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Any idea if the CME is going to do this also?
Chris
-----Original Message-----
From: Sentinel Trading <rjbiii@xxxxxxxxx>
To: Omega List <omega-list@xxxxxxxxxx>
Date: Friday, December 04, 1998 12:10 PM
Subject: Fwd:Re-Balance of Nasdaq-100? Index
>Received this from the CBOE thought it might be of interest.
>
>"The darkest hour in any man's life is when he sits down to plan
> how to get money without earning it"
>
>Sentinel Trading
>rjbiii@xxxxxxxxx
>
>____________________Forward Header_____________________
>Subject: Re-Balance of Nasdaq-100? Index
>Author: owner-cboe_general_announcements@xxxxxxxx
>Date: 12/3/98 5:49 PM
>
>
>CBOE Regulatory Circular #RG98-134
>
>December 3, 1998
>
>Re-Balance of Nasdaq-100(r) Index
>
>CBOE has been informed by Nasdaq that following the close of business on
>December 18, 1998, Nasdaq will change the Nasdaq-100 Index (NDX) to a
>modified capitalization weighted index (the "New Index"). The Nasdaq will
>continue to calculate the index using the standard capitalization-weighting
>methodology (the "Old Index") until March 20, 1999 to facilitate options
>trading. The "Old Index" will be disseminated by the Nasdaq under the
>symbol IXO. The "New Index" will be disseminated under the symbol NDX.
>
>Adjustment to Current Option Series
>
>All Nasdaq-100 options series outstanding on December 18 will continue to
>settle based on the "Old Index" (IXO). Currently there are nine underlying
>symbols associated with the NDX -series currently using the underlying
>symbol NDX will have a symbol change to IXO, all remaining symbols will
>stay the same. The settlement value symbol for these contracts will be NDA.
>Following are the underlying symbols associated with the NDX as of December
>3, 1998:
>
>
> Current Expiration New
>Symbol Strikes Months Symbol
>NDX 900 - 990 Mar 1999 IXO
>NDV 1010 - 1090 Jan, Mar 1999 NDV
>NCZ 1100 - 1190 Jan, Mar 1999 NCZ
>NDY 1200 - 1290 Jan, Mar 1999 NDY
>NDZ 1300 - 1390 Jan, Mar 1999 NDZ
>NDU 1400 - 1490 Jan, Mar 1999 NDU
>NDO 1500 - 1590 Jan, Mar 1999 NDO
>NDK 1600 - 1690 Jan, Mar 1999 NDK
>NDL 1700 - 1790 Jan, Mar 1999 NDL
>
>
>
>New Option Series
>
>Options based on the "New Index" ("NDX") will be listed on December 21,
>1998. At-the-money options will be listed under the symbol NDX. Additional
>symbols may have to be used for other strike prices. The settlement value
>symbol for options based on the "New Index" will be NDS. The new series to
>be listed will be determined by the Exchange and disseminated by Wednesday,
>December 16.
>
>Position Limits
>
>Any combination of options based on the "Old Index" and options based on
>the "New Index" cannot exceed 15,000 contracts in the near-term and 25,000
>contracts overall.
>
>Calculation of the New Index
>
>The new modified capitalization-weighting methodology is intended to make
>the index more diversified. To implement the change, Nasdaq will review the
>composition of the Nasdaq-100 Index on a quarterly basis, beginning in
>December 1998, and will adjust the weightings of Index components using a
>proprietary algorithm whenever (1) Any individual component security
>represents more than 24% of the total market value of the Index, and/or (2)
>The combined weight of all securities having individual weightings of at
>least 4.50% exceeds 48% of the total market value of the Index. (Once the
>index has been adjusted, it will be re-adjusted only if the adjusted index
>exceeds the 24% or 48% thresholds.) More information on the new calculation
>of the index can be obtained at the nasdaqtrader.com web site.
>
>On Friday, December 11, Nasdaq will post the shares to be used in the "New
>Index" on the nasdaqtrader.com web site.
>
>Other Index Changes
>
>ADDITONALLY on December 18, Nasdaq will perform its regularly scheduled
>quarterly share changes as well as the annual component changes. Please see
>nasdaqtrader.com on December 11, for the new shares and new components for
>both the OLD and NEW indices.
>
>Questions regarding this memo can be addressed to the CBOE Investor
>Services Department at 1-800-OPTIONS (1-800-678 4667).
>
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