Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing of Proposed Rule Change Relating to Sprott Physical Gold Shares, 36724-36725 [2010-15539]

Download as PDF 36724 Federal Register / Vol. 75, No. 123 / Monday, June 28, 2010 / Notices 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 Web site viewing and printing in the Commission’s Public Reference Section, 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 FICC and on FICC’s Web site at https:// www.ficc.com. 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 600–23 and should be submitted on or before July 19, 2010. It is therefore ordered that FICC’s temporary registration as a clearing agency (File No. 600–23) be and hereby is extended through June 30, 2011. For the Commission by the Division of Trading and Markets pursuant to delegated authority.14 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–15537 Filed 6–25–10; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62329; File No. SR–OCC– 2010–09] Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing of Proposed Rule Change Relating to Sprott Physical Gold Shares jlentini on DSKJ8SOYB1PROD with NOTICES June 21, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934,1 notice is hereby given that on June 7, 2010, The Options Clearing Corporation (‘‘OCC’’) filed with the Securities and Exchange 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 14 17 1 15 CFR 200.30–3(a)(50)(i). U.S.C. 78s(b)(1). VerDate Mar<15>2010 21:02 Jun 25, 2010 Jkt 220001 solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change The proposed rule change would add an interpretation following the definition of ‘‘fund share’’ in Article I, Section 1(F)(8), of OCC’s By-Laws to clarify that OCC will clear and treat as options on securities any option contract on Sprott Physical Gold Shares that are traded on a securities exchange and will clear and treat as security futures any futures contracts on Sprott Physical Gold Shares. 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 such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change The purpose of the proposed rule change is to clarify OCC’s treatment of options and security futures on Sprott Physical Gold Shares. To accomplish this purpose, OCC is proposing to amend the interpretation following the definition of ‘‘fund share’’ in Article I, Section 1, of OCC’s By-Laws to make clear that OCC will (i) clear and treat as securities options any option contracts on Sprott Physical Gold Shares that are traded on securities exchanges and (ii) clear and treat as security futures any futures contracts on Sprott Physical Gold Shares. The Commission has approved rule filings where OCC amended or added other interpretations with respect to its treatment and clearing of options and security futures on SPDR Gold Shares; iShares®-COMEX Gold Shares and iShares® Silver Shares; ETFS Physical Swiss Gold Shares and ETFS Physical Silver Shares; and ETFS Palladium Shares and ETFS Platinum Shares.2 2 Securities and Exchange Commission Release Nos. 57895 (May 30, 2008), 73 FR 32066 (June 5, 2008) (SPDR Gold Trust); 59054 (Dec. 4, 2008), 73 FR 75159 (Dec. 10, 2008) (iShares COMEX Gold Shares and iShares Silver Shares); 61591 (Feb. 25, 2010), 75 FR 9979 (Mar. 4, 2010) (ETFS Physical PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 In its capacity as a ‘‘derivatives clearing organization’’ registered as such with the Commodities Futures Trading Commission (‘‘CFTC’’), OCC is filing this proposed rule change for prior approval by the CFTC pursuant to provisions of the Commodity Exchange Act (‘‘CEA’’) in order to foreclose any potential liability under the CEA based on an argument that the clearing by OCC of such options as securities options, or the clearing of such futures as security futures, constitutes a violation of the CEA. The products for which approval is requested are essentially the same as the options and security futures on SPDR Gold Shares, iShares® COMEX Gold Shares and iShares® Silver Shares that OCC currently clears pursuant to the rule changes referred to above and exemptions issued by the CFTC.3 The underlying Sprott Physical Gold Shares, however, are structured differently from the gold and silver ETFs underlying the currently cleared products.4 Sprott Physical Gold Trust is described by the issuer as a closed-end mutual fund trust organized under the laws of the Province of Ontario, Canada. Sprott Physical Gold Shares are redeemable for physical gold on a monthly rather than a daily basis and have redemption terms that are different from the fund shares underlying the contracts that were the subject of the previous filings. In addition, unlike the underlying ETFs referred to in the previous filings, Sprott Physical Gold Shares cannot be created through the deposit of gold in ‘‘creation unit’’ size transactions, and therefore the outstanding number of shares in the trust therefore cannot be increased through such a mechanism. OCC believes that these differences do not have jurisdictional significance for purposes of this filing. OCC believes that this filing raises no new regulatory or policy issues with respect to the options and security futures, notwithstanding the differences between the two products. OCC states that the proposed interpretation of OCC’s By-Laws is consistent with the purposes and Gold Shares and ETFS Physical Silver Shares); 61958 (Apr. 22, 2010), 75 FR 22673 (Apr. 29, 2010) (ETFS Palladium Shares And ETFS Platinum Shares). 3 CFTC Order Exempting the Trading and Clearing of Certain Products Related to SPDR Gold Trust Shares, 73 FR 31981 (June 5, 2008); CFTC Order Exempting the Trading and Clearing of Certain Products Related to iShares® COMEX Gold Trust Shares and iShares® Silver Trust Shares, 73 FR 79830 (Dec. 3, 2008). 4 Sprott Physical Gold Trust May 26, 2010 Prospectus, available at https://www.sec.gov/edgar/ searchedgar/companysearch.html. E:\FR\FM\28JNN1.SGM 28JNN1 Federal Register / Vol. 75, No. 123 / Monday, June 28, 2010 / Notices requirements of Section 17A of the Act 5 because it is designed to promote the prompt and accurate clearance and settlement of transactions in securities options and security futures, to foster cooperation and coordination with persons engaged in the clearance and settlement of such transactions, to remove impediments to and perfect the mechanism of a national system for the prompt and accurate clearance and settlement of such transactions, and, in general, to protect investors and the public interest. It accomplishes this purpose by making clear its treatment of options and security futures on Sprott Physical Gold Shares. The proposed rule change is not inconsistent with the By-Laws and Rules of OCC. 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 OCC has not solicited or received written comments relating to the proposed rule change. OCC will notify the Commission of any written comments it receives. jlentini on DSKJ8SOYB1PROD with NOTICES 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 No. SR–OCC–2010–09 on the subject line. 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. All submissions should refer to File No. SR–OCC–2010–09. 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 Web site viewing and printing 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 OCC’s principal office and on OCC’s Web site at https:// www.theocc.com/publications/rules/ proposed_changes/ proposed_changes.jsp. 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 submission should refer to File No. SR–OCC–2010– 09 and should be submitted on or before July 19, 2010. For the Commission by the Division of Trading and Markets, pursuant to delegated authority.6 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–15539 Filed 6–25–10; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62330; File No. SR–ISE– 2010–62] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 1, Relating to Clearly Erroneous Executions June 21, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on June 17, 2010, the International Securities Exchange, LLC (the ‘‘Exchange’’ or the ‘‘ISE’’) 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 by the selfregulatory organization. On June 18, 2010, the Exchange filed Amendment No. 1. The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend ISE Rule 2128 governing clearly erroneous executions. The text of the proposed rule change is available on the Exchange’s Internet Web site at https:// www.ise.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization 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. The self-regulatory organization has prepared summaries, set forth in sections A, B and C below, of the most significant aspects of such statements. BILLING CODE 8010–01–P 1 15 5 15 U.S.C. 78q–1. VerDate Mar<15>2010 21:02 Jun 25, 2010 6 17 Jkt 220001 PO 00000 CFR 200.30–3(a)(12). Frm 00097 Fmt 4703 2 17 Sfmt 4703 36725 E:\FR\FM\28JNN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 28JNN1

Agencies

[Federal Register Volume 75, Number 123 (Monday, June 28, 2010)]
[Notices]
[Pages 36724-36725]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-15539]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62329; File No. SR-OCC-2010-09]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing of Proposed Rule Change Relating to Sprott Physical 
Gold Shares

June 21, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 
1934,\1\ notice is hereby given that on June 7, 2010, The Options 
Clearing Corporation (``OCC'') filed with the Securities and Exchange 
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).
---------------------------------------------------------------------------

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

    The proposed rule change would add an interpretation following the 
definition of ``fund share'' in Article I, Section 1(F)(8), of OCC's 
By-Laws to clarify that OCC will clear and treat as options on 
securities any option contract on Sprott Physical Gold Shares that are 
traded on a securities exchange and will clear and treat as security 
futures any futures contracts on Sprott Physical Gold Shares.

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 such statements.

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

    The purpose of the proposed rule change is to clarify OCC's 
treatment of options and security futures on Sprott Physical Gold 
Shares. To accomplish this purpose, OCC is proposing to amend the 
interpretation following the definition of ``fund share'' in Article I, 
Section 1, of OCC's By-Laws to make clear that OCC will (i) clear and 
treat as securities options any option contracts on Sprott Physical 
Gold Shares that are traded on securities exchanges and (ii) clear and 
treat as security futures any futures contracts on Sprott Physical Gold 
Shares. The Commission has approved rule filings where OCC amended or 
added other interpretations with respect to its treatment and clearing 
of options and security futures on SPDR Gold Shares; iShares[supreg]-
COMEX Gold Shares and iShares[supreg] Silver Shares; ETFS Physical 
Swiss Gold Shares and ETFS Physical Silver Shares; and ETFS Palladium 
Shares and ETFS Platinum Shares.\2\
---------------------------------------------------------------------------

    \2\ Securities and Exchange Commission Release Nos. 57895 (May 
30, 2008), 73 FR 32066 (June 5, 2008) (SPDR Gold Trust); 59054 (Dec. 
4, 2008), 73 FR 75159 (Dec. 10, 2008) (iShares COMEX Gold Shares and 
iShares Silver Shares); 61591 (Feb. 25, 2010), 75 FR 9979 (Mar. 4, 
2010) (ETFS Physical Gold Shares and ETFS Physical Silver Shares); 
61958 (Apr. 22, 2010), 75 FR 22673 (Apr. 29, 2010) (ETFS Palladium 
Shares And ETFS Platinum Shares).
---------------------------------------------------------------------------

    In its capacity as a ``derivatives clearing organization'' 
registered as such with the Commodities Futures Trading Commission 
(``CFTC''), OCC is filing this proposed rule change for prior approval 
by the CFTC pursuant to provisions of the Commodity Exchange Act 
(``CEA'') in order to foreclose any potential liability under the CEA 
based on an argument that the clearing by OCC of such options as 
securities options, or the clearing of such futures as security 
futures, constitutes a violation of the CEA. The products for which 
approval is requested are essentially the same as the options and 
security futures on SPDR Gold Shares, iShares[supreg] COMEX Gold Shares 
and iShares[supreg] Silver Shares that OCC currently clears pursuant to 
the rule changes referred to above and exemptions issued by the 
CFTC.\3\ The underlying Sprott Physical Gold Shares, however, are 
structured differently from the gold and silver ETFs underlying the 
currently cleared products.\4\
---------------------------------------------------------------------------

    \3\ CFTC Order Exempting the Trading and Clearing of Certain 
Products Related to SPDR Gold Trust Shares, 73 FR 31981 (June 5, 
2008); CFTC Order Exempting the Trading and Clearing of Certain 
Products Related to iShares[reg] COMEX Gold Trust Shares and 
iShares[supreg] Silver Trust Shares, 73 FR 79830 (Dec. 3, 2008).
    \4\ Sprott Physical Gold Trust May 26, 2010 Prospectus, 
available at https://www.sec.gov/edgar/searchedgar/companysearch.html.
---------------------------------------------------------------------------

    Sprott Physical Gold Trust is described by the issuer as a closed-
end mutual fund trust organized under the laws of the Province of 
Ontario, Canada. Sprott Physical Gold Shares are redeemable for 
physical gold on a monthly rather than a daily basis and have 
redemption terms that are different from the fund shares underlying the 
contracts that were the subject of the previous filings. In addition, 
unlike the underlying ETFs referred to in the previous filings, Sprott 
Physical Gold Shares cannot be created through the deposit of gold in 
``creation unit'' size transactions, and therefore the outstanding 
number of shares in the trust therefore cannot be increased through 
such a mechanism. OCC believes that these differences do not have 
jurisdictional significance for purposes of this filing. OCC believes 
that this filing raises no new regulatory or policy issues with respect 
to the options and security futures, notwithstanding the differences 
between the two products.
    OCC states that the proposed interpretation of OCC's By-Laws is 
consistent with the purposes and

[[Page 36725]]

requirements of Section 17A of the Act \5\ because it is designed to 
promote the prompt and accurate clearance and settlement of 
transactions in securities options and security futures, to foster 
cooperation and coordination with persons engaged in the clearance and 
settlement of such transactions, to remove impediments to and perfect 
the mechanism of a national system for the prompt and accurate 
clearance and settlement of such transactions, and, in general, to 
protect investors and the public interest. It accomplishes this purpose 
by making clear its treatment of options and security futures on Sprott 
Physical Gold Shares. The proposed rule change is not inconsistent with 
the By-Laws and Rules of OCC.
---------------------------------------------------------------------------

    \5\ 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

    OCC has not solicited or received written comments relating to the 
proposed rule change. OCC will notify the Commission of any written 
comments it receives.

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 No. SR-OCC-2010-09 on the subject line.

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.

All submissions should refer to File No. SR-OCC-2010-09. 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 Web site viewing and 
printing 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 OCC's principal office and on OCC's Web site 
at https://www.theocc.com/publications/rules/proposed_changes/proposed_changes.jsp. 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 submission should refer to File No. SR-
OCC-2010-09 and should be submitted on or before July 19, 2010.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
---------------------------------------------------------------------------

    \6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-15539 Filed 6-25-10; 8:45 am]
BILLING CODE 8010-01-P
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