November 13, 2017
Dear Mr. Powers,
Thank you for your response (HO-00635782-HO) to my email of Oct 31st concerning my petition to change Rule 1092(b)3 (hereinafter the "Rule").. As I noted I have been awaiting a decision on my petition for a rule change. (File No. F-708) In addition to my petition, on December 6, 2016 I filed an arbitration proceeding (FINRA Arbitration No. 16-03545) against three market making firms (Cutler Group, LP, Citadel Securities LLC, and Goldman Sachs & Co.) who filled the order with the obvious and unintended error.. . On October 23, 2017 a hearing on the matter was held at the office of FINRA in Boca Raton, Florida. Citadel Securities and Goldman Sachs were represented by consul and I represented myself There were no facts in dispute: I admitted the error to being my fault. The market makers defense relied exclusively on the Rule and the decision of the PHLX official in allowing the trade to go through.. On November 7, 2017 the arbitrator handed down a decision which overturned the ruling of the PHLX Stock Exchange official and the section of the rule which deals with "wide
quotations" I was awarded full restitution plus interest on the
money I lost on the purchase of twenty option contracts. The decision by the arbitrator is strong evidence that the exemption section of the Rule should be eliminated. On September 1, 2017 the C2 Option Exchange went to great lengths to improve the transparency of theoretical values of options in amending the same rule. I hope that this information will be forwarded to the parties who are considering my petition for rule change. The public investor should be protected.Thank you in advance for your continued assistance with this matter. I look forward to hearing from you with an update.