[Federal Register Volume 78, Number 246 (Monday, December 23, 2013)]
[Notices]
[Pages 77525-77526]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-30441]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71090; File No. SR-OCC-2013-22]
Self-Regulatory Organizations; Options Clearing Corporation;
Notice of Filing of Proposed Rule Change To Make a Non-Material
Housekeeping Rule Change So That OCC's Membership Qualifications
Accurately Reflect Current Operational Practices
December 17, 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 December 6, 2013, The Options Clearing Corporation (``OCC'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by OCC. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of this proposed rule change is to make a non-material
``housekeeping'' change to OCC's membership standards so that such
standards better reflect current operational practices.
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 such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
(i) Purpose
The purpose of this proposed rule change is to make a non-material
``housekeeping'' change to OCC's membership standards so that such
standards better reflect current operational practices. Prior to
electronic trading, clearing members were required to have the
operational capacity to manually compare trades and reconcile
unconfirmed and advisory trades, in accordance with applicable exchange
rules and procedures, on a timely and efficient basis so that financial
markets, and specifically clearing operations, functioned in a prompt
and accurate manner. Accordingly, Article V, Section 1, Interpretations
and Policies .02(b) of OCC's By-Laws required clearing member
applicants to have such operational capacity as a condition to
admission as a clearing member. However, due to industry-wide
implementation of electronic systems and processes, manual trade
comparison and reconciliation by clearing members no longer occurs.
Accordingly, OCC's membership requirement mandating that clearing
members have the capacity to manually compare and reconcile trades is
no longer required. Also, OCC only receives matched trades from
exchanges and exchange rules and procedures regarding manual trade
comparison and reconciliation are obsolete. Therefore, OCC proposes to
remove its membership requirement concerning a clearing members'
operational capacity to manually compare trades and reconcile
unconfirmed and advisory trades on a timely and efficient basis as it
is no longer applicable.
(ii) Statutory Basis
OCC believes that the proposed rule change is consistent with
Section 17A(b)(3)(F) of the Act \3\ because it helps foster cooperation
and coordination with persons engaged in the clearance and settlement
of securities transactions as well as removes impediments to and
perfects the mechanism of a national system for the prompt and accurate
[[Page 77526]]
clearance and settlement of securities transactions. The proposed
change will update OCC's By-Laws to better reflect the current
operational and technological environment of OCC and its clearing
members by removing a legacy membership requirement. The proposed rule
change is not inconsistent with any rules of OCC, including those
proposed to be amended.
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\3\ 15 U.S.C. 78q-1(b)(3)(F).
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B. Self-Regulatory Organization'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.\4\ The proposed change, which
will apply to all clearing members, is housekeeping in nature and will
better align OCC's membership requirements with both its own as well as
its clearing members' current operational practices. Accordingly, the
proposed change will reduce unnecessary administrative burdens on its
clearing members, including any such burdens that may impact
competition.
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\4\ 15 U.S.C. 78q-1(b)(3)(I).
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C. Self-Regulatory Organization'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
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve or disapprove the proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
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-2013-22 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-2013-22. 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 Room Section
located at 100 F Street, NE., Washington DC 20549-1090 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_2013_22.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-2013-22
and should be submitted on or before January 13, 2014.
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-30441 Filed 12-20-13; 8:45 am]
BILLING CODE 8011-01-P