This rule is no longer applicable effective February 17, 2009.
(a) Options Disclosure Document
At or prior to the time a customer's account is approved for trading in a particular kind of option by a member or member organization, such member or member organization shall deliver to the customer the applicable current Options Disclosure Document. Thereafter, such member or member organization shall distribute a copy of each new amendment to or revision of each applicable current Options Disclosure Document to every customer having an account approved for trading the particular kind of option covered by such applicable current Options Disclosure Document or, in the alternative, shall so distribute such amendment or revision not later than the time a confirmation of a transaction in such particular kind of option is delivered to such customer.
(b) Prospectus
Every member and member organization shall deliver a current Prospectus of The Options Clearing Corporation to each customer who requests one. The term "current Prospectus of The Options Clearing Corporation" means the prospectus portion of Form S-20 that meets the delivery requirements of Rule 153b under the Securities Act of 1933, as amended.
(c) Uncovered Short Options Risk Disclosure
The written description of risks required by Rule 721 shall be in a format prescribed by the Exchange or in a format developed by the member or member organization, provided it contains substantially similar information as the prescribed Exchange format and has received prior written approval of the Exchange.
(d) Portfolio Margining Disclosure Statement and Acknowledgement
The special written disclosure statement describing the nature and risks of portfolio margining, and acknowledgement for an eligible participant signature, required by Rule 431(g)(5)(C) shall be in a format prescribed by the Exchange or in a format developed by the member organization, provided it contains substantially similar information as in the prescribed Exchange format and has received the prior written approval of the Exchange.
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.10 Where the customer of a member or member organization is a broker or dealer entering his orders with the member or member organization in a single omnibus account, such member or member organization shall take reasonable steps to assure that such broker or dealer is furnished reasonable quantities of applicable current Options Disclosure Documents as requested by him in order to enable him to comply with the requirements of this Rule.
.20 Where a broker or dealer enters orders for his customers with, or clears transactions through, a member organization on a fully disclosed basis and such member organization carries the accounts of such customers, the responsibility for delivering applicable current Options Disclosure Documents as provided in this Rule shall rest with the carrying member organization. However, the carrying member organization may rely upon the good faith representation of the introducing broker or dealer that applicable current Options Disclosure Documents have been delivered in compliance with this Rule.
.30 The Exchange will advise members and member organizations when an Options Disclosure Document or Prospectus is amended.
