[Federal Register Volume 76, Number 121 (Thursday, June 23, 2011)]
[Notices]
[Pages 36943-36945]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-15659]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64697; File No. SR-OCC-2011-07]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Provide an Interpretation to Rule 401 To Allow Clearing Members To Use
OCC Systems To Update Certain Non-critical Trade Data With Respect to
Exchange Transactions Involving Securities Options
June 17, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on June 7, 2011, The Options
Clearing Corporation (``OCC'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change described in Items
I, II, and III below, which Items have been prepared primarily by OCC.
OCC filed the proposal pursuant to Section 19(b)(3)(A)(iii) of the Act
\2\ and Rule 19b-4(f)(4) \3\ thereunder so that the proposal was
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the rule change from interested
parties.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78s(b)(3)(A)(iii).
\3\ 17 CFR 240.19b-4(f)(4).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change will provide an interpretation to Rule 401
to allow clearing members to use OCC systems to update certain non-
critical trade data with respect to exchange transactions involving
securities options provided such updates do not contravene any rule of
the exchange on which such transactions were effected.
[[Page 36944]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, OCC included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. OCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.\4\
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\4\ The Commission has modified the text of the summaries
prepared by OCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of this proposed rule change is to provide an
interpretation to Rule 401 to allow clearing members to use OCC systems
to update certain non-critical trade data with respect to exchange
transactions involving securities options provided such updates do not
contravene any rule of the exchange on which such transactions were
effected. Examples of non-critical option trade data that would
eligible for updating by clearing members include: open/close
indicators, account type, account numbers, Clearing Member Trade
Assignment clearing member numbers, and optional data field remarks.
Rule 401 concerns the reporting of matching trade information by
exchanges to OCC. An interpretation to Rule 401 allows clearing members
to use OCC systems to update certain non-critical trade data with
respect to exchange transactions involving futures provided such
updates do not contravene any rule of the exchange on which such
transaction was effected. Clearing members recently have asked that OCC
expand this to cover options transactions. The request was processed
through the OCC Roundtable, an advisory group comprised of clearing
members, options exchanges, and service bureaus, which assesses
operational improvements that may be implemented at OCC to increase
efficiencies and lower costs to industry participants.
As in exchange transactions involving futures, OCC's systems would
be configured to ``bust'' the submitted trade and to add a new trade
that includes the change. This provides an audit trail for OCC and the
affected exchange. OCC also would provide functionality to allow an
exchange to prevent such updates from happening at OCC for trades
executed on its market.
To accommodate this request, a minor change will be made to
Interpretation and Policy .02 to Rule 401. The change will allow
clearing members to use OCC's systems to update non-critical trade
information with respect to all exchange transactions involving
securities options with the restriction that such updates may not be in
contravention of any rule of the exchange on which the transaction was
effected. The proposed rule change is not inconsistent with the By-Laws
and Rules of OCC.
(B) Self-Regulatory Organization's Statement on Burden on Competition
OCC does not believe that the proposed rule change will have any
impact or impose any burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants, or Others
Written comments relating to the proposed rule change have not been
solicited or received. OCC will notify the Commission of any written
comments received by OCC.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective upon filing
pursuant to Section 19(b)(3)(A)(iii) of the Act \5\ and Rule 19b-
4(f)(4) \6\ thereunder because the proposed rule change affects a
change in an existing service of OCC that: (i) does not adversely
affect the safeguarding of securities or funds within the custody or
control of OCC or for which OCC is responsible; and (ii) does not
significantly affect the respective rights or obligations of clearing
members which would use the service or of OCC. At any time within 60
days of the filing of the proposed rule change, the Commission
summarily may temporarily suspend such rule change if it appears to the
Commission that such action is necessary or appropriate in the public
interest, for the protection of investors, or otherwise in furtherance
of the purposes of the Act.
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\5\ 15 U.S.C. 78s(b)(3)(A)(iii).
\6\ 17 CFR 240.19b-4(f)(4).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an e-mail to [email protected]. Please include
File Number SR-OCC-2011-07 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-OCC-2011-07. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for website
viewing and printing in the Commission's Public Reference Room, 100 F
Street, NE., Washington, DC 20549, on official business days between
the hours of 10 a.m. and 3 p.m. Copies of such filings also will be
available for inspection and copying at the principal office of OCC and
on OCC's Web site at http://www.optionsclearing.com/components/docs/legal/rules_and_bylaws/sr_occ_11_07.pdf.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-OCC-2011-07
and should be submitted on or before July 14, 2011.
[[Page 36945]]
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary .
[FR Doc. 2011-15659 Filed 6-22-11; 8:45 am]
BILLING CODE 8011-01-P