[Federal Register Volume 79, Number 22 (Monday, February 3, 2014)]
[Notices]
[Pages 6246-6247]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-02138]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71422; File No. SR-OCC-2013-22]
Self-Regulatory Organizations; Options Clearing Corporation;
Order Approving Proposed Rule Change To Make a Non-Material
Housekeeping Rule Change So That OCC's Membership Qualifications
Accurately Reflect Current Operational Practices
January 28, 2014.
I. Introduction
On December 6, 2013, the Options Clearing Corporation (``OCC'')
filed with the Securities and Exchange Commission (``Commission'')
proposed rule change SR-OCC-2013-22 pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder.\2\ The proposed rule change was published for comment in
the Federal Register on December 23, 2013.\3\ The Commission received
no comment letters in response to the proposed rule change. For the
reasons discussed below, the Commission is approving the proposed rule
change.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 71090 (Dec. 17, 2013),
78 FR 77525 (Dec. 23, 2013) (SR-FOCC-2013-22).
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II. Description
The rule change modifies OCC's membership standards to 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, OCC only receives matched trades from exchanges so manual
trade comparison and reconciliation by clearing members no longer
occurs.
III. Discussion
Section 19(b)(2)(C) of the Act \4\ directs the Commission to
approve a self-regulatory organization's proposed rule change if the
Commission finds that such proposed rule change is consistent with the
requirements of the Act and the rules and regulations thereunder
applicable to such organization. Section 17A(b)(3)(F) of the Act \5\
requires, among other things, that the rules of a clearing agency
registered with the Commission foster cooperation and coordination with
persons engaged in the clearance and settlement of securities
transactions and remove impediments to and perfect the mechanism of a
national system for the prompt and accurate clearance and settlement of
securities transactions.
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\4\ 15 U.S.C. 78s(b)(2)(C).
\5\ 15 U.S.C. 78q-1(b)(3)(F).
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The Commission finds that the proposed rule change is consistent
with Section 17A(b)(3)(F) of the Act.\6\ The Commission believes that
these clarifications will foster cooperation and coordination with
persons engaged in the clearance and settlement of securities
transactions and remove impediments to and perfect the mechanism of a
national system for the prompt and accurate clearance and settlement of
securities transactions by ensuring that OCC's By-Laws and membership
standards reference only necessary requirements for operational
capacity and current applicable industry standards.
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\6\ 15 U.S.C. 78q-1(b)(3)(B) and (F).
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IV. Conclusion
On the basis of the foregoing, the Commission concludes that the
proposal is consistent with the requirements of the Act, particularly
the requirements of Section 17A of the Act,\7\ and the rules and
regulations thereunder.
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\7\ 15 U.S.C. 78q-1.
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It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\8\ that the proposed rule change (File No. SR-OCC-2013-22) be and
hereby is approved.\9\
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\8\ 15 U.S.C. 78s(b)(2).
\9\ In approving the proposed rule change, the Commission
considered the proposal's impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).
[[Page 6247]]
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For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-02138 Filed 1-31-14; 8:45 am]
BILLING CODE 8011-01-P