Self-Regulatory Organizations; Options Clearing Corporation; Notice of Filing of Proposed Rule Change To Adopt Fitness Standards for Directors, Clearing Members, and Others, 58061-58063 [2011-23976]
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mstockstill on DSK4VPTVN1PROD with NOTICES
Federal Register / Vol. 76, No. 181 / Monday, September 19, 2011 / Notices
voting securities, as defined in the Act,
or in the case of a Fund whose public
shareholders purchase shares on the
basis of a prospectus containing the
disclosure contemplated by condition 2
below, by the initial shareholder(s)
before offering shares of that Fund to the
public.
2. Each Fund relying on the requested
order will disclose in its prospectus the
existence, substance, and effect of any
order granted pursuant to the
application. Each Fund will hold itself
out to the public as utilizing the
Manager of Managers Structure. The
prospectus will prominently disclose
that the Adviser has ultimate
responsibility (subject to oversight by
the Board) to oversee the Subadvisers
and recommend their hiring,
termination, and replacement.
3. Within 90 days of the hiring of a
new Subadviser, Fund shareholders will
be furnished all information about the
new Subadviser that would be included
in a proxy statement, except as modified
to permit Aggregate Fee Disclosure. This
information will include Aggregate Fee
Disclosure and any change in disclosure
caused by the addition of the new
Subadviser. To meet this obligation,
each Fund will provide shareholders,
within 90 days of the hiring of a new
Subadviser, an information statement
meeting the requirements of Regulation
14C, Schedule 14C and Item 22 of
Schedule 14A under the 1934 Act,
except as modified by the order to
permit Aggregate Fee Disclosure.
4. An Adviser will not enter into a
Subadvisory Agreement with any
Affiliated Subadviser without such
agreement, including the compensation
to be paid thereunder, being approved
by the shareholders of the applicable
Fund.
5. At all times, at least a majority of
the Board will be Independent Trustees,
and the nomination of new or additional
Independent Trustees will be placed
within the discretion of the thenexisting Independent Trustees.
6. Whenever a subadviser change is
proposed for a Fund with an Affiliated
Subadviser, the Board, including a
majority of the Independent Trustees,
will make a separate finding, reflected
in the applicable Board minutes, that
such change is in the best interests of
the Fund and its shareholders, and does
not involve a conflict of interest from
which the Adviser or the Affiliated
Subadviser derives an inappropriate
advantage.
7. Independent legal counsel, as
defined in rule 0–1(a)(6) under the Act,
will be engaged to represent the
Independent Trustees. The selection of
such counsel will be within the
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discretion of the then-existing
Independent Trustees.
8. Each Adviser will provide the
Board, no less frequently than quarterly,
with information about the profitability
of the Adviser on a per-Fund basis. The
information will reflect the impact on
profitability of the hiring or termination
of any Subadviser during the applicable
quarter.
9. Whenever a Subadviser is hired or
terminated, the Adviser will provide the
Board with information showing the
expected impact on the profitability of
the Adviser.
10. An Adviser will provide general
management services to each Fund,
including overall supervisory
responsibility for the general
management and investment of each
Fund’s assets and, subject to review and
approval of the Board, will: (a) Set each
Fund’s overall investment strategies; (b)
evaluate, select and recommend
Subadvisers to manage all or a part of
each Fund’s assets; (c) allocate and,
when appropriate, reallocate each
Fund’s assets among one or more
Subadvisers; (d) monitor and evaluate
the performance of Subadvisers; and (e)
implement procedures reasonably
designed to ensure that the Subadvisers
comply with each Fund’s investment
objective, policies and restrictions.
11. No Trustee or officer of the Trust
or a Fund, or director, manager, or
officer of an Adviser, will own directly
or indirectly (other than through a
pooled investment vehicle that is not
controlled by such person), any interest
in a Subadviser, except for (a)
ownership of interests in the Adviser or
any entity that controls, is controlled by,
or is under common control with the
Adviser or (b) ownership of less than
1% of the outstanding securities of any
class of equity or debt of any publicly
traded company that is either a
Subadviser or an entity that controls, is
controlled by, or is under common
control with a Subadviser.
12. Each Fund will disclose in its
registration statement the Aggregate Fee
Disclosure.
13. In the event the Commission
adopts a rule under the Act providing
substantially similar relief to that in the
order requested in the application, the
requested order will expire on the
effective date of that rule.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Elizabeth M. Murphy,
Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65221; File No. SR–FINRA–
2011–042]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Fee for the
Operations Professional Examination
August 30, 2011.
Correction
In notice document 2011–22764
appearing on pages 55441–55445 in the
issue of September 7, 2011, make the
following correction:
On page 55441, in the third column,
the File No. in the heading is corrected
to read as set forth above.
[FR Doc. C1–2011–22764 Filed 9–16–11; 8:45 am]
BILLING CODE 1505–01–D
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65338; File No. SR–OCC–
2011–12]
Self-Regulatory Organizations;
Options Clearing Corporation; Notice
of Filing of Proposed Rule Change To
Adopt Fitness Standards for Directors,
Clearing Members, and Others
September 14, 2011.
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 August
31, 2011, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of the proposed rule
change is to establish fitness standards
for directors, clearing members, and
others.
[FR Doc. 2011–23982 Filed 9–16–11; 8:45 am]
1 15
BILLING CODE 8011–01–P
2 17
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58061
E:\FR\FM\19SEN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
19SEN1
58062
Federal Register / Vol. 76, No. 181 / Monday, September 19, 2011 / Notices
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.
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The purpose of this proposed rule
change is to facilitate compliance by
OCC with new core principles (‘‘Core
Principles’’) applicable to derivatives
clearing organizations (‘‘DCOs’’) that are
set forth in the CEA, as amended by the
Dodd-Frank Act. In particular, new DCO
Core Principle O requires DCOs to
establish fitness standards for directors,
clearing members and certain other
individuals.
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Background
The Core Principles for DCOs are set
forth in the CEA and consist of a
number of governing principles to
which a DCO is required to adhere. OCC
is registered as a DCO with the
Commodity Futures Trading
Commission (the ‘‘CFTC’’) under
Section 5b of the CEA, and clears
commodity futures and commodity
options traded on five futures exchanges
subject to the CFTC’s jurisdiction. Title
VII of the Dodd-Frank Act amended the
CEA to expand existing Core Principles
and to add certain new Core Principles.
The applicable Dodd-Frank
amendments to the CEA become
effective July 16, 2011. In January 2011,
the CFTC published proposed rules (the
‘‘Proposed Rules’’) to implement the
Core Principles, as amended and
expanded by the Dodd Frank Act. The
Proposed Rules propose certain
minimum criteria for complying with
the Core Principles, and propose certain
clarifications of the more ambiguous
provisions of the Core Principles. The
Proposed Rules have not been adopted
and will not be effective until 60 days
following the date on which the CFTC
publishes final rules implementing the
Core Principles.
Core Principle O provides that each
DCO must: (i) Establish governance
arrangements that are transparent (I) to
fulfill public interest requirements and
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(II) to permit the consideration of the
views of both owners and participants,
and (ii) establish and enforce
appropriate fitness standards for (I)
directors, (II) members of any
disciplinary committee, (III) members of
the DCO, (IV) any other individual or
entity with direct access to the
settlement or clearing activities of the
DCO, and (V) any party affiliated with
any of the above. OCC’s existing
governance arrangements satisfy the
transparency requirements of
subparagraph (i) of Core Principle O.
OCC is proposing to adopt the Fitness
Standards in order to assure compliance
with subparagraph (ii) of Core Principle
O.
Description of Proposed Fitness
Standards
The proposed Fitness Standards,
which are attached as Exhibit 5 to this
rule filing, comply with Core Principle
O by establishing minimum standards
for directors and clearing members, as
well as affiliates of such directors and
clearing members.3 The proposed
Fitness Standards are generally similar
to fitness standards adopted by the
Depository Trust and Clearing
Corporation.
The Fitness Standards incorporate the
Proposed Rule’s minimum fitness
standards for directors and clearing
members, including the basis for refusal
to register a person under Section 8a(2)
of the CEA and, for directors only, the
absence of a significant history of
serious disciplinary offences, such as
those that would be disqualifying under
Section 1.63 of the CFTC’s regulations.
The Fitness Standards do not establish
criteria for members of the disciplinary
committee or for persons ‘‘with direct
access to the settlement or clearing
activities’’ of OCC (‘‘Access Persons’’).
In OCC’s case, all members of
disciplinary committees4 are directors
of the Corporation and will be subject to
the Fitness Standards as such. With
respect to Access Persons, neither the
CEA nor the Proposed Rules provide
any explicit guidance as to the persons
intended to be included in the phrase
‘‘any other individual or entity with
direct access to the settlement or
clearing activities of the [DCO].’’
Similarly, the term ‘‘direct access’’ is
not defined in the CEA or the Proposed
Rules. However, Core Principle O is
3 Pursuant to a conversation among OCC, the
Commission and the CFTC, the CFTC has indicated
that the proposed rule change may become effective
after July 16, 2011 without impacting OCC’s status
as a DCO.
4 OCC has no standing disciplinary committee.
Disciplinary committees are formed on an ad hoc
basis. See OCC Rule 1202(a).
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closely modeled on existing designated
contract market (‘‘DCM’’) Core Principle
14, which also requires that fitness
standards be established for directors,
members and ‘‘any other persons with
direct access to the facility.’’ The CFTC
has previously issued guidance on DCM
Core Principle 14 and interpreted
‘‘persons with direct access to the
facility’’ to include ‘‘non-member
market participants who are not
intermediated and do not have
[member] privileges, obligations,
responsibilities or disciplinary
authority.’’ This interpretation suggests
that ‘‘access’’ is intended to mean the
type of access that a member would
have. OCC believes that by analogy
‘‘persons with direct access to the
settlement or clearing activities’’ of a
DCO, as used in Core Principle O, is
intended to refer to persons with access
to submit transactions for clearing or to
give instructions to OCC regarding
accounts or transactions or otherwise
have access to the clearing system in a
manner similar to the access that a
Clearing Member would have. OCC also
does not read ‘‘any other individual or
entity with direct access to the
settlement or clearing activities of the
[DCO]’’ to include OCC employees or
service providers such as settlement
banks. Accordingly, OCC believes that
there are presently no persons with
‘‘direct access’’ to the settlement and
clearing activities of OCC other than
clearing members.
Proposed By-Law Changes
Article III (Board of Directors) and
Article V (Clearing Members) set forth
qualifications for directors and clearing
members, respectively. The
Interpretations and Policies under the
appropriate sections of both Articles are
being amended to incorporate the
applicable Fitness Standards by
reference.
OCC believes that the proposed
changes to its By-Laws and Rules are
consistent with the purposes and
requirements of Section 17A of the
Exchange Act, because they are
designed to permit OCC to perform
clearing services for products that are
subject to the jurisdiction of the CFTC
without adversely affecting OCC’s
obligations with respect to the prompt
and accurate clearance and settlement of
securities transactions or the protection
of securities investors and the public
interest. The proposed rule change is
not inconsistent with any rules of OCC.
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Federal Register / Vol. 76, No. 181 / Monday, September 19, 2011 / Notices
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
OCC does not believe that the
proposed rule change would impose any
burden on competition.
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments were not and are
not intended to be solicited with respect
to the proposed rule change and none
have been received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate 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 or disapprove
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:
mstockstill on DSK4VPTVN1PROD with NOTICES
Electronic Comments
• Use the Commissions 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–2011–12 on the
subject line.
Paper Comments
• 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–OCC–2011–12. 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
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Jkt 223001
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 filings
will also be available for inspection and
copying at the principal office of OCC
and on OCC’s Web site at https://
www.optionsclearing.com/components/
docs/legal/rules_and_bylaws/sr_occ_11
_12.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–2011–12 and should
be submitted on or before October 11,
2011.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.5
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–23976 Filed 9–16–11; 8:45 am]
BILLING CODE 8011–01–P
58063
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Fees Schedule. The text of the proposed
rule change is available on the
Exchange’s Web site (https://
www.cboe.org/legal), at the Exchange’s
Office of the Secretary, and at the
Commission.
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 those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65325; File No. SR–CBOE–
2011–085]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Concerning the Clearing
Trading Permit Holder Proprietary
Transaction Fee Waiver for Orders in
Multiply-Listed FLEX Options Classes
September 12, 2011.
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 August
31, 2011, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) 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 Exchange.
5 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 34–
65007 (August 2, 2011), 76 FR 48190 (August 8,
2011) (SR–CBOE–2011–071).
1 15
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On August 1, 2011, the Exchange
implemented a waiver of the Clearing
Trading Permit Holder (‘‘CTPH’’)
Proprietary Transaction Fee (the ‘‘Fee’’)
for CTPHs executing facilitation orders
in multiply-listed FLEX Options classes
(the ‘‘Waiver’’).3 At that time, the
Exchange intended to exclude from the
Waiver such orders originating from
joint back-office (‘‘JBO’’) participants,
but due to an oversight, such orders
were not excluded. Therefore, the
Exchange now proposes to amend the
Waiver to exclude such orders
originating from JBO participants.
A JBO is an arrangement whereby a
broker/dealer maintains a nominal
ownership interest in its clearing firm.
The clearing firm will issue a special
class of non-voting preferred stock to
other broker/dealers that clear their
proprietary positions through the
clearing firm. JBO participants are not
considered self-clearing for any purpose
other than the extension of credit under
CBOE Rule 12.3 or under comparable
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]]>Agencies
[Federal Register Volume 76, Number 181 (Monday, September 19, 2011)]
[Notices]
[Pages 58061-58063]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-23976]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65338; File No. SR-OCC-2011-12]
Self-Regulatory Organizations; Options Clearing Corporation;
Notice of Filing of Proposed Rule Change To Adopt Fitness Standards for
Directors, Clearing Members, and Others
September 14, 2011.
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 August 31, 2011, 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of the proposed rule change is to establish fitness
standards for directors, clearing members, and others.
[[Page 58062]]
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.
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of this proposed rule change is to facilitate
compliance by OCC with new core principles (``Core Principles'')
applicable to derivatives clearing organizations (``DCOs'') that are
set forth in the CEA, as amended by the Dodd-Frank Act. In particular,
new DCO Core Principle O requires DCOs to establish fitness standards
for directors, clearing members and certain other individuals.
Background
The Core Principles for DCOs are set forth in the CEA and consist
of a number of governing principles to which a DCO is required to
adhere. OCC is registered as a DCO with the Commodity Futures Trading
Commission (the ``CFTC'') under Section 5b of the CEA, and clears
commodity futures and commodity options traded on five futures
exchanges subject to the CFTC's jurisdiction. Title VII of the Dodd-
Frank Act amended the CEA to expand existing Core Principles and to add
certain new Core Principles. The applicable Dodd-Frank amendments to
the CEA become effective July 16, 2011. In January 2011, the CFTC
published proposed rules (the ``Proposed Rules'') to implement the Core
Principles, as amended and expanded by the Dodd Frank Act. The Proposed
Rules propose certain minimum criteria for complying with the Core
Principles, and propose certain clarifications of the more ambiguous
provisions of the Core Principles. The Proposed Rules have not been
adopted and will not be effective until 60 days following the date on
which the CFTC publishes final rules implementing the Core Principles.
Core Principle O provides that each DCO must: (i) Establish
governance arrangements that are transparent (I) to fulfill public
interest requirements and (II) to permit the consideration of the views
of both owners and participants, and (ii) establish and enforce
appropriate fitness standards for (I) directors, (II) members of any
disciplinary committee, (III) members of the DCO, (IV) any other
individual or entity with direct access to the settlement or clearing
activities of the DCO, and (V) any party affiliated with any of the
above. OCC's existing governance arrangements satisfy the transparency
requirements of subparagraph (i) of Core Principle O. OCC is proposing
to adopt the Fitness Standards in order to assure compliance with
subparagraph (ii) of Core Principle O.
Description of Proposed Fitness Standards
The proposed Fitness Standards, which are attached as Exhibit 5 to
this rule filing, comply with Core Principle O by establishing minimum
standards for directors and clearing members, as well as affiliates of
such directors and clearing members.\3\ The proposed Fitness Standards
are generally similar to fitness standards adopted by the Depository
Trust and Clearing Corporation.
---------------------------------------------------------------------------
\3\ Pursuant to a conversation among OCC, the Commission and the
CFTC, the CFTC has indicated that the proposed rule change may
become effective after July 16, 2011 without impacting OCC's status
as a DCO.
---------------------------------------------------------------------------
The Fitness Standards incorporate the Proposed Rule's minimum
fitness standards for directors and clearing members, including the
basis for refusal to register a person under Section 8a(2) of the CEA
and, for directors only, the absence of a significant history of
serious disciplinary offences, such as those that would be
disqualifying under Section 1.63 of the CFTC's regulations. The Fitness
Standards do not establish criteria for members of the disciplinary
committee or for persons ``with direct access to the settlement or
clearing activities'' of OCC (``Access Persons''). In OCC's case, all
members of disciplinary committees\4\ are directors of the Corporation
and will be subject to the Fitness Standards as such. With respect to
Access Persons, neither the CEA nor the Proposed Rules provide any
explicit guidance as to the persons intended to be included in the
phrase ``any other individual or entity with direct access to the
settlement or clearing activities of the [DCO].'' Similarly, the term
``direct access'' is not defined in the CEA or the Proposed Rules.
However, Core Principle O is closely modeled on existing designated
contract market (``DCM'') Core Principle 14, which also requires that
fitness standards be established for directors, members and ``any other
persons with direct access to the facility.'' The CFTC has previously
issued guidance on DCM Core Principle 14 and interpreted ``persons with
direct access to the facility'' to include ``non-member market
participants who are not intermediated and do not have [member]
privileges, obligations, responsibilities or disciplinary authority.''
This interpretation suggests that ``access'' is intended to mean the
type of access that a member would have. OCC believes that by analogy
``persons with direct access to the settlement or clearing activities''
of a DCO, as used in Core Principle O, is intended to refer to persons
with access to submit transactions for clearing or to give instructions
to OCC regarding accounts or transactions or otherwise have access to
the clearing system in a manner similar to the access that a Clearing
Member would have. OCC also does not read ``any other individual or
entity with direct access to the settlement or clearing activities of
the [DCO]'' to include OCC employees or service providers such as
settlement banks. Accordingly, OCC believes that there are presently no
persons with ``direct access'' to the settlement and clearing
activities of OCC other than clearing members.
---------------------------------------------------------------------------
\4\ OCC has no standing disciplinary committee. Disciplinary
committees are formed on an ad hoc basis. See OCC Rule 1202(a).
---------------------------------------------------------------------------
Proposed By-Law Changes
Article III (Board of Directors) and Article V (Clearing Members)
set forth qualifications for directors and clearing members,
respectively. The Interpretations and Policies under the appropriate
sections of both Articles are being amended to incorporate the
applicable Fitness Standards by reference.
OCC believes that the proposed changes to its By-Laws and Rules are
consistent with the purposes and requirements of Section 17A of the
Exchange Act, because they are designed to permit OCC to perform
clearing services for products that are subject to the jurisdiction of
the CFTC without adversely affecting OCC's obligations with respect to
the prompt and accurate clearance and settlement of securities
transactions or the protection of securities investors and the public
interest. The proposed rule change is not inconsistent with any rules
of OCC.
[[Page 58063]]
(B) Self-Regulatory Organization's Statement on Burden on Competition
OCC does not believe that the proposed rule change would impose any
burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
Written comments were not and are not intended to be solicited with
respect to the proposed rule change and none have been received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate 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 or disapprove 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 Commissions 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-2011-12 on the
subject line.
Paper Comments
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-OCC-2011-12. 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 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 filings will also be available for
inspection and copying at the principal office of OCC and on OCC's Web
site at https://www.optionsclearing.com/components/docs/legal/rules_and_bylaws/sr_occ_11_12.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-2011-12
and should be submitted on or before October 11, 2011.
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-23976 Filed 9-16-11; 8:45 am]
BILLING CODE 8011-01-P
