CBOE Tightens Trader Rules

Chicago Board Options Exchange will require traders to provide written descriptions of oversight practices, regular office inspections, and annual reporting.

Nine months after regulators fined the Chicago Board Options Exchange (CBOE) for failing to police its members, the biggest U.S. options market approved a rule aimed at preventing fraud.

Firms trading at the unit of CBOE Holdings Inc. will be required to write down how they supervise their businesses, according to a Securities and Exchange Commission (SEC) filing from the Chicago-based options exchange. They must also carry out regular office inspections and send CBOE an annual report on regulatory practices.

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