[Federal Register Volume 79, Number 112 (Wednesday, June 11, 2014)]
[Notices]
[Pages 33610-33611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-13560]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72330; File No. SR-OCC-2014-11]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of Proposed Rule Change To Correct an Inadvertent
Omission in a Prior Proposed Rule Change Concerning OCC's Clearing Fee
Schedule
June 5, 2014.
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 May 28, 2014, 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 primarily by OCC. OCC filed the proposed rule change
pursuant to Section 19(b)(3)(A) \3\ of the Act and Rule 19b-4(f)(2) \4\
thereunder.\5\
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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).
\4\ 17 CFR 240.19b-4(f)(2).
\5\ Notwithstanding its immediate effectiveness, implementation
of this rule change will be delayed until this rule change is deemed
certified under CFTC Regulation Sec. 40.6.
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
OCC proposes to amend its Schedule of Fees in order to correct an
inadvertent omission in the Schedule of Fees that was the subject of a
prior rule change.
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
1. Purpose
The purpose of this proposed rule change is to correct an
inadvertent omission in the Schedule of Fees that was the subject of a
prior rule filing. In March 2014, OCC filed, for immediate
effectiveness, a proposal with the Commission to amend its Schedule of
Fees, effective April 1, 2014 (``Filing 2014-05'').\6\ Filing 2014-05
has since been published on the Commission's Web site and in the
Federal Register. However, through an inadvertent oversight, the
Schedule of Fees attached as Exhibit 5 to Filing 2014-05 did not
include a reference to the ``decentralized linkage'' fee.\7\ OCC is now
proposing to correct the Schedule of Fees set forth in Exhibit 5 in
order to properly reflect the decentralized linkage fee of two cents
($0.02) that has
[[Page 33611]]
been applied since its adoption.\8\ In addition, OCC proposes to add
language to its Schedule of Fees to clarify the trade volume number
(i.e., more than 2750 contracts) at which market maker/specialist
scratch trades and decentralized linkage trades are charged a flat fee
of $55 per trade, per side instead of a per trade, per side fee of two
cents ($0.02). Except for the aforementioned changes, the Schedule of
Fees set forth in Exhibit 5 to this proposed rule change is the same as
the Schedule of Fees contained in Exhibit 5 to Filing 2014-05.
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\6\ See Securities and Exchange Act Release No. 71769 (March 21,
2014), 79 FR 17214 (March 27, 2014) (SR-OCC-2014-05). This filing
reinstated the permanent reduced fee rates adopted, effective May 1,
2007, for securities options and securities futures.
\7\ The decentralized linkage fee was added to OCC's Schedule of
Fees in 2012 so that OCC could, for the purposes of charging a
clearing fee, treat routing trades executed in accordance with the
Options Order Protection and Locked/Crossed Market Plan the same as
market maker/specialist scratch trades. See Securities and Exchange
Act Release No. 68025 (October 10, 2012), 77 FR 63398 (October 16,
2012) (SR-OCC-2012-18).
\8\ OCC considers the decentralized linkage trade to be
substantially similar to a market maker/scratch trade. Id. Therefore
the decentralized linkage fee will be the same as the market maker/
scratch fee set forth in Filing 2014-05.
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2. Statutory Basis
OCC believes the proposed rule change is consistent with Section
17A(b)(3)(D) \9\ of the Act because it corrects an inadvertent omission
in OCC's Schedule of Fees, thereby ensuring transparency regarding
fees. As there is no intentional change in the Fee Schedule, OCC will
continue to equitably allocate fees among its clearing members and
other market participants. The proposed rule change is not inconsistent
with the existing rules of the OCC including any other rules proposed
to be amended.
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\9\ 15 U.S.C. 78q-1(b)(3)(D).
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(B) Clearing Agency's Statement on Burden on Competition
OCC does not believe that the proposed rule change would impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.\10\
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\10\ 15 U.S.C. 78q-1(b)(3)(I).
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Changes to the rules of a clearing agency may have an impact on the
participants in a clearing agency, their customers, and the markets
that the clearing agency serves. This proposed rule change primarily
affects such users and OCC believes that the proposed modifications
would not disadvantage or favor any particular user in relationship to
another user because the discount is being eliminated for, and the
clearing fees apply equally to, all users of OCC's services.
For the foregoing reasons, OCC believes that the proposed rule
change is in the public interest, would be consistent with the
requirements of the Act applicable to clearing agencies, and would not
impose a burden on competition that is unnecessary or inappropriate in
furtherance of the purposes of the Act.
(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 pursuant to Section
19(b)(3)(A) \11\ of the Act and Rule 19b-4(f)(2) \12\ thereunder. 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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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(2).
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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-2014-11 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-OCC-2014-11. 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_14_11.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-2014-11
and should be submitted on or before July 2, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-13560 Filed 6-10-14; 8:45 am]
BILLING CODE 8011-01-P