Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the New Methodology for Adjusting Options Contracts for Cash Dividends and Distributions, 39367-39368 [E8-15483]
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Federal Register / Vol. 73, No. 132 / Wednesday, July 9, 2008 / Notices
should be submitted on or before July
30, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–15512 Filed 7–8–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58059; File No. SR–OCC–
2008–10]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
the New Methodology for Adjusting
Options Contracts for Cash Dividends
and Distributions
June 30, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
June 2, 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. OCC filed the
proposed rule change pursuant to
Section 19(b)(3)(A)(i) of the Act 2 and
Rule 19b–4(f)(1) thereunder 3 so that the
proposal was effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested parties.
jlentini on PROD1PC65 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change would
adopt interpretative guidance relating to
the new adjustment method for
adjusting options contracts for cash
dividends or distributions (‘‘New
Methodology’’).
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
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78s(b)(3)(A)(i).
3 17 CFR 240.19b–4(f)(1).
16:15 Jul 08, 2008
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Background
Generally, options are not adjusted to
reflect ‘‘ordinary’’ cash dividends or
distributions. Under OCC’s existing ByLaws, which remain operative until the
New Methodology becomes effective, a
cash dividend is considered ordinary
unless it is greater than 10% of the
value of the underlying security on the
dividend declaration date. Dividends
greater than 10% under this definition
usually trigger an options contract
adjustment, with the criterion for
adjustment being the size of the cash
dividend. Under the New Methodology,
a cash dividend or distribution will be
deemed to be ordinary (regardless of
size) if it is declared pursuant to a
policy or practice of paying such
dividends on a quarterly or other regular
basis. Dividends paid outside such
practice would be considered
extraordinary. Extraordinary dividends
usually would trigger a contract
adjustment unless the amount is less
than $12.50 per contract (i.e., the
minimum size threshold). The New
Methodology will be effective for cash
dividends and distributions announced
on or after February 1, 2009, but will not
be applied to certain grandfathered flex
options as described in File No. SR–
OCC–2006–01.5
Interpretative Guidance
OCC’s adoption of the New
Methodology has prompted market
participants to ask how the New
Methodology would be administered
and applied. The OCC Securities
Committee has reviewed those
questions and has developed responses
thereto, which OCC is proposing to
adopt as a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule (i.e.,
Article VI, Section 11A of OCC’s ByLaws). The responses are intended to
provide investors with useful guidance
on how the New Methodology would be
applied in practice, subject to an
adjustment panel’s authority to make
adjustment decisions on a case-by-case
4 The Commission has modified the text of the
summaries prepared by OCC.
5 Securities Exchange Act Release No. 55258
(February 8, 2007), 72 FR 7701 (February 16, 2007).
1 15
VerDate Aug<31>2005
may be examined at the places specified
in Item IV below. OCC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.4
Jkt 214001
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
39367
basis and to make exceptions to the
general adjustment rules in cases where
such exceptions are determined
appropriate.6 The interpretative
guidance, which is attached as Exhibit
5 to the proposed rule change, reviews
the mechanics of adjustments, the
definition of ordinary cash dividends
and distributions, the rationale for the
New Methodology, the impact of the
minimum size threshold, and actual and
hypothetical examples to illustrate the
application of the New Methodology.7
OCC, however, does not propose to
publish the interpretative guidance in
its By-Laws and Rules. Rather, it would
be published on OCC’s public website,
made available in an information
memorandum accessible to clearing
members or otherwise available in hard
copy form on request.
The proposed rule change is
consistent with the requirements of
Section 17A of the Act 8 and the rules
and regulations thereunder applicable to
OCC because it provides market
participants with interpretative
guidance on the application of the New
Methodology which will be applied to
adjustments for cash dividends and
distributions. 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)(i) of the Act 9 and Rule 19b–
4(f)(1) 10 thereunder because the
6 Adjustments are individually determined by an
adjustment panel of the OCC Securities Committee.
Actions of an adjustment panel constitute the action
of the Securities Committee. See Article VI, Section
11(c) of OCC’s By-Laws.
7 Exhibit 5 of the proposed rule change can be
found on OCC’s Web site at https://www.theocc.com/
publications/rules/proposed_changes/sr_occ_08_
10.pdf.
8 15 U.S.C. 78q–1.
9 15 U.S.C. 78s(b)(3)(A)(i).
10 17 CFR 240.19b–4(f)(1).
E:\FR\FM\09JYN1.SGM
09JYN1
39368
Federal Register / Vol. 73, No. 132 / Wednesday, July 9, 2008 / Notices
proposal constitutes an interpretation
with respect to the meaning,
administration, or enforcement of an
existing rule of OCC. At any time within
sixty days of the filing of such rule
change, the Commission may summarily
abrogate such rule change if it appears
to the Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
jlentini on PROD1PC65 with NOTICES
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–2008–10 on the
subject line.
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–2008–10 and should
be submitted on or before July 30, 2008.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–15483 Filed 7–8–08; 8:45 am]
BILLING CODE 8010–01–P
16:15 Jul 08, 2008
Jkt 214001
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Herbert L. Mitchell,
Associate Administrator for Disaster
Assistance.
[FR Doc. E8–15263 Filed 7–8–08; 8:45 am]
BILLING CODE 8025–01–M
DEPARTMENT OF STATE
[Public Notice: 6285]
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #11288 and #11289]
Wisconsin Disaster Number WI–00013
U.S. Small Business
Administration.
ACTION: Amendment 2.
AGENCY:
SUMMARY:
PO 00000
Frm 00091
Fmt 4703
Sfmt 4703
60-Day Notice of Proposed Information
Collection: DS–234, Application for
Special Immigrant Visa and Alien
Registration, OMB Number 1405–0015
Notice of request for public
comments.
ACTION:
This is an amendment of the
Presidential declaration of a major
disaster for the State of Wisconsin
(FEMA–1768–DR), dated 06/14/2008.
Incident: Severe Storms, Tornadoes,
Paper Comments
and Flooding.
• Send paper comments in triplicate
Incident Period: 06/05/2008 and
to Secretary, Securities and Exchange
continuing.
Effective Date: 06/20/2008.
Commission, 100 F Street, NE.,
Physical Loan Application Deadline
Washington, DC 20549–1090.
Date: 08/13/2008.
All submissions should refer to File
EIDL Loan Application Deadline Date:
Number SR–OCC–2008–10. This file
03/13/2009.
number should be included on the
subject line if e-mail is used. To help the ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Commission process and review your
Administration, Processing and
comments more efficiently, please use
only one method. The Commission will Disbursement Center, 14925 Kingsport
post all comments on the Commission’s Road, Fort Worth, TX 76155.
Internet Web site (https://www.sec.gov/
FOR FURTHER INFORMATION CONTACT:
rules/sro.shtml). Copies of the
Alan Escobar, Office of Disaster
submission, all subsequent
Assistance, U.S. Small Business
amendments, all written statements
Administration, 409 3rd Street, SW.,
with respect to the proposed rule
Suite 6050, Washington, DC 20416.
change that are filed with the
SUPPLEMENTARY INFORMATION: The notice
Commission, and all written
of the Presidential disaster declaration
communications relating to the
for the State of Wisconsin, dated 06/14/
proposed rule change between the
2008 is hereby amended to include the
Commission and any person, other than following areas as adversely affected by
those that may be withheld from the
the disaster:
public in accordance with the
Primary Counties: (Physical Damage and
provisions of 5 U.S.C. 552, will be
Economic Injury Loans):
available for inspection and copying in
Washington, Waukesha,
the Commission’s Public Reference
Winnebago, Fond Du Lac, Iowa,
Room, 100 F Street, NE., Washington,
Marquette, Grant, Kenosha, Rock,
DC 20549, on official business days
Sheboygan, Dodge, Green
between the hours of 10 a.m. and 3 p.m. Contiguous Counties: (Economic Injury
The text of the proposed rule change is
Loans Only):
available at OCC, the Commission’s
Illinois: Boone, Jo Daviess, Lake,
Public Reference Room, and https://
McHenry, Stephenson, Winnebago
www.theocc.com/publications/rules/
Iowa: Dubuque
proposed_changes/sr_occ_08_10.pdf.
Wisconsin: Calumet, Jefferson,
All comments received will be posted
11 17 CFR 200.30–3(a)(12).
without change; the Commission does
VerDate Aug<31>2005
Lafayette, Manitowoc, Outagamie,
Waupaca, Waushara
All other information in the original
declaration remains unchanged.
SUMMARY: The Department of State is
seeking Office of Management and
Budget (OMB) approval for the
information collection described below.
The purpose of this notice is to allow 60
days for public comment in the Federal
Register preceding submission to OMB.
We are conducting this process in
accordance with the Paperwork
Reduction Act of 1995.
• Title of Information Collection:
Application for Special Immigrant Visa.
• OMB Control Number: 1405–0015.
• Type of Request: Revision of a
Currently Approved Collection.
• Originating Office: Bureau of
Consular Affairs, Department of State
(CA/VO).
• Form Number: DS–234.
• Respondents: Iraqi immigrant visa
applicants.
• Estimated Number of Respondents:
12,000 per year.
• Estimated Number of Responses:
12,000 per year.
• Average Hours Per Response: 20
minutes.
• Total Estimated Burden: 4,000
hours per year.
• Frequency: Once per respondent.
• Obligation to Respond: Required to
Obtain or Retain U.S. resettlement
benefits
The Department will accept
comments from the public up to 60 days
from July 9, 2008.
ADDRESSES: You may submit comments
by the following method:
• E-mail: FiresteinJY@state.gov
(Subject line must read DS–234 SIV
Form).
• Mail (paper, disk, or CD-ROM
submissions): PRM/Admissions, 2401 E
DATES:
E:\FR\FM\09JYN1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 132 (Wednesday, July 9, 2008)]
[Notices]
[Pages 39367-39368]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-15483]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58059; File No. SR-OCC-2008-10]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to the New Methodology for Adjusting Options Contracts for
Cash Dividends and Distributions
June 30, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on June 2, 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.
OCC filed the proposed rule change pursuant to Section 19(b)(3)(A)(i)
of the Act \2\ and Rule 19b-4(f)(1) thereunder \3\ so that the proposal
was effective upon filing with the Commission. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested parties.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78s(b)(3)(A)(i).
\3\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change would adopt interpretative guidance
relating to the new adjustment method for adjusting options contracts
for cash dividends or distributions (``New Methodology'').
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.\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
Background
Generally, options are not adjusted to reflect ``ordinary'' cash
dividends or distributions. Under OCC's existing By-Laws, which remain
operative until the New Methodology becomes effective, a cash dividend
is considered ordinary unless it is greater than 10% of the value of
the underlying security on the dividend declaration date. Dividends
greater than 10% under this definition usually trigger an options
contract adjustment, with the criterion for adjustment being the size
of the cash dividend. Under the New Methodology, a cash dividend or
distribution will be deemed to be ordinary (regardless of size) if it
is declared pursuant to a policy or practice of paying such dividends
on a quarterly or other regular basis. Dividends paid outside such
practice would be considered extraordinary. Extraordinary dividends
usually would trigger a contract adjustment unless the amount is less
than $12.50 per contract (i.e., the minimum size threshold). The New
Methodology will be effective for cash dividends and distributions
announced on or after February 1, 2009, but will not be applied to
certain grandfathered flex options as described in File No. SR-OCC-
2006-01.\5\
---------------------------------------------------------------------------
\5\ Securities Exchange Act Release No. 55258 (February 8,
2007), 72 FR 7701 (February 16, 2007).
---------------------------------------------------------------------------
Interpretative Guidance
OCC's adoption of the New Methodology has prompted market
participants to ask how the New Methodology would be administered and
applied. The OCC Securities Committee has reviewed those questions and
has developed responses thereto, which OCC is proposing to adopt as a
stated policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule (i.e., Article VI,
Section 11A of OCC's By-Laws). The responses are intended to provide
investors with useful guidance on how the New Methodology would be
applied in practice, subject to an adjustment panel's authority to make
adjustment decisions on a case-by-case basis and to make exceptions to
the general adjustment rules in cases where such exceptions are
determined appropriate.\6\ The interpretative guidance, which is
attached as Exhibit 5 to the proposed rule change, reviews the
mechanics of adjustments, the definition of ordinary cash dividends and
distributions, the rationale for the New Methodology, the impact of the
minimum size threshold, and actual and hypothetical examples to
illustrate the application of the New Methodology.\7\ OCC, however,
does not propose to publish the interpretative guidance in its By-Laws
and Rules. Rather, it would be published on OCC's public website, made
available in an information memorandum accessible to clearing members
or otherwise available in hard copy form on request.
---------------------------------------------------------------------------
\6\ Adjustments are individually determined by an adjustment
panel of the OCC Securities Committee. Actions of an adjustment
panel constitute the action of the Securities Committee. See Article
VI, Section 11(c) of OCC's By-Laws.
\7\ Exhibit 5 of the proposed rule change can be found on OCC's
Web site at https://www.theocc.com/publications/rules/proposed_
changes/sr_occ_08_10.pdf.
---------------------------------------------------------------------------
The proposed rule change is consistent with the requirements of
Section 17A of the Act \8\ and the rules and regulations thereunder
applicable to OCC because it provides market participants with
interpretative guidance on the application of the New Methodology which
will be applied to adjustments for cash dividends and distributions.
The proposed rule change is not inconsistent with the existing rules of
OCC, including any other rules proposed to be amended.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
(B) Self-Regulatory Organization's Statement on Burden on Competition
OCC does not believe that the proposed rule change would impose any
burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants, or Others
Written comments were not and are not intended to be solicited with
respect to the proposed rule change, and none have been received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective upon filing pursuant
to Section 19(b)(3)(A)(i) of the Act \9\ and Rule 19b-4(f)(1) \10\
thereunder because the
[[Page 39368]]
proposal constitutes an interpretation with respect to the meaning,
administration, or enforcement of an existing rule of OCC. 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(i).
\10\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml) or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-OCC-2008-10 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-OCC-2008-10. 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. The text of the proposed rule change is available at
OCC, the Commission's Public Reference Room, and https://www.theocc.com/
publications/rules/proposed_changes/sr_occ_08_10.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-2008-10 and should be
submitted on or before July 30, 2008.
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-15483 Filed 7-8-08; 8:45 am]
BILLING CODE 8010-01-P
