tied to stock orders. SIFMA applauded the CBOE's effort to enhance surveillance efforts, but said additional clarification should be required. For example, SIFMA said that the new rule does not specify whether clearing firms can report on behalf of the executing broker, a practice that SIFMA stated is common in the industry.

SIFMA also identified a potential conflict with CBOE Rule 8.9(b), which requires clearing firms to submit on a daily basis every order entered by market-makers for securities underlying CBOE options traded on the Exchange. SIFMA stated that the proposed rule appears to create duplicative reporting requirements for market-makers that are already required to provide data elements through clearing firms.

See:SIFMA Comment Letter; SIFMA Press Release.