Self-Regulatory Organizations; The Options Clearing Corporation; Order Granting Approval of a Proposed Rule Change Relating to the Cash Dividend Threshold, 55582-55584 [E8-22488]
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55582
Federal Register / Vol. 73, No. 187 / Thursday, September 25, 2008 / Notices
mstockstill on PROD1PC66 with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (1) Significantly affect
the protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for 30 days from the date of
filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 9 and Rule
19b–4(f)(6) thereunder.10
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.
NYSE Arca has requested the
Commission to waive the 30-day
operative delay. The Commission
hereby grants NYSE Arca’s request.11
The Commission notes that the
Exchange is proposing that certain of its
rules relating to membership
requirements be temporarily suspended
so that BCI can be provisionally
approved as an NYSE Arca OTP Holder.
The proposed relief does not exempt
BCI from Exchange rule requirements
governing member organizations. BCI
would have a 60-day grace period
within which to apply for and be
approved under relevant Exchange
rules. Moreover, the Commission
believes that immediate effectiveness is
appropriate to ensure a smooth
transition of the LBI businesses to
another entity. In particular, with
respect to BCI, time is of the essence as
it has been announced that BCI may
succeed to LBI’s assets as early as
September 19, 2008. Therefore, the
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest and designates the
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
11 For purposes of waiving the 30-day operative
delay, the Commission has considered the
proposal’s impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).
10 17
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17:50 Sep 24, 2008
Jkt 214001
proposed rule change as operative upon
filing.
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–NYSEArca–2008–101 on
the subject line.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E8–22504 Filed 9–24–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58586; File No. SR–OCC–
2008–16]
Self-Regulatory Organizations; The
Options Clearing Corporation; Order
Granting Approval of a Proposed Rule
Change Relating to the Cash Dividend
Threshold
September 18, 2008.
I. Introduction
On July 24, 2008, The Options
Clearing Corporation (‘‘OCC’’) filed with
• Send paper comments in triplicate
the Securities and Exchange
to Secretary, Securities and Exchange
Commission (‘‘Commission’’) proposed
Commission, 100 F Street, NE.,
rule change SR–OCC–2008–16 pursuant
Washington, DC 20549–1090.
to Section 19(b)(1) of the Securities
All submissions should refer to File
Exchange Act of 1934 (‘‘Act’’).1 Notice
Number SR–NYSEArca–2008–101. This of the proposal was published in the
Federal Register on August 19, 2008.2
file number should be included on the
subject line if e-mail is used. To help the No comment letters were received. For
the reasons discussed below, the
Commission process and review your
Commission is approving the proposed
comments more efficiently, please use
only one method. The Commission will rule change.
post all comments on the Commission’s II. Description
Internet Web site (https://www.sec.gov/
The purpose of the proposed rule
rules/sro.shtml). Copies of the
change is to mitigate inconsistencies
submission, all subsequent
that may result under the current policy
amendments, all written statements
for adjusting stock option contracts. In
with respect to the proposed rule
February 2007, the Commission
change that are filed with the
approved rule change SR–OCC–2006–
Commission, and all written
01, which amended Section 11A of
communications relating to the
Article VI of the OCC By-Laws
proposed rule change between the
governing adjustments to options as a
Commission and any person, other than
result of cash dividends or
those that may be withheld from the
distributions.3 Under the new
public in accordance with the
adjustment policy, cash dividends paid
provisions of 5 U.S.C. 552, will be
by a company other than pursuant to a
available for inspection and copying in
policy or practice of paying dividends
the Commission’s Public Reference
on a quarterly or other regular basis
Room between the hours of 10 a.m. and
would be deemed ‘‘special’’ and would
3 p.m. Copies of the filing will also be
normally trigger a contract adjustment
available for inspection and copying at
provided the value of the adjustment is
NYSE Arca’s principal office and on its
at least $12.50 per option contract. This
Internet Web site at https://
new adjustment policy will become
www.nyse.com. All comments received
effective for cash dividends announced
will be posted without change; the
on or after February 1, 2009.
Commission does not edit personal
However, certain inconsistencies may
identifying information from
result when the threshold of ‘‘$12.50 per
submissions. You should submit only
option contract’’ is applied to all
information that you wish to make
12 17 CFR 200.30–3(a)(12).
available publicly. All submissions
1 15 U.S.C. 78s(b)(1).
should refer to File Number SR–
2 Securities Exchange Act Release No. 58353
NYSEArca–2008–101 and should be
(August 13, 2008), 73 FR 48423.
submitted on or before October 16,
3 Securities Exchange Act Release No. 55258
2008.
(February 8, 2007), 72 FR 7701 (February 16, 2007).
Paper Comments
PO 00000
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55583
Federal Register / Vol. 73, No. 187 / Thursday, September 25, 2008 / Notices
options on the affected underlying
security. For example, if a $.10 special
cash dividend is declared, the standardsize 100 share option would not be
adjusted (because the value is less than
$12.50). However, a previously adjusted
150 share option (reflecting a 3 for 2
split) would be adjusted (because the
value is $15 per contract). Adjusting
some but not all options of the same
class in response to the same dividend
event, especially if the 100 share option
is not adjusted, could be confusing to
investors. OCC’s Securities Committee
(consisting of representatives of each of
the options exchanges and OCC)
determined that this potential confusion
should be avoided.
OCC considered modifying the
threshold to specify $.125 per share
instead of $12.50 per contract. This
approach would address all standardsize (100 share) contracts that currently
exist plus adjusted contracts that come
into existence in response to splits, etc.
However, exchanges have proposed to
introduce ‘‘maxi’’ size contracts.
Applying the same per share threshold
to a 1,000 and 100 share option could
sometimes result in significant value
being left on the table in the case of the
1,000 share option. Taking the same
example of a $.10 per share special
dividend, neither option would be
adjusted if the threshold were $.125 per
share. This would result in a loss of
only $10 per contract for the 100 share
option, but the loss would be $100 per
contract for the 1,000 share option. For
this reason, a per share threshold is not
being proposed.
Greater consistency across contracts
of varying sizes can be achieved by
retaining the $12.50 per contract
threshold in all cases but adding a
qualification specifying that if a
corresponding standard-size contract
exists on the underlying security,
previously adjusted contracts will be
adjusted only if the corresponding
standard-size contract is also adjusted.
For example, if a 100 share option and
a 150 share option (previously adjusted
for a 3 for 2 split) exist, the 150 share
option would be adjusted for a special
cash dividend only if the 100 share
standard option would also be adjusted
for that dividend. Stated differently,
OCC will refer back to the
preadjustment standard-size option (if
any exist) in deciding whether or not to
adjust a previously adjusted option.
Thus a 150 share option that was
derived from a 100 share option as a
result of a 3 for 2 split will be referred
back to the 100 share option. A 1,500
Shares
Contract
100 ............................................................................................
133 ............................................................................................
150 ............................................................................................
10 ..............................................................................................
177 ............................................................................................
1000 ..........................................................................................
1500 ..........................................................................................
Standard ......
4/3 split ........
3/2 split ........
Spinoff ..........
Merger ..........
Standard ......
3/2 split ........
Shares
Contract
100 ............................................................................................
133 ............................................................................................
150 ............................................................................................
10 ..............................................................................................
177 ............................................................................................
1000 ..........................................................................................
1500 ..........................................................................................
$.09 dividend
($value)
Standard ......
4/3 split ........
3/2 split ........
Spinoff ..........
Merger ..........
Standard ......
3/2 split ........
9.00
11.97
13.50
0.90
15.93
90.00
135.00
$.02 dividend
($value)
2.00
2.66
3.00
0.20
3.54
20.00
30.00
share option (previously adjusted for a
3 for 2 split) will be referred back to the
1,000 share option (the ‘‘standard’’ size
option for a ‘‘maxi’’ contract). Thus, the
qualification specifies ‘‘only if the
corresponding standard-size option
contract is also adjusted.’’
This qualification achieves greater
consistency because in most cases all
contracts on the same underlying
security would be adjusted if the 100
share contract is adjusted. The
qualification also would allow a 1,000
share ‘‘standard’’ contract to be adjusted
independently of a 100 share contract.
Also, it could happen that an adjusted
contract exists but not the
corresponding standard contract, or a
contract calling for delivery of fewer
than 100 shares may exist (e.g., as a
result of a spinoff adjustment). In these
cases, the qualification would be
inapplicable and a straightforward
application of the $12.50 threshold
would determine whether an
adjustment would be made. The
following are examples of the
qualification to the $12.50 per contract
threshold.
(A) If a corresponding standard size
contract exists:
Adjust?
NO ................
NO ................
NO ................
NO ................
NO ................
YES ..............
YES ..............
Adjust?
NO ................
NO ................
NO ................
NO ................
NO ................
YES ..............
YES ..............
$.13 dividend
($value)
13.00
17.29
19.50
1.30
23.01
130.00
195
$.01 dividend
($value)
1.00
1.33
1.50
0.10
1.77
10.00
15.00
Adjust?
YES.
YES.
YES.
NO.
YES.
YES.
YES.
Adjust?
NO.
NO.
NO.
NO.
NO.
NO.
NO.
(B) If the 100 share standard size
contract does not exist:
$.09 dividend
($value)
mstockstill on PROD1PC66 with NOTICES
Shares
Option
133 ............................................................................................
150 ............................................................................................
10 ..............................................................................................
177 ............................................................................................
1000 ..........................................................................................
1500 ..........................................................................................
4/3 split ........
3/2 split ........
Spinoff ..........
Merger ..........
Standard ......
3/2 split ........
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17:50 Sep 24, 2008
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Sfmt 4703
11.97
13.50
0.90
15.93
90.00
135.00
Adjust?
NO ................
YES ..............
NO ................
YES ..............
YES ..............
YES ..............
E:\FR\FM\25SEN1.SGM
25SEN1
$.13 dividend
($value)
17.29
19.50
1.30
23.01
130.00
195
Adjust?
YES.
YES.
NO.
YES.
YES.
YES.
55584
Federal Register / Vol. 73, No. 187 / Thursday, September 25, 2008 / Notices
The new adjustment policy approved
in File No. SR–OCC–2006–01 will take
effect beginning with dividends
announced on and after February 1,
2009. OCC intends this proposed rule
change to take effect at the same time,
but these changes will not be
implemented until the exchanges have
conducted appropriate educational
efforts and definitive copies of an
appropriate supplement to the options
disclosure document, Characteristics
and Risks of Standardized Options, are
available for distribution.
III. Discussion
Section 17A(b)(3)(F) of the Act
requires, among other things, that the
rules of a clearing agency be designed to
promote the prompt and accurate
clearance and settlement of securities
transactions.4 The Commission finds the
proposed rule change to be consistent
with this requirement because it should
reduce inconsistencies in the
adjustment of stock option contracts. As
a result, OCC’s proposed rule change
should promote the prompt and
accurate clearance and settlement of
securities transactions.
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–2008–16) be and hereby is
approved.5
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.6
J. Lynn Talyor,
Assistant Secretary.
[FR Doc. E8–22488 Filed 9–24–08; 8:45 am]
disaster for Public Assistance Only for
the State of Maine ( FEMA–1788–DR),
dated 09/09/2008.
Incident: Severe Storms, Flooding,
and Tornadoes.
Incident Period: 07/18/2008 through
08/16/2008.
Effective Date: 09/09/2008.
Physical Loan Application Deadline
Date: 11/10/2008.
Economic Injury (EIDL) Loan
Application Deadline Date: 06/10/2009.
DATES:
Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
ADDRESSES:
A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
FOR FURTHER INFORMATION CONTACT:
Notice is
hereby given that as a result of the
President’s major disaster declaration on
09/09/2008, Private Non-Profit
organizations that provide essential
services of governmental nature may file
disaster loan applications at the address
listed above or other locally announced
locations.
The following areas have been
determined to be adversely affected by
the disaster:
SUPPLEMENTARY INFORMATION:
Primary Counties: Androscoggin,
Cumberland, York.
Contiguous Counties (Economic Injury
Loans Only):
Maine: Franklin, Kennebec, Oxford,
Sagadahoc.
New Hampshire: Carroll, Strafford.
The Interest Rates are:
Percent
BILLING CODE 8010–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #11434]
Maine Disaster #ME–00014
U.S. Small Business
Administration.
ACTION: Notice.
mstockstill on PROD1PC66 with NOTICES
AGENCY:
VerDate Aug<31>2005
17:50 Sep 24, 2008
Jkt 214001
4.000
Background
James E. Rivera,
Acting Associate Administrator for Disaster
Assistance.
[FR Doc. E8–22520 Filed 9–24–08; 8:45 am]
BILLING CODE 8025–01–P
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
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 a revision to an OMB-approved
information collection.
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 collection below is
pending at SSA. SSA will submit it to
OMB within 60 days from the date of
this notice. Therefore, your comments
would be most helpful if you submit
them to SSA within 60 days from the
date of this publication. Individuals can
obtain copies of the collection
instrument by calling the SSA Reports
Clearance Officer at 410–965–0454 or by
writing to the e-mail address listed
above.
1. Accelerated Benefits Demonstration
Project—0960–0747
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
U.S.C. 78q–1(b)(3)(F).
approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
6 17 CFR 200.30–3(a)(12).
5 In
Agency Information Collection
Activities: Proposed Request
5.250
The number assigned to this disaster
for physical damage and for economic
injury is 11434.
SUMMARY: This is a Notice of the
Presidential declaration of a major
4 15
Other (Including Non-Profit Organizations) with Credit Available
Elsewhere ...................................
Businesses and Non-Profit Organizations without Credit Available
Elsewhere ...................................
SOCIAL SECURITY ADMINISTRATION
In early 2007, SSA obtained OMB
approval for the Accelerated Benefits
Demonstration Project. This multi-phase
study, conducted by SSA’s research
contractors and health care experts, will
assess if providing new Social Security
Disability Insurance (SSDI) recipients
with health care and other benefits
would stabilize or improve their health
and help them return to work early. In
this long-term study, SSA’s contractor
divided new SSDI recipients into three
E:\FR\FM\25SEN1.SGM
25SEN1
]]>Agencies
[Federal Register Volume 73, Number 187 (Thursday, September 25, 2008)]
[Notices]
[Pages 55582-55584]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-22488]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58586; File No. SR-OCC-2008-16]
Self-Regulatory Organizations; The Options Clearing Corporation;
Order Granting Approval of a Proposed Rule Change Relating to the Cash
Dividend Threshold
September 18, 2008.
I. Introduction
On July 24, 2008, The Options Clearing Corporation (``OCC'') filed
with the Securities and Exchange Commission (``Commission'') proposed
rule change SR-OCC-2008-16 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 August 19, 2008.\2\ No comment
letters were received. For the reasons discussed below, the Commission
is approving the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ Securities Exchange Act Release No. 58353 (August 13, 2008),
73 FR 48423.
---------------------------------------------------------------------------
II. Description
The purpose of the proposed rule change is to mitigate
inconsistencies that may result under the current policy for adjusting
stock option contracts. In February 2007, the Commission approved rule
change SR-OCC-2006-01, which amended Section 11A of Article VI of the
OCC By-Laws governing adjustments to options as a result of cash
dividends or distributions.\3\ Under the new adjustment policy, cash
dividends paid by a company other than pursuant to a policy or practice
of paying dividends on a quarterly or other regular basis would be
deemed ``special'' and would normally trigger a contract adjustment
provided the value of the adjustment is at least $12.50 per option
contract. This new adjustment policy will become effective for cash
dividends announced on or after February 1, 2009.
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 55258 (February 8,
2007), 72 FR 7701 (February 16, 2007).
---------------------------------------------------------------------------
However, certain inconsistencies may result when the threshold of
``$12.50 per option contract'' is applied to all
[[Page 55583]]
options on the affected underlying security. For example, if a $.10
special cash dividend is declared, the standard-size 100 share option
would not be adjusted (because the value is less than $12.50). However,
a previously adjusted 150 share option (reflecting a 3 for 2 split)
would be adjusted (because the value is $15 per contract). Adjusting
some but not all options of the same class in response to the same
dividend event, especially if the 100 share option is not adjusted,
could be confusing to investors. OCC's Securities Committee (consisting
of representatives of each of the options exchanges and OCC) determined
that this potential confusion should be avoided.
OCC considered modifying the threshold to specify $.125 per share
instead of $12.50 per contract. This approach would address all
standard-size (100 share) contracts that currently exist plus adjusted
contracts that come into existence in response to splits, etc. However,
exchanges have proposed to introduce ``maxi'' size contracts. Applying
the same per share threshold to a 1,000 and 100 share option could
sometimes result in significant value being left on the table in the
case of the 1,000 share option. Taking the same example of a $.10 per
share special dividend, neither option would be adjusted if the
threshold were $.125 per share. This would result in a loss of only $10
per contract for the 100 share option, but the loss would be $100 per
contract for the 1,000 share option. For this reason, a per share
threshold is not being proposed.
Greater consistency across contracts of varying sizes can be
achieved by retaining the $12.50 per contract threshold in all cases
but adding a qualification specifying that if a corresponding standard-
size contract exists on the underlying security, previously adjusted
contracts will be adjusted only if the corresponding standard-size
contract is also adjusted. For example, if a 100 share option and a 150
share option (previously adjusted for a 3 for 2 split) exist, the 150
share option would be adjusted for a special cash dividend only if the
100 share standard option would also be adjusted for that dividend.
Stated differently, OCC will refer back to the preadjustment standard-
size option (if any exist) in deciding whether or not to adjust a
previously adjusted option. Thus a 150 share option that was derived
from a 100 share option as a result of a 3 for 2 split will be referred
back to the 100 share option. A 1,500 share option (previously adjusted
for a 3 for 2 split) will be referred back to the 1,000 share option
(the ``standard'' size option for a ``maxi'' contract). Thus, the
qualification specifies ``only if the corresponding standard-size
option contract is also adjusted.''
This qualification achieves greater consistency because in most
cases all contracts on the same underlying security would be adjusted
if the 100 share contract is adjusted. The qualification also would
allow a 1,000 share ``standard'' contract to be adjusted independently
of a 100 share contract. Also, it could happen that an adjusted
contract exists but not the corresponding standard contract, or a
contract calling for delivery of fewer than 100 shares may exist (e.g.,
as a result of a spinoff adjustment). In these cases, the qualification
would be inapplicable and a straightforward application of the $12.50
threshold would determine whether an adjustment would be made. The
following are examples of the qualification to the $12.50 per contract
threshold.
(A) If a corresponding standard size contract exists:
--------------------------------------------------------------------------------------------------------------------------------------------------------
$.09 dividend $.13 dividend
Shares Contract ($value) Adjust? ($value) Adjust?
--------------------------------------------------------------------------------------------------------------------------------------------------------
100................................... Standard.................. 9.00 NO....................... 13.00 YES.
133................................... 4/3 split................. 11.97 NO....................... 17.29 YES.
150................................... 3/2 split................. 13.50 NO....................... 19.50 YES.
10.................................... Spinoff................... 0.90 NO....................... 1.30 NO.
177................................... Merger.................... 15.93 NO....................... 23.01 YES.
1000.................................. Standard.................. 90.00 YES...................... 130.00 YES.
1500.................................. 3/2 split................. 135.00 YES...................... 195 YES.
--------------------------------------------------------------------------------------------------------------------------------------------------------
$.02 dividend $.01 dividend
Shares Contract ($value) Adjust? ($value) Adjust?
--------------------------------------------------------------------------------------------------------------------------------------------------------
100................................... Standard.................. 2.00 NO....................... 1.00 NO.
133................................... 4/3 split................. 2.66 NO....................... 1.33 NO.
150................................... 3/2 split................. 3.00 NO....................... 1.50 NO.
10.................................... Spinoff................... 0.20 NO....................... 0.10 NO.
177................................... Merger.................... 3.54 NO....................... 1.77 NO.
1000.................................. Standard.................. 20.00 YES...................... 10.00 NO.
1500.................................. 3/2 split................. 30.00 YES...................... 15.00 NO.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(B) If the 100 share standard size contract does not exist:
--------------------------------------------------------------------------------------------------------------------------------------------------------
$.09 dividend $.13 dividend
Shares Option ($value) Adjust? ($value) Adjust?
--------------------------------------------------------------------------------------------------------------------------------------------------------
133................................... 4/3 split................. 11.97 NO....................... 17.29 YES.
150................................... 3/2 split................. 13.50 YES...................... 19.50 YES.
10.................................... Spinoff................... 0.90 NO....................... 1.30 NO.
177................................... Merger.................... 15.93 YES...................... 23.01 YES.
1000.................................. Standard.................. 90.00 YES...................... 130.00 YES.
1500.................................. 3/2 split................. 135.00 YES...................... 195 YES.
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 55584]]
The new adjustment policy approved in File No. SR-OCC-2006-01 will
take effect beginning with dividends announced on and after February 1,
2009. OCC intends this proposed rule change to take effect at the same
time, but these changes will not be implemented until the exchanges
have conducted appropriate educational efforts and definitive copies of
an appropriate supplement to the options disclosure document,
Characteristics and Risks of Standardized Options, are available for
distribution.
III. Discussion
Section 17A(b)(3)(F) of the Act requires, among other things, that
the rules of a clearing agency be designed to promote the prompt and
accurate clearance and settlement of securities transactions.\4\ The
Commission finds the proposed rule change to be consistent with this
requirement because it should reduce inconsistencies in the adjustment
of stock option contracts. As a result, OCC's proposed rule change
should promote the prompt and accurate clearance and settlement of
securities transactions.
---------------------------------------------------------------------------
\4\ 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-2008-16) be and hereby
is approved.\5\
---------------------------------------------------------------------------
\5\ 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.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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J. Lynn Talyor,
Assistant Secretary.
[FR Doc. E8-22488 Filed 9-24-08; 8:45 am]
BILLING CODE 8010-01-P
