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]

Download as PDF 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 (http://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 (http://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). VerDate Aug<31>2005 20:13 Nov 28, 2005 Jkt 208001 PO 00000 Frm 00128 Fmt 4703 Sfmt 4703 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 E:\FR\FM\29NON1.SGM 29NON1 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 VerDate Aug<31>2005 20:13 Nov 28, 2005 Jkt 208001 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: PO 00000 Frm 00129 Fmt 4703 Sfmt 4703 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). E:\FR\FM\29NON1.SGM 29NON1 71588 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 (http://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 (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference 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 http:// 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 PO 00000 Frm 00130 Fmt 4703 Sfmt 4703 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 29NON1

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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f)(2).

---------------------------------------------------------------------------

[[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 (http://
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 (http://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments, 
all written statements with respect to the proposed rule change that 
are filed with the Commission, and all written communications relating 
to the proposed rule change between the Commission and any person, 
other than those that may be withheld from the public in accordance 
with the provisions of 5 U.S.C. 552, will be available for inspection 
and copying in the Commission's Public Reference 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 http://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.
---------------------------------------------------------------------------

    \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