Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Clearing Fees for Securities Option Contracts, 1489-1490 [E5-23]
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Federal Register / Vol. 70, No. 5 / Friday, January 7, 2005 / Notices
minor fines pursuant to NYSE Rule
476A.7
NYSE Rule 412(g) was proposed in
1984, prior to the adoption of NYSE
Rule 476A in March 1985.8 Once NYSE
Rule 476A became operative, the
Exchange had another effective method
of enforcing NYSE Rule 412, and the
sanctions of NYSE Rule 412(g) became
superfluous. Historically, the
Exchange’s practice in most, if not all,
cases of minor violations of NYSE Rule
412 has been to assess summary fines
under NYSE Rule 476A rather than fees
under NYSE Rule 412(g). Therefore,
rather than establish guidelines for
choosing between NYSE Rule 476A and
NYSE Rule 412(g), the Exchange
believes it would be more appropriate to
simply rescind NYSE Rule 412(g) and
continue to sanction violations of NYSE
Rule 412 through the assessment of
fines pursuant to NYSE Rule 476A.
2. Statutory Basis
The Exchange believes that the
proposal, as amended, is consistent with
Section 6(b) of the Act 9 in general, and
Section 6(b)(5) of the Act 10 in
particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade and, in
general, to protect investors and the
public interest by making the
Exchange’s rules more consistent with
membership and Exchange practices
and strengthening the Exchange’s
security procedures. The Exchange also
believes that the proposed rule change
is consistent with Section 6(b)(6) 11 of
the Act, which requires the rules of the
Exchange to provide for its members
and persons associated with its
members to be appropriately disciplined
for violations of those rules through
fitting sanctions, including the
imposition of fines.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes that the
proposal would not impose any burden
on competition not necessary or
appropriate in furtherance of the
purposes of the Act.
7 Rule 476A provides for individuals to be fined
$1,000 for first-time offenses, $2,500 for secondtime offenses, and $5,000 for subsequent offenses,
and for member organizations to be fined $2,500 for
first-time offenses and $5,000 for subsequent
offenses.
8 The amendment adding NYSE Rule 412(g) was
adopted in November 1985. Telephone
conversation between Ronald Rubin, Senior Special
Counsel, NYSE, and Kim Allen, Attorney, Division,
Commission, on December 28, 2004.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
11 15 U.S.C. 78f(b)(6).
VerDate jul<14>2003
18:03 Jan 06, 2005
Jkt 205001
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding, or
(ii) as to which the Exchange consents,
the Commission will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2004–63 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
450 Fifth Street, NW., Washington, DC
20549–0609. All submissions should
refer to File Number SR–NYSE–2004–
63. 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
(https://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
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
1489
available for inspection and copying in
the Commission’s Public Reference
Room, 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 NYSE. 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–NYSE–
2004–63 and should be submitted by
January 28, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–21 Filed 1–6–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–50951; File No. SR–OCC–
2004–22]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Related to
Clearing Fees for Securities Option
Contracts
December 30, 2004.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
December 10, 2004, The Options
Clearing Corporation (‘‘OCC’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of the proposed rule
change is to continue the effectiveness
of fee reductions specified in OCC rule
filing SR–OCC–2004–12 until further
action by OCC’s Board of Directors.2
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 Securities Exchange Act Release No. 50080 (July
30, 2004), 69 FR 45873.
1 15
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07JAN1
1490
Federal Register / Vol. 70, No. 5 / Friday, January 7, 2005 / Notices
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.3
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The purpose of this rule change is to
continue in effect the July 1, 2004,
reduction in clearing fees for securities
option contracts until OCC’s Board of
Directors determines otherwise. As a
result, effective January 1, 2005, OCC’s
clearing fees will continue to be as
follows:
Contracts per trade
0–500 ....................................
501–1000 ..............................
1,001–2,000 ..........................
>2,000 ...................................
Per contract
fee effective
January 1,
2005
$0.07
0.06
0.05
(1)95.00
1 Capped.
The continued fee reduction
recognizes the strong volume in
securities options in 2004. OCC believes
that this fee reduction will financially
benefit clearing members and other
market participants without adversely
affecting OCC’s ability to meet its
expenses and maintain an acceptable
level of retained earnings.
OCC believes that the proposed rule
change is consistent with the
requirements of Section 17A of the Act 4
and the rules and regulations
thereunder applicable to OCC because it
allows for the equitable allocation of
reasonable dues, fees, and other charges
among OCC’s members.
(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 upon filing pursuant to Section
19(b)(3)(A)(ii) of the Act 5 and Rule 19b–
4(f)(2) 6 thereunder because the
proposed rule establishes or changes a
due fee, or other charge. At any time
within sixty days of the filing of such
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.
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:
18:03 Jan 06, 2005
Jkt 205001
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.7
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–23 Filed 1–6–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml) or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–OCC–2004–22 on the
subject line.
[Release No. 34–50948; File No. SR–PCX–
2004–128]
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
450 Fifth Street, NW., Washington, DC
20549–0609.
All submissions should refer to File
Number SR–OCC–2004–22. 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 (https://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
December 29, 2004.
3 The Commission has modified the text of the
summaries prepared by OCC.
4 15 U.S.C. 78q–1.
VerDate jul<14>2003
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 and on OCC’s Web site at
https://www.optionsclearing.com. 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–2004–22 and should
be submitted on or before January 28,
2005.
PO 00000
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
Pacific Exchange, Inc. Relating to the
Phase-In of PCX Plus
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 December
29, 2004, the Pacific Exchange, Inc.
(‘‘PCX’’ or ‘‘Exchange’’) 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
by the PCX. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
PCX proposes to amend PCX Rule
6.90, governing PCX Plus, in order to
7 17
5 15
U.S.C. 78s(b)(3)(A)(ii).
6 17 CFR 240.19b–4(f)(2).
Frm 00083
Fmt 4703
Sfmt 4703
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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]]>Agencies
[Federal Register Volume 70, Number 5 (Friday, January 7, 2005)]
[Notices]
[Pages 1489-1490]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-23]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-50951; File No. SR-OCC-2004-22]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Related to Clearing Fees for Securities Option Contracts
December 30, 2004.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 10, 2004, The
Options Clearing Corporation (``OCC'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of the proposed rule change is to continue the
effectiveness of fee reductions specified in OCC rule filing SR-OCC-
2004-12 until further action by OCC's Board of Directors.\2\
---------------------------------------------------------------------------
\2\ Securities Exchange Act Release No. 50080 (July 30, 2004),
69 FR 45873.
---------------------------------------------------------------------------
[[Page 1490]]
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.\3\
---------------------------------------------------------------------------
\3\ The Commission has modified the text of the summaries
prepared by OCC.
---------------------------------------------------------------------------
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of this rule change is to continue in effect the July
1, 2004, reduction in clearing fees for securities option contracts
until OCC's Board of Directors determines otherwise. As a result,
effective January 1, 2005, OCC's clearing fees will continue to be as
follows:
------------------------------------------------------------------------
Per contract
fee effective
Contracts per trade January 1,
2005
------------------------------------------------------------------------
0-500................................................... $0.07
501-1000................................................ 0.06
1,001-2,000............................................. 0.05
>2,000.................................................. \(1)\95.00
------------------------------------------------------------------------
\1\ Capped.
The continued fee reduction recognizes the strong volume in
securities options in 2004. OCC believes that this fee reduction will
financially benefit clearing members and other market participants
without adversely affecting OCC's ability to meet its expenses and
maintain an acceptable level of retained earnings.
OCC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \4\ and the rules and
regulations thereunder applicable to OCC because it allows for the
equitable allocation of reasonable dues, fees, and other charges among
OCC's members.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
(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 upon filing pursuant
to Section 19(b)(3)(A)(ii) of the Act \5\ and Rule 19b-4(f)(2) \6\
thereunder because the proposed rule establishes or changes a due fee,
or other charge. At any time within sixty days of the filing of such
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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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 (https://
www.sec.gov/rules/sro.shtml) or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-OCC-2004-22 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW.,
Washington, DC 20549-0609.
All submissions should refer to File Number SR-OCC-2004-22. 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 (https://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 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 and
on OCC's Web site at https://www.optionsclearing.com. 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-2004-22 and should be
submitted on or before January 28, 2005.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-23 Filed 1-6-05; 8:45 am]
BILLING CODE 8010-01-P
