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, 21486-21488 [E5-1972]
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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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PO 00000
Frm 00098
Fmt 4703
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
E:\FR\FM\26APN1.SGM
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Federal Register / Vol. 70, No. 79 / Tuesday, April 26, 2005 / Notices
member’s identification of exercises
allocated to those positions, and OCC’s
final list of expired short positions
covered by an escrow deposit will all be
eliminated. Instead, OCC will
automatically release index option
escrow deposits at 6 p.m. Central Time
on the exercise settlement date,
provided that the clearing member has
met its settlement obligations in the
account in which the escrow deposit is
held. OCC will automatically release
equity option escrow deposits at 6 p.m.
on the business day after the exercise
settlement date, provided that release
may be delayed if NSCC notifies OCC
that the clearing member has not met its
settlement obligations. In that event, as
under the existing rule, a deposit will
not be released until OCC receives
confirmation that it has no further
obligations to NSCC with respect to the
short position covered by the deposit. If
OCC directs that settlement be made
other than through NSCC, the deposit
will not be released until OCC receives
confirmation that settlement had been
made. Clearing members or escrow
banks still will be permitted to
withdraw escrow deposits prior to the
scheduled release time if the clearing
member maintains sufficient margin
with OCC after making the withdrawal.
OCC’s Proposed Rule Changes
In connection with the simplification
of the escrow deposit system resulting
from the installation of ENCORE Release
4.5, OCC is deleting Rule 613(f), which
describes the various reports relating to
expired short positions covered by
escrow deposits. In addition, OCC is
amending current Rule 613(g), which is
redesignated as Rule 613(f), to change
the time OCC will release equity option
escrow deposits on its own initiative
and to eliminate references to the final
list of expired short positions covered
by an escrow deposit provided for by
current Rule 613(f). OCC is amending
Rule 613(j) to delete references to the
list of expired short positions covered
by an escrow deposit, redesignating it as
613(i), and revising the reference to
current Rule 613(i), which is being
redesignated as Rule 613(h). Rule 613(k)
is redesignated as Rule 613(j).
With respect to index option deposits,
OCC is adding a new Rule 1801(h) to
provide that index option deposits will
be released by OCC on its own initiative
at 6 p.m. Central Time on the exercise
settlement date so long as the clearing
member has fully complied with its
settlement obligations in the account in
which the escrow deposit is held. The
remaining subparagraphs of Rule 1801
are redesignated but are otherwise
unchanged.
VerDate jul<14>2003
11:52 Apr 25, 2005
Jkt 205001
Amended and Restated On-Line Escrow
Deposit Agreement
Finally, OCC is amending the
Amended and Restated On-Line Escrow
Deposit Agreement entered into
between it and banks participating in its
escrow deposit program to reflect the
procedural changes to the escrow
deposit program described above.
OCC believes the rule change is
consistent with Section 17A of the Act 3,
as amended because it more closely
aligns the procedures for the processing
of releases of escrow deposits for
expired short positions with the
processing of releases of specific
deposits and thereby improves the
consistency and efficiency of such
processing for OCC, clearing members,
and custodian banks. The 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 will have an
impact or 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 proposed rule change
has become effective upon filing
pursuant to Section 19(b)(3)(A) of the
Act 4 and Rule 19b–4(f) 5 thereunder
because it does not significantly affect
the respective rights or obligations of
the clearing agency or persons using the
service and does not adversely affect the
safeguarding of securities or funds in
the custody or control of OCC or for
which it is responsible. 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.
PO 00000
3 15
U.S.C. 78q–1.
U.S.C. 78s(b)(3)(A).
5 17 CFR 240.19b–4(f).
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 rulecomments@sec.gov. Please include File
Number SR–OCC–2005–04 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–2005–04. 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
filings 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–2005–04 and should
be submitted on or before May 17, 2005.
4 15
Frm 00099
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21487
E:\FR\FM\26APN1.SGM
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21488
Federal Register / Vol. 70, No. 79 / Tuesday, April 26, 2005 / Notices
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.6
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1972 Filed 4–25–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51576; File No. SR–PCX–
2005–35]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
Pacific Exchange, Inc. Relating to the
SizeQuote Mechanism for the
Execution of Large-Sized Orders in
Open Outcry
April 19, 2005.
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 April 7,
2005, the Pacific Exchange, Inc. (‘‘PCX’’
or ‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in items I and II
below, which items have been prepared
by the Exchange. The PCX filed the
proposal pursuant to section 19(b)(3)(A)
under the Act,3 and Rule 19b–4(f)(6)
thereunder,4 which renders the proposal
effective upon filing with the
Commission.5 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 Exchange proposes to add PCX
Rule 6.47(g) to adopt, on a pilot basis
through February 15, 2006, a SizeQuote
Mechanism for the execution of largesized orders in open outcry. The text of
the proposed rule change is below.
Proposed new language is in italics.
Rules of the Pacific Exchange, Inc.
Rule 6
Rule 6.47(a)–(f)—No Change.
Rule 6.47(g)—Open Outcry
‘‘SizeQuote’’ Mechanism.
(i) SizeQuotes Generally. The
SizeQuote Mechanism is a process by
6 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
5 The PCX has asked the Commission to waive the
30-day operative delay. See Rule 19b–4(f)(6)(iii), 17
CFR 240.19b–4(f)(6)(iii).
1 15
VerDate jul<14>2003
11:52 Apr 25, 2005
Jkt 205001
which a Floor Broker (‘‘FB’’) may
execute and facilitate large-sized orders
in open outcry. Floor brokers must be
willing to facilitate the entire size of the
order for which they request SizeQuotes
(the ‘‘SizeQuote Order’’). The Exchange
shall determine the classes in which the
SizeQuote Mechanism will apply. The
SizeQuote Mechanism will operate as a
pilot program which expires February
15, 2006.
(A) Eligible Order Size: The Exchange
shall establish the eligible order size
however such size shall not be less than
250 contracts.
(B) Trading Crowd: The term
‘‘Trading Crowd’’ shall be as defined in
PCX Rule 6.1(b)(30) and for purposes of
this rule only shall also include any
Floor Broker who is present at the
trading post.
(C) Public Customer Priority: Public
customer orders in the Consolidated
Book have priority to trade with a
SizeQuote Order over any member of
the Trading Crowd providing a
SizeQuote response at the same price as
the order in the Consolidated Book.
(D) LMM Participation Rights: The
LMM participation entitlement shall not
apply to SizeQuote transactions.
(E) FBs may not execute a SizeQuote
Order at a price inferior to the national
best bid or offer (‘‘NBBO’’). Unless a
SizeQuote request is properly canceled
in accordance with paragraph (iv), an
FB is obligated to execute the entire
SizeQuote Order at a price that is not
inferior to the NBBO in situations where
there are no SizeQuote responses
received or where such responses are
inferior to the NBBO.
(ii) SizeQuote Procedure: Upon
request from an FB for a SizeQuote,
members of the Trading Crowd may
respond with indications of the price
and size at which they would be willing
to trade with a SizeQuote Order. After
the conclusion of time during which
interested Trading Crowd members have
been given the opportunity to provide
their indications, the FB must execute
the SizeQuote Order with the members
of the Trading Crowd and/or with a firm
facilitation order in accordance with the
following procedures:
(A) Executing the Order at the
Trading Crowd’s Best Price: Members of
the Trading Crowd that provide
SizeQuote responses at the highest bid
or lowest offer (‘‘best price’’) have
priority to trade with the SizeQuote
Order at that best price. Allocation of
the order among members of the
Trading Crowd shall be pro rata, up to
the size of each member’s SizeQuote
response. The FB must trade at the best
price any contracts remaining in the
original SizeQuote Order that were not
PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
executed by the members of the Trading
Crowd providing SizeQuote responses.
(B) Executing the Order at a Price that
Improves upon the Trading Crowd’s
Price by One Minimum Increment:
Members of the Trading Crowd that
provide SizeQuote responses at the best
price (‘‘Eligible Trading Crowd
Members’’) have priority to trade with
the SizeQuote Order at a price equal to
one trading increment better than the
best price (‘‘improved best price’’).
Allocation of the order among Eligible
Trading Crowd Members at the
improved best price shall be pro rata, up
to the size of each eligible Trading
Crowd Member’s SizeQuote response.
The FB must trade at the improved best
price any contracts remaining in the
original SizeQuote Order that were not
executed by Eligible Trading Crowd
Members.
(C) Trading at a Price that Improves
upon the Trading Crowd’s Price by more
than One Minimum Increment: An FB
may execute the entire SizeQuote Order
at a price two trading increments better
than the best price communicated by
the Trading Crowd members in their
responses to the SizeQuote request.
(iii) Definition of Trading Increments:
Permissible trading increments are
$0.05 for options quoted below $3.00
and $0.10 for all others. In classes in
which bid-ask relief is granted pursuant
to Rule 6.37(b)(1)(F), the permissible
trading increments shall also increase
by the corresponding amount. For
example, if a series trading above $3.00
has double-width bid-ask relief, the
permissible trading increment for
purposes of this rule shall be $0.20.
(iv) It will be a violation of the FB’s
duty of best execution to its customer if
it were to cancel a SizeQuote Order to
avoid execution of the order at a better
price. The availability of the SizeQuote
Mechanism does not alter an FB’s best
execution duty to get the best price for
its customer. A SizeQuote request can
be canceled prior to the receipt by the
FB of responses to the SizeQuote
request. Once the FB receives a response
to the SizeQuote request, if he/she were
to cancel the order and then
subsequently attempt to execute the
order at an inferior price to the previous
SizeQuote response, there would be a
presumption that the FB did so to avoid
execution of its customer order in whole
or in part by the others at the better
price.
*
*
*
*
*
E:\FR\FM\26APN1.SGM
26APN1
]]>Agencies
[Federal Register Volume 70, Number 79 (Tuesday, April 26, 2005)]
[Notices]
[Pages 21486-21488]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1972]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[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
(``Act''),\1\ notice is hereby given that on April 1, 2005, 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
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 rule change modifies OCC's procedures with respect to deposits
of cash or securities with an escrow bank for short positions in stock
option or index option contracts.
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\
---------------------------------------------------------------------------
\2\ 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
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
[[Page 21487]]
member's identification of exercises allocated to those positions, and
OCC's final list of expired short positions covered by an escrow
deposit will all be eliminated. Instead, OCC will automatically release
index option escrow deposits at 6 p.m. Central Time on the exercise
settlement date, provided that the clearing member has met its
settlement obligations in the account in which the escrow deposit is
held. OCC will automatically release equity option escrow deposits at 6
p.m. on the business day after the exercise settlement date, provided
that release may be delayed if NSCC notifies OCC that the clearing
member has not met its settlement obligations. In that event, as under
the existing rule, a deposit will not be released until OCC receives
confirmation that it has no further obligations to NSCC with respect to
the short position covered by the deposit. If OCC directs that
settlement be made other than through NSCC, the deposit will not be
released until OCC receives confirmation that settlement had been made.
Clearing members or escrow banks still will be permitted to withdraw
escrow deposits prior to the scheduled release time if the clearing
member maintains sufficient margin with OCC after making the
withdrawal.
OCC's Proposed Rule Changes
In connection with the simplification of the escrow deposit system
resulting from the installation of ENCORE Release 4.5, OCC is deleting
Rule 613(f), which describes the various reports relating to expired
short positions covered by escrow deposits. In addition, OCC is
amending current Rule 613(g), which is redesignated as Rule 613(f), to
change the time OCC will release equity option escrow deposits on its
own initiative and to eliminate references to the final list of expired
short positions covered by an escrow deposit provided for by current
Rule 613(f). OCC is amending Rule 613(j) to delete references to the
list of expired short positions covered by an escrow deposit,
redesignating it as 613(i), and revising the reference to current Rule
613(i), which is being redesignated as Rule 613(h). Rule 613(k) is
redesignated as Rule 613(j).
With respect to index option deposits, OCC is adding a new Rule
1801(h) to provide that index option deposits will be released by OCC
on its own initiative at 6 p.m. Central Time on the exercise settlement
date so long as the clearing member has fully complied with its
settlement obligations in the account in which the escrow deposit is
held. The remaining subparagraphs of Rule 1801 are redesignated but are
otherwise unchanged.
Amended and Restated On-Line Escrow Deposit Agreement
Finally, OCC is amending the Amended and Restated On-Line Escrow
Deposit Agreement entered into between it and banks participating in
its escrow deposit program to reflect the procedural changes to the
escrow deposit program described above.
OCC believes the rule change is consistent with Section 17A of the
Act \3\, as amended because it more closely aligns the procedures for
the processing of releases of escrow deposits for expired short
positions with the processing of releases of specific deposits and
thereby improves the consistency and efficiency of such processing for
OCC, clearing members, and custodian banks. The rule change is not
inconsistent with the existing rules of OCC, including any other rules
proposed to be amended.
---------------------------------------------------------------------------
\3\ 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 will have an
impact or 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 proposed rule change has become effective upon filing
pursuant to Section 19(b)(3)(A) of the Act \4\ and Rule 19b-4(f) \5\
thereunder because it does not significantly affect the respective
rights or obligations of the clearing agency or persons using the
service and does not adversely affect the safeguarding of securities or
funds in the custody or control of OCC or for which it is responsible.
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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\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 240.19b-4(f).
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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 (https://
www.sec.gov/rules/sro.shtml) or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-OCC-2005-04 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-2005-04. 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 filings 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-2005-04 and
should be submitted on or before May 17, 2005.
[[Page 21488]]
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1972 Filed 4-25-05; 8:45 am]
BILLING CODE 8010-01-P
