07-0056LaBranche Structured Products, LLC

							                  BEFORE THE BUSINESS CONDUCT COMMITTEE
                                  OF THE
              CHICAGO BOARD OPTIONS EXCHANGE, INCORPORATED

_______________________________
                                   )
In the Matter of:                  )
                                   )
LaBranche Structured Products, LLC )
One Exchange Plaza                 )
New York, New York 10006-3008      )                     File No. 07-0056
                                   )
                                   )
Respondent                         )
 _______________________________ )


                    DECISION ACCEPTING OFFER OF SETTLEMENT

This proceeding was instituted by the Business Conduct Committee (the “Committee”) of the
Chicago Board Options Exchange, Incorporated (the “Exchange”) as a result of an investigation
by the staff of the Exchange, which indicated that there was probable cause for finding a violation
within the disciplinary jurisdiction of the Exchange. In accordance with that determination, the
Committee directed the issuance of a Statement of Charges (“Statement of Charges”). Pursuant
to Exchange Rule 17.8, the respondent (“Respondent”), LaBranche Structured Products, LLC
(“LaBranche”), submitted an offer of settlement (“Offer of Settlement”).

In submitting the Offer of Settlement, the Respondent neither admitted nor denied the violations
alleged in the Statement of Charges.

The Respondent has agreed that the determination of the Committee to accept the Offer of
Settlement shall constitute a final Decision, and, as provided in Exchange Rule 17.8, the
Respondent may not seek review thereof.

The Respondent understands and acknowledges that the Committee’s decision in this matter will
become part of its disciplinary record and may be considered in any future Exchange proceeding.

With due regard to the particulars of this matter, the Committee believes it is appropriate to
accept the Respondent's Offer of Settlement based on the following stipulated facts and findings
and thereby to impose the sanction specified below.


                                             FACTS

1. During all relevant periods herein, LaBranche was an Exchange member organization
   registered to transact business on the Exchange in accordance with Exchange Rules as an
   organization associated with a Market-Maker.

2. During all relevant periods herein, the Firm was acting as a registered broker-dealer.
 File No. 07-0056




 3. During all relevant periods herein, Exchange Rules 4.1 – Just and Equitable Principles of
    Trade, 4.2 – Adherence to Law, 4.11 – Position Limits, 4.12 – Exercise Limits, and
    Regulatory Circular RG01-61 – Transactions Between Related Entities were in full force and
    effect.

 4. Pursuant to Regulatory Circular RG01-61-Transactions Between Related Entities; sets forth
    in part that “firm traders employed by the same broker/dealer on different trading desks
    regardless of whether they are separate profit centers may not trade as contra-parties on
    behalf of the firm.”

 5. During all relevant periods herein, the position and exercise limits for the Standard and
    Poor’s Depositary Receipts (SPY) option class was 300,000 contracts on the same side of the
    market.

 6. On August 22, 2005, it was announced that a dividend of .52169 would be paid to SPY
    holders on record as of September 15, 2005.

 7. Attached hereto and made a part of this Statement of Charges in File No. 07-0056 as
    “Appendix A” is a listing of LaBranche’s September 15, 2005 proprietary long call and short
    call SPY option contracts.

 8. On September 15, 2005, LaBranche controlled an aggregate long call position of 546,069
    SPY option contracts in its proprietary accounts, 246,069 contracts in excess of the
    established position limit, as more fully described in Appendix A.

 9. On September 15, 2005, LaBranche controlled an aggregate short call position of 547,180
    SPY option contracts in its proprietary accounts, 247,180 contracts in excess of the
    established position limit, as more fully described in Appendix A.

10. On trade date September 15, 2005, LaBranche’s proprietary account exercised 546,069 SPY
    long call option contracts, 246,069 contracts in excess of the established exercise limit, as
    more fully described in Appendix A. As a result, LaBranche captured dividend income to
    which it was not entitled to receive.

11. On September 15, 2005, LaBranche effected numerous transactions totaling 546,000 SPY
    option contracts between two of its aggregated proprietary accounts, as more fully described
    in Appendix A.


                                           FINDINGS

The acts, practices and conduct described in each of Paragraphs 8 and 9 above constitute violations
of Exchange Rules 4.1, 4.2, and 4.11 by LaBranche, in that LaBranche controlled an aggregate
long call SPY option contracts and an aggregate short call SPY option contracts in its proprietary
accounts in excess of the established position limit.

The acts, practices and conduct described in Paragraph 10 above constitute a violation of
Exchange Rules 4.1, 4.2, and 4.12 by LaBranche, in that LaBranche’s proprietary account



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File No. 07-0056



exercised 546,069 SPY long call option contracts, 246,069 contracts in excess of the established
exercise limit.

The acts, practices and conduct described in Paragraph 11 above constitute a violation of
Exchange Rules 4.1, 4.2, and Regulatory Circular RG01-61 by LaBranche, in that LaBranche’s
effected numerous transactions totaling 546,000 SPY option contracts between two of its
aggregated proprietary accounts.


                                          SANCTION

The sanction to be imposed shall consist of a $55,000 fine, a censure and disgorgement in the
amount of $53,838.00.


                                            ORDER

ACCORDINGLY IT IS ORDERED THAT, the Respondent, LaBranche Structured Products,
LLC shall be and hereby is censured, fined in the amount of fifty-five thousand dollars ($55,000)
and a disgorgement in the amount of $53,838.00.




                                                    SO ORDERED
                                                    FOR THE COMMITTEE


Dated: November 8, 2007                        By: /s/ Bruce Andrews
                                                   Bruce Andrews
                                                   Chairman
                                                    Business Conduct Committee




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