Self-Regulatory Organizations; The Options Clearing Corporation; Order Granting Approval of Proposed Rule Change Relating to Sprott Physical Gold Shares, 59303-59304 [2010-24174]

Download as PDF Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices Commission designates the proposal operative upon filing. At any time within the 60-day period beginning on the date of the filing of the proposed rule change, the Commission summarily may temporarily suspend 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: 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–NYSE–2010–53 on the subject line. 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–NYSE–2010–53 and should be submitted on or before October 18, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–24176 Filed 9–24–10; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62956; File No. SR–OCC– 2010–09] Self-Regulatory Organizations; The Options Clearing Corporation; Order Granting Approval of Proposed Rule Change Relating to Sprott Physical Gold Shares srobinson on DSKHWCL6B1PROD with NOTICES September 20, 2010. • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NYSE–2010–53. 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,14 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, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All I. Introduction On June 7, 2010, The Options Clearing Corporation (‘‘OCC’’) filed with the Securities and Exchange Commission the proposed rule change pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 1 and Rule 19b–4 thereunder 2 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. The proposed rule change was published for comment in the Federal Register on June 28, 2010.3 No comment letters were received on the proposal. This order approves the proposal. II. Description of the Proposal The proposed rule change will 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 is traded on a securities exchange and will clear and treat as security futures any futures contracts on Sprott Physical Gold 15 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 Securities Exchange Act Release No. 62329 (June 21, 2010), 75 FR 36724. 1 15 VerDate Mar<15>2010 17:01 Sep 24, 2010 Jkt 220001 PO 00000 Frm 00098 Fmt 4703 Shares.4 This treatment is essentially the same as that extended to other options that OCC currently clears clears pursuant to rule changes approved by the Commission.5 In its capacity as a ‘‘derivatives clearing organization’’ registered as such with the CFTC, OCC also filed this proposed rule change for prior approval by the CFTC pursuant to provisions of the Commodity Exchange Act (‘‘CEA’’) in order to foreclose potential liability based on an argument that the clearing by OCC of such options as securities options constitutes a violation of the CEA. III. Discussion Paper Comments 14 The text of the proposed rule change is available on the Commission’s Web site at https:// www.sec.gov/rules/sro.shtml. 59303 Sfmt 4703 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 and derivative transactions.6 By amending its By-Laws to make clear that OCC will clear and treat as options on securities any option contract on Sprott Physical Gold Shares that is traded on a securities exchange and will clear and treat as security futures any futures contracts on Sprott Physical Gold Shares, OCC’s rule change should help clarify OCC’s treatment of such contracts and accordingly should help to promote the prompt and accurate clearance and settlement of securities transactions and of derivative transactions. In accordance with the Memorandum of Understanding entered into between the CFTC and the Commission on March 11, 2008, and in particular the addendum thereto concerning Principles Governing the Review of Novel Derivative Products, the Commission believes that novel derivative products that implicate areas of overlapping regulatory concern should be permitted to trade in either a CFTC or Commission-regulated environment or both in a manner consistent with laws and regulations (including the appropriate use of all available exemptive and interpretive authority). 4 The specific language of the new interpretation can be found on OCC’s Web site at https:// www.theocc.com/about/publications/bylaws.jsp. 5 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). 6 15 U.S.C. 78q–1(b)(3)(F). E:\FR\FM\27SEN1.SGM 27SEN1 59304 Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices 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 7 and the rules and regulations thereunder. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,8 that the proposed rule change (File No. SR– OCC–2010–09) be and hereby is approved.9 For the Commission by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–24174 Filed 9–24–10; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62959; File No. SR–BX– 2010–065] Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Provide an Additional Order Type Which Will Give Options Participants Greater Control Over the Circumstances in Which Their Orders Are Executed September 21, 2010. 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 September 13, 2010, NASDAQ OMX BX, Inc. (the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change srobinson on DSKHWCL6B1PROD with NOTICES The Exchange proposes to amend Chapter V, Section 14 (Order Entry) of the Rules of the Boston Options Exchange Group, LLC (‘‘BOX’’) to provide an additional order type which 7 15 U.S.C. 78q–1. U.S.C. 78s(b)(2). 9 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). 10 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. will give Options Participants greater control over the circumstances in which their orders are executed. The text of the proposed rule change is available from the principal office of the Exchange, at the Commission’s Public Reference Room and also on the Exchange’s Internet Web site at https:// nasdaqomxbx.cchwallstreet.com/ NASDAQOMXBX/Filings/. 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. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this proposed rule change is to provide an additional order type, the ‘‘Session Order’’, which will give Options Participants greater control over the circumstances in which their orders are cancelled or executed. By designating the Session Order duration type for an order, an Options Participant will be able to specify on an order by order basis that the designated Session Order it has sent to BOX should be cancelled as soon as the Options Participant loses its connection to the BOX system and its ability to either directly modify or cancel the order.3 The proposal will offer protection to Options Participants’ orders in the event that they lose communication with the BOX Trading Host 4 due to a loss of connectivity between their system and BOX or when there is a disconnection between internal BOX components. An order sent to BOX with this Session Order duration type will remain active in the BOX trading system until one of the following events (‘‘Triggering Event’’) occurs: 8 15 VerDate Mar<15>2010 17:01 Sep 24, 2010 Jkt 220001 3 Session Order duration type is not available for PIP Orders, Primary Improvement Orders or Improvement Orders. See proposed Section 16(d)(3) of Chapter V of the BOX Rules. 4 References herein to the term Trading Host will have the meaning as set forth in Section 1(a)(67) of Chapter I of the BOX Rules. PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 • The connection between the Options Participant and BOX that was used to enter the order is interrupted; • There is a disconnection between internal BOX components used to process orders, causing a component to lose its connection to the Options Participant or the Trading Host while in possession of the Session Order; • A component of the Trading Host experiences a system error in which it is unable to process open orders while in possession of the Session Order. Upon the occurrence of one of these Triggering Events, meaning the Options Participant has lost its ability to either directly modify or cancel the order, only those Session Orders residing in the affected BOX internal system(s) will be automatically cancelled by BOX. Any Triggering Events are connection or component specific. Therefore, when a particular external connection between BOX and the Options Participant is interrupted, only those Session Orders that came through the interrupted connection will be automatically cancelled by BOX. Similarly, when the Triggering Event is a disconnection between internal BOX components, the BOX system will only automatically cancel Session Orders related to the component that is not ‘‘responding’’. The cancellation of the Session Orders from an affected connection will neither impact nor determine the treatment of the orders of the same or other Options Participants entered into the Trading Host via a separate and distinct connection. All Session Orders will be cancelled at the end of the normal trading day. A Session Order will not be cancelled and shall remain active in the BOX market if the order is not allowed to be cancelled pursuant to another BOX Rule or it is in one of the following BOX system processes when a Triggering Event occurs: • The order is being exposed to the BOX market pursuant to the NBBO trade through filter process; 5 • The order is a Directed Order to which the Executing Participant has not yet responded; 6 • The order has been routed to an away exchange pursuant to the Routing Rules.7 When a Session Order is automatically cancelled, BOX will immediately generate a cancellation message to notify the Options Participant that its order is no longer active. After the Session Order(s) are 5 See 6 See Section 16(b) of Chapter V of the BOX Rules. Section 5(c)(ii) of Chapter VI of the BOX Rules. 7 See Section 5 of Chapter XII of the BOX Rules. E:\FR\FM\27SEN1.SGM 27SEN1

Agencies

[Federal Register Volume 75, Number 186 (Monday, September 27, 2010)]
[Notices]
[Pages 59303-59304]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-24174]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62956; File No. SR-OCC-2010-09]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Order Granting Approval of Proposed Rule Change Relating to Sprott 
Physical Gold Shares

September 20, 2010.

I. Introduction

    On June 7, 2010, The Options Clearing Corporation (``OCC'') filed 
with the Securities and Exchange Commission the proposed rule change 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 \1\ 
and Rule 19b-4 thereunder \2\ 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. The proposed rule change was published for comment in the 
Federal Register on June 28, 2010.\3\ No comment letters were received 
on the proposal. This order approves the proposal.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 62329 (June 21, 2010), 
75 FR 36724.
---------------------------------------------------------------------------

II. Description of the Proposal

    The proposed rule change will 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 is 
traded on a securities exchange and will clear and treat as security 
futures any futures contracts on Sprott Physical Gold Shares.\4\ This 
treatment is essentially the same as that extended to other options 
that OCC currently clears clears pursuant to rule changes approved by 
the Commission.\5\
---------------------------------------------------------------------------

    \4\ The specific language of the new interpretation can be found 
on OCC's Web site at https://www.theocc.com/about/publications/bylaws.jsp.
    \5\ 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 CFTC, OCC also filed this proposed rule 
change for prior approval by the CFTC pursuant to provisions of the 
Commodity Exchange Act (``CEA'') in order to foreclose potential 
liability based on an argument that the clearing by OCC of such options 
as securities options constitutes a violation of the CEA.

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 and 
derivative transactions.\6\ By amending its By-Laws to make clear that 
OCC will clear and treat as options on securities any option contract 
on Sprott Physical Gold Shares that is traded on a securities exchange 
and will clear and treat as security futures any futures contracts on 
Sprott Physical Gold Shares, OCC's rule change should help clarify 
OCC's treatment of such contracts and accordingly should help to 
promote the prompt and accurate clearance and settlement of securities 
transactions and of derivative transactions. In accordance with the 
Memorandum of Understanding entered into between the CFTC and the 
Commission on March 11, 2008, and in particular the addendum thereto 
concerning Principles Governing the Review of Novel Derivative 
Products, the Commission believes that novel derivative products that 
implicate areas of overlapping regulatory concern should be permitted 
to trade in either a CFTC or Commission-regulated environment or both 
in a manner consistent with laws and regulations (including the 
appropriate use of all available exemptive and interpretive authority).
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78q-1(b)(3)(F).

---------------------------------------------------------------------------

[[Page 59304]]

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 \7\ and the rules and regulations 
thereunder.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (File No. SR-OCC-2010-09) be and 
hereby is approved.\9\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(2).
    \9\ 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.\10\
---------------------------------------------------------------------------

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

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-24174 Filed 9-24-10; 8:45 am]
BILLING CODE 8010-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.