Chicago Board Options Exchange Annual Report 2001 - CBOE.com

exchange or a futures exchange, choice of physical or cash settlement,
and comparable federal tax treatment for options and
single-stock futures.
SECTION 31 FEES
As a vocal advocate for fairness in the marketplace, CBOE
campaigned for legislation that would eliminate Section 31 fees
applicable to options on broad-based stock indices. These fees
were intended to fund the SEC; yet, the government currently
collects several times over the SEC’s budget. In addition, these fees
are not imposed on futures and futures options based on stock
indices, although these products compete directly with options on
broad-based stock indices.
The U.S. House of Representatives has passed a bill (H.R. 1088) on
Section 31 fees, and at the time this report was published, the bill
was being considered in the U.S. Senate.
DECIMALS
INTERMARKET
LINKAGE
On April 9, 2001, CBOE completed an extensive conversion process
that enabled trading of all options classes in decimals. Conversion
to decimals was mandated by the Securities and Exchange
Commission, and all U.S. stocks and exchange-traded options
now trade in decimals.
Additionally, as a step toward establishing permanent intermarket
linkage between the options exchanges, the Securities and
Exchange Commission approved an interim intermarket linkage
program to facilitate members’ electronic access between the
options exchanges. The first interim linkage in the industry began
at CBOE on April 25, 2001.
09 CBOE ‘01