Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Quarterly Options, 47854-47856 [E6-13617]
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47854
Federal Register / Vol. 71, No. 160 / Friday, August 18, 2006 / Notices
The Roundtable has recommended
that this change be implemented for the
October 2006 expiration. OCC therefore
requests that the Commission approve
the proposed rule change with an
effective date of October 1, 2006, and
that the Commission authorize OCC to
implement the threshold change
thereafter based upon its assessment of
clearing member readiness. OCC would
provide at least ten days advance notice
to clearing members of the effective date
for the new threshold amounts by
information memoranda and other
forms of electronic notice such as email. Additionally, OCC would allow
clearing members additional time to
complete preparations for the threshold
change if necessary.
OCC believes that the proposed rule
change is consistent with Section 17A of
the Act because it facilitates the prompt
and accurate processing of exercise
information on expiration.
(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
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 the proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
jlentini on PROD1PC65 with 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:
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18:35 Aug 17, 2006
Jkt 208001
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–2006–05 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–OCC–2006–05. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Section, 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
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–2006–05 and should
be submitted on or before September 8,
2006.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.7
Nancy M. Morris,
Secretary.
[FR Doc. E6–13616 Filed 8–17–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54305; File No. SR–OCC–
2006–11]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to
Quarterly Options
August 11, 2006.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
June 23, 2006, 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) of the Act 2 whereby
the proposal was 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 would
amend OCC’s By-Laws and Rules to
accommodate ‘‘quarterly options’’ (i.e., a
series of options or index options that
expires on the last business day of the
calendar quarter) which have been
proposed for trading by the
International Securities Exchange
(‘‘ISE’’).
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.3
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Quarterly options in general have the
same terms as conventional options
1 15
U.S.C. 78s(b)(1).
U.S.C. 78s(b)(3)(A)(ii).
3 The Commission has modified parts of these
statements.
2 15
7 17
PO 00000
CFR 200.30–3(a)(12).
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jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 71, No. 160 / Friday, August 18, 2006 / Notices
except that (a) quarterly options expire
on the last business day of a calendar
quarter and (b) all quarterly index
options would be settled based on the
level of the underlying index at the
close on the day of exercise (‘‘P.M.
Settled’’) rather than the level of the
index at the opening on that day (‘‘A.M.
Settled’’). In addition, certain
modifications in exercise procedures are
necessary to accommodate the business
day expiration of quarterly options.
Because of concerns with quoting
capacity, ISE filed and the Commission
has approved a proposed rule change
that allows ISE to list quarterly options
under a pilot program that is limited
both in duration and in the number of
classes of quarterly options that may
trade.4 Specifically, for an initial oneyear period following the first trade date
(‘‘Pilot Period’’) ISE would list series of
quarterly options in (a) up to five
options classes already listed on ISE
that are either (i) index options or (ii)
options on exchange traded funds and
(b) options classes that are selected by
any other exchanges that list quarterly
options under a similar pilot program. If
ISE decides to continue to list quarterly
options at the end of the Pilot Period,
ISE would have to file an additional rule
filing with the Commission as well as a
pilot program report analyzing a variety
of data, including the impact of the pilot
program on the capacity of ISE, the
Options Price Reporting Authority, and
market data vendors. If ISE decides to
cease listing quarterly options at the end
of the Pilot Period or if the Commission
were to refuse to approve a rule change
permitting quarterly options to continue
to trade, ISE would not list any
additional series and would permit only
closing transactions in open series.
ISE notes in its filing that there is a
risk of confusion with respect to
quarterly options series and other
options in the same class. The risk of
confusion is lessened with respect to
conventional options because those
options cannot expire in the same week
as quarterly options. However, short
term options, which are one-week
options that normally are listed on a
Friday and expire on the next following
Friday, could expire on the same day as
quarterly options. In order to lessen the
likelihood of confusion with respect to
short term options and quarterly options
in the same class, ISE will not list a
series of short term options if that series
would expire on the same date as a
series of quarterly options in the same
4 Securities Exchange Act Release Nos. 53857
(June 1, 2006), 71 FR 31246 (May 24, 2006) and
54113 (July 7, 2006), 71 FR 39694 (July 13, 2006)
[File No. SR–ISE–2006–24].
VerDate Aug<31>2005
18:35 Aug 17, 2006
Jkt 208001
class.5 Because of their differing
expiration dates, quarterly options are
not be fungible with conventional
options or short term options.
Because quarterly options differ from
conventional options and short term
options only in their expiration date, the
P.M. settlement feature of quarterly
index options, and other modifications
relating to business day expiration,
quarterly options can be cleared and
settled by OCC with relatively minor
revisions to OCC’s By-Laws and Rules.
A new defined term for ‘‘quarterly
options’’ is added to Article I of the ByLaws, and the definition of ‘‘expiration
date’’ in that Article is amended to
clarify that quarterly options do not
expire on the same date as conventional
options. Rules 801 and 805 are amended
to include quarterly options among the
exceptions to the general rule that
options may not be exercised on the
business day before their expiration
date. Rules 801 and 1804 are amended
to provide for the automatic exercise of
quarterly index options when those
options are in-the-money by a specified
amount. Finally, a reference in Article
XVII to ‘‘quarterly index expiration
options’’ or ‘‘QIX,’’ which are no longer
traded, has been removed to avoid
confusion. A conforming reference to
short term options has been added to
Rule 801(b) to provide clarity that such
options on indexes are subject to
automatic exercise, as presently
provided in Rule 1804(c).
OCC believes that the proposed rule
change is consistent with the purposes
and requirements of Section 17A of the
Act because it is designed to promote
the prompt and accurate clearance and
settlement of securities transactions, to
foster cooperation and coordination
with persons engaged in the clearance
and settlement of securities
transactions, to remove impediments to
and perfect the mechanism of a national
system for the prompt and accurate
clearance and settlement of securities
transactions, and, in general, to protect
investors and the public interest. The
proposed changes promote these
objectives by applying to quarterly
options the same basic governing
principles that are applicable to other
classes of options. The proposed
changes are not inconsistent with the
existing By-Laws and rules of OCC,
including those 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 rule change has become
effective pursuant to Section
19(b)(3)(A)(iii) of the Act 6 and Rule
19b–4(f)(4) 7 promulgated thereunder
because the proposal effects a change in
an existing service of OCC that (A) does
not adversely affect the safeguarding of
securities or funds in the custody or
control of OCC or for which it is
responsible and (B) does not
significantly affect the respective rights
or obligations of OCC or persons using
the service. 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.
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–2006–11 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–OCC–2006–11. This file
6 15
5 Supplementary
PO 00000
Frm 00084
Material .02(b) to ISE Rule 2009.
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47855
7 17
E:\FR\FM\18AUN1.SGM
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(4).
18AUN1
47856
Federal Register / Vol. 71, No. 160 / Friday, August 18, 2006 / Notices
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
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–2006–11 and should
be submitted on or before September 8,
2006.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.8
Nancy M. Morris,
Secretary.
[FR Doc. E6–13617 Filed 8–17–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54312; File No. SR–Phlx–
2006–28]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change and Amendments No. 1, 2, and
3 Thereto Relating to the Deletion of
Obsolete Provisions from Exchange
Rules
jlentini on PROD1PC65 with NOTICES
August 14, 2006.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1, and Rule 19b–4 2 thereunder,
notice is hereby given that on April 28,
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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18:35 Aug 17, 2006
Jkt 208001
2006, the Philadelphia Stock Exchange,
Inc. (‘‘Phlx’’ 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 Phlx. On June 15,
2006, July 19, 2006, and August 10,
2006, the Exchange filed Amendments
No. 1,3 2,4 and 3,5 respectively. The
Exchange has designated the proposed
rule change, as amended, as constituting
a non-controversial rule change under
Rule 19b–4(f)(6) under the Act,6 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change, as amended, from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Phlx proposes to amend various
Exchange rules to delete obsolete
provisions relating to trading systems
and practices that are no longer in effect
on the Exchange, particularly as the new
options system, Phlx XL, replaced the
old ‘‘AUTO–X’’ provisions.7 The text of
the proposed rule change, as amended,
is available on the Exchange’s Web site
at https://www.phlx.com, at the
Exchange’s Office of the Secretary, and
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Phlx 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. The Phlx has prepared
summaries, set forth in Sections A, B,
3 Amendment No. 1 replaced the original filing in
its entirety.
4 Amendment No. 2 replaced the original filing
and Amendment No. 1 in their entirety.
5 Amendment No. 3 made clarifying changes to
the rule text by retaining a description of Auto-X
and clarifying that the term Auto-X is currently
applied to include Book Match and Book Sweep in
the Exchange’s rules, including those rules
concerning the engagement and disengagement of
Auto-X.
6 17 CFR 240.19b–4(f)(6).
7 In July 2004, the Exchange began trading equity
options on Phlx XL, followed by index options in
December 2004. Phlx XL was completely rolled out
by February 2005, such that all options are now
‘‘Streaming Quote Options.’’ See Securities
Exchange Act Release No. 50100 (July 27, 2004), 69
FR 46612 (August 3, 2004) (SR–Phlx–2003–59).
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to delete provisions in the
Exchange’s rules that no longer apply
because of technological advancements
or obsolete trading practices.
Specifically, the following amendments
are proposed:
Quotation Size: The Phlx XL rules
originally provided in Exchange Rule
1014(b) that electronic quotations
submitted on Phlx XL could be
submitted with a quotation size of fewer
than 10 contracts for a specific period of
time following the initial deployment of
Phlx XL. The maximum time period
during which such a quotation size was
permitted was one year following the
deployment of Phlx XL, after which all
electronic quotations submitted on Phlx
XL had to be for a size of at least 10
contracts. Because it has been more than
one year since the initial deployment of
Phlx XL, the rule is now obsolete.
Quotations submitted on Phlx XL
currently must have a size of at least 10
contracts. Additionally, quotations
made by non-SQT ROTs in open outcry
in response to a request for a market
were originally permitted to quote with
a size fewer than 10 contracts during
this period. Non-SQT ROTs must now
provide such quotations with a size of
at least 10 contracts.
Continuous Open Outcry Quoting
Obligation: Currently, Exchange Rule
1014(b)(ii)(E)(1)(C) describes the open
outcry quoting obligation applicable to
non-SQT ROTs in response to a request
for a quote by a Floor Broker, specialist,
Floor Official, or other ROT (including
an SQT). The Exchange proposes to
delete the portion of the rule that
describes the minimum quote size for
such a quotation during various phases
of the rollout of Phlx XL. Because Phlx
XL is now deployed floor-wide, and the
rollout periods described in the rule
have all expired, that portion of the rule
is no longer necessary.
Definition of ‘‘Remainder of the
Order’’: Currently, Exchange Rule
1014(g)(i)(A)(1) defines ‘‘Remainder of
the Order’’ as, respecting non-Streaming
Quote Options, the portion of an
Initiating Order that remains following
the allocation of contracts to customers
that are on parity in accordance with
Rule 1014(g)(i). The term ‘‘Remainder of
the Order’’ is used in the Exchange’s
rules concerning the allocation of
E:\FR\FM\18AUN1.SGM
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]]>Agencies
[Federal Register Volume 71, Number 160 (Friday, August 18, 2006)]
[Notices]
[Pages 47854-47856]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-13617]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54305; File No. SR-OCC-2006-11]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Quarterly Options
August 11, 2006.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on June 23, 2006, 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)
of the Act \2\ whereby the proposal was 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).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change would amend OCC's By-Laws and Rules to
accommodate ``quarterly options'' (i.e., a series of options or index
options that expires on the last business day of the calendar quarter)
which have been proposed for trading by the International Securities
Exchange (``ISE'').
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.\3\
---------------------------------------------------------------------------
\3\ 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
Quarterly options in general have the same terms as conventional
options
[[Page 47855]]
except that (a) quarterly options expire on the last business day of a
calendar quarter and (b) all quarterly index options would be settled
based on the level of the underlying index at the close on the day of
exercise (``P.M. Settled'') rather than the level of the index at the
opening on that day (``A.M. Settled''). In addition, certain
modifications in exercise procedures are necessary to accommodate the
business day expiration of quarterly options.
Because of concerns with quoting capacity, ISE filed and the
Commission has approved a proposed rule change that allows ISE to list
quarterly options under a pilot program that is limited both in
duration and in the number of classes of quarterly options that may
trade.\4\ Specifically, for an initial one-year period following the
first trade date (``Pilot Period'') ISE would list series of quarterly
options in (a) up to five options classes already listed on ISE that
are either (i) index options or (ii) options on exchange traded funds
and (b) options classes that are selected by any other exchanges that
list quarterly options under a similar pilot program. If ISE decides to
continue to list quarterly options at the end of the Pilot Period, ISE
would have to file an additional rule filing with the Commission as
well as a pilot program report analyzing a variety of data, including
the impact of the pilot program on the capacity of ISE, the Options
Price Reporting Authority, and market data vendors. If ISE decides to
cease listing quarterly options at the end of the Pilot Period or if
the Commission were to refuse to approve a rule change permitting
quarterly options to continue to trade, ISE would not list any
additional series and would permit only closing transactions in open
series.
---------------------------------------------------------------------------
\4\ Securities Exchange Act Release Nos. 53857 (June 1, 2006),
71 FR 31246 (May 24, 2006) and 54113 (July 7, 2006), 71 FR 39694
(July 13, 2006) [File No. SR-ISE-2006-24].
---------------------------------------------------------------------------
ISE notes in its filing that there is a risk of confusion with
respect to quarterly options series and other options in the same
class. The risk of confusion is lessened with respect to conventional
options because those options cannot expire in the same week as
quarterly options. However, short term options, which are one-week
options that normally are listed on a Friday and expire on the next
following Friday, could expire on the same day as quarterly options. In
order to lessen the likelihood of confusion with respect to short term
options and quarterly options in the same class, ISE will not list a
series of short term options if that series would expire on the same
date as a series of quarterly options in the same class.\5\ Because of
their differing expiration dates, quarterly options are not be fungible
with conventional options or short term options.
---------------------------------------------------------------------------
\5\ Supplementary Material .02(b) to ISE Rule 2009.
---------------------------------------------------------------------------
Because quarterly options differ from conventional options and
short term options only in their expiration date, the P.M. settlement
feature of quarterly index options, and other modifications relating to
business day expiration, quarterly options can be cleared and settled
by OCC with relatively minor revisions to OCC's By-Laws and Rules. A
new defined term for ``quarterly options'' is added to Article I of the
By-Laws, and the definition of ``expiration date'' in that Article is
amended to clarify that quarterly options do not expire on the same
date as conventional options. Rules 801 and 805 are amended to include
quarterly options among the exceptions to the general rule that options
may not be exercised on the business day before their expiration date.
Rules 801 and 1804 are amended to provide for the automatic exercise of
quarterly index options when those options are in-the-money by a
specified amount. Finally, a reference in Article XVII to ``quarterly
index expiration options'' or ``QIX,'' which are no longer traded, has
been removed to avoid confusion. A conforming reference to short term
options has been added to Rule 801(b) to provide clarity that such
options on indexes are subject to automatic exercise, as presently
provided in Rule 1804(c).
OCC believes that the proposed rule change is consistent with the
purposes and requirements of Section 17A of the Act because it is
designed to promote the prompt and accurate clearance and settlement of
securities transactions, to foster cooperation and coordination with
persons engaged in the clearance and settlement of securities
transactions, to remove impediments to and perfect the mechanism of a
national system for the prompt and accurate clearance and settlement of
securities transactions, and, in general, to protect investors and the
public interest. The proposed changes promote these objectives by
applying to quarterly options the same basic governing principles that
are applicable to other classes of options. The proposed changes are
not inconsistent with the existing By-Laws and rules of OCC, including
those 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 rule change has become effective pursuant to Section
19(b)(3)(A)(iii) of the Act \6\ and Rule 19b-4(f)(4) \7\ promulgated
thereunder because the proposal effects a change in an existing service
of OCC that (A) does not adversely affect the safeguarding of
securities or funds in the custody or control of OCC or for which it is
responsible and (B) does not significantly affect the respective rights
or obligations of OCC or persons using the service. 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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\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(f)(4).
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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-2006-11 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-OCC-2006-11. This
file
[[Page 47856]]
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 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-2006-11
and should be submitted on or before September 8, 2006.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-13617 Filed 8-17-06; 8:45 am]
BILLING CODE 8010-01-P
