Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Technical Changes That Add or Correct Cross-References in Article VIII, Section 5 of the By-Laws and in Rule 910, 21485-21486 [E5-1971]
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Federal Register / Vol. 70, No. 79 / Tuesday, April 26, 2005 / Notices
of trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
The Exchange has proposed to remove
the current restriction on the ability of
specialists to buy on plus ticks or sell
on minus ticks without Floor Official
approval, as set forth in NYSE Rules
104.10(5) and (6), for transactions in
investment company units and Trust
Issued Receipts (collectively referred to
as ‘‘Exchange Traded Funds,’’ or
‘‘ETFs’’). The Commission believes that,
because ETFs are priced derivatively,
based on the value of an underlying
basket of securities, the removal of this
restriction is warranted, and notes that
it has previously approved a similar rule
change adopted by the American Stock
Exchange LLC (‘‘Amex’’).7 In approving
the proposed rule change, the
Commission notes that an Exchange
specialist must continue to engage in
dealings for his or her own account to
assist in the maintenance of a fair and
orderly market.8
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,9 that the
proposed rule change (File No. SR–
NYSE–2004–71), as amended, be, and
hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1965 Filed 4–25–05; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51586; File No. SR–OCC–
2005–05]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to
Technical Changes That Add or
Correct Cross-References in Article
VIII, Section 5 of the By-Laws and in
Rule 910
April 20, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
April 13, 2005, 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 persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change adds or
corrects cross-references by making
technical changes to Article VIII,
Section 5 of OCC’s By-Laws and to OCC
Rule 910, respectively.
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.2
BILLING CODE 8010–01–P
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
7 See
Securities Exchange Act Release No. 49087
(January 15, 2004), 69 FR 3622 (January 26, 2004)
(order approving, among other things, the removal
of the restriction on Amex specialists from buying
on plus ticks and selling on minus ticks without
Floor Official approval for transactions in Exchange
Traded Funds).
8 See NYSE Rule 104 and Rule 11b–1 under the
Act, 17 CFR 240.11b–1.
9 15 U.S.C. 78s(b)(2).
10 17 CFR 200.30–3(a)(12).
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The purpose of the proposed rule
change is to correct technical errors in
Article VIII, Section 5(e) of OCC’s ByLaws and in Rules 910(c) and (d).
In October 2004, the Commission
approved a proposed rule change that
revised Section 5(e) of Article VIII of
U.S.C. 78s(b)(1).
Commission has modified parts of these
statements.
PO 00000
1 15
2 The
Frm 00097
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21485
OCC’s By-Laws.3 Article VIII of OCC’s
By-Laws pertains to the application of
OCC’s clearing fund. In its filing, OCC
mistakenly deleted the designation of
clause (i) of Section 5(e). The proposed
rule change reinserts it.
In March 2004, the Commission
approved a proposed rule change that
significantly restructured and revised
Chapter IX of OCC’s Rules.4 Chapter IX
of OCC’s Rules pertains to delivery
settlement of exercised equity options
and matured stock futures. In its filing,
OCC neglected to change crossreferences in Rules 910 (c) and (d) to
paragraph (b). (Paragraph (d) was
redesignated as paragraph (b) in that
filing). The proposed rule change
corrects those cross-references.
(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 5 and Rule
19b–4(f)(4) 6 thereunder because it
effects a change that (i) does not
adversely affect the safeguarding of
securities or funds in the custody or
control of the clearing 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 the
proposed rule change, the Commission
may summarily abrogate the 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.
3 Securities Exchange Act Release No. 50526
(October 13, 2004), 69 FR 61701 (October 20, 2004)
[File No. SR–OCC–2004–13].
4 Securities Exchange Act Release No. 49420
(March 16, 2004), 69 FR 13345 (March 22, 2004)
[File No. SR–OCC–2003–08].
5 15 U.S.C. 78s(b)(3)(A)(iii).
6 17 CFR 240.19b–4(f)(4).
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21486
Federal Register / Vol. 70, No. 79 / Tuesday, April 26, 2005 / Notices
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:
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.7
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1971 Filed 4–25–05; 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–2005–05 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.
[Release No. 34–51584; File No. SR-OCC–
2005–04]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Modify
Procedures With Respect to Deposits
of Cash or Securities With an Escrow
Bank for Short Positions in Stock
Option or Index Option Contracts
April 20, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
All submissions should refer to File
(‘‘Act’’),1 notice is hereby given that on
Number SR–OCC–2005–05. This file
April 1, 2005, The Options Clearing
number should be included on the
Corporation (‘‘OCC’’) filed with the
subject line if e-mail is used. To help the Securities and Exchange Commission
Commission process and review your
(‘‘Commission’’) the proposed rule
comments more efficiently, please use
change described in Items I, II, and III
only one method. The Commission will below, which items have been prepared
post all comments on the Commission’s primarily by OCC. The Commission is
publishing this notice to solicit
Internet Web site (https://www.sec.gov/
comments on the rule change from
rules/sro.shtml). Copies of the
interested parties.
submission, all subsequent
amendments, all written statements
I. Self-Regulatory Organization’s
with respect to the proposed rule
Statement of the Terms of Substance of
change that are filed with the
the Proposed Rule Change
Commission, and all written
The rule change modifies OCC’s
communications relating to the
procedures with respect to deposits of
proposed rule change between the
Commission and any person, other than cash or securities with an escrow bank
for short positions in stock option or
those that may be withheld from the
index option contracts.
public in accordance with the
provisions of 5 U.S.C. 552, will be
II. Self-Regulatory Organization’s
available for inspection and copying in
Statement of the Purpose of, and
the Commission’s Public Reference
Statutory Basis for, the Proposed Rule
Section, 450 Fifth Street, NW.,
Change
Washington, DC 20549. Copies of such
In its filing with the Commission,
filing also will be available for
OCC included statements concerning
inspection and copying at the principal
the purpose of and basis for the
office of OCC and on OCC’s Web site at
proposed rule change and discussed any
https://www.optionsclearing.com. All
comments it received on the proposed
comments received will be posted
rule change. The text of these statements
without change; the Commission does
may be examined at the places specified
not edit personal identifying
in Item IV below. OCC has prepared
information from submissions. You
summaries, set forth in sections (A), (B),
should submit only information that
and (C) below, of the most significant
you wish to make available publicly. All aspects of these statements.2
submissions should refer to File
Number SR–OCC–2005–05 and should
7 17 CFR 200.30–3(a)(12).
be submitted on or before May 17, 2005.
1 15 U.S.C. 78s(b)(1).
2 The Commission has modified the text of the
summaries prepared by OCC.
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11:52 Apr 25, 2005
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Sfmt 4703
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
OCC Rule 613 sets out procedures
governing escrow deposits. Rule 613(f)
currently provides that OCC will send to
each clearing member by 9 a.m. Central
Time on the first business day following
each expiration date a list of each
expired short position carried by that
clearing member that was covered by an
escrow deposit. By a prescribed
deadline that same day, the clearing
member is required to identify to OCC
each short position on the list to which
it has allocated an exercise notice.
Based upon the information supplied by
clearing members, by 9 a.m. Central
Time the next business day OCC makes
available to escrow banks and clearing
members a final list of expired short
positions covered by escrow deposits
and indicates whether an exercise
notice has been allocated to each such
short position.
Rule 613(g) provides that OCC will
release escrow deposits on its own
initiative at 12 noon Central Time on
the second business day following the
expiration date with three exceptions.
First, the release of an escrow deposit
will be delayed if OCC is unable to
produce the final list of expired short
positions covered by escrow deposits
within the time frame specified in its
rules. Second, the release may be
deferred if a clearing member carrying
an expired short position covered by an
escrow deposit fails to meet its margin
or premium settlement obligations to
OCC on the business day that the
deposit would have been released.
Third, if the final list shows that an
exercise notice was allocated to an
expired short position, the escrow
deposit will not be released until 12
noon Central Time on the first business
day after the exercise settlement date
and can be delayed even further if
National Securities Clearing Corporation
(‘‘NSCC’’) notifies OCC that the clearing
member has not met its settlement
obligations. In that event, the deposit
will not be released until the first
business day after OCC receives
confirmation that it has no further
obligations to NSCC with respect to the
short position or if OCC has directed
that settlement be made other than
through NSCC, until OCC receives
confirmation that the settlement has
been made.
The processing of escrow deposits at
expiration will be substantially
simplified under ENCORE Release 4.5.
OCC’s report of expired positions
covered by escrow deposits, the clearing
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]]>Agencies
[Federal Register Volume 70, Number 79 (Tuesday, April 26, 2005)]
[Notices]
[Pages 21485-21486]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1971]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51586; File No. SR-OCC-2005-05]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Technical Changes That Add or Correct Cross-References in
Article VIII, Section 5 of the By-Laws and in Rule 910
April 20, 2005.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on April 13, 2005, 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 persons.
---------------------------------------------------------------------------
\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 proposed rule change adds or corrects cross-references by
making technical changes to Article VIII, Section 5 of OCC's By-Laws
and to OCC Rule 910, respectively.
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.\2\
---------------------------------------------------------------------------
\2\ The Commission has modified parts of these statements.
---------------------------------------------------------------------------
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of the proposed rule change is to correct technical
errors in Article VIII, Section 5(e) of OCC's By-Laws and in Rules
910(c) and (d).
In October 2004, the Commission approved a proposed rule change
that revised Section 5(e) of Article VIII of OCC's By-Laws.\3\ Article
VIII of OCC's By-Laws pertains to the application of OCC's clearing
fund. In its filing, OCC mistakenly deleted the designation of clause
(i) of Section 5(e). The proposed rule change reinserts it.
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 50526 (October 13,
2004), 69 FR 61701 (October 20, 2004) [File No. SR-OCC-2004-13].
---------------------------------------------------------------------------
In March 2004, the Commission approved a proposed rule change that
significantly restructured and revised Chapter IX of OCC's Rules.\4\
Chapter IX of OCC's Rules pertains to delivery settlement of exercised
equity options and matured stock futures. In its filing, OCC neglected
to change cross-references in Rules 910 (c) and (d) to paragraph (b).
(Paragraph (d) was redesignated as paragraph (b) in that filing). The
proposed rule change corrects those cross-references.
---------------------------------------------------------------------------
\4\ Securities Exchange Act Release No. 49420 (March 16, 2004),
69 FR 13345 (March 22, 2004) [File No. SR-OCC-2003-08].
---------------------------------------------------------------------------
(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 \5\ and Rule 19b-4(f)(4) \6\ thereunder
because it effects a change that (i) does not adversely affect the
safeguarding of securities or funds in the custody or control of the
clearing 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 the proposed rule change, the Commission may
summarily abrogate the 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)(iii).
\6\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------
[[Page 21486]]
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-2005-05 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-2005-05. 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 (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-2005-05 and should be submitted on
or before May 17, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1971 Filed 4-25-05; 8:45 am]
BILLING CODE 8010-01-P
