[Federal Register Volume 78, Number 192 (Thursday, October 3, 2013)]
[Notices]
[Pages 61436-61437]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-24163]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70545; File No. SR-OCC-2013-15]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Correct an Inadvertent Omission in a Prior Rule Change Filing Related
to the Definition of Hedge Clearing Member
September 27, 2013.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on September 19, 2013, 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 proposed rule
change pursuant to Section 19(b)(3)(A)(iii) \3\ of the Act and Rule
19b-4(f)(4)(ii) \4\ 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\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(4)(ii).
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
OCC proposes to correct an inadvertent omission in a prior rule
change filing related to the definition of Hedge Clearing Member.
II. Clearing Agency'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.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
The purpose of this proposed rule change is to correct an
inadvertent omission in a prior rule change filing related to the
definition of ``Hedge Clearing Member'' in OCC's By-Laws (``By-Laws'').
By way of background, in 2002 OCC proposed, and the SEC approved,
certain rule changes to OCC's Stock Loan/Hedge Program (``Hedge
Program'') (SR-OCC-2002-11).\5\ As part of that proposed rule change,
OCC deleted and relocated an existing interpretation to Article V,
Section 1 relating to the designation of a Hedge Clearing Member. In
connection with relocating the interpretation, OCC also amended the
interpretation so that designation as a Hedge Clearing Member was no
longer pre-conditioned upon the Clearing Member also being a Stock
Clearing Member. However, a concurrent change to the definition of
Hedge Clearing Member was not made at that time, thereby creating an
inconsistency between the description of Hedge Clearing Member found in
Article V of the By-Laws and the definition of Hedge Clearing Member
found in Article I of the By-Laws. OCC now proposes to resolve this
inconsistency by making a technical correction to the definition of
Hedge Clearing Member in Article I of the By-Laws so that it is
consistent with the description of Hedge Clearing Member found in
Article V of the By-Laws.
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\5\ Securities and Exchange Act Release No. 34-47898 (May 21,
2003), 68 FR 32164 (May 29, 2003).
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As described above, through SR-OCC-2002-11, OCC made certain
changes its Hedge Program. One such change was that OCC determined that
it was no longer necessary to require that a Hedge Clearing Member
initially be designated as a ``Stock'' Clearing Member and,
accordingly, updated Article V of the By-Laws. However, through an
inadvertent oversight, a concurrent change to Article I of the By-Laws
was not made at that time. Accordingly, OCC now proposes to make a
technical correction to the Article I definition of Hedge Clearing
Member so that it is consistent with the description of Hedge Clearing
Member found in Article V of the By-Laws by removing the reference to
``Stock'' Clearing Member from the definition of Hedge Clearing Member.
This proposed change will resolve the inconsistency within the By-Laws
with respect to the definition of Hedge Clearing Member.
The proposed change to OCC's By-Laws is consistent with the
purposes and requirements of Section 17A(b)(3)(F) \6\ of the Act \7\
and Rule 17Ad-22(d)(2) \8\ thereunder because it will prevent unfair
discrimination in the admission of participants, or among participants,
in the use of OCC's Hedge Program and ensure that OCC's By-Laws are
reasonably designed to have participation requirements that are
objective, publicly disclosed and permit fair and open access. The
proposed changes are also intended to remove potential impediments to,
and will perfect the mechanism of a national system for, the prompt and
accurate clearance and settlement of securities transactions.
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\6\ 15 U.S.C. 78q-1(b)(3)(F).
\7\ 15 U.S.C. 78a et seq.
\8\ 17 CFR 240.17Ad-22(d)(2).
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(B) Clearing Agency's Statement on Burden on Competition
OCC does not believe that the proposed rule change would impact, or
impose a burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The proposed change, which will
apply to all clearing members, is administrative in nature and will
correct an inconsistency within OCC's By-Laws. Accordingly, the
proposed change will reduce unnecessary administrative burdens on its
clearing members, including any such burdens that may impact
competition.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others
Written comments on the proposed rule change were not and are not
intended to be solicited with respect to the proposed rule change and
none have been received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective upon filing pursuant
to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(1) \10\
thereunder, the proposed rule change is filed for immediate
effectiveness inasmuch as it constitutes
[[Page 61437]]
a stated policy, practice or interpretation with respect to the
meaning, administration or enforcement of an existing rule. OCC will
delay the implementation of the rule change until it is deemed
certified under CFTC Regulation Sec. 40.6. At any time within 60 days
of the filing of such 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.\11\
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\9\ 15 U.S.C. 78s(b)(3).
\10\ 17 CFR 240.19b-4(f)(1).
\11\ 15 U.S.C. 78s(b)(3)(C).
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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 email to [email protected]. Please include
File Number SR-OCC-2013-15 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-2013-15. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method of submission. 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 Web site
viewing and printing in the Commission's Public Reference Section, 100
F Street NE., Washington, DC 20549, on official business days between
the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will
be available for inspection and copying at the principal office of OCC
and on OCC's Web site at http://www.theocc.com/components/docs/legal/rules_and_bylaws/sr_occ_13_15.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-2013-15 and
should be submitted on or before October 24, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated Authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24163 Filed 10-2-13; 8:45 am]
BILLING CODE 8011-01-P