[Federal Register: January 27, 2003 (Volume 68, Number 17)]
[Notices]
[Page 3922-3923]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27ja03-116]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-47196; File No. SR-OCC-2002-20]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to an Alternative Schedule of Fees for Clearing Transactions
in Security Futures
January 15, 2003.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on August 28, 2002, 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 on the proposed rule change from interested parties.
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\1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change would provide for an alternative schedule
of fees for clearing transactions in security futures. Markets for
which OCC provides clearance and settlement services for security
futures are permitted to elect either OCC's standard or alternative
schedule of fees.
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 these
statements.\2\
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\2\ The Commission has modified the text of the summaries
prepared by OCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of this proposed rule change is to amend OCC's schedule
of fees to provide for an alternative, discounted fee schedule for
clearing transactions in security futures. This proposed alternative
fee schedule is based on the fees for clearing services contained in
the Security Futures Agreement for Clearing and Settlement Services
between OCC and OneChicago, LLC.\3\ The alternative fee schedule is as
follows:
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\3\ Securities Exchange Act Release No. 46653 (October 11,
2002), 67 FR 64689 (October 21, 2002) [File No. SR-OCC-2002-07].
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(1) Trades with contracts of: (i) 1 to 500 contracts: $0.07; (ii)
501 to 1,000 contracts: $0.06; (iii) 1,001 to 2,000 contracts: $0.05;
and (iv) $85.00 for transactions larger than 2,000 contracts.
(2) Associate clearinghouse cleared trades with contracts of: (i) 1
to 500 contracts: $0.05; (ii) 501 to 1,000 contracts: $0.0425; and
(iii) 1,001 to 2,000 contracts: $0.035; and (iv) $61.00 for
transactions larger than 2,000 contracts.
(3) Trades in new security futures product fee schedule:\4\ (i)
First calendar month traded: $0.00; (ii) second calendar month traded:
$0.025, regardless of size; (iii) third calendar month traded: the
lesser of the total at $0.05/contract or $85.00; and (iv) fourth
calendar month reverts to applicable fee schedule as set forth above.
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\4\ For purposes of this alternative security futures fee
schedule, ``new security futures product'' does not include security
futures products overlying additional underlying interests of the
same general description as interests on which security futures
products are then traded (e.g., additional stocks or additional
narrow-based indexes) unless there are material differences, other
than as to variable terms such as expiration months, in the terms of
the security futures product itself.
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(4) Associate clearinghouse cleared trades in new security futures
product fee schedule: (i) First calendar month traded: $0.00; (ii)
second calendar month traded: $0.02, regardless of size; (iii) third
calendar month traded: the lesser of the total at $0.035/contract or
$61.00; and (iv) fourth calendar month reverts to applicable fee
schedule as set forth above.
(5) Minimum monthly fee: $200.
Markets trading security futures products can elect OCC's standard
or alternative fee schedule. Fees are charged on a per-side basis. The
minimum monthly clearing fee is $200. Because clearing fees are
discounted under the alternative schedule, fees collected under it are
excluded from any other rebates or discounts offered by OCC and from
any year-end refund of clearing fees.
OCC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \5\ and the rules and
regulations thereunder applicable to OCC because it establishes a
reasonable alternative fee schedule to be charged for clearing
transactions in security futures.
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\5\ 15 U.S.C. 78q-1.
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(B) Self-Regulatory Organization's Statement on Burden on Competition
OCC does not believe that the proposed rule change would 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. OCC
will notify the Commission of any written comments received by OCC.
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)(ii)\6\ of the Act and Rule 19b-4(f)(2) \7\ promulgated
thereunder because the proposal establishes or changes a due, fee, or
other charge imposed by OCC. 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)(ii).
\7\ 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. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609.
Comments may also be submitted electronically at the following e-mail
address: rule-comments@sec.gov. All comment letters should refer to
File No. SR-OCC-2002-20. This file number should be included on the
subject line if e-mail is used. To help us process and
[[Page 3923]]
review comments more efficiently, comments should be sent in hardcopy
or by e-mail but not by both methods. 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 also will be available for inspection and copying at the
principal office of OCC. All submissions should refer to File No. SR-
OCC-2002-20 and should be submitted by February 18, 2003.
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).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-1710 Filed 1-24-03; 8:45 am]
BILLING CODE 8010-01-P