Securities Lawyer's Deskbook
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General Rules and Regulations
under the
Securities Act of 1933

Rule 238 -- Exemption for Standardized Options

  1. Exemption. Except as expressly provided in paragraphs (b) and (c) of this section, the Act does not apply to any standardized option, as that term is defined by Rule 9b-1(a)(4), that is:

    1. Issued by a clearing agency registered under section 17A of the Securities Exchange Act of 1934; and

    2. Traded on a national securities exchange registered pursuant to section 6(a) of the Securities Exchange Act of 1934 or on a national securities association registered pursuant to section 15A(a) of the Securities Exchange Act of 1934.

  2. Limitation. The exemption provided in paragraph (a) of this section does not apply to the provisions of section 17 of the Act.

  3. Offers and sales. Any offer or sale of a standardized option by or on behalf of the issuer of the securities underlying the standardized option, an affiliate of the issuer, or an underwriter, will constitute a contract for sale of, sale of, offer for sale, or offer to sell the underlying securities as defined in section 2(a)(3) of the Act.

Regulatory History

68 FR 188, Jan. 2, 2003.

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