September 5, 2007
To Whom It May Concern,
My name Is Jeffrey Kost and have been a member at the CBOE since February of 1987. I purchased a CBOT full membership in September of 1997. I have been trading in the OEX pit at the CBOE since 1987, as a sole-proprietor since 1989.
I am against the proposed CBOE rule change that would charge members like myself $4700 a month to have access to trade on the CBOE trading floor.
Without getting into the CBOT/CBOE exchange ownership issues, it was clear that anybody who was a full CBOT owner would have access to trading on the floor at the CBOE without paying any lease fees by using their exercise right privilege.
I purchased my CBOT full membership to have access to trade at the CBOE and to avoid the high lease fees that were being charged by CBOT and CBOE owners. These factors helped me make my decsion to take on the risks of buying a CBOT membership.
I have been paying all CBOE membership dues since 1987, when I started trading. I have not changed my membership status as a CBOE member since 1997 when I bought my CBOT seat.
The CBOE's interpretation of their membership rules stating that the CBOT/CME merger has changed my membership status is self-serving and in dispute in a court of law. Their perceived ability to charge certain members and not others an access fee is a financial hardship to those CBOE members like myself, who have been trading at the CBOE using their excercise privilige that was instituted when the CBOT created the CBOE.
I strongly recommend that you deny the CBOE's interpretation of the rules to charge a temporary access fee to members like myself.
Thank you for your consideration of this matter.