[Federal Register: December 3, 2007 (Volume 72, Number 231)]
[Notices]
[Page 67991-67992]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03de07-126]
[[Page 67991]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56845; File No. SR-OCC-2007-14]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to the Descriptions of OCC's Assignment Procedures
November 27, 2007.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on October 9, 2007, 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)(iii) of the Act \2\ and Rule 19b-4(f)(4)
thereunder,\3\ so that the proposal was effective upon filing with the
Commission. 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\ 15 U.S.C. 78s(b)(3)(iii).
\3\ 17 CFR 240.19b-4(f)(4).
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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 update the descriptions of OCC's
assignment procedures to reflect the expanded use of sub-accounts at
OCC.
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.\4\
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\4\ The Commission has modified parts of these statements.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
OCC currently maintains two separate procedures for assigning
exercise notices to clearing members. One is the standard assignment
procedure, which is commonly referred to as ``random'' assignment and
is applied to most options classes.\5\ The other is the pro rata
procedure which is applied to options on the S&P 500 Index as well as
all flexibly structured foreign currency and cross-rate foreign
currency options.\6\ The purpose of this filing is to modify the
descriptions of both procedures to account for the expanded use of sub-
accounts as described in File No. SR-OCC-2007-11. Specifically, the
modified descriptions reflect that OCC will assign exercise notices
directly to short positions held in a sub-account established by a
clearing member for a single beneficial owner.
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\5\ Securities Exchange Act Release No. 46735 (October 28,
2002), 67 FR 67434 (November 5, 2002) (File No. SR-OCC-2002-19).
\6\ Securities Exchange Act Release Nos. 48908 (December 11,
2003), 68 FR 74689 (December 24, 2003) (File No. SR-OCC-2003-05) and
38165 (January 14, 1997), 62 FR 3070 (January 21, 1997) (File No.
SR-OCC-96-19).
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The proposed change is consistent with Section 17A of the Act
because it promotes the prompt and accurate clearance and settlement of
securities transactions and fosters cooperation and coordination with
persons engaged in the clearance and settlement of securities
transactions by updating the descriptions of OCC's assignment
procedures. The proposed rule change is not inconsistent with the
existing rules of OCC, including any other rules proposed to be
amended.
(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.
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)(iii) of the Act \7\ and Rule 19b-4(f)(4) \8\ promulgated
thereunder because the proposal effects a change in an existing service
of OCC that (A) does not adversely affect the safeguarding of
securities or funds in the custody or control of OCC or for which it is
responsible and (B) does not significantly affect the respective rights
or obligations of OCC or persons using the service. At any time within
sixty days of the filing of the proposed rule change, the Commission
could summarily abrogate such rule change if it appears to the
Commission that such action was 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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\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(4).
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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 e-mail to rule-comments@sec.gov. Please include
File Number SR-OCC-2007-14 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-OCC-2007-14. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. 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 inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of OCC. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You
[[Page 67992]]
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-OCC-2007-14
and should be submitted on or before December 21, 2007.
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\9\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Nancy M. Morris,
Secretary.
[FR Doc. E7-23319 Filed 11-30-07; 8:45 am]
BILLING CODE 8011-01-P