[Federal Register Volume 59, Number 31 (Tuesday, February 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-3487]
[[Page Unknown]]
[Federal Register: February 15, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33598; International Series Release No. 636; File No.
SR-OCC-93-18]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating To Restructuring of an Associate Clearinghouse of OCC
February 8, 1994
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 2, 1993, 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. The Commission is publishing this notice to solicit
comments from interested persons on the proposed rule change.
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\1\15 U.S.C. 78s(b)(1) (1988).
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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 permit the restructuring of an
associate clearinghouse of OCC which facilitates the issuance,
clearance, and settlement of options on the Major Market Index
(``XMI'') traded on the European Options Exchange (``EOE'') that are
identical to and fungible with those traded on the American Stock
Exchange (``AMEX'').
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. 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
In August 1987, the Commission approved a proposal that enabled OCC
to issue, clear, and settle XMI options traded on the EOE that are
identical to and fungible with XMI options traded on AMEX.\2\ To
perform such functions, OCC entered into several agreements including
an international market Agreement: XMI Options (``IMA'') with AMEX and
EOE and an Associate Clearinghouse Agreement (``ACA'') with ACHA
Associate Clearing House Amsterdam B.V. (``ACHA''). The IMA governs the
relationships among OCC, AMEX, and EOE with respect to the issuance,
trading, and clearance of XMI options, and the ACA governs the
relationship between ACHA and OCC with respect to the clearance and
settlement of transactions in XMI options by EOE Members. ACHA is a
wholly-owned subsidiary of the EOCC Clearing Corporation B.V.
(``EOCC''), which was formed to interface with OCC for such purposes.
Under the ACA, ACHA is both an associated clearinghouse and an index
clearing member of OCC. In addition to the IMA and ACA, OCC also
entered into a letter agreement, dated August 20, 1987, with the EOE
and ACHA which further facilitates the clearance and settlement of XMI
Options traded on the EOE.
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\2\Securities Exchange Act Release No. 24832 (August 21, 1987),
52 FR 32377 [File No. SR-OCC-87-9] (order approving OCC's proposal
to issue, clear, and settle XMI options traded on the EOE)
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ACHA has advised OCC that EOCC intends to absorb all of ACHA's
operations by assuming ACHA's role as an associated clearinghouse and
index clearing member of OCC. To effectuate this restructuring, ACHA
has assigned to EOCC all of its agreements, rights, and obligations
under the ACA, as amended, and under the August 1987 letter agreement,
as amended.
In accordance with the terms of the agreements, the respective
parties thereto propose to execute assignments of or amendments to such
agreements to facilitate EOCC's assumption of ACHA's operations. OCC
consents to ACHA's assignment of its agreements, obligations, and
rights under the ACA to EOCC\3\ and to ACHA's assignment of the
commitments under the letter agreement of August 1987 to EOCC and
EOE.\4\ Finally, OCC, AMEX, and EOE have amended the IMA to reference
the existence of an associated clearinghouse agreement between OCC and
EOCC.\5\
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\3\Assignment and Amendment of Associate Clearinghouse Agreement
among ACHA, OCC, and EOCC, which is attached as Exhibit A to Form
19b-4, File No. SR-OCC-93-18.
\4\Letter agreement among Optiebeurs N.V., EOCC, and OCC, which
is attached as Exhibit B to Form 19b-4, File No. SR-OCC-93-18.
\5\Second Amendment to International Market Agreement: XMI
Options among OCC, AMEX, and Optiebeurs N.V., which is attached as
Exhibit C to Form 19b-4, File No. SR-OCC-93-18.
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OCC believes that the proposed rule change is consistent with the
purposes and requirements of Section 17A of the Act because it
continues to promote the prompt and accurate clearance and settlement
of transactions in XMI options in the United States and Europe and the
safeguarding of funds relating thereto while not significantly altering
the structure for the clearance and settlement of XMI options in the
United States and Europe.
B. Self-Regulatory Organization's Statement on Burden on Competition
OCC does not believe that the proposed rule change will 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 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) of the Act\6\ and subparagraph (e) of Rule 19b-4
thereunder\7\ because it effects a change in an existing service of a
registered clearing agency that (i) does not adversely affect the
safeguarding of securities or funds in the custody or control of the
agency or for which it is responsible and (ii) does not significantly
affect the respective rights or obligations of the clearing agency or
persons using the service. At any time within sixty days of the filing
of such proposed rule change, the Commission may summarily abrogate
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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\6\15 U.S.C. 78s(b)(3)(A) (1988).
\7\17 CFR 240.19b-4(e) (1993).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street NW., Washington, DC 20549. 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 inspection and copying in the
Commission's Public Reference Section, 450 Fifth Street NW.,
Washington, DC 20549. Copies of such filing will also be available for
inspection and copying at the principal office of the above-referenced
self-regulatory organization.
All submissions should refer to File No. SR-OCC-93-18 and should be
submitted by March 8, 1994.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-3487 Filed 2-14-94; 8:45 am]
BILLING CODE 8010-01-M