Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing of a Proposed Rule Change Relating to Its Facilities Management Agreements, 9155-9156 [E8-2903]

Download as PDF Federal Register / Vol. 73, No. 33 / Tuesday, February 19, 2008 / Notices 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 Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. 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–NYSE–2004–70 and should be submitted on or before March 11, 2008. VI. Conclusion For the foregoing reasons, the Commission finds that the proposed rule change, as amended, is consistent with the Act and the rules and regulations thereunder applicable to a national securities exchange. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,42 that the proposed rule change (SR–NYSE–2004– 70), as modified by Amendments No. 2, 3, and 5, be, and it hereby is, approved on an accelerated basis. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.43 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–2981 Filed 2–15–08; 8:45 am] mstockstill on PROD1PC66 with NOTICES BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57304; File No. SR–OCC– 2008–01] Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing of a Proposed Rule Change Relating to Its Facilities Management Agreements February 11, 2008. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on January 9, 2008, 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. The Commission is publishing this notice to solicit comments 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 Rule 309 to permit expedited review of a facilities management agreement proposed to be entered into by an existing clearing member that desires to become a managed clearing member. 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 these statements.2 (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change The purpose of the proposed rule change is to provide an expedited process for reviewing a facilities management agreement proposed to be entered into by an operationally capable clearing member that desires to become a managed clearing member. A managed clearing member is one that outsources certain of its obligations as a clearing 1 15 U.S.C. 78s(b)(1). Commission has modified the text of the summaries prepared by OCC. 42 15 U.S.C. 78s(b)(2). 43 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 16:52 Feb 15, 2008 2 The Jkt 214001 PO 00000 Frm 00070 Fmt 4703 Sfmt 4703 9155 member to another clearing member (‘‘managing clearing member’’). Rule 309 prohibits a clearing member that proposes to enter into an outsourcing agreement with a managing clearing member from implementing the agreement without the prior approval of the Membership/Risk Committee (‘‘Committee’’).3 In 2006 and 2007, the Committee reviewed three requests to approve such outsourcing arrangements. However, none of the three clearing member’s desired time frame for implementing its facilities management arrangement coincided with a regularly scheduled meeting of the Committee, and each firm was required to defer executing its outsourcing plans until after a meeting occurred. To provide for a more timely review of certain outsourcing agreements, OCC proposes to modify Rule 309. Under the proposal, a managed clearing member would be permitted to request an expedited review of its outsourcing agreement, and if OCC consented to an expedited review, the Chairman, the Management Vice Chairman, or the President would be authorized to determine whether the agreement meets applicable requirements and to approve or disapprove the agreement. At the next regularly scheduled Committee meeting, the Committee would independently review the outsourcing agreement and would determine de novo whether to approve or disapprove it. In the event the Committee’s decision would result in a modification or a reversal of the action taken by the Chairman, the Management Vice Chairman, or President, no actions taken by OCC or the clearing member prior to the modification or reversal would be invalidated and no rights of any person arising out of such actions would be affected. In the unlikely event that the Committee disapproved an agreement previously approved by OCC, the clearing member would be given a reasonable time either to enter into an appropriately revised outsourcing agreement or to cease to be a Managed Clearing Member. This proposed process is comparable to the process used when clearing members request expedited approval to clear a new type or kind of transaction.4 OCC believes that the proposed expedited review process strikes a reasonable balance between meeting the business requirements of clearing 3 See Rule 309(f). See also Securities Exchange Act Release No. 55686 (May 1, 2007), 72 FR 26191 (May 8, 2007) [SR–OCC–2006–21]. 4 Article V, Section 1, Interpretation & Policy .03e. See also Securities Exchange Act Release No. 30169 (January 8, 1992) 57 FR 1776 [SR–OCC–91– 06]. E:\FR\FM\19FEN1.SGM 19FEN1 9156 Federal Register / Vol. 73, No. 33 / Tuesday, February 19, 2008 / Notices members and continuing to ensure appropriate review of the operational and financial aspects of outsourcing arrangements. The expedited review process would become Interpretation & Policy .01 under Rule 309. The existing Interpretation and Policy .01, which required managing clearing members as of October 1, 2003, to meet revised capital requirements by October 1, 2004, is no longer applicable and is therefore being deleted. In addition, a technical change is being made to paragraph (f) of Rule 309 to more closely parallel the language used in a cross-referenced Bylaw provision. OCC believes that the proposed change is consistent with the Act because it promotes the prompt and accurate clearance and settlement of securities transactions by providing an expedited review process for facilities management agreements proposed to be entered into by OCC clearing members. 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. mstockstill on PROD1PC66 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 Within thirty-five 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 ninety 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 VerDate Aug<31>2005 16:52 Feb 15, 2008 Jkt 214001 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–2008–01 on the subject line. For the Commission by the Division of Trading and Markets, pursuant to delegated authority.5 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–2903 Filed 2–15–08; 8:45 am] BILLING CODE 8011–01–P SMALL BUSINESS ADMINISTRATION Reporting and Recordkeeping Requirements Under OMB Review Paper Comments AGENCY: • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. ACTION: Small Business Administration. Notice of Reporting Requirements Submitted for OMB Review. SUMMARY: Under the provisions of the Paperwork Reduction Act (44 U.S.C. Chapter 35), agencies are required to All submissions should refer to File submit proposed reporting and Number SR-OCC–2008–01. This file recordkeeping requirements to OMB for number should be included on the review and approval, and to publish a subject line if e-mail is used. To help the notice in the Federal Register notifying Commission process and review your the public that the agency has made comments more efficiently, please use such a submission. only one method. The Commission will DATES: Submit comments on or before post all comments on the Commission’s March 20, 2008. If you intend to Internet Web site (https://www.sec.gov/ comment but cannot prepare comments rules/sro.shtml). Copies of the promptly, please advise the OMB submission, all subsequent Reviewer and the Agency Clearance amendments, all written statements Officer before the deadline. with respect to the proposed rule Copies: Request for clearance (OMB change that are filed with the 83–1), supporting statement, and other Commission, and all written documents submitted to OMB for communications relating to the review may be obtained from the proposed rule change between the Agency Clearance Officer. Commission and any person, other than ADDRESSES: Address all comments those that may be withheld from the concerning this notice to: Agency public in accordance with the Clearance Officer, Jacqueline White, provisions of 5 U.S.C. 552, will be Small Business Administration, 409 3rd available for inspection and copying in Street, SW., 5th Floor, Washington, DC the Commission’s Public Reference 20416; and OMB Reviewer, Office of Room, 100 F Street, NE., Washington, Information and Regulatory Affairs, DC 20549, on official business days Office of Management and Budget, New between the hours of 10 a.m. and 3 p.m. Executive Office Building, Washington, DC 20503. Copies of such filing also will be available for inspection and copying at FOR FURTHER INFORMATION CONTACT: the principal office of OCC and on Jacqueline White, Agency Clearance OCC’s Web site at: https:// Officer, (202) 205–7044. www.theocc.com/publications/rules/ SUPPLEMENTARY INFORMATION: proposed_changes/sr_occ_08_01.pdf. Title: Small Business Administration All comments received will be posted (SBA) Surety Bond Guarantee Customer without change; the Commission does Survey (previous title, Office of Capital not edit personal identifying Access Online Survey). No.: N/A. information from submissions. You Frequency: On occasion. should submit only information that Description of Respondents: SBG you wish to make available publicly. All Program management to access program submissions should refer to File familiarity in the general small Number SR–OCC–2008–01 and should contractor population and to help be submitted on or before March 11, determine the potential market for SBA 2008. surety bond guarantees. Responses: 382. 5 17 PO 00000 Frm 00071 Fmt 4703 Sfmt 4703 E:\FR\FM\19FEN1.SGM CFR 200.30–3(a)(12). 19FEN1

Agencies

[Federal Register Volume 73, Number 33 (Tuesday, February 19, 2008)]
[Notices]
[Pages 9155-9156]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-2903]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57304; File No. SR-OCC-2008-01]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing of a Proposed Rule Change Relating to Its Facilities 
Management Agreements

February 11, 2008.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 9, 2008, 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. The Commission is publishing this notice to solicit comments 
from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change would amend OCC Rule 309 to permit 
expedited review of a facilities management agreement proposed to be 
entered into by an existing clearing member that desires to become a 
managed clearing member.

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 these 
statements.\2\
---------------------------------------------------------------------------

    \2\ 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 purpose of the proposed rule change is to provide an expedited 
process for reviewing a facilities management agreement proposed to be 
entered into by an operationally capable clearing member that desires 
to become a managed clearing member. A managed clearing member is one 
that outsources certain of its obligations as a clearing member to 
another clearing member (``managing clearing member'').
    Rule 309 prohibits a clearing member that proposes to enter into an 
outsourcing agreement with a managing clearing member from implementing 
the agreement without the prior approval of the Membership/Risk 
Committee (``Committee'').\3\ In 2006 and 2007, the Committee reviewed 
three requests to approve such outsourcing arrangements. However, none 
of the three clearing member's desired time frame for implementing its 
facilities management arrangement coincided with a regularly scheduled 
meeting of the Committee, and each firm was required to defer executing 
its outsourcing plans until after a meeting occurred.
---------------------------------------------------------------------------

    \3\ See Rule 309(f). See also Securities Exchange Act Release 
No. 55686 (May 1, 2007), 72 FR 26191 (May 8, 2007) [SR-OCC-2006-21].
---------------------------------------------------------------------------

    To provide for a more timely review of certain outsourcing 
agreements, OCC proposes to modify Rule 309. Under the proposal, a 
managed clearing member would be permitted to request an expedited 
review of its outsourcing agreement, and if OCC consented to an 
expedited review, the Chairman, the Management Vice Chairman, or the 
President would be authorized to determine whether the agreement meets 
applicable requirements and to approve or disapprove the agreement. At 
the next regularly scheduled Committee meeting, the Committee would 
independently review the outsourcing agreement and would determine de 
novo whether to approve or disapprove it. In the event the Committee's 
decision would result in a modification or a reversal of the action 
taken by the Chairman, the Management Vice Chairman, or President, no 
actions taken by OCC or the clearing member prior to the modification 
or reversal would be invalidated and no rights of any person arising 
out of such actions would be affected. In the unlikely event that the 
Committee disapproved an agreement previously approved by OCC, the 
clearing member would be given a reasonable time either to enter into 
an appropriately revised outsourcing agreement or to cease to be a 
Managed Clearing Member.
    This proposed process is comparable to the process used when 
clearing members request expedited approval to clear a new type or kind 
of transaction.\4\ OCC believes that the proposed expedited review 
process strikes a reasonable balance between meeting the business 
requirements of clearing

[[Page 9156]]

members and continuing to ensure appropriate review of the operational 
and financial aspects of outsourcing arrangements.
---------------------------------------------------------------------------

    \4\ Article V, Section 1, Interpretation & Policy .03e. See also 
Securities Exchange Act Release No. 30169 (January 8, 1992) 57 FR 
1776 [SR-OCC-91-06].
---------------------------------------------------------------------------

    The expedited review process would become Interpretation & Policy 
.01 under Rule 309. The existing Interpretation and Policy .01, which 
required managing clearing members as of October 1, 2003, to meet 
revised capital requirements by October 1, 2004, is no longer 
applicable and is therefore being deleted. In addition, a technical 
change is being made to paragraph (f) of Rule 309 to more closely 
parallel the language used in a cross-referenced By-law provision.
    OCC believes that the proposed change is consistent with the Act 
because it promotes the prompt and accurate clearance and settlement of 
securities transactions by providing an expedited review process for 
facilities management agreements proposed to be entered into by OCC 
clearing members. 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

    Within thirty-five 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 ninety 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 rule-comments@sec.gov. Please include 
File Number SR-OCC-2008-01 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-2008-01. 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 Room, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. 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.theocc.com/publications/rules/proposed_changes/
sr_occ_08_01.pdf. 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-2008-01 and should be submitted on or before March 11, 2008.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-2903 Filed 2-15-08; 8:45 am]
BILLING CODE 8011-01-P
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