Securities Lawyer's Deskbook                          published by The University of Cincinnati College of Law

Rule 19c-5 -- Governing the Multiple Listing of Options on National Securities Exchanges

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1. The rules of each national securities exchange that provides a trading market in standardized put or call options shall provide as follows:
   
   
   1. On and after January 22, 1990, but not before, no rule, stated policy, practice, or interpretation of this exchange shall prohibit or condition, or be construed to prohibit or condition or otherwise limit, directly or indirectly, the ability of this exchange to list any stock options class first listed on an exchange on or after January 22, 1990, because that options class is listed on another options exchange.
      
      
   2. During the period from January 22, 1990, to January 21, 1991, but not before, no rule, stated policy, practice, or interpretation of this exchange shall prohibit or condition, or be construed to prohibit or condition or otherwise limit, directly or indirectly, the ability of this exchange to list up to ten classes of standardized stock options overlying exchange-listed stocks that were listed on another options exchange before January 22, 1990. These ten classes shall be in addition to any option on an exchange-listed stock trading on this exchange that was traded on more than one options exchange before January 22, 1990.
      
      
   3. On and after January 21, 1991, but not before, no rule, stated policy, practice, or interpretation of this exchange shall prohibit or condition, or be construed to prohibit or condition or otherwise limit, directly or indirectly, the ability of this exchange to list any stock options class because that options class is listed on another options exchange.
      
      
2. For purposes of paragraph (a)(2) of this Rule, if any options class is delisted from an options exchange as a result of a merger of the equity security underlying the option or a failure of the underlying security to satisfy that exchange's options listing standards, then the exchange is permitted to select a replacement option from among those standardized options overlying exchange-listed stocks that were listed on another options exchange before January 22, 1990.
   
   
3. For purposes of this Rule, the term "exchange" shall mean a national securities exchange, registered as such with the Commission pursuant toSection 6 of the Securities Exchange Act of 1934, as amended.
   
   
4. For purposes of this Rule, the term "standardized option" shall have the same meaning as that term is defined in Rule 9b-1 under the Securities Exchange Act of 1934, as amended, 17 CFR Rule 9b-1.
   
   
5. For purposes of this Rule, the term "options class" shall have the same meaning as that term is defined in Rule 9b-1 under the Securities Exchange Act of 1934, as amended, 17 CFR Rule 9b-1.
   
   

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