Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Margin Deposits for a Customers' Lien Account, 73044-73045 [05-23801]
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73044
Federal Register / Vol. 70, No. 235 / Thursday, December 8, 2005 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this rule change is to
amend CBOE rules to expressly prohibit
the practice of tape shredding, i.e., the
practice of splitting large orders into
multiple smaller orders for the purpose
of maximizing market data revenues.
The Commission has requested that all
U.S. self-regulatory organizations
implement rule changes to inhibit the
practice of tape shredding.
CBOE agrees that the practice of ‘‘tape
shredding’’ is a distortive practice. For
options trading, CBOE’s members do not
have any incentive to engage in this
practice because CBOE does not share
its market data revenue in options with
its members. With regard to its limited
stock trading, until very recently CBOE
did not share market data revenue with
its members.3 Nonetheless, because
CBOE shares the Commission’s
concerns about this dubious practice,
CBOE agrees that it would be
appropriate for CBOE to amend its rules
to expressly prohibit its members from
dividing single orders into multiple
orders for the sole purpose of
maximizing market data rebates.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act,4
in general, and furthers the objectives of
Section 6(b)(5) of the Act,5 in particular,
in that it is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to,
and perfect the mechanism of, a free and
open market and a national market
system, and in general, to protect
investors and the public interest.
3 CBOE recently adopted a revenue sharing
program with its Designated Primary MarketMakers and Market-Makers for trades in Tape B
securities, of which CBOE trades a very small
number, upon the launch of CBOE’s new stock
trading platform. Because CBOE’s revenue sharing
plan does not propose to share revenue with order
flow providers, only with CBOE’s DPMs and
Market-Makers in these Tape B securities, CBOE
does not believe that its plan promotes the breaking
up of single orders into multiple orders to maximize
market data rebates.
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(5).
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16:29 Dec 07, 2005
Jkt 208001
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes that the
proposed rule change will impose no
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received comments on this
proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2005–92 on the
subject line.
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
Room. Copies of such filing also will be
available for inspection and copying at
the principal offices of CBOE. 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–CBOE–2005–92 and should
be submitted on or before December 29,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.6
Jonathan G. Katz,
Secretary.
[FR Doc. E5–7071 Filed 12–7–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52868; File No. SR–OCC–
2005–18]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
Margin Deposits for a Customers’ Lien
Account
December 1, 2005
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’,1 notice is hereby given that on
November 9, 2005, The Options
Clearing Corporation (‘‘OCC’’) filed with
Paper Comments
the Securities and Exchange
• Send paper comments in triplicate
Commission (‘‘Commission’’) the
to Jonathan G. Katz, Secretary,
proposed rule change described in Items
Securities and Exchange Commission,
I, II, and III below, which items have
Station Place, 100 F Street, NE.,
been prepared primarily by OCC. OCC
Washington, DC 20549–9303.
filed the proposed rule change pursuant
All submissions should refer to File
to Section 19(b)(3)(A)(i) of the Act 2 and
Number SR–CBOE–2005–92. This file
Rule 19b–4(f)(1) thereunder 3 so that the
number should be included on the
proposal was effective upon filing with
subject line if e-mail is used. To help the the Commission. The Commission is
Commission process and review your
publishing this notice to solicit
comments more efficiently, please use
only one method. The Commission will
6 17 CFR 200.30–3(a)(12).
post all comments on the Commission’s
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78s(b)(3)(A)(i).
Internet Web site (https://www.sec.gov/
3 17 U.S.C. 240.19b–4(f)(1).
rules/sro.shtml). Copies of the
PO 00000
Frm 00068
Fmt 4703
Sfmt 4703
E:\FR\FM\08DEN1.SGM
08DEN1
Federal Register / Vol. 70, No. 235 / Thursday, December 8, 2005 / Notices
comments on the proposed rule change
from interested parties.
with OCC’s rules, including any rules
proposed to be amended.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change would
clarify that securities held for the
account of a securities customer (other
than a market maker) may be deposited
as margin in a customers’ lien account.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
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.4
Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The proposed rule change would
clarify that securities held for the
account of a securities customer (other
than a market maker) may be deposited
as margin in a customers’ lien account.
In July 2005, the Commission approved
an OCC proposed rule change that
permitted clearing members to clear
trades of certain securities customers in
a new type of account, called a
customers’ lien account, which is
subject to portfolio margining.5
Although it was clearly intended that
clearing members be permitted to
deposit securities held for the account
of securities customers participating in
portfolio margining in customers’ lien
accounts, the necessary conforming
change to OCC Rule 604(b)(5) was
inadvertently omitted. The purpose of
this rule filing is to make that
conforming change.
OCC believes the proposed changes
are consistent with Section 17A of the
Act 6 and the rules and regulations
thereunder applicable to OCC because
such changes promote the prompt and
accurate clearance and settlement of
securities transactions by making a
conforming change to OCC’s rules. The
proposed rule change is not inconsistent
4 The Commission has modified the text of the
summaries prepared by OCC.
5 See Securities Exchange Act Release No. 52030
(July 14, 2005), 70 42405 (July 22, 2005) [File No.
SR–OCC–2003–04].
6 15 U.S.C. 78q–1.
VerDate Aug<31>2005
16:29 Dec 07, 2005
Jkt 208001
OCC does not believe that the
proposed rule change would impose any
burden on competition.
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were not and are
not intended to be solicited with respect
to the proposed rule change, and none
have been received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective upon filing pursuant to Section
19(b)(3)(A)(i) of the Act 7 and Rule 19b–
4(f)(1) 8 thereunder because it
constitutes a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule. At any
time within sixty days of the filing of
such rule change, the Commission may
summarily abrogate such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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–2005–18 on the
subject line.
• 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–2005–18. This file
number should be included on the
subject line if e-mail is used. To help the
8 17
PO 00000
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(1).
Frm 00069
Fmt 4703
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–2005–18 and should
be submitted on or before December 29,
2005.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.9
Jonathan G. Katz,
Secretary.
[FR Doc. 05–23801 Filed 12–7–05; 8:45 am]
BILLING CODE 8010–01–M
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52869; File No. SR–OCC–
2005–16]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
Gasoline Index Futures
December 1, 2005.
Paper Comments
7 15
73045
Sfmt 4703
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
October 26, 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. OCC filed the
9 17
1 15
E:\FR\FM\08DEN1.SGM
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
08DEN1
]]>Agencies
[Federal Register Volume 70, Number 235 (Thursday, December 8, 2005)]
[Notices]
[Pages 73044-73045]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-23801]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52868; File No. SR-OCC-2005-18]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Margin Deposits for a Customers' Lien Account
December 1, 2005
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'',\1\ notice is hereby given that on November 9, 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. OCC filed the proposed rule change pursuant to Section
19(b)(3)(A)(i) of the Act \2\ and Rule 19b-4(f)(1) thereunder \3\ so
that the proposal was effective upon filing with the Commission. The
Commission is publishing this notice to solicit
[[Page 73045]]
comments on the proposed rule change from interested parties.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78s(b)(3)(A)(i).
\3\ 17 U.S.C. 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change would clarify that securities held for the
account of a securities customer (other than a market maker) may be
deposited as margin in a customers' lien account.
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.\4\
---------------------------------------------------------------------------
\4\ The Commission has modified the text of the summaries
prepared by OCC.
---------------------------------------------------------------------------
Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The proposed rule change would clarify that securities held for the
account of a securities customer (other than a market maker) may be
deposited as margin in a customers' lien account. In July 2005, the
Commission approved an OCC proposed rule change that permitted clearing
members to clear trades of certain securities customers in a new type
of account, called a customers' lien account, which is subject to
portfolio margining.\5\ Although it was clearly intended that clearing
members be permitted to deposit securities held for the account of
securities customers participating in portfolio margining in customers'
lien accounts, the necessary conforming change to OCC Rule 604(b)(5)
was inadvertently omitted. The purpose of this rule filing is to make
that conforming change.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 52030 (July 14,
2005), 70 42405 (July 22, 2005) [File No. SR-OCC-2003-04].
---------------------------------------------------------------------------
OCC believes the proposed changes are consistent with Section 17A
of the Act \6\ and the rules and regulations thereunder applicable to
OCC because such changes promote the prompt and accurate clearance and
settlement of securities transactions by making a conforming change to
OCC's rules. The proposed rule change is not inconsistent with OCC's
rules, including any rules proposed to be amended.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
(B) Self-Regulatory Organization's Statement on Burden on Competition
OCC does not believe that the proposed rule change would impose any
burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants, or Others
Written comments were not and are not intended to be solicited with
respect to the proposed rule change, and none have been received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective upon filing pursuant
to Section 19(b)(3)(A)(i) of the Act \7\ and Rule 19b-4(f)(1) \8\
thereunder because it constitutes a stated policy, practice, or
interpretation with respect to the meaning, administration, or
enforcement of an existing rule. At any time within sixty days of the
filing of such rule change, the Commission may summarily abrogate such
rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(i).
\8\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
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-2005-18 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-2005-18. 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-2005-18 and should be submitted on
or before December 29, 2005.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jonathan G. Katz,
Secretary.
[FR Doc. 05-23801 Filed 12-7-05; 8:45 am]
BILLING CODE 8010-01-M
