Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Clearing Fees for Certain Transactions Executed on OneChicago, LLC, 71586-71588 [E5-6618]
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71586
Federal Register / Vol. 70, No. 228 / Tuesday, November 29, 2005 / Notices
one commenter’s concern with the
timing of the disclosure of arbitrator
conflicts, the Exchange noted that an
arbitrator’s duty to disclose conflicts
pursuant to Rule 610 is a continuing
duty, and additional information
received by the Exchange pursuant to
Rule 610 is immediately forwarded to
the parties.
be submitted on or before December 20,
2005.
IV. Discussion and Findings
After careful review, the Commission
finds that the proposed rule change is
consistent with section 6(b) 36 of the Act
in general and section 6(b)(5) of the
Act 37 in particular, which require that
the rules of the Exchange be designed to
III. Solicitation of Comments
prevent fraudulent and manipulative
acts and practices, to promote just and
Interested persons are invited to
equitable principles of trade and, in
submit written data, views, and
general, to protect investors and the
arguments concerning Amendment No.
38
4, including whether Amendment No. 4 public interest. The proposed rule
change makes permanent the pilot
is consistent with the Act. Comments
program allowing for list selection of
may be submitted by any of the
arbitrators, but does so with
following methods:
modifications that make it easier for
Electronic Comments
customers to opt for list selection, while
retaining the method of traditional
• Use the Commission’s Internet
arbitrator appointment as an alternative
comment form (https://www.sec.gov/
for parties. The proposed rule change
rules/sro.shtml); or
institutes a system of selecting
• Send e-mail to rulearbitrators that is comparable to the
comments@sec.gov. Please include File
SICA’s UCA and that of the NASD.
Number SR–NYSE–2005–02 on the
Although commenters expressed
subject line.
concerns with various of the
modifications between the pilot
Paper Comments
program and the amendments to NYSE
• Send paper comments in triplicate
Rule 607 put forth in the proposed rule
to Jonathan G. Katz, Secretary,
change, including the elimination of the
Securities and Exchange Commission,
second list and the limitations on
100 F Street, NE., Washington, DC
preemptive strikes, the Exchange
20549–9303.
described the way these provisions had
All submissions should refer to File
operated during the Exchange’s
Number SR–NYSE–2005–02. This file
administration of the pilot program, and
number should be included on the
explained the ways in which these
subject line if e-mail is used. To help the provisions had appeared to the
Commission process and review your
Exchange to delay the arbitration
comments more efficiently, please use
process. In light of the Exchange’s
only one method. The Commission will experience with the pilot program, the
post all comments on the Commission’s Exchange’s decision to eliminate these
Internet Web site (https://www.sec.gov/
provisions of the pilot program appears
rules/sro/shtml). Copies of the
reasonable. The Exchange also
submission, all subsequent
explained that arbitrator’s past awards
amendments, all written statements
are readily available to parties, and that
with respect to the proposed rule
the last three arbitrator award decisions
change that are filed with the
will be sent to parties should they
Commission, and all written
request it. The NYSE also amended its
communications relating to the
Rule 607 in order to provide for a time
proposed rule change between the
period in which the lists of arbitrators
Commission and any person, other than should be sent to the parties that is the
those that may be withheld from the
same as the NASD’s requirement,
public in accordance with the
creating consistency between the two
provisions of 5 U.S.C. 552, will be
systems.
available for inspection and copying in
We believe that the proposed
amendments to NYSE Rule 607 will
the Commission’s Public Reference
Room. Copies of such filing also will be provide the NYSE with a list selection
mechanism for selecting arbitrators
available for inspection and copying at
comparable to that of the NASD and
the principal office of the NYSE. All
SICA’s UCA, and that the list selection
comments received will be posted
process will give customers increased
without change; the Commission does
not edit personal identifying
36 15 U.S.C. 78f(b).
information from submissions. You
37 15 U.S.C. 78f(b)(5).
should submit only information that
38 In approving
you wish to make available publicly. All Commission notesthis proposed rule change, the
that it has considered the
submissions should refer to File
proposed rule’s impact on efficiency, competition,
Number SR–NYSE–2005–02 and should and capital formation. 15 U.S.C. 78c(f).
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20:13 Nov 28, 2005
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involvement in the selection of the
arbitrators who will hear their claims,
leading to increased investor confidence
in the NYSE’s arbitral selection system.
Accelerated Approval of Amendment
No. 4
The Commission finds good cause for
approving Amendment No. 4 to the
proposed rule change prior to the
thirtieth day after the amendment is
published for comment in the Federal
Register pursuant to section 19(b)(2) of
the Act.39 Amendment No. 4 provided
a time period in which the NYSE would
be required to provide the parties with
lists of arbitrators. Setting a specific
time for sending the lists of arbitrators
to the parties will create consistency
across the arbitration system in place at
the NYSE. Further, the timing of the
NYSE’s sending of the lists to parties is
identical to that of the NASD, thereby
creating consistency between the two
arbitration systems. The Commission
finds that, given the benefits of having
the Exchange set a specific time for
sending out the lists of arbitrators, it is
appropriate for the Exchange to amend
the proposed rule text to reflect
consistency in the involvement of
arbitrators in the process. Accordingly,
the Commission believes that
accelerated approval of Amendment No.
4 is appropriate.
V. Conclusion
It Is Therefore Ordered, pursuant to
section 19(b)(2) of the Act 40 that the
proposed rule change (SR–NYSE–2005–
02) be, and hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.41
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6653 Filed 11–28–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52790; File No. SR–OCC–
2005–13]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to
Clearing Fees for Certain Transactions
Executed on OneChicago, LLC
November 17, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
39 15
U.S.C. 78s(b)(2).
U.S.C. 78s(b)(2).
41 17 CFR 200.30–3(a)(12).
40 15
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Federal Register / Vol. 70, No. 228 / Tuesday, November 29, 2005 / Notices
(‘‘Act’’),1 notice is hereby given that on
September 29, 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.
OCC filed the proposed rule change
pursuant to Section 19(b)(3)(A)(ii) of the
Act,2 and Rule 19b–4(f)(2) thereunder,3
which renders the proposal effective
upon filing with the Commission. 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 purpose of the proposed rule
change is to charge clearing fees to
OneChicago, LLC (‘‘ONE’’) for cleared
trades where an OCC clearing member
is on one or both sides of the trade
based on OCC’s standard rebate-eligible
fee schedule (‘‘Standard Fee Schedule’’),
rather than under the alternate rebateineligible fee schedule (‘‘Alternate Fee
Schedule’’) adopted when OCC and
ONE entered into the Security Futures
Agreement for Clearing and Settlement
Services (‘‘ONE Clearing Agreement’’).
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
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Under the Standard Fee Schedule,
OCC clearing members pay OCC’s
standard clearing fees and are eligible to
receive rebates of excess clearing fees
when and as determined by OCC’s
Board of Directors. When negotiating its
clearing agreement with OCC, ONE
preferred to pay OCC’s clearing fees
itself rather than have OCC charge those
1 15
U.S.C. 78s(b)(1).
U.S.C. 78s(b)(3)(A)(ii).
3 17 CFR 240.19b–4(f)(2).
4 The Commission has modified parts of these
statements.
2 15
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fees to clearing members.5 Because ONE
wanted to plan on set fees and avoid the
uncertainty of a rebate that might be less
than expected, OCC agreed to an
Alternate Fee Schedule which provides
for the following fees:
• 7¢ per side for trades of 1 to 500
contracts.
• 6¢ per side for trades of 501 to
1,000 contracts.
• 5¢ per side for trades of 1,001 to
2,000 contracts, and
• $85 for trades larger than 2,000
contracts.6
The Alternate Fee Schedule also
includes certain new product
discounts.7 Under the terms of the ONE
Clearing Agreement, the Alternate Fee
Schedule expired on November 8, 2005.
Since the adoption of the Alternate
Fee Schedule, OCC has both reduced
and discounted its Standard Fee
Schedule.8 The current discounted
Standard Fee Schedule is:
• 5¢ per contract for trades of 1 to 500
contracts.
• 4¢ per contract for trades of 501 to
1,000 contracts.
• 3¢ per contract for trades of 1,001
to 2,000 contracts, and
• $55 for trades larger than 2,000
contracts.
This discounted fee structure remains in
effect until further action by OCC’s
Board of Directors.
In response to a request by ONE, OCC
has agreed to charge fees to ONE under
the Standard Fee Schedule including
standard new product fee discounts 9 for
5 At
that time, clearing fees under OCC’s Standard
Fee Schedule were:
• 9¢ per side for trades of 1 to 500 contracts.
• 7¢ per side for trades of 501 to 1,000 contracts.
• 6¢ per side for trades of 1,001 to 2,000
contracts, and
• $110 for trades larger than 2,000 contracts.
6 Securities Exchange Act Release No. 47196
(January 15, 2003), 68 FR 3922 (January 27, 2003)
[File No. SR–OCC–2002–20]. Pursuant to the ONE
Clearing Agreement, the CME has been designated
as an associated clearinghouse (‘‘ACH’’) for ONE.
Under the Alternate Fee Schedule, different fees are
charged where the ACH is on one or both sides of
a trade. Those fees are not being changed by this
filing.
7 Securities Exchange Act Release No. 47196. The
‘‘new securities future product’’ discounts are as
follows:
• First month traded: No fee.
• Second month traded: 2.5¢ regardless of size.
• Third month traded: The lesser of the total at
5¢ or $85.
• Fourth month traded: Reverts to Alternate Fee
Schedule.
8 See Securities Exchange Act Release Nos. 49436
(March 17, 2004), 69 FR 13932 (March 24, 2004)
[File No. SR–OCC–2004–01], 50080 (July 26, 2004),
69 FR 45873 (July 30, 2004) [File No. SR–OCC–
2004–12], 50951 (December 30, 2004), 70 FR 1489
(January 7, 2005) [File No. SR–OCC–2004–22], and
52034 (July 14, 2005), 70 FR 42134 (July 21, 2005)
[File No. SR–OCC–2005–08].
9 The ‘‘new products’’ discounts under the
Standard Schedule are as follows:
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71587
trades where at least one side is cleared
by an OCC clearing member. OCC is
willing to provide ONE with the benefit
of the Standard Fee Schedule for such
trades before the date the Alternate Fee
Structure for ONE is set to expire.
Accordingly, effective October 1, 2005,
OCC charged ONE clearing fees based
on the Standard Fee Schedule. Any
refund of clearing fees charged under
the Standard Schedule will be paid to
ONE.
OCC believes that the proposed
change is consistent with Section 17A of
the Act because it provides the benefit
of a discounted, rebate-eligible clearing
fee schedule for certain trades to a
market for which OCC provides
clearance and settlement services. 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 proposed rule change
has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act 10 and
Rule 19b–4(f)(2) 11 thereunder because it
establishes or changes a due, fee, or
other charge. At any time within 60
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.
• First month traded: No fee.
• Second month traded: For trades with contracts
of:
1–4,400—1 cent/side.
> 4,400—$40.
• Third month traded: For trades with contracts
of:
1–2,200—2 cents/side.
> 2,200—$40.
• Fourth month traded: Reverts to Standard Fee
Schedule.
10 15 U.S.C. 78s(b)(3)(A)(ii).
11 17 CFR 240.19b–4(f)(2).
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Federal Register / Vol. 70, No. 228 / Tuesday, November 29, 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:
• 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–2005–13 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
All submissions should refer to File
Number SR–OCC–2005–13. 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, 100 F Street, NE., 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–2005–13 and should
be submitted on or before December 20,
2005.
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
20:13 Nov 28, 2005
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
12 17
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6618 Filed 11–28–05; 8:45 am]
Jkt 208001
[Release No. 34–52789; File No. SR–OCC–
2005–14]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to
Position Sub-Accounts
November 17, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
September 29, 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.
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 which renders the proposal
effective upon filing with the
Commission. 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 sets forth
certain interpretations as to the
treatment of position sub-accounts
maintained with respect to one or more
account types established by a clearing
member under a particular clearing
member number 4 in the event of the
clearing member’s liquidation.5
1 15
U.S.C. 78s(b)(1).
U.S.C. 78s(b)(3)(A)(iii).
3 17 CFR 240.19b–4(f)(4).
4 Clearing member numbers are used to identify
clearing members within OCC’s system. For a
variety of reasons, a clearing member may use more
than one clearing member number. See Securities
Exchange Act Release No. 47194 (January 15, 2003),
68 FR 3923 (January 27, 2003) [File No. SR–OCC–
2002–26].
5 The proposed change to Article VI, Section 3,
Interpretation and Policy .02 is conforming in
nature and reflects the Commission’s recent
approval of the proposed rule change in Securities
Exchange Act Release No. 52030 (July 14, 2005), 70
FR 42405 (July 22, 2005) [File No. SR–OCC–2003–
04].
2 15
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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.6
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
OCC’s clearing systems have
historically contained functionality that
identifies the positions of each market
maker participating in a combined
market makers’ account.7 Position subaccounting in a combined market
makers’ account is accomplished by
using each participating market maker’s
unique acronym to identify the market
maker’s trades for clearance and
settlement, including position reporting.
Because of the large number of
transactions effected by market makers,
reporting their positions on a subaccount basis facilitates clearing
member reconciliation and balancing
processes. Position sub-accounting also
avoids the need for firms carrying a
combined market makers’ account to
allocate assignments to particular
market makers because OCC assigns
exercise notices directly to market
maker sub-accounts.8
OCC’s new clearing system, ENCORE,
was designed to extend position subaccounting to other account types that a
clearing member may maintain with
OCC although this functionality has not
yet been offered to clearing members.
Once OCC completes a system and
clearing member readiness assessment,
OCC intends to gradually roll out
position sub-accounting for these other
account types to interested clearing
members. OCC expects the roll-out to
commence in or about the second
quarter of 2006. OCC anticipates that
6 The Commission has modified parts of these
statements.
7 A combined market makers’ account is confined
to the exchange transactions of the market makers
for which it was established. OCC also permits subaccounting within a clearing member’s segregated
futures professional account. All positions carried
within each of these account types are maintained
on sub-account basis.
8 Securities Exchange Act Release No. 46735
(October 28, 2002), 67 FR 67434 (November 5, 2002)
[File No. SR–OCC–2002–19].
E:\FR\FM\29NON1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 228 (Tuesday, November 29, 2005)]
[Notices]
[Pages 71586-71588]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-6618]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52790; File No. SR-OCC-2005-13]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Clearing Fees for Certain Transactions Executed on
OneChicago, LLC
November 17, 2005.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 71587]]
(``Act''),\1\ notice is hereby given that on September 29, 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. OCC filed the proposed rule change pursuant to
Section 19(b)(3)(A)(ii) of the Act,\2\ and Rule 19b-4(f)(2)
thereunder,\3\ which renders the proposal effective upon filing with
the Commission. 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).
\2\ 15 U.S.C. 78s(b)(3)(A)(ii).
\3\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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 charge clearing fees
to OneChicago, LLC (``ONE'') for cleared trades where an OCC clearing
member is on one or both sides of the trade based on OCC's standard
rebate-eligible fee schedule (``Standard Fee Schedule''), rather than
under the alternate rebate-ineligible fee schedule (``Alternate Fee
Schedule'') adopted when OCC and ONE entered into the Security Futures
Agreement for Clearing and Settlement Services (``ONE Clearing
Agreement'').
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\
---------------------------------------------------------------------------
\4\ 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
Under the Standard Fee Schedule, OCC clearing members pay OCC's
standard clearing fees and are eligible to receive rebates of excess
clearing fees when and as determined by OCC's Board of Directors. When
negotiating its clearing agreement with OCC, ONE preferred to pay OCC's
clearing fees itself rather than have OCC charge those fees to clearing
members.\5\ Because ONE wanted to plan on set fees and avoid the
uncertainty of a rebate that might be less than expected, OCC agreed to
an Alternate Fee Schedule which provides for the following fees:
---------------------------------------------------------------------------
\5\ At that time, clearing fees under OCC's Standard Fee
Schedule were:
9[cent] per side for trades of 1 to 500 contracts.
7[cent] per side for trades of 501 to 1,000 contracts.
6[cent] per side for trades of 1,001 to 2,000
contracts, and
$110 for trades larger than 2,000 contracts.
---------------------------------------------------------------------------
7[cent] per side for trades of 1 to 500 contracts.
6[cent] per side for trades of 501 to 1,000 contracts.
5[cent] per side for trades of 1,001 to 2,000 contracts,
and
$85 for trades larger than 2,000 contracts.\6\
\6\ Securities Exchange Act Release No. 47196 (January 15,
2003), 68 FR 3922 (January 27, 2003) [File No. SR-OCC-2002-20].
Pursuant to the ONE Clearing Agreement, the CME has been designated
as an associated clearinghouse (``ACH'') for ONE. Under the
Alternate Fee Schedule, different fees are charged where the ACH is
on one or both sides of a trade. Those fees are not being changed by
this filing.
---------------------------------------------------------------------------
The Alternate Fee Schedule also includes certain new product
discounts.\7\ Under the terms of the ONE Clearing Agreement, the
Alternate Fee Schedule expired on November 8, 2005.
\7\ Securities Exchange Act Release No. 47196. The ``new
securities future product'' discounts are as follows:
First month traded: No fee.
Second month traded: 2.5[cent] regardless of size.
Third month traded: The lesser of the total at 5[cent]
or $85.
Fourth month traded: Reverts to Alternate Fee Schedule.
---------------------------------------------------------------------------
Since the adoption of the Alternate Fee Schedule, OCC has both
reduced and discounted its Standard Fee Schedule.\8\ The current
discounted Standard Fee Schedule is:
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release Nos. 49436 (March 17,
2004), 69 FR 13932 (March 24, 2004) [File No. SR-OCC-2004-01], 50080
(July 26, 2004), 69 FR 45873 (July 30, 2004) [File No. SR-OCC-2004-
12], 50951 (December 30, 2004), 70 FR 1489 (January 7, 2005) [File
No. SR-OCC-2004-22], and 52034 (July 14, 2005), 70 FR 42134 (July
21, 2005) [File No. SR-OCC-2005-08].
---------------------------------------------------------------------------
5[cent] per contract for trades of 1 to 500 contracts.
4[cent] per contract for trades of 501 to 1,000 contracts.
3[cent] per contract for trades of 1,001 to 2,000
contracts, and
$55 for trades larger than 2,000 contracts.
This discounted fee structure remains in effect until further action by
OCC's Board of Directors.
In response to a request by ONE, OCC has agreed to charge fees to
ONE under the Standard Fee Schedule including standard new product fee
discounts \9\ for trades where at least one side is cleared by an OCC
clearing member. OCC is willing to provide ONE with the benefit of the
Standard Fee Schedule for such trades before the date the Alternate Fee
Structure for ONE is set to expire. Accordingly, effective October 1,
2005, OCC charged ONE clearing fees based on the Standard Fee Schedule.
Any refund of clearing fees charged under the Standard Schedule will be
paid to ONE.
---------------------------------------------------------------------------
\9\ The ``new products'' discounts under the Standard Schedule
are as follows:
First month traded: No fee.
Second month traded: For trades with contracts of:
1-4,400--1 cent/side.
> 4,400--$40.
Third month traded: For trades with contracts of:
1-2,200--2 cents/side.
> 2,200--$40.
Fourth month traded: Reverts to Standard Fee Schedule.
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OCC believes that the proposed change is consistent with Section
17A of the Act because it provides the benefit of a discounted, rebate-
eligible clearing fee schedule for certain trades to a market for which
OCC provides clearance and settlement services. 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 proposed rule change has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act \10\ and Rule 19b-4(f)(2) \11\
thereunder because it establishes or changes a due, fee, or other
charge. At any time within 60 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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\10\ 15 U.S.C. 78s(b)(3)(A)(ii).
\11\ 17 CFR 240.19b-4(f)(2).
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[[Page 71588]]
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-2005-13 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-9303.
All submissions should refer to File Number SR-OCC-2005-13. 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, 100 F Street,
NE., 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-2005-13
and should be submitted on or before December 20, 2005.
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\12\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
Jonathan G. Katz,
Secretary.
[FR Doc. E5-6618 Filed 11-28-05; 8:45 am]
BILLING CODE 8010-01-P
