Exchange Bulletin

March 19, 2010 Volume 38, Number 12

The Constitution and Rules of the Chicago Board Options Exchange, Incorporated (“Exchange”), in certain specific instances, require the Exchange to provide notice to the Exchange membership. To satisfy this requirement, a copy of the Exchange Bulletin, including the Regulatory Bulletin, is delivered by e-mail or by hard copy free of charge to all effective members on a weekly basis. Members are encouraged to receive the Exchange and Regulatory Bulletin and Information Circulars via e-mail. E-mail subscriptions may be obtained by submitting your name, firm if applicable, e-mail address, and phone number, to [email protected]. If you do sign up for e-mail delivery, please remember to inform the Membership Department of e-mail address changes. Subscriptions for hard copy delivery may be obtained by submitting your name, firm if any, mailing address and telephone number to: Chicago Board Options Exchange, Membership Department, 400 South LaSalle, Chicago, Illinois 60605, Attention: Bulletin Subscriptions. For up-to-date Seat Market Quotes, call 1-877-THE-CBOE and select choice 3 from the main menu, or, visit www.CBOE.org, click “CBOE Member Site” and then “Seat Market Information” on the following page. For access to the CBOE Member Web Site, please also notify the Membership Department by sending an e-mail to [email protected] or by phone at 312-786-7449. Copyright © 2010 Chicago Board Options Exchange, Incorporated

SEAT MARKET QUOTES AS OF FRIDAY, March 19, 2010

CLASS

BID



CBOE

$2,600,000.00

OFFER $2,900,000.00

LAST SALE AMOUNT

LAST SALE DATE

$2,950,000.00

March 11, 2010

Page 2

March 19, 2010

Volume 38, Number 12

Chicago Board Options Exchange

MEMBERSHIP INFORMATION FOR 3/11/10 THROUGH 3/17/10 MEMBERSHIP APPLICATIONS RECEIVED FOR WHICH A POSTING PERIOD IS REQUIRED Member Organization Applicants

Date Posted

Lime Brokerage LLC 3/12/10 John Jacobs, Nominee 625 Broadway, 12th Floor New York, NY 10012 Alistair W. Brown – Director/Chairman Mark H. Gorton – Chairman & Director John N. Jacobs – Chief Operations Officer/Managing Director Lime Brokerage Holdings LLC – Sole Member The MJG Lime Brokerage Family LP - Member Mark Gorton - General Partner and Limited Partner Michael L. Richter – Chief Financial Officer William L. St. Laurent - Chief Compliance Officer Jeffrey S. Wecker – CEO, President, and Director

MEMBERSHIP LEASES Terminated Leases

Termination Date

Lessor: South LaSalle Partners II, LP Lessee: Pyramid Trading Limited Partnership Clint Blackburn (CJB), NOMINEE

3/15/10

MEMBERSHIP TERMINATIONS Individual Members Nominee:

Termination Date

Stephen P. Meadows (MDZ) Wolverine Trading LLC

3/15/10

Andrew M. Ofman (AMO) CTC LLC

3/16/10

EFFECTIVE MEMBERSHIPS Individual Members Lessor:

Effective Date

Mary H. Clark

3/12/10

Nominee:

Effective Date

Daniel R. Lomer (LOM) 3/12/10 Grace Support Services LLC Type of Business to be Conducted: Market Maker

Page 3

March 19, 2010

Volume 38, Number 12

Chicago Board Options Exchange

RESEARCH CIRCULARS

The following Research Circulars were distributed between March 12, 2010 and March 18, 2010. If you wish to read the entire document, please refer to the CBOE website at www.cboe.com and click on the “Trading Tools” Tab. New listings and series information is also available in the Trading Tools section of the website. For questions regarding information discussed in a Research Circular, please call The Research Circular #RS10-128 March 12, 2010 The Stanley Works (“SWK”) Name Change to: Stanley Black & Decker, Inc. Effective Date: March 15, 2010 Research Circular #RS10-129 March 12, 2010 Bare Escentuals, Inc. (“BARE/URY”): Merger Completed -- Cash Settlement Research Circular #RS10-131 March 16, 2010 Pulte Homes, Inc. (“PHM”) Name Change to: PulteGroup, Inc. Effective Date: March 22, 2010 Research Circular #RS10-135 March 18, 2010 Limited Brands, Inc. (“LTD/VLD/WDL”) CONTRACT ADJUSTMENT FOR SPECIAL CASH DIVIDEND Ex-Date: March 31, 2010

Research Circular #RS10-136 March 18, 2010 *****UPDATE*****UPDATE*****UPDATE***** Exeter Resource Corporation (“XRA”) Plan of Arrangement/Distribution of Shares of Extorre Gold Mines Limited Ex-Distribution Date: March 24, 2010 Research Circular #RS10-137 March 18, 2010 Youbet.com, Inc. (“UBET/OUQ”) Proposed Merger with Churchill Downs Incorporated (“CHDN”) Research Circular #RS10-138 March 18, 2010 The Black & Decker Corporation (“BDK/adj. NOP/NOS/ODT/LOP”) Determination of Cash-in-Lieu Amount

March 24, 2010

Volume RB21, Number 12

______________________________________________________________________ The Constitution and Rules of the Chicago Board Options Exchange, Incorporated (“Exchange”), in certain specific instances, require the Exchange to provide notice to the membership. The weekly Regulatory Bulletin is delivered to all effective members to satisfy this requirement. Copyright © 2010 Chicago Board Options Exchange, Incorporated. REGULATORY CIRCULARS

__________________

Regulatory Circular RG10-40 DATE:

March 12, 2010

TO:

Members

FROM:

Department of Market Quality Assurance

RE:

Elimination of DPM and eDPM Seat Ownership Requirement

The Securities and Exchange Commission recently approved CBOE’s rule filing1 to amend Rule 8.85 and Rule 8.92 to eliminate the requirement that each DPM organization and each e-DPM organization is required to own at least one Exchange membership. Going forward, each DPM organization and each e-DPM organization are required to own or lease such number of Exchange memberships as may be necessary based on the aggregate "appointment cost" for the classes allocated to the DPM organization or e-DPM organization. Questions regarding this circular may be directed to Allison Kile of the Department of Market Quality Assurance at (312) 786-7210.

1

See Securities Exchange Act Release No. 61494, granting immediate effectiveness to SR-CBOE-2010-012, which is available on CBOE’s website www.cboe.org/Legal.

March 24, 2010

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Regulatory Circular RG10-41 Date: March 18, 2010 To:

Trading Floor Exchange Members and Associated Persons

From: Trading Operations Re:

Food and Drink on the Trading Floor

This memo is to inform you that effective February 20, 2009, certain food and drink will be allowed in designated areas of the trading floor as described below. This food and drink policy will be on a pilot basis and subject to periodic evaluations. Any changes to this pilot program will be communicated to the Trading Floor through a Regulatory Circular. Attached is a list containing examples of allowable and non-allowable foods and drinks. Fines will be issued to Members and Associated Persons in accordance with the fine schedule set forth in Exchange Regulatory Circular RG09-092 for violations of this policy. Members and Associated Persons will be expected to properly dispose of all waste and keep all areas of the Trading Floor clean. Food will not be allowed in the SPX pit. Failure to adhere to these requirements may result in the termination of this pilot program. Thank you for your cooperation in making this work for all. Replaces Regulatory Circular RG09-027

March 24, 2010

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FOOD ON THE TRADING FLOOR

ALLOWABLE FOOD - Any type of sandwich (sub, deli, etc) - Snacks (chips, pretzels, candies, cookies, etc.) - Salads - Fruit - Yogurt - Dry Cereal - Bagels, Donuts, Muffins - Any drink in sports cap tops - Hot Drinks (coffee, tea, hot chocolate) in travel mug containers NON-ALLOWABLE FOOD - Hot Foods - Hamburgers, Hot Dogs, French Fries - Pizzas - Fried, Baked, Broiled Chicken Pieces - Seafood - Soup, Chili, Oatmeal - Peanuts in the Shells, Seeds - Ice Cream - Hot Breakfast Items (eggs, pancakes, bacon, etc.) - Cereal with Milk - Tacos, Burritos, Nachos with Cheese - Any type of Group/Family Style Catering - Any Alcoholic Drink

THIS LIST OF NON-ALLOWABLE FOODS IS NOT ALL INCLUSIVE. THERE MAY BE FINES ISSUED FOR FOOD THAT FLOOR OFFICIALS DEEM INAPPROPRIATE FOR THE TRADING FLOOR. _________________________________________________________________________________ RULE CHANGES

APPROVED RULE CHANGE(S) The Securities and Exchange Commission (“SEC”) has approved the following change(s) to Exchange rules pursuant to Section 19(b) of the Securities Exchange Act of 1934, as amended (the “Act”). Below, any additions to rule text are underlined, and any deletions are [bracketed]. Copies are available on the CBOE public website at www.cboe.com/legal/effectivefiling.aspx. The effective date of the rule change is the date of approval unless otherwise noted. _________________________________________________________________________________

March 24, 2010

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3

SR-CBOE-2010-005

ETN Options

On March 12, 2010, the SEC approved Rule Change File No. SR-CBOE-2010-005, which filing establishes trading hours and $1 strikes for ETN options prior to the commencement of trading. Any questions regarding the rule change may be directed to Jenny Klebes, Legal Division, at 312-7867466. The rule text is shown below and the rule filing is available at http://www.cboe.org/publish/RuleFilingsSEC/SR-CBOE-2010-005.pdf. Rule 5.5—Series of Option Contracts Open for Trading RULE 5.5. No change. . . . Interpretations and Policies: .01 - .08 No change. .09 [Reserved] Notwithstanding Interpretation and Policy .01 above, the interval between strike prices of series of options on Index Linked Securities, as defined under Interpretation and Policy .13 to Rule 5.3, will be $1 or greater where the strike price is $200 or less and $5 or greater where the strike price is greater than $200. .10 - .16 No change. * * * * * Rule 6.1—Days and Hours of Business RULE 6.1. No change. . . . Interpretations and Policies: .01 - .02 No change. .03 (a) Options on Units (or ETFs). Options on Units, as defined under Interpretation and Policy .06 to Rule 5.3, and options on the PowerShares QQQ Trust (“QQQQ”) may be traded on the Exchange until 3:15 p.m. each business day. (b) Options on Index-Linked Securities (or ETNs). Options on Index-Linked Securities, as defined under Interpretation and Policy .13 to Rule 5.3, may be traded on the Exchange until 3:15 p.m. each business day. .04 - .05 No change. _________________________________________________________________________________ SR-CBOE-2010-008

Fees Schedule

On March 16, 2010, the SEC approved Rule Change File No. SR-CBOE-2010-008, which filing amends the Fees Schedule to provide a fuller description of CBOE’s co-location service. Any questions regarding the rule change may be directed to Jaime Galvan, Legal Division, at 312-7867058. The rule filing is available at http://www.cboe.org/publish/RuleFilingsSEC/SR-CBOE-2010008.pdf. _________________________________________________________________________________ EFFECTIVE-ON-FILING RULE CHANGE(S) The following rule filing(s) were submitted to the SEC “effective on filing,” and may have taken effect pursuant to Section 19(b)(3) of the Act. They will remain in effect barring further action by the SEC within 60 days after publication in the Federal Register. Below, any additions to rule text are underlined, and any deletions are [bracketed]. Copies are available on the CBOE public website at www.cboe.org/legal/effectivefiling.aspx. _________________________________________________________________________________

March 24, 2010

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SR-CBOE-2010-029

Fees Schedule

On March 16, 2010, the Exchange filed Rule Change File No. SR-CBOE-2010-029, which filing proposes to eliminate outdated references in the CBOE Fees Schedule. Any questions regarding the rule change may be directed to Angelo Evangelou, Legal Division, at 312-786-7464. The rule filing is available at http://www.cboe.org/publish/RuleFilingsSEC/SR-CBOE-2010-029.pdf. _________________________________________________________________________________ PROPOSED RULE CHANGE(S) Pursuant to Section 19(b)(1) of the Act, and Rule 19b-4 thereunder, the Exchange has filed the following proposed rule change(s) with the SEC. Below, any additions to rule text are underlined, and any deletions are [bracketed]. Copies of the rule change filing(s) are available at www.cboe.org/legal/submittedsecfilings.aspx. Members may submit written comments to the Legal Division. The effective date of a proposed rule change will be the date of approval by the SEC, unless otherwise noted. _________________________________________________________________________________ SR-CBOE-2010-018

CBOE Gold ETF Volatility Index Options

On March 17, 2010, the Exchange filed Rule Change File No. SR-CBOE-2010-018, which filing proposes to amend certain CBOE rules to provide for the listing and trading of options that overlie the CBOE Gold ETF Volatility Index (“GVZ”), which will be cash-settled and will have European-style exercise.1 Any questions regarding the rule change may be directed to Jenny Klebes, Legal Division, at 312-786-7466. The rule text is shown below and the rule filing is available at http://www.cboe.org/publish/RuleFilingsSEC/SR-CBOE-2010-018.pdf. Rule 5.5—Series of Option Contracts Open for Trading RULE 5.5 No change. …Interpretations and Policies .01 - .013 No change. .14 Notwithstanding Interpretation and Policy .01 above, the intervals between strike prices for GVZ option series shall be determined in accordance with Interpretation and Policy .01(i) to Rule 24.9. .15 - .16 No change. * * * * *

1

Rule Change File No. SR-CBOE-2010-018, which was originally included in the March 3, 2010 Member Bulletin, was modified and re-filed by the Exchange on March 17, 2010. March 24, 2010

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Rule 12.3—Margin Requirements RULE 12.3 (a) – (b) No change. (c) Customer Margin Account—Exception. The foregoing requirements are subject to the following exceptions. Nothing in this paragraph (c) shall prevent a broker-dealer from requiring margin from any account in excess of the amounts specified in these provisions. (1) – (4) No change. (5) Initial and Maintenance Margin Requirements on Short Options, Stock Index Warrants, Currency Index Warrants and Currency Warrants. (A) Listed. General Rule. The initial and maintenance margin required on any listed put, call, stock index warrant, currency index warrant or currency warrant carried “short” in a customer’s account shall be 100% of the current market value of the option or warrant plus the percentage of the current “underlying component value” (as described in column IV of the table below) specified in column II of the table below reduced by any “out-of-the-money” amount as defined in this subparagraph (c)(5)(A) below. Notwithstanding the margin required above, the minimum margin for each such call option or call warrant shall not be less than 100% of the current market value of the option or warrant plus the percentage of the current market value of the underlying component specified in column III of the table below, and for each such put option or put warrant, shall not be less than 100% of the current market value of the option or warrant plus the percentage of the option or warrant’s aggregate exercise price amount specified in column III of the table below. I. Type of Option

II. Initial and/or Maintenance Margin Required

III. Minimum Margin Required

IV. Underlying Component Value

20%

10%

The product of the index value and the applicable index multiplier

1. – 14. No change. 15. GVZ

For purposes of this subparagraph (c)(5)(A), “out-of-the-money” amounts are determined as follows: Option or Warrant Issue Stock Options, Registered Investment Company Options

U.S. Treasury Options

March 24, 2010

Call Any excess of the aggregate exercise price of the option over the current market value of the equivalent number of shares of the underlying security. Any excess of the aggregate exercise price of the option over the current market value of the underlying principal amount.

Volume RB21, Number 12

Put Any excess of the current market value of the equivalent number of shares of the underlying security over the aggregate exercise price of the option. Any excess of the current market value of the underlying principal amount over the aggregate exercise price of the option.

6

Corporate Debt Security Options

Any excess of the aggregate exercise price of the option over the current market value of the equivalent quantity of the underlying security.

Any excess of the current market value of the equivalent quantity of the underlying security over the aggregate exercise price of the option.

Any excess of the product of the Any excess of the aggregate exercise price of the option or current index value and the warrant over the product of the applicable multiplier over the aggregate exercise price of the current index value and the option or warrant. applicable multiplier. Any excess of the product of Foreign currency options and Any excess of the aggregate warrants exercise price of the option or units per foreign currency contract and the closing spot warrant over the product of prices over the aggregate price of units per foreign currency the option or warrant. contract and the closing spot prices. Any excess of the product of the Interest rate options Any excess of the aggregate current interest rate measure exercise price of the option over the product of the current value and the applicable interest rate measure value and multiplier over the aggregate exercise price of the option. the applicable multiplier. Remainder of Rule 12.3 – No change. …Interpretations and Policies: .01 - .19 No change. * * * * * Index stock options, GVZ options, currency index warrants and stock index warrants

Rule 24.1—Definitions RULE 24.1 No change. …Interpretations and Policies: .01 The reporting authorities designated by the Exchange in respect of each index underlying an index option contract traded on the Exchange are as follows: Index Reporting Authority (Add the following to the current list:) CBOE Gold ETF Volatility Index.……………………..……Chicago Board Options Exchange * * * * * Rule 24.4—Position Limits for Broad-Based Index Options RULE 24.4 (a) In determining compliance with Rule 4.11, there shall be no position limits for broad-based index option contracts (including reduced-value option contracts) on CBOE S&P 500 Three-Month Realized Variance, CBOE S&P 500 Three-Month Realized Volatility and on the BXM (1/10th value), DJX, OEX, XEO, NDX, RUT, VIX, VXN, VXD, S&P 500 Dividend Index and SPX classes. All other broad-based index option contracts shall be subject to a contract limitation fixed by the Exchange, which shall not be larger than the limits provided in the chart below. * * * * * (Add the following to the current list:)

March 24, 2010

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CBOE Gold ETF Volatility Index no more than 30,000 50,000 contracts (“GVZ”) near-term (b) – (e) No change. …Interpretations and Policies: .01 - .03 No change. .04 Margin and Clearing Firm Requirements Whenever the Exchange determines, based on a report by the Department of Market Regulation or otherwise, that additional margin is warranted in light of the risks associated with an under-hedged BXM (1/10th value), GVZ, SPX, OEX, XEO, NDX, RUT, DJX, VIX, VXN, VXD, S&P 500 Dividend Index, CBOE S&P 500 Three-Month Realized Variance or CBOE S&P 500 Three-Month Realized Volatility option position, the Exchange may consider imposing additional margin upon the account maintaining such under-hedged position pursuant to its authority under Exchange Rule 12.10. Additionally, it should be noted that the clearing firm carrying the account will be subject to capital charges under SEC Rule 15c3-1 to the extent of any margin deficiency resulting from the higher margin requirements. * * * * * Rule 24.6—Days and Hours of Business RULE 24.6. The Board of Directors has resolved that, except as otherwise provided in this Rule or under unusual conditions as may be determined by the Board or its designee, transactions in index options may be effected on the Exchange between the hours of 8:30 a.m. Chicago time and 3:15 p.m. Chicago time. With respect to options on foreign indexes, the Board’s designee shall determine the days and hours of business. Transactions in the following index options may be effected on the Exchange between the hours of 8:30 a.m. Chicago time and 3:00 p.m. Chicago time: (i) – (xl) No change. (xli) CBOE Gold ETF Volatility Index …Interpretations and Policies: .01 No change. * * * * * Rule 24.9—Terms of Index Option Contracts RULE 24.9. (a) General. (1) - (2) No change. (3) “European-Style Exercise”. The following European-style index options, some of which are A.M.-settled as provided in paragraph (a)(4), are approved for trading on the Exchange: (i)- (xxviii) No change. [(xxix) – (xxx) [Reserved.]] (xxix) CBOE Gold ETF Volatility Index (“GVZ”). (xxx) [Reserved.] (xxxi) – (xcvii) No change. (4) A.M.-Settled Index Options. The last day of trading for non-Volatility A.M.settled index options shall be the business day preceding the last day of trading in the underlying securities prior to expiration. The last day of trading for Volatility Index and GVZ options is governed by subparagraph (5) below. The current index value at the expiration of an A.M.-settled index option shall be determined, for all purposes under these Rules and the Rules of the Clearing Corporation, on the last day of trading in the underlying securities prior to expiration, by reference to the reported level of such index as derived from the opening prices of the underlying securities on such day, as determined by the market for such security selected by the Reporting Authority pursuant to Interpretation and Policy .12 to March 24, 2010

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Rule 24.9, except that in the event that the primary market for an underlying security does not open for trading, halts trading prematurely, or otherwise experiences a disruption of normal trading on that day, or in the event that the primary market for an underlying security is open for trading on that day, but that particular security does not open for trading, halts trading prematurely, or otherwise experiences a disruption of normal trading on that day, the price of that security shall be determined, for the purposes of calculating the current index value at expiration, as set forth in Rule 24.7(e). The following A.M.-settled index options are approved for trading on the Exchange: (i) – (xx) No change. [(xxi – xxiv) [Reserved.]] (xxi) CBOE Gold ETF Volatility Index (“GVZ”). [Reserved.] (xxii – xxiv) (xxv) - (lxxxvi) No change. (5) Method of Determining Day that Exercise Settlement Value will be Calculated and of Determining Expiration Date and Last Trading Day for [CBOE] Volatility Index (e.g., VIX, RVX, VXD, VXN) [O]options (“Volatility Index options”) and [CBOE Increased-Value Volatility Index Options] CBOE Gold ETF Volatility Index (“GVZ”) options. The exercise settlement value of a Volatility Index or a GVZ option for all purposes under these Rules and the Rules of the Clearing Corporation, shall be calculated on the Wednesday that is thirty days prior to the third Friday of the calendar month immediately following the month in which the Volatility Index or a GVZ option expires. If the third Friday of the month subsequent to the expiration of the Volatility Index or a GVZ option is an Exchange holiday, the exercise settlement value shall be calculated on the business day that is thirty days prior to the Exchange business day immediately preceding that Friday. The exercise settlement value of a Volatility Index or a GVZ option for such purposes shall be calculated by the Exchange as a Special Opening Quotation (SOQ) of the applicable Volatility Index or GVZ using the sequence of opening prices of the options that comprise the Volatility Index or GVZ. The opening price for any series in which there is no trade shall be the average of that option’s bid price and ask price as determined at the opening of trading. The expiration date of a Volatility Index or GVZ option shall be the same day that the exercise settlement value of the Volatility Index or GVZ option is calculated. The last trading day for a Volatility Index or GVZ option shall be the business day immediately preceding the expiration date of the Volatility Index or GVZ option. (b) – (d) No change. …Interpretations and Policies: .01 The procedures for adding and deleting strike prices for index options are provided in Rule 5.5 and Interpretations and Policies related thereto, as otherwise generally provided by Rule 24.9, and include the following: (a) The interval between strike prices will be no less than $5.00; provided, that in the case of the following classes of index options, the interval between strike prices will be no less than $2.50: (i) – (lxii) No change. (lxiii) CBOE Gold ETF Volatility Index (“GVZ”) (b)- (h) No change. (i) In addition to the strike price intervals permitted under Interpretation and Policy .01(a) to Rule 24.9, the Exchange may also list series at 1 point strike price intervals for GVZ options, subject to following conditions: (i) Initial Series. The Exchange will list in-, at- and out-of-the-money strike prices, and may open for trading up to five series above and five series below the calculated forward value of GVZ, and LEAPs series. March 24, 2010

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(ii) Additional Series. In response to customer demand or as the calculated forward value of GVZ moves from the initial exercise prices of option series that have been opened for trading, the Exchange may open for trading up to five series above and five series below the calculated forward value of GVZ, and LEAPs series. (iii) The Exchange may not open for trading series with 1 point strike price intervals within 0.50 point of an existing 2.5 point strike price with the same expiration month. (iv) The Exchange shall not list LEAPS on GVZ options at strike price intervals less than 1 point. .02 - .11 No change. * * * * * Rule 24A.7 — Position Limits and Reporting Requirements RULE 24A.7. (a) FLEX Index Options (1) In determining compliance with Rules 4.11, 24.4, 24.4A and 24.4B, FLEX Index Options shall be subject to FLEX contract position limitations fixed by the Exchange in accordance with the provisions of this Rule. (2) Except as otherwise provided in this Rule, in no event shall the position limits for a broad-based FLEX Index Option class exceed in the aggregate 200,000 contracts on the same side of the market. (3) In no event shall the position limits for an industry-based FLEX Index Option class exceed one times the applicable number of Non-FLEX Index Option contracts (whether long or short) of the put class and the call class on the same side of the market, as determined on the basis of the position limits established pursuant to Rule 24.4A; provided, however, the position limits for an industry-based FLEX Index Option class shall not exceed four times the applicable position limits established pursuant to Rule 24.4A, instead of one times as provided above, for: (i) the Dow Jones Transportation Average or the Dow Jones Utility Average; or (ii) an underlying industry-based index that is not a “narrow-based security index,” as defined under Section 3(a)(55)(B)of the Exchange Act. (4) In no event shall the position limits for a micro narrow-based FLEX Index Option class exceed one times the applicable number of Non-FLEX Index Option contracts (whether long or short) of the put class and the call class on the same side of the market, as determined on the basis of the position limits established pursuant to Rule 24.4B. (5) The position limits for FLEX GVZ Options are equal to the position limits for Non-FLEX GVZ Options established pursuant to Rule 24.4. (b) – (c) No change. (d) Aggregation of Positions. For purposes of the position limits and reporting requirements set forth in this Rule, FLEX Option positions shall not be aggregated with positions in NonFLEX Options other than as provided below, and positions in FLEX Index Options on a given index shall not be aggregated with options on any stocks included in the index or with FLEX Index Option positions on another index. (1) – (3) No change. (4) As long as the options positions remain open, positions in FLEX GVZ Options that expire on the same day as Non-FLEX GVZ Options, as determined pursuant to Rule 24.9(a)(5), shall be aggregated with positions in Non-FLEX GVZ Options and shall be subject to the position limits set forth in Rules 4.11, 24.4, 24.4A and 24.4B, and the exercise limits set forth in Rules 4.12 and 24.5. This rule supplements Rule 4.11 generally, but supersedes Interpretations .02 and .04 of Rule 4.11 and all of Rules 24.4, Rule 24.4A, Rule 24.4B and Rule 29.5 except to the extent those Rules are referred to in this rule.

March 24, 2010

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Rule 24A.8 —Exercise Limits RULE 24A.8. (a) In determining compliance with Rules 4.12 and 24.5, exercise limits for FLEX Index and FLEX GVZ Options shall be equivalent to the FLEX position limits prescribed in Rule 24A.7. There shall be no exercise limits for broad-based FLEX Index Options (including reduced-value option contracts) on BXM (1/10th value), DJX, NDX, OEX, RUT, S&P 500 Dividend Index, SPX, VIX, VXN, VXD, CBOE S&P 500 Three-Month Realized Variance, CBOE S&P 500 Three-Month Realized Volatility and XEO. (b) – (d) No change. * * * * * Rule 24B.7 — Position Limits and Reporting Requirements RULE 24B.7. (a) FLEX Index Options (1) In determining compliance with Rules 4.11, 24.4, 24.4A and 24.4B, FLEX Index Options shall be subject to FLEX contract position limitations fixed by the Exchange in accordance with the provisions of this Rule. (2) Except as otherwise provided in paragraph (b) of this Rule, in no event shall the position limits for a broad-based FLEX Index Option class exceed in the aggregate 200,000 contracts on the same side of the market. (3) In no event shall the position limits for an industry-based FLEX Index Option class exceed one times the applicable number of Non-FLEX Index Option contracts (whether long or short) of the put class and the call class on the same side of the market, as determined on the basis of the position limits established pursuant to Rule 24.4A provided, however, the position limits for an industry-based FLEX Index Option class shall not exceed four times the applicable position limits established pursuant to Rule 24.4A, instead of one times as provided above, for: (i) the Dow Jones Transportation Average or the Dow Jones Utility Average; or (ii) an underlying industry-based index that is not a “narrow-based security index,” as defined under Section 3(a)(55)(B) of the Exchange Act. (4) In no event shall the position limits for a micro narrow-based FLEX Index Option class exceed one times the applicable number of Non-FLEX Index Option contracts (whether long or short) of the put class and the call class on the same side of the market, as determined on the basis of the position limits established pursuant to Rule 24.4B. (5) The position limits for FLEX GVZ Options are equal to the position limits for Non-FLEX GVZ Options established pursuant to Rule 24.4. (b) – (c) No change. (d) Aggregation of Positions For purposes of the position limits and reporting requirements set forth in this Rule, FLEX Option positions shall not be aggregated with positions in Non-FLEX Options other than as provided below, and positions in FLEX Index Options on a given index shall not be aggregated with options on any stocks included in the index or with FLEX Index Option positions on another index. (1) – (3) No change. (4) As long as the options positions remain open, positions in FLEX GVZ Options that expire on the same day as Non-FLEX GVZ Options, as determined pursuant to Rule 24.9(a)(5), shall be aggregated with positions in Non-FLEX GVZ Options and shall be subject to the position limits set forth in Rules 4.11, 24.4, 24.4A and 24.4B, and the exercise limits set forth in Rules 4.12 and 24.5. This rule supplements Rule 4.11 generally, but supersedes Interpretations .02 and .04 of Rule 4.11 and all of Rules 24.4, 24.4A, 24.4B and 29.5 except to the extent those Rules are referred to in this rule. March 24, 2010

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Rule 24B.8. — Exercise Limits RULE 24B.8. (a) In determining compliance with Rules 4.12 and 24.5, exercise limits for FLEX Index and FLEX GVZ Options shall be equivalent to the FLEX position limits prescribed in Rule 24B.7. There shall be no exercise limits for broad-based FLEX Index Options (including reduced-value option contracts) on BXM (1/10th value), DJX, NDX, OEX, RUT, S&P 500 Dividend Index, SPX, VIX, VXN, VXD, CBOE S&P 500 Three-Month Realized Variance, CBOE S&P 500 Three-Month Realized Volatility and XEO. (b) – (d) No change. * * * * * _________________________________________________________________________________ BUSINESS CONDUCT COMMITTEE DECISIONS

At its meeting on February 24, 2010, the Business Conduct Committee (“BCC”) resolved the following disciplinary matters by accepting one Offer of Settlement and four Letters of Consent, in which the Respondent and Subjects, respectively, consented to stipulations of facts and findings as detailed below without admitting or denying that Exchange Rules had been violated. In the Matter of DRO WST Trading, LLC; File No. 09-0041 (Offer of Settlement, Decision issued March 2, 2010). DRO WST Trading, LLC (“DRO WST”), an Exchange member organization, was censured and fined $20,000 for the following conduct. DRO WST improperly marked a total of 492 of 4753 sales reviewed, or approximately 10.35%. (CBOE Rule 4.2; and Regulation SHO of the Securities Exchange Act of 1934, as amended, and Rule 200 thereunder.) In the Matter of Fortis Clearing Americas, L.L.C.; File No. 09-0050 (Letter of Consent, Decision issued March 2, 2010). Fortis Clearing Americas, L.L.C. (“Fortis”), an Exchange member organization, was censured and fined $20,000 for the following conduct. Fortis failed to systematize numerous option orders prior to representation and execution. In addition, Fortis failed to supervise its employees to assure compliance with Exchange Rule 6.24 and the obligation to systematize all non-electronic orders. (CBOE Rules 4.2 - Adherence to Law and 6.24 – Required Trade Information.) In the Matter of VTrader Pro L.L.C.; File No. 09-0051 (Letter of Consent, Decision issued March 2, 2010). VTrader Pro L.L.C. (“VTrader”), an Exchange member organization, was censured and fined $30,000 for the following conduct. VTrader failed to demonstrate that it satisfied the close-out requirements of Regulation SHO for 9 of 26 sampled notices, or approximately 35%. In addition, VTrader improperly marked 110 of 776 sampled sell orders, or approximately 14%. (CBOE Rule 4.2 Adherence to Law; and Regulation SHO of the Securities Exchange Act of 1934, as amended, and Rule 200 and Rule 204T thereunder.) In the Matter of Wolverine Execution Services, LLC; File No. 10-0001 (Letter of Consent, Decision issued March 2, 2010). Wolverine Execution Services, LLC (“Wolverine Execution”), an Exchange member organization, was censured and fined $10,000 for the following conduct. Wolverine Execution failed to systematize numerous option orders prior to representation and execution. In addition, Wolverine March 24, 2010

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Execution failed to supervise its employees to assure compliance with Exchange Rule 6.24 and the obligation to systematize all non-electronic orders. (CBOE Rules 4.2 - Adherence to Law and 6.24 – Required Trade Information.) In the Matter of optionsXpress, Inc.; File No. 10-0003 (Letter of Consent, Decision issued March 2, 2010). optionsXpress, Inc. (“optionsXpress”), an Exchange member organization, was censured and fined $10,000 for the following conduct. optionsXpress publicly disseminated a press release dated October 15, 2009, which was not approved by the Exchange and contained language that lacked required disclosures. In addition, optionsXpress failed to adequately follow its procedures by failing to submit for Exchange approval the press release described above. (CBOE Rules 4.2 - Adherence to Law, 9.8 – Supervision of Accounts, and 9.21 – Communications to Customers.)

March 24, 2010

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