Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Reduced Discounted Clearing Fees, 56208-56209 [06-8237]
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56208
Federal Register / Vol. 71, No. 186 / Tuesday, September 26, 2006 / Notices
should be submitted on or before
October 17, 2006.
IV. Commission’s Findings and Order
Granting Accelerated Approval of
Proposed Rule Change
pwalker on PRODPC60 with NOTICES
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange.20 In particular, the
Commission finds that the proposed
rule change is consistent with section
6(b)(5) of the Act,21 which requires that
an exchange have rules designed, among
other things, to promote just and
equitable principles of trade, 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.
In addition, the Commission finds
that proposal is consistent with section
12(f) of the Act,22 which permits an
exchange to trade, pursuant to UTP, a
security that is listed and registered on
another exchange.23 The Commission
also finds that the proposal is consistent
with Rule 12f–5 under the Act,24 which
provides that an exchange shall not
extend UTP to a security unless the
exchange has in effect a rule or rules
providing for transactions in the class or
type of security to which the exchange
extends UTP. NYSEArca rules deem the
Shares to be equity securities, thus
trading in the Shares will be subject to
the Exchange’s existing rules governing
the trading of equity securities.
The Commission further believes that
the proposal is consistent with section
11A(a)(1)(C)(iii) of the Act,25 which sets
forth Congress’s finding that it is in the
public interest and appropriate for the
protection of investors and the
maintenance of fair and orderly markets
to assure the availability to brokers,
dealers, and investors of information
20 In approving this rule change, the Commission
notes that it has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
21 15 U.S.C. 78f(b)(5).
22 15 U.S.C. 78l(f).
23 Section 12(a) of the Act, 15 U.S.C. 78l(a),
generally prohibits a broker-dealer from trading a
security on a national securities exchange unless
the security is registered on that exchange pursuant
to Section 12 of the Act. Section 12(f) of the Act
excludes from this restriction trading in any
security to which an exchange ‘‘extends UTP.’’
When an exchange extends UTP to a security, it
allows its members to trade the security as if it were
listed and registered on the exchange even though
it is not so listed and registered.
24 17 CFR 240.12f–5.
25 15 U.S.C. 78k–1(a)(1)(C)(iii).
VerDate Aug<31>2005
21:03 Sep 25, 2006
Jkt 208001
with respect to quotations for and
transactions in securities.
In support of the proposed rule
change, the Exchange has made the
following representations:
1. The Exchange has appropriate rules
to facilitate transactions in this type of
security in all trading sessions.
2. The Exchange’s surveillance
procedures are adequate to properly
monitor the trading of the Shares on the
Exchange.
3. The Exchange will inform its ETP
Holders in an Information Bulletin of
the special characteristics and risks
associated with trading the Shares.
4. The Exchange will require its ETP
Holders to deliver a prospectus to
investors purchasing newly issued
Shares prior to or concurrently with the
confirmation of a transaction and will
note this prospectus delivery
requirement in the Information Bulletin.
5. The Exchange will cease trading the
Shares of a Fund if: (a) The listing
market stops trading the Shares because
of a regulatory halt similar to a halt
based on NYSE Arca Equities Rule 7.12
or a halt because the IOPV or the value
of the applicable Underlying Index is no
longer available; or (b) the listing market
delists the Shares.
This approval order is conditioned on
the Exchange’s adherence to these
representations.
The Commission finds good cause for
approving this proposed rule change
before the thirtieth day after the
publication of notice thereof in the
Federal Register. As noted above, the
Commission previously found that the
listing and trading of these Shares on
the NYSE is consistent with the Act.26
The Commission presently is not aware
of any issue that would cause it to
revisit that earlier finding or preclude
the trading of these funds on the
Exchange pursuant to UTP. Therefore,
accelerating approval of this proposed
rule change should benefit investors by
creating, without undue delay,
additional competition in the market for
these Shares.
V. Conclusion
It is therefore ordered, pursuant to
section 19(b)(2) of the Act, that the
proposed rule change (SR–NYSEArca–
2006–60), is hereby approved on an
accelerated basis.27
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.28
Nancy M. Morris,
Secretary.
[FR Doc. 06–8236 Filed 9–25–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54464; File No. SR–OCC–
2006–14]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
Reduced Discounted Clearing Fees
September 18, 2006.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
August 15, 2006, 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)(ii) of the Act 2 and
Rule 19b–4(f)(2) thereunder 3 so that 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 parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change is to reduce
OCC’s currently discounted clearing
fees for securities options and security
futures where at least one side of the
trade is cleared by an OCC clearing
member for the period September 1,
2006, through December 29, 2006.
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),
28 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78s(b)(3)(A)(ii).
3 17 CFR 240.19b–4(f)(2).
1 15
26 See
27 15
PO 00000
NYSE Proposal, supra note 4.
U.S.C. 78s(b)(2).
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Fmt 4703
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E:\FR\FM\26SEN1.SGM
26SEN1
Federal Register / Vol. 71, No. 186 / Tuesday, September 26, 2006 / Notices
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The proposed rule change would
reduce OCC’s currently discounted
clearing fees for securities options and
and (C) below, of the most significant
aspects of these statements.4
56209
security futures where at least one side
of the trade is cleared by an OCC
clearing member for the period
September 1, 2006, through December
29, 2006. Clearing fees for such
contracts will be reduced as reflected in
the following chart.
Discounted fee effective September 1, 2006
through December 29, 2006
Contracts/trade
Discounted fee effective July 1, 2005
1–500 .................................................................
501–1,000 ..........................................................
1,001–2,000 .......................................................
>2,000 ................................................................
$0.05/contract ...................................................
$0.04/contract ...................................................
$0.03/contract ...................................................
$55.00 (capped) ...............................................
$0.035/contract.
$0.028/contract.
$0.021/contract.
$35.00 (capped)
The additional fee reduction
recognizes the increased contract
volume experienced by OCC through
the first six months of 2006. OCC
believes that this fee reduction will
financially benefit clearing members
and other market participants without
adversely affecting OCC’s ability to meet
its expenses and maintain an acceptable
level of retained earnings.
OCC believes the proposed rule
change is consistent with Section 17A of
the Act because it financially benefits
clearing members by reducing clearing
fees and allocates such fees among
clearing members in a fair and equitable
manner. The proposed rule change is
not inconsistent with the existing rules
of OCC, including any other rules
proposed to be amended.
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
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–2006–14 and should
be submitted on or before October 27,
2006.
(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.
pwalker on PRODPC60 with NOTICES
(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)(ii) of the Act 5 and Rule 19b–
4(f)(2) 6 thereunder because the
proposed rule establishes or changes a
due, fee, or other charge. 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
4 The Commission has modified the text of the
summaries prepared by OCC.
VerDate Aug<31>2005
21:03 Sep 25, 2006
Jkt 208001
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–2006–14 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–2006–14. 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
5 15
6 17
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
Frm 00110
Fmt 4703
Sfmt 4703
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.7
Nancy M. Morris,
Secretary.
[FR Doc. 06–8237 Filed 9–25–06; 8:45 am]
BILLING CODE 8010–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration # 10610 and # 10611]
Maryland Disaster # MD–00005
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
SUMMARY: This is a notice of an
Administrative declaration of a disaster
for the State of Maryland dated 09/18/
2006.
Incident: Tropical Storm Ernesto.
Incident Period: 09/01/2006 through
09/02/2006.
EFFECTIVE DATE: 09/18/2006.
Physical Loan Application Deadline
Date: 11/17/2006.
Economic Injury (EIDL) Loan
Application Deadline Date: 06/18/2007.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
7 17
E:\FR\FM\26SEN1.SGM
CFR 200.30–3(a)(12).
26SEN1
]]>Agencies
[Federal Register Volume 71, Number 186 (Tuesday, September 26, 2006)]
[Notices]
[Pages 56208-56209]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-8237]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54464; File No. SR-OCC-2006-14]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Reduced Discounted Clearing Fees
September 18, 2006.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on August 15, 2006, 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)(ii) of the Act \2\ and Rule 19b-4(f)(2) thereunder \3\ so
that 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 parties.
---------------------------------------------------------------------------
\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 proposed rule change is to reduce OCC's currently discounted
clearing fees for securities options and security futures where at
least one side of the trade is cleared by an OCC clearing member for
the period September 1, 2006, through December 29, 2006.
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),
[[Page 56209]]
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.
---------------------------------------------------------------------------
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The proposed rule change would reduce OCC's currently discounted
clearing fees for securities options and security futures where at
least one side of the trade is cleared by an OCC clearing member for
the period September 1, 2006, through December 29, 2006. Clearing fees
for such contracts will be reduced as reflected in the following chart.
------------------------------------------------------------------------
Discounted fee
Discounted fee effective
Contracts/trade effective July 1, September 1, 2006
2005 through December
29, 2006
------------------------------------------------------------------------
1-500........................... $0.05/contract.... $0.035/contract.
501-1,000....................... $0.04/contract.... $0.028/contract.
1,001-2,000..................... $0.03/contract.... $0.021/contract.
>2,000.......................... $55.00 (capped)... $35.00 (capped)
------------------------------------------------------------------------
The additional fee reduction recognizes the increased contract
volume experienced by OCC through the first six months of 2006. OCC
believes that this fee reduction will financially benefit clearing
members and other market participants without adversely affecting OCC's
ability to meet its expenses and maintain an acceptable level of
retained earnings.
OCC believes the proposed rule change is consistent with Section
17A of the Act because it financially benefits clearing members by
reducing clearing fees and allocates such fees among clearing members
in a fair and equitable manner. 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 rule change has become effective upon filing pursuant
to section 19(b)(3)(A)(ii) of the Act \5\ and Rule 19b-4(f)(2) \6\
thereunder because the proposed rule establishes or changes a due, fee,
or other charge. 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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-2006-14 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-2006-14. 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-2006-14 and should be submitted on
or before October 27, 2006.
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(12).
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
Nancy M. Morris,
Secretary.
[FR Doc. 06-8237 Filed 9-25-06; 8:45 am]
BILLING CODE 8010-01-P
