Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Permit OCC To Clear and Settle Spot Gold Futures, Which Are Proposed To Be Traded by NASDAQ OMX Futures Exchange, Inc., 7621-7623 [2012-3213]
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Federal Register / Vol. 77, No. 29 / Monday, February 13, 2012 / Notices
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the Commission shall by order, cancel
the registration of such person.
The registrant indicated on its most
recent Form ADV filing that it is relying
on section 203A(a)(1)(A) of the Act to
register with the Commission, which
prior to September 19, 2011 prohibited
an investment adviser from registering
with the Commission unless it
maintained assets under management of
at least $25 million. Effective September
19, 2011, Congress increased the assets
under management threshold under
section 203A of the Advisers Act to
prohibit an investment adviser from
registering with the Commission if it is
required to be registered in the state in
which it maintains its principal office
and place of business and has assets
under management between $25 million
and $100 million. Accordingly, an
adviser currently registered with the
Commission generally is required to
withdraw from registration when its
assets under management fall below $90
million, unless the adviser is not
required to register in the state where it
maintains its principal office and place
of business.1
The registrant is prohibited from
registering as an investment adviser
under section 203A of the Act because
the Commission believes, based on the
facts it has, that the registrant did not at
the time of the Form ADV filing, and
does not currently, maintain the
required assets under management to
remain registered with the Commission.
Accordingly, the Commission believes
that reasonable grounds exist for a
finding that this registrant is no longer
eligible to be registered with the
Commission as an investment adviser
and that the registration should be
cancelled pursuant to section 203(h) of
the Act.
Any interested person may, by March
5, 2012 at 5:30 p.m., submit to the
Commission in writing a request for a
hearing on the cancellation,
accompanied by a statement as to the
nature of his interest, the reason for
such request, and the issues, if any, of
fact or law proposed to be controverted,
and he may request that he be notified
if the Commission should order a
hearing thereon. Any such
communication should be addressed:
1 Section 203A of the Act generally prohibits an
investment adviser from registering with the
Commission unless it meets certain requirements.
See Advisers Act section 203A(a)(2)(B)(ii) (amended
by the Dodd-Frank Wall Street Reform and
Consumer Protection Act, Public Law 111–203, 124
Stat. 1376 (2010)); Advisers Act rule 203A–1(a);
Rules Implementing Amendments to the Investment
Advisers Act of 1940, Investment Advisers Act
Release No. 3221 (June 22, 2011), available at
https://www.sec.gov/rules/final/2011/ia-3221.pdf.
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14:46 Feb 10, 2012
Jkt 226001
Secretary, Securities and Exchange
Commission, Washington, DC 20549.
At any time after March 5, 2012, the
Commission may issue an order
cancelling the registration, upon the
basis of the information stated above,
unless an order for a hearing on the
cancellation shall be issued upon
request or upon the Commission’s own
motion. Persons who requested a
hearing, or to be advised as to whether
a hearing is ordered, will receive any
notices and orders issued in this matter,
including the date of the hearing (if
ordered) and any postponements
thereof. Any adviser whose registration
is cancelled under delegated authority
may appeal that decision directly to the
Commission in accordance with rules
430 and 431 of the Commission’s rules
of practice (17 CFR 201.430 and 431).
For further information contact: Alpa
Patel, Attorney-Adviser at 202–551–
6787 (Office of Investment Adviser
Regulation).
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.2
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–3224 Filed 2–10–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66340; File No. SR–OCC–
2012–02]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Permit
OCC To Clear and Settle Spot Gold
Futures, Which Are Proposed To Be
Traded by NASDAQ OMX Futures
Exchange, Inc.
February 7, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
January 24, 2012, The Options Clearing
Corporation (‘‘OCC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change described in Items I and II
below, which Items have been prepared
primarily by OCC. OCC filed the
proposal pursuant to Section
19(b)(3)(A)(iii) of the Act 2 and Rule
19b–4(f)(4)(ii) 3 thereunder so that the
proposal was effective upon filing with
the Commission. The Commission is
2 17
CFR 200.30–5(e)(2).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78s(b)(3)(A)(iii).
3 17 CFR 240.19b–4(f)(4)(ii).
7621
publishing this notice to solicit
comments on the rule change from
interested parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change will permit
OCC to clear and settle Spot Gold
Futures, which are proposed to be
traded by NASDAQ OMX Futures
Exchange, Inc. (‘‘NFX’’).
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
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The purpose of this rule change is to
permit OCC to clear and settle Spot
Gold Futures, which are proposed to be
traded by NFX. A Spot Gold Future is
a U.S. dollar-settled futures contract
based on the value of gold with an
additional daily cost of carry/interest
payment feature (‘‘Cost of Carry
Payment’’) reflecting the difference
between the overnight lease rate for gold
and the overnight interest rate for the
U.S. dollar. The Cost of Carry Payment
will be in addition to the daily variation
payment and is designed to make the
economic effect of buying or selling a
Spot Gold Future equivalent to the
purchase or sale of gold in the spot
market. Spot Gold Futures would
simulate a spot market transaction that
is continually ‘‘rolled forward’’ to the
maturity date of the future with the Cost
of Carry Payment being similar to the
payment exchanged between the buyer
and seller in a spot transaction each day
the transaction is rolled forward.
The per-contract amount of the Cost
of Carry Payment will be expressed in
terms of ‘‘swap points,’’ which will be
calculated and supplied to NFX by a
third-party service provider. A positive
swap point results in a credit for the
holder of the short position with respect
to a Spot Gold Futures contract, and a
1 15
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4 The Commission has modified the text of the
summaries prepared by OCC.
E:\FR\FM\13FEN1.SGM
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7622
Federal Register / Vol. 77, No. 29 / Monday, February 13, 2012 / Notices
debit for the holder of the long position.
Similarly, a negative swap point results
in a debit for the holder of the short
position and a credit for the holder of
the long position. NFX will provide the
swap point data that it receives from the
third-party service provider to OCC each
day, and OCC will apply the swap point
value to each Clearing Member
account’s final position at the end of
each day and will settle the resultant
payment along with regular cash
settlements on the following business
day. In the event that that NFX does not
provide the swap point data by the
deadline specified by OCC, settlement
of the Cost of Carry Payment may be
postponed until the business day
following the business day on which
such amount was provided.
Furthermore, the amount of the Cost of
Carry Payment provided by NFX will be
conclusively presumed to be accurate,
and OCC will not bear any liability as
a result of any inaccuracy in such
amount.
NFX plans to use as the final
settlement price for each Spot Gold
Future the published settlement price of
the corresponding gold futures contract
on COMEX.
OCC’s Proposed By-Law and Rule
Changes
OCC’s current By-Laws and Rules do
not provide for cash-settled futures with
a daily cost of carry/interest payment
between the buyer and seller of such
contract in addition to the daily
variation payment. In order to provide
for the clearance of Spot Gold Futures,
OCC proposes to add definitions for
Spot Futures and the Cost of Carry
Payment to its By-Laws and to amend
its Rules to describe the manner in
which Cost of Carry Payments will be
calculated and made.
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Changes to Agreement for Clearing and
Settlement Services
OCC performs the clearing function
for NFX pursuant to the Clearing
Agreement between OCC and NFX. The
Clearing Agreement provides that NFX
will provide settlement prices to OCC
and will indemnify OCC in the event
that OCC uses an incorrect settlement
price provided by NFX. It does not,
however, contemplate the transmission
of separate settlement items such as
swap points. The Clearing Agreement
will be amended to address NFX’s
provision of swap point data to OCC
and to provide protection for OCC in the
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14:46 Feb 10, 2012
Jkt 226001
event that NFX provides incorrect swap
point data.5
Pursuant to the terms of the Clearing
Agreement, OCC has agreed to clear the
specific types of contracts enumerated
in the Clearing Agreement and may
agree to clear additional types through
the execution by both parties of a new
‘‘Schedule C’’ to the Agreement.6
OCC believes that the proposed
changes to OCC’s By-Laws are
consistent with the purposes and
requirements of Section 17A of the Act 7
and the rules and regulations
thereunder applicable to OCC because
the proposed changes 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
investors and the public interest. The
proposed rule change is not inconsistent
with any rules of OCC.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
OCC does not believe that the
proposed rule change will have any
impact or 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
The foregoing proposed rule change
has become effective upon filing
pursuant to Section 19(b)(3)(A) of the
Act 8 and Rule 19b–4(f)(4)(ii) 9
thereunder. At any time within 60 days
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
5 A copy of the proposed second amended and
restated Clearing Agreement is attached to the
proposed rule change filing as Exhibit 5A.
6 A copy of the proposed new Schedule C
providing for the clearance of Spot Gold Futures is
attached to the proposed rule change filing as
Exhibit 5B.
7 15 U.S.C. 78q–1.
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(4)(ii).
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Frm 00058
Fmt 4703
Sfmt 4703
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 email to rulecomments@sec.gov. Please include File
Number SR–OCC–2012–02 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–2012–02. This file
number should be included on the
subject line if email 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 filings
also will 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_12_02.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–
2012–02 and should be submitted on or
before March 5, 2012.
E:\FR\FM\13FEN1.SGM
13FEN1
Federal Register / Vol. 77, No. 29 / Monday, February 13, 2012 / Notices
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin O’Neill,
Deputy Secretary.
[FR Doc. 2012–3213 Filed 2–10–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66342; File No. SR–
NYSEArca–2011–82]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Granting Approval of
a Proposed Rule Change, as Modified
by Amendment No. 3 Thereto, Relating
to the Listing and Trading of Shares of
the WisdomTree Emerging Markets
Inflation Protection Bond Fund Under
NYSE Arca Equities Rule 8.600
February 7, 2012.
I. Introduction
On November 14, 2011, NYSE Arca,
Inc. (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to list and trade shares of the
WisdomTree Emerging Markets Inflation
Protection Bond Fund under NYSE Arca
Equities Rule 8.600. The proposed rule
change was published for comment in
the Federal Register on December 5,
2011.3 On January 17, 2012, the
Exchange filed Amendment No. 1 to the
proposed rule change (‘‘Amendment No.
1’’).4 On January 18, 2012, the Exchange
filed Amendment No. 2 to the proposed
rule change (‘‘Amendment No. 2’’).5 On
January 23, 2012, the Exchange further
extended the time period for
Commission action to February 8, 2012.
On January 25, 2012, the Exchange filed
Amendment No. 3 to the proposed rule
change (‘‘Amendment No. 3’’).6 The
10 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. 65846
(November 29, 2011), 76 FR 75932 (‘‘Notice’’).
4 The Exchange withdrew Amendment No. 1 on
January 18, 2012 and extended the time period for
Commission action to January 25, 2012.
5 The Exchange withdrew Amendment No. 2 on
January 25, 2012.
6 The proposed rule change originally stated that
‘‘[t]he Fund may invest up to an aggregate amount
of 15% of its net assets in (a) illiquid securities and
(2) [sic] Rule 144A securities.’’ See Notice, 76 FR
at 75936, supra note 3. Amendment No. 3 amended
the proposed rule change by replacing the term
‘‘invest’’ with ‘‘hold.’’ The purpose of Amendment
No. 3 was to make the proposed rule change more
consistent with the Investment Company Act of
1940 (15 U.S.C. 80a–1) (‘‘1940 Act’’) requirements
erowe on DSK2VPTVN1PROD with NOTICES
1 15
VerDate Mar<15>2010
14:46 Feb 10, 2012
Jkt 226001
Commission received no comments on
the proposal. This order grants approval
of the proposed rule change, as
modified by Amendment No. 3.
II. Description of the Proposed Rule
Change
The Exchange proposes to list and
trade shares (‘‘Shares’’) of the
WisdomTree Emerging Markets Inflation
Protection Bond Fund (‘‘Fund’’)
pursuant to NYSE Arca Equities Rule
8.600, which governs the listing and
trading of Managed Fund Shares on the
Exchange. The Fund will be an activelymanaged exchange-traded fund. The
Shares will be offered by the
WisdomTree Trust (‘‘Trust’’), which was
established as a Delaware statutory trust
on December 15, 2005. The Fund is
registered with the Commission as an
investment company, and the Fund has
filed a registration statement on Form
N–1A (‘‘Registration Statement’’) with
the Commission.7 WisdomTree Asset
Management, Inc. is the investment
adviser (‘‘Adviser’’) to the Fund, and
Mellon Capital Management serves as
sub-adviser for the Fund (‘‘SubAdviser’’). The Bank of New York
Mellon is the administrator, custodian,
and transfer agent for the Trust, and
ALPS Distributors, Inc. serves as the
distributor for the Trust.8 The Exchange
states that, while WisdomTree Asset
Management is not affiliated with any
broker-dealer, the Sub-Adviser is
affiliated with multiple broker-dealers.
As a result, the Sub-Adviser has
implemented a ‘‘fire wall’’ with respect
to such broker-dealers regarding access
to information concerning the
composition and/or changes to the
Fund’s portfolio. In addition, Subrelating to restrictions on holdings of illiquid
securities by registered open-end management
investment companies. Because Amendment No. 3
seeks to maintain consistency with the 1940 Act
and rules and regulations thereunder, and does not
materially alter the substance of the proposed rule
change or raise any novel regulatory issues, the
amendment is not subject to notice and comment.
7 See Post-Effective Amendment No. 54 to
Registration Statement on Form N–1A for the Trust,
dated July 1, 2011 (File Nos. 333–132380 and 811–
21864).
8 The Commission has issued an order granting
certain exemptive relief to the Trust under the 1940
Act. See Investment Company Act Release No.
28171 (October 27, 2008) (File No. 812–13458)
(‘‘Exemptive Order’’). In compliance with
Commentary .05 to NYSE Arca Equities Rule 8.600,
which applies to Managed Fund Shares based on
an international or global portfolio, the Trust’s
application for exemptive relief under the 1940 Act
states that the Fund will comply with the federal
securities laws in accepting securities for deposits
and satisfying redemptions with redemption
securities, including that the securities accepted for
deposits and the securities used to satisfy
redemption requests are sold in transactions that
would be exempt from registration under the
Securities Act of 1933 (15 U.S.C. 77a).
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7623
Adviser personnel who make decisions
regarding the Fund’s portfolio are
subject to procedures designed to
prevent the use and dissemination of
material nonpublic information
regarding the Fund’s portfolio.9
Description of the Fund
The Fund seeks to provide a high
level of income and capital appreciation
representative of investments in
inflation-linked debt of emerging market
issuers. The Fund intends to achieve its
investment objectives through direct
and indirect investments in inflationprotected Fixed Income Securities 10 of
emerging market countries. The Fund
expects that it will have at least 70% of
its assets invested in Fixed Income
Securities. The Fund will invest in
Fixed Income Securities linked to
inflation rates in emerging markets
throughout the world. The Fund may
invest in Fixed Income Securities that
are not linked to inflation, such as U.S.
or non-U.S. government bonds, as well
as Fixed Income Securities that pay
variable or floating rates. The Fund may
also invest in Money Market Securities
and derivative instruments, as described
below.
The Fund intends to invest in
inflation-linked Fixed Income Securities
of issuers in the following regions: Asia,
Latin America, Eastern Europe, Africa,
and the Middle East. Within these
regions, the Fund is likely to invest in
countries such as Brazil, Chile,
Colombia, Hungary, Indonesia,
Malaysia, Mexico, Peru, Philippines,
Poland, Russia, South Africa, South
Korea, Thailand, and Turkey, although
this list may change as market
developments occur and may include
additional emerging market countries
that conform to selected ratings,
liquidity, and other criteria. As a general
matter, and subject to the Fund’s
investment guideline to provide
9 See Commentary .06 to NYSE Arca Equities
Rule 8.600. The Exchange represents that, in the
event (a) the Adviser or the Sub-Adviser becomes
newly affiliated with a broker-dealer, or (b) any new
adviser or sub-adviser becomes affiliated with a
broker-dealer, it will implement a fire wall with
respect to such broker-dealer regarding access to
information concerning the composition and/or
changes to the portfolio, and will be subject to
procedures designed to prevent the use and
dissemination of material non-public information
regarding such portfolio.
10 For these purposes, ‘‘Fixed Income Securities’’
include bonds, notes, or other debt obligations,
such as government or corporate bonds,
denominated in local currencies or U.S. dollars, as
well as issues denominated in emerging market
local currencies that are issued by ‘‘supranational
issuers,’’ such as the International Bank for
Reconstruction and Development and the
International Finance Corporation, as well as
development agencies supported by other national
governments.
E:\FR\FM\13FEN1.SGM
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]]>Agencies
[Federal Register Volume 77, Number 29 (Monday, February 13, 2012)]
[Notices]
[Pages 7621-7623]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-3213]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66340; File No. SR-OCC-2012-02]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Permit OCC To Clear and Settle Spot Gold Futures, Which Are Proposed To
Be Traded by NASDAQ OMX Futures Exchange, Inc.
February 7, 2012.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on January 24, 2012, The
Options Clearing Corporation (``OCC'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change described
in Items I and II below, which Items have been prepared primarily by
OCC. OCC filed the proposal pursuant to Section 19(b)(3)(A)(iii) of the
Act \2\ and Rule 19b-4(f)(4)(ii) \3\ thereunder so that the proposal
was effective upon filing with the Commission. The Commission is
publishing this notice to solicit comments on the rule change from
interested parties.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78s(b)(3)(A)(iii).
\3\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change will permit OCC to clear and settle Spot
Gold Futures, which are proposed to be traded by NASDAQ OMX Futures
Exchange, Inc. (``NFX'').
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.
---------------------------------------------------------------------------
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of this rule change is to permit OCC to clear and
settle Spot Gold Futures, which are proposed to be traded by NFX. A
Spot Gold Future is a U.S. dollar-settled futures contract based on the
value of gold with an additional daily cost of carry/interest payment
feature (``Cost of Carry Payment'') reflecting the difference between
the overnight lease rate for gold and the overnight interest rate for
the U.S. dollar. The Cost of Carry Payment will be in addition to the
daily variation payment and is designed to make the economic effect of
buying or selling a Spot Gold Future equivalent to the purchase or sale
of gold in the spot market. Spot Gold Futures would simulate a spot
market transaction that is continually ``rolled forward'' to the
maturity date of the future with the Cost of Carry Payment being
similar to the payment exchanged between the buyer and seller in a spot
transaction each day the transaction is rolled forward.
The per-contract amount of the Cost of Carry Payment will be
expressed in terms of ``swap points,'' which will be calculated and
supplied to NFX by a third-party service provider. A positive swap
point results in a credit for the holder of the short position with
respect to a Spot Gold Futures contract, and a
[[Page 7622]]
debit for the holder of the long position. Similarly, a negative swap
point results in a debit for the holder of the short position and a
credit for the holder of the long position. NFX will provide the swap
point data that it receives from the third-party service provider to
OCC each day, and OCC will apply the swap point value to each Clearing
Member account's final position at the end of each day and will settle
the resultant payment along with regular cash settlements on the
following business day. In the event that that NFX does not provide the
swap point data by the deadline specified by OCC, settlement of the
Cost of Carry Payment may be postponed until the business day following
the business day on which such amount was provided. Furthermore, the
amount of the Cost of Carry Payment provided by NFX will be
conclusively presumed to be accurate, and OCC will not bear any
liability as a result of any inaccuracy in such amount.
NFX plans to use as the final settlement price for each Spot Gold
Future the published settlement price of the corresponding gold futures
contract on COMEX.
OCC's Proposed By-Law and Rule Changes
OCC's current By-Laws and Rules do not provide for cash-settled
futures with a daily cost of carry/interest payment between the buyer
and seller of such contract in addition to the daily variation payment.
In order to provide for the clearance of Spot Gold Futures, OCC
proposes to add definitions for Spot Futures and the Cost of Carry
Payment to its By-Laws and to amend its Rules to describe the manner in
which Cost of Carry Payments will be calculated and made.
Changes to Agreement for Clearing and Settlement Services
OCC performs the clearing function for NFX pursuant to the Clearing
Agreement between OCC and NFX. The Clearing Agreement provides that NFX
will provide settlement prices to OCC and will indemnify OCC in the
event that OCC uses an incorrect settlement price provided by NFX. It
does not, however, contemplate the transmission of separate settlement
items such as swap points. The Clearing Agreement will be amended to
address NFX's provision of swap point data to OCC and to provide
protection for OCC in the event that NFX provides incorrect swap point
data.\5\
---------------------------------------------------------------------------
\5\ A copy of the proposed second amended and restated Clearing
Agreement is attached to the proposed rule change filing as Exhibit
5A.
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Pursuant to the terms of the Clearing Agreement, OCC has agreed to
clear the specific types of contracts enumerated in the Clearing
Agreement and may agree to clear additional types through the execution
by both parties of a new ``Schedule C'' to the Agreement.\6\
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\6\ A copy of the proposed new Schedule C providing for the
clearance of Spot Gold Futures is attached to the proposed rule
change filing as Exhibit 5B.
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OCC believes that the proposed changes to OCC's By-Laws are
consistent with the purposes and requirements of Section 17A of the Act
\7\ and the rules and regulations thereunder applicable to OCC because
the proposed changes 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 investors and the public interest. The proposed
rule change is not inconsistent with any rules of OCC.
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\7\ 15 U.S.C. 78q-1.
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(B) Self-Regulatory Organization's Statement on Burden on Competition
OCC does not believe that the proposed rule change will have any
impact or 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
The foregoing proposed rule change has become effective upon filing
pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(4)(ii)
\9\ thereunder. At any time within 60 days 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.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(4)(ii).
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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 email to rule-comments@sec.gov. Please include
File Number SR-OCC-2012-02 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-2012-02. This file
number should be included on the subject line if email 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 filings also will 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_12_02.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-2012-02 and should be submitted on or before March
5, 2012.
[[Page 7623]]
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Kevin O'Neill,
Deputy Secretary.
[FR Doc. 2012-3213 Filed 2-10-12; 8:45 am]
BILLING CODE 8011-01-P
