To file a Request For Review:
Via email: CBSXhelpdesk@cboe.com
Via phone: 866-458-2279
Via FAX: 312-786-7050
Rule 52.4 Clearly Erroneous Policy
(a) Definition. For the purposes of this Rule, the terms of a transaction executed on CBSX are "clearly erroneous" when there is an obvious error in any term, such as price, number of shares or other unit of trading, or identification of the security.
(b) Request for CBSX Review. A member that receives an execution on an order that was submitted erroneously to CBSX for its own or customer account may request that CBSX review the transaction under this Rule. Such request for review shall be made via telephone and in writing via facsimile or e-mail. The telephonic request should be submitted immediately and the written request should be submitted within fifteen (15) minutes of the time the trade in question was executed. Once the request has been received, an officer of CBSX designated by the President shall review the transaction under dispute and determine whether it is clearly erroneous, with a view toward maintaining a fair and orderly market and the protection of investors and the public interest. Each party to the transaction shall provide, on a timely basis, any supporting written information as may be reasonably requested by the designated officer to aid resolution of the matter.
(c) Review Procedures. Unless both parties (or party, in the case of a cross) to the disputed transaction agree to withdraw the initial written request for review, the transaction under dispute shall be reviewed, and a determination shall be rendered by the designated CBSX officer. If the officer determines that the transaction is not clearly erroneous, the officer shall decline to take any action in connection with the completed trade. In the event that the officer determines that the transaction in dispute is clearly erroneous, the officer shall declare the transaction null and void or modify one or more of the terms of the transaction to achieve an equitable rectification of the error that would place the parties in the same position, or as close as possible to the same position that they would have been in, had the error not occurred. The officer shall promptly notify the parties of the determination reached and shall issue a written resolution of the matter. The member aggrieved by the officer's determination may appeal such determination in accordance with the provisions of Chapter 19.
(d) System Disruption and Malfunctions. In the event of any disruption or a malfunction in the use or operation of any electronic communications and trading facilities of CBSX, the Chief Executive Officer, President, or such other officer designated by CBSX may declare a transaction arising out of the use or operation of such facilities during the period of such disruption or malfunction null and void or modify the terms of these transactions. Absent extraordinary circumstances, any such action of the Chief Executive Officer, President or designated CBSX officer pursuant to this subsection (d) shall be taken within thirty (30) minutes of detection of the erroneous transaction. Each member involved in the transaction shall be notified as soon as practicable, and the member aggrieved by the action may appeal such action in accordance with the provisions of Chapter 19.
Adopted September 11, 2006 (04-21); Amended March 2, 2007 (06-112).
Contacts: