Self-Regulatory Organizations; The Options Clearing Corporation; Order Granting Approval of a Proposed Rule Change Relating to its Facilities Management Agreements, 16086-16087 [E8-6128]
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16086
Federal Register / Vol. 73, No. 59 / Wednesday, March 26, 2008 / Notices
• adjudicated by Nasdaq under its
motion pursuant to Rule 11890(b) as
part of a large market event.
While Nasdaq may incur some cost in
reviewing complaints for timeliness and
prior to withdrawal, this exception will
allow firms to withdraw or correct
mistaken complaints without such
filings counting towards their monthly
allotment. While Nasdaq incurs
considerable expense in processing
clearly erroneous events under Rule
11890(b), such large systemic events
often impact multiple filers and may not
easily be billed to a particular party.
Therefore, Nasdaq will continue to
absorb costs related to Rule 11890(b)
adjudications. Any filer with trades
included in such events will not be
charged and the filing will not count
towards calculation of a member’s
unsuccessful complaints.
Finally, the proposal reorganizes Rule
11890 to consolidate the fee-related
provisions in one section, Rule
11890(e), titled ‘‘Clearly Erroneous
Fees.’’ Nasdaq believes this will make it
easier for readers to locate these
provisions in the rule. No substantive
change has been made to the existing fee
for appeal of clearly erroneous decisions
or the provisions enabling Nasdaq to
pass through to members charges it is
assessed by other markets for requesting
erroneous review by that venue on
behalf of members.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,15 in
general, and with Section 6(b)(4) of the
Act,16 in particular, in that it provides
for the equitable allocation of reasonable
dues, fees, and other charges among its
members and issuers and other persons
using any facility or system which
Nasdaq operates or controls. Nasdaq
believes that the fees will be reasonably
allocated to members that file
unsuccessful complaints under Rule
11890, thereby allowing Nasdaq to
recoup a portion of the costs associated
with filings that lack merit.
pwalker on PROD1PC71 with NOTICES
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Nasdaq does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
15 15
16 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
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18:52 Mar 25, 2008
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C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective upon filing with
the Commission pursuant to Section
19(b)(3)(A)(ii) of the Act 17 and Rule
19b–4(f)(2) 18 thereunder, because it
establishes or changes a due, fee, or
other charge applicable only to a
member.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.19
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–NASDAQ–2008–015 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–NASDAQ–2008–015. 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
17 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
19 See 15 U.S.C. 78s(b)(3)(C). For purposes of
calculating the 60-day period within which the
Commission may summarily abrogate the proposed
rule change under Section 19(b)(3)(C) of the Act, the
Commission considers the period to commence on
March 18, 2008, the date on which Nasdaq
submitted Amendment No. 1.
18 17
PO 00000
Frm 00122
Fmt 4703
Sfmt 4703
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 Nasdaq. 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–NASDAQ–2008–015 and
should be submitted on or before April
16, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–6127 Filed 3–25–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57535; File No. SR–OCC–
2008–01]
Self-Regulatory Organizations; The
Options Clearing Corporation; Order
Granting Approval of a Proposed Rule
Change Relating to its Facilities
Management Agreements
March 20, 2008.
I. Introduction
On January 9, 2008, The Options
Clearing Corporation (‘‘OCC’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) a
proposed rule change pursuant to
section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’).1 Notice
of the proposal was published in the
Federal Register on February 19, 2008.2
No comment letters were received. This
20 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 Securities Exchange Act Release No. 57304
(February 11, 2008), 73 FR 9155.
1 15
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Federal Register / Vol. 73, No. 59 / Wednesday, March 26, 2008 / Notices
pwalker on PROD1PC71 with NOTICES
order approves the proposed rule
change.
II. Description
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’’).
Currently, 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
is modifying Rule 309. As amended,
Rule 309 will provide that a managed
clearing member is permitted to request
an expedited review of its outsourcing
agreement, and if OCC consents to an
expedited review, the Chairman, the
Management Vice Chairman, or the
President will 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
previously 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
previous 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
3 Rule 309(f). See also Securities Exchange Act
Release No. 55686 (May 1, 2007), 72 FR 26191 (May
8, 2007) [SR–OCC–2006–21].
VerDate Aug<31>2005
18:52 Mar 25, 2008
Jkt 214001
to enter into an appropriately revised
outsourcing agreement or to cease to be
a Managed Clearing Member.
This 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 members and
continuing to ensure appropriate review
of the operational and financial aspects
of outsourcing arrangements.
The expedited review process is set
forth in 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 so that the language more
closely parallels the language used in a
cross-referenced By-law provision.
III. Discussion
Section 17A(b)(3)(F) of the Act
requires, among other things, that the
rules of a clearing agency be designed to
assure the safeguarding of securities and
funds which are in its custody or
control or for which it is responsible.5
The Commission finds the proposed
rule change to be consistent with this
requirement because the actions of
senior management to approve an
outsourcing agreement prior to a
scheduled Committee meeting are
subject to the Committee’s subsequent
review and approval.
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and in
particular section 17A of the Act and
the rules and regulations thereunder.
It is therefore ordered, pursuant to
section 19(b)(2) of the Act, that the
proposed rule change (File No. SR–
OCC–2008–01) be and hereby is
approved.6
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].
5 15 U.S.C. 78q–1(b)(3)(F).
6 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
PO 00000
Frm 00123
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16087
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–6128 Filed 3–25–08; 8:45 am]
BILLING CODE 8011–01–P
SOCIAL SECURITY ADMINISTRATION
Agency Information Collection
Activities: Proposed Request
The Social Security Administration
(SSA) publishes a list of information
collection packages requiring clearance
by the Office of Management and
Budget (OMB) in compliance with
Public Law (Pub. L.) 104–13, the
Paperwork Reduction Act of 1995,
effective October 1, 1995. This notice
includes new information collections,
revisions to OMB-approved information
collections, and extensions (no change)
of OMB-approved information
collections.
SSA is soliciting comments on the
accuracy of the Agency’s burden
estimate; the need for the information;
its practical utility; ways to enhance its
quality, utility and clarity; and ways to
minimize the burden on respondents,
including the use of automated
collection techniques or other forms of
information technology. Mail, e-mail, or
fax your comments and
recommendations on the information
collection(s) to the OMB Desk Officer
and the SSA Reports Clearance Officer
to the addresses or fax numbers listed
below.
(OMB), Office of Management and
Budget, Attn: Desk Officer for SSA, Fax:
202–395–6974, e-mail address:
OIRA_Submission@omb.eop.gov.
(SSA) Social Security Administration,
DCBFM, Attn: Reports Clearance
Officer, 1333 Annex Building, 6401
Security Blvd., Baltimore, MD 21235,
Fax: 410–965–6400, e-mail address:
OPLM.RCO@ssa.gov.
The information collections listed
below are pending at SSA. SSA will
submit them to OMB within 60 days
from the date of this notice. Therefore,
submit your comments to SSA within
60 days from the date of this
publication. You can obtain copies of
the collection instruments by calling the
SSA Reports Clearance Officer at 410–
965–0454 or by writing to the address
listed above.
1. Authorization to Obtain Earnings
Data from the Social Security
Administration—0960–0602. A wage
earner or an organization may request
7 17
CFR 200.30–3(a)(12).
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26MRN1
]]>Agencies
[Federal Register Volume 73, Number 59 (Wednesday, March 26, 2008)]
[Notices]
[Pages 16086-16087]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-6128]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57535; File No. SR-OCC-2008-01]
Self-Regulatory Organizations; The Options Clearing Corporation;
Order Granting Approval of a Proposed Rule Change Relating to its
Facilities Management Agreements
March 20, 2008.
I. Introduction
On January 9, 2008, The Options Clearing Corporation (``OCC'')
filed with the Securities and Exchange Commission (``Commission'') a
proposed rule change pursuant to section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'').\1\ Notice of the proposal was published
in the Federal Register on February 19, 2008.\2\ No comment letters
were received. This
[[Page 16087]]
order approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ Securities Exchange Act Release No. 57304 (February 11,
2008), 73 FR 9155.
---------------------------------------------------------------------------
II. Description
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'').
Currently, 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\ 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 is modifying Rule 309. As amended, Rule 309 will
provide that a managed clearing member is permitted to request an
expedited review of its outsourcing agreement, and if OCC consents to
an expedited review, the Chairman, the Management Vice Chairman, or the
President will 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 previously 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 previous 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 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 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 is set forth in 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 so that the language
more closely parallels the language used in a cross-referenced By-law
provision.
III. Discussion
Section 17A(b)(3)(F) of the Act requires, among other things, that
the rules of a clearing agency be designed to assure the safeguarding
of securities and funds which are in its custody or control or for
which it is responsible.\5\ The Commission finds the proposed rule
change to be consistent with this requirement because the actions of
senior management to approve an outsourcing agreement prior to a
scheduled Committee meeting are subject to the Committee's subsequent
review and approval.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
IV. Conclusion
On the basis of the foregoing, the Commission finds that the
proposed rule change is consistent with the requirements of the Act and
in particular section 17A of the Act and the rules and regulations
thereunder.
It is therefore ordered, pursuant to section 19(b)(2) of the Act,
that the proposed rule change (File No. SR-OCC-2008-01) be and hereby
is approved.\6\
---------------------------------------------------------------------------
\6\ In approving the proposed rule change, the Commission
considered the proposal's impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\7\
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-6128 Filed 3-25-08; 8:45 am]
BILLING CODE 8011-01-P
