Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing of Proposed Rule Change to Allow Members To Deposit Customer Fully Paid or Excess Margin Securities to the Extent Permitted by No-Action Relief or Interpretive Guidance From the Commission or Interpretive Guidance From a Self-Regulatory Organization, 64116-64117 [E9-29042]

Download as PDF 64116 Federal Register / Vol. 74, No. 233 / Monday, December 7, 2009 / Notices as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) 10 of the Act and Rule 19b– 4(f)(6) thereunder.11 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. Nasdaq believes that the proposed rule change does not significantly affect the protection of investors or the public interest because it merely clarifies the application of an existing rule to avoid erroneous interpretation of its applicability, prevents unnecessary regulatory duplication among selfregulatory organizations, and makes a minor technical correction to the rule. Nasdaq requests that the Commission waive the 30-day pre-operative waiting period contained in Rule 19b– 4(f)(6)(iii).12 Nasdaq requests this waiver so that these corrections can be immediately operative, eliminating any potential confusion caused by the currently unclear rule. NASDAQ has requested that the Commission waive the 30-day operative delay set forth in Rule 19b–4(f)(6). The Commission notes the proposal presents no novel issues and is designed to provide clarity regarding the application of an existing rule. For these reasons, the Commission believes it is consistent with the protection of investors and the public interest to waive the 30-day operative delay, and hereby grants such waiver.13 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 erowe on DSK5CLS3C1PROD with NOTICES • 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–2009–102 on the subject line. U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 12 17 CFR 240.19b–4(f)(6)(iii). 13 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule change’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61078; File No. SR–OCC– 2009–18] Self-Regulatory Organizations; The Options Clearing Corporation; Notice All submissions should refer to File of Filing of Proposed Rule Change to Number SR–NASDAQ–2009–102. This Allow Members To Deposit Customer file number should be included on the subject line if e-mail is used. To help the Fully Paid or Excess Margin Securities to the Extent Permitted by No-Action Commission process and review your Relief or Interpretive Guidance From comments more efficiently, please use the Commission or Interpretive only one method. The Commission will Guidance From a Self-Regulatory post all comments on the Commission’s Organization Internet Web site (https://www.sec.gov/ November 30, 2009. rules/sro.shtml). Copies of the submission, all subsequent Pursuant to Section 19(b)(1) of the amendments, all written statements Securities Exchange Act of 1934 with respect to the proposed rule (‘‘Act’’) 1 and Rule 19b–4 thereunder 2 change that are filed with the notice is hereby given that on October Commission, and all written 23, 2009, The Options Clearing communications relating to the Corporation (‘‘OCC’’) filed with the proposed rule change between the Securities and Exchange Commission Commission and any person, other than (‘‘Commission’’) the proposed rule those that may be withheld from the change as described in Items I, II, and III below, which Items have been public in accordance with the prepared primarily by OCC. The provisions of 5 U.S.C. 552, will be Commission is publishing this notice to available for inspection and copying in solicit comments on the proposed rule the Commission’s Public Reference Room on official business days between change from interested persons. the hours of 10 a.m. and 3 p.m. Copies I. Self-Regulatory Organization’s of such filing also will be available for Statement of the Terms of the Substance inspection and copying at the principal of the Proposed Rule Change office of Nasdaq. All comments received The purpose of this proposed rule will be posted without change; the change is to allow members to deposit Commission does not edit personal customer fully paid or excess margin identifying information from securities to the extent that activity is submissions. You should submit only consistent with Rule 15c3–3 3 of the Act information that you wish to make and is permitted by no-action relief or available publicly. All submissions interpretive guidance from the should refer to File Number SR– Commission or interpretive guidance NASDAQ–2009–102 and should be from a Self-Regulatory Organization submitted on or before December 28, (‘‘SRO’’). 2009. II. Self-Regulatory Organization’s For the Commission, by the Division of Statement of the Purpose of, and Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule authority.14 Change Florence E. Harmon, Deputy Secretary. [FR Doc. E9–29041 Filed 12–4–09; 8:45 am] BILLING CODE 8011–01–P 10 15 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 11 17 VerDate Nov<24>2008 14:05 Dec 04, 2009 Jkt 220001 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 17 CFR 240.15c3–3. 4 The Commission has modified the text of the summaries prepared by OCC. 2 17 14 17 PO 00000 CFR 200.30–3(a)(12). Frm 00072 Fmt 4703 Sfmt 4703 E:\FR\FM\07DEN1.SGM 07DEN1 Federal Register / Vol. 74, No. 233 / Monday, December 7, 2009 / Notices settlement of securities transactions for the protection of investors. (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change OCC rules currently prohibit members from depositing with OCC fully paid or excess margin securities that are carried for the account of a customer. This prohibition is intended to conform OCC’s treatment of customer fully paid and excess margin securities to the requirements of Rule 15c3–3. The purpose of this proposed rule change is to allow members to deposit customer fully paid or excess margin securities to the extent that activity is consistent with Rule 15c3–3 and is permitted pursuant to no-action relief or interpretive guidance from the Commission or interpretive guidance from an SRO. Currently, a Commission no-action letter and related interpretive guidance from the New York Stock Exchange permits fully paid or excess margin securities carried in a customer account to be deposited with OCC in two circumstances. First, if a customer makes a specific deposit of fully paid or excess margin securities with a member to secure its obligations as an option writer 5 then the member may in turn deposit the customer’s securities with OCC.6 Second, any fully paid or excess margin securities held by a member to secure a customer’s obligations may be posted as margin with OCC to the extent of 140% of the difference between the daily marking price deposits action: 7 and the original proceeds of the customer’s transaction.8 This proposed rule change would permit members to deposit customer fully paid or excess margin securities in these two circumstances as well as in any future circumstances identified by no-action relief or interpretive guidance from the Commission or interpretive guidance from an SRO. OCC believes the proposed rule change is consistent with the requirements of Section 17A of the Act 9 and the rules and regulations thereunder because the proposed change will safeguard securities and funds related to the clearance and erowe on DSK5CLS3C1PROD with NOTICES 5 OCC Rule 610(e)–(f). 6 New York Stock Exchange, New York Stock Exchange Rule Interpretations Handbook 505 (2004)(Interpretation 01 of Securities Exchange Act Rule 15c3–3(c) citing Chicago Board Options Exchange, Inc., SEC No-Action Letter (Feb. 19, 1975)). 7 As required by OCC of its member. 8 New York Stock Exchange, New York Stock Exchange Rule Interpretations Handbook 505 (2004)(Interpretation 020 of Securities Exchange Act Rule 15c3–3(c). 9 15 U.S.C. 78q–1. VerDate Nov<24>2008 14:05 Dec 04, 2009 Jkt 220001 (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 relating to the proposed rule change have not been solicited or received. OCC will notify the Commission of any written comments received by OCC. 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 the 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 rulecomments@sec.gov. Please include File Number SR–OCC–2009–18 on the subject line. Paper Comments • Send paper comments in triplicate to Secretary, Elizabeth M. Murphy, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–OCC–2009–18. 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 PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 64117 Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Section, 100 F Street, NE., Washington, DC 20549–1090, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filings will also be available for inspection and copying at the principal office of the OCC and on OCC’s Web site at https:// www.optionsclearing.com/components/ docs/legal/rules_and_bylaws/ sr_occ_09_18.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–2009–18 and should be submitted on or before December 28, 2009. For the Commission by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–29042 Filed 12–4–09; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61080; File No. SR–FINRA– 2009–068] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Order Granting Approval of Proposed Rule Change Relating to FINRA’s Rules Governing Clearly Erroneous Executions December 1, 2009. I. Introduction On October 19, 2009, Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’) (f/k/a National Association of Securities Dealers, Inc. (‘‘NASD’’)) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities 10 17 E:\FR\FM\07DEN1.SGM CFR 200.30–3(a)(12). 07DEN1

Agencies

[Federal Register Volume 74, Number 233 (Monday, December 7, 2009)]
[Notices]
[Pages 64116-64117]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-29042]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61078; File No. SR-OCC-2009-18]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing of Proposed Rule Change to Allow Members To Deposit 
Customer Fully Paid or Excess Margin Securities to the Extent Permitted 
by No-Action Relief or Interpretive Guidance From the Commission or 
Interpretive Guidance From a Self-Regulatory Organization

November 30, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder \2\ notice is hereby given that 
on October 23, 2009, The Options Clearing Corporation (``OCC'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as 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 on the proposed rule change from 
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The purpose of this proposed rule change is to allow members to 
deposit customer fully paid or excess margin securities to the extent 
that activity is consistent with Rule 15c3-3 \3\ of the Act and is 
permitted by no-action relief or interpretive guidance from the 
Commission or interpretive guidance from a Self-Regulatory Organization 
(``SRO'').
---------------------------------------------------------------------------

    \3\ 17 CFR 240.15c3-3.
---------------------------------------------------------------------------

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.

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[[Page 64117]]

(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    OCC rules currently prohibit members from depositing with OCC fully 
paid or excess margin securities that are carried for the account of a 
customer. This prohibition is intended to conform OCC's treatment of 
customer fully paid and excess margin securities to the requirements of 
Rule 15c3-3. The purpose of this proposed rule change is to allow 
members to deposit customer fully paid or excess margin securities to 
the extent that activity is consistent with Rule 15c3-3 and is 
permitted pursuant to no-action relief or interpretive guidance from 
the Commission or interpretive guidance from an SRO.
    Currently, a Commission no-action letter and related interpretive 
guidance from the New York Stock Exchange permits fully paid or excess 
margin securities carried in a customer account to be deposited with 
OCC in two circumstances. First, if a customer makes a specific deposit 
of fully paid or excess margin securities with a member to secure its 
obligations as an option writer \5\ then the member may in turn deposit 
the customer's securities with OCC.\6\ Second, any fully paid or excess 
margin securities held by a member to secure a customer's obligations 
may be posted as margin with OCC to the extent of 140% of the 
difference between
---------------------------------------------------------------------------

    \5\ OCC Rule 610(e)-(f).
    \6\ New York Stock Exchange, New York Stock Exchange Rule 
Interpretations Handbook 505 (2004)(Interpretation 01 of Securities 
Exchange Act Rule 15c3-3(c) citing Chicago Board Options Exchange, 
Inc., SEC No-Action Letter (Feb. 19, 1975)).
---------------------------------------------------------------------------

    the daily marking price deposits action: \7\ and the original 
proceeds of the customer's transaction.\8\ This proposed rule change 
would permit members to deposit customer fully paid or excess margin 
securities in these two circumstances as well as in any future 
circumstances identified by no-action relief or interpretive guidance 
from the Commission or interpretive guidance from an SRO.
---------------------------------------------------------------------------

    \7\ As required by OCC of its member.
    \8\ New York Stock Exchange, New York Stock Exchange Rule 
Interpretations Handbook 505 (2004)(Interpretation 020 of Securities 
Exchange Act Rule 15c3-3(c).
---------------------------------------------------------------------------

    OCC believes the proposed rule change is consistent with the 
requirements of Section 17A of the Act \9\ and the rules and 
regulations thereunder because the proposed change will safeguard 
securities and funds related to the clearance and settlement of 
securities transactions for the protection of investors.
---------------------------------------------------------------------------

    \9\ 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 relating to the proposed rule change have not been 
solicited or received. OCC will notify the Commission of any written 
comments received by OCC.

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 the 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-2009-18 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Elizabeth 
M. Murphy, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-OCC-2009-18. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for inspection and 
copying in the Commission's Public Reference Section, 100 F Street, 
NE., Washington, DC 20549-1090, on official business days between the 
hours of 10 a.m. and 3 p.m. Copies of such filings will also be 
available for inspection and copying at the principal office of the OCC 
and on OCC's Web site at https://www.optionsclearing.com/components/docs/legal/rules_and_bylaws/sr_occ_09_18.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-2009-18 
and should be submitted on or before December 28, 2009.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-29042 Filed 12-4-09; 8:45 am]
BILLING CODE 8011-01-P
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