[Federal Register: March 27, 2008 (Volume 73, Number 60)]
[Notices]
[Page 16407-16408]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27mr08-93]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57547; File No. SR-OCC-2008-05]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Flexibly Structured Foreign Currency Options
March 21, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on February 13, 2008, 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)(i) of the Act \2\ and Rule 19b-4(f)(1) \3\
thereunder 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-1(b)(3)(A)(i).
\3\ 17 CFR 240.19b-4(f)(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 modify OCC's description of its pro
rata assignment procedure to eliminate the reference to the procedure's
application to exercises of physical delivery, flexibly structured
Foreign Currency Options (``FCOs'').
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's pro rata assignment procedure is applied to options on the
S&P 100 Index as well as to flexibly structured and cross-rate FCOs
settled by physical delivery.\5\ However, the Philadelphia Stock
Exchange, Inc. (``Phlx'') has delisted all such FCOs and open interest
in all such contracts has expired. Accordingly, OCC proposes to modify
the description of its pro rata assignment procedure to eliminate the
reference to its application to exercises of physical delivery,
flexibly structured FCOs. While Phlx has proposed to trade flexibly
structured FCOs that are settled in cash, exercises for these FCOS are
to be assigned in accordance with OCC's standard assignment
procedures.\6\ The modified description of the pro rata assignment
procedure is set forth in Exhibit 5 to File No. SR-OCC-2008-05.\7\
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\5\ See Securities Exchange Act Release Nos. 56845 (November 27,
2007), 72 FR 67991 (December 3, 2007) (File No. SR-OCC-2007-014),
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).
\6\ See Securities Exchange Act Release No. 57265 (February 4,
2008), 73 FR 7622 (February 8, 2007) (File No. SR-Phlx-2007-68).
\7\ SR-OCC-2008-05 can be found on OCC's Web site at http://
www.optionsclearing.com/publications/rules/proposed_changes/sr_
occ_08_05.pdf.
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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 description of OCC's pro rata assignment
procedure. The proposed rule change is not inconsistent with the
existing rules of OCC, including any other rules proposed to be
amended.
[[Page 16408]]
(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)(i) of the Act \8\ and Rule 19b-4(f)(1) \9\ promulgated
thereunder because the proposal constitutes an interpretation with
respect to the meaning, administration, or enforcement of an existing
rule of OCC. At any time within sixty days of the filing of the
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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\8\ 15 U.S.C. 78s(b)(3)(A)(i).
\9\ 17 CFR 240.19b-4(f)(1).
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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-2008-05 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-2008-05. 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 should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-OCC-2008-05 and should be
submitted on or before April 17, 2008.
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\10\ 17 CFR 200.30-3(a)(12).
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-6255 Filed 3-26-08; 8:45 am]
BILLING CODE 8011-01-P