Self-Regulatory Organizations; the Options Clearing Corporation; Order Approving Proposed Rule Change To Amend OCC's By-Laws To Allow the Corporation To Approve OCC's Form of Clearing Member Application and Form of Clearing Agreement, 55887-55888 [2012-22242]
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Federal Register / Vol. 77, No. 176 / Tuesday, September 11, 2012 / Notices
out the purposes of the Act, to comply
with the Act, and to enforce compliance
by FINRA members and persons
associated with FINRA members with
the Act, the rules and regulations
thereunder, FINRA rules and the federal
securities laws. FINRA further believes
that the proposed rule change is
consistent with Section 15A(b)(4) of the
Act, which requires, among other
things, that FINRA’s rules assure a fair
representation of its members in the
selection of its directors and
administration of its affairs and
provides that one or more directors shall
be representative of issuers and
investors and not be associated with a
member of FINRA, broker or dealer.
FINRA believes that the proposal would
assure fair administration of its Dispute
Resolution affairs by providing another
source of qualified and experienced
candidates from which to select public
members for the NAMC.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will result in any
burden on competition or capital
formation that is not necessary or
appropriate in furtherance of the
purposes of the Act, as amended.13
Further, FINRA believes that the
proposal will promote efficiency in the
arbitration forum as it will provide
another source of qualified and
experienced candidates from which to
select public members for the NAMC.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
srobinson on DSK4SPTVN1PROD with NOTICES
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 (i)
as the Commission may designate up to
90 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 or disapprove
such proposed rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
13 15
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–FINRA–2012–040 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–FINRA–2012–040. 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 filing
also will be available for inspection and
copying at the principal office of
FINRA. 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–FINRA–2012–040 and
should be submitted on or before
October 2, 2012.
U.S.C. 78c(f).
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55887
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–22219 Filed 9–10–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67782; File No. SR–OCC–
2012–12]
Self-Regulatory Organizations; the
Options Clearing Corporation; Order
Approving Proposed Rule Change To
Amend OCC’s By-Laws To Allow the
Corporation To Approve OCC’s Form
of Clearing Member Application and
Form of Clearing Agreement
September 5, 2012.
I. Introduction
On July 16, 2012, The Options
Clearing Corporation (‘‘OCC’’ or the
‘‘Corporation’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change SR–OCC–2012–12 pursuant to
Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’).1 The
proposed rule change was published for
comment in the Federal Register on
August 1, 2012.2 The Commission
received no comment letters. For the
reasons discussed below, the
Commission is granting approval of the
proposed rule change.
II. Description
The proposed rule change would
amend OCC’s By-Laws to allow the
Corporation to approve OCC’s form of
clearing member application and form
of clearing agreement. The proposed
rule change also amends the Agreement
for OCC Services to reflect operational
changes OCC made since OCC first
created the agreement.
A. Background
Currently, OCC’s Board of Directors
must approve the form of OCC’s clearing
member application and form of
clearing agreement. OCC requires
applicants for clearing membership at
OCC to complete an application and,
once an applicant becomes a clearing
member, requires clearing members to
enter into a clearing member agreement.
OCC’s By-Laws and Rules set forth the
qualifications and requirements for
clearing membership at OCC. The
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 Securities Exchange Act Release No. 34–67506
(July 26, 2012), 77 FR 45702 (August 1, 2012).
1 15
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Federal Register / Vol. 77, No. 176 / Tuesday, September 11, 2012 / Notices
srobinson on DSK4SPTVN1PROD with NOTICES
clearing member application is designed
to elicit relevant information from an
applicant for clearing membership in
order for OCC to determine if the
applicant meets OCC’s qualifications for
clearing membership. The clearing
member agreement is a contract between
OCC and a clearing member whereby
the clearing member agrees to meet all
of the requirements of clearing
membership at OCC. The By-Laws
require OCC’s Board of Directors to
approve both the form of clearing
member application and the form of
clearing member agreement.
In addition to the clearing member
agreement, clearing members may also
enter into an Agreement for OCC
Services. The Agreement for OCC
Services sets forth certain ancillary
services OCC provides to its clearing
members that are in addition to those
services set forth in the By-Laws and
Rules. The Agreement for OCC Services
is set up as a master agreement. Clearing
members may then choose the specific
ancillary services they desire and then
execute the appropriate ancillary
services supplement. Such ancillary
services may include, for example,
access to OCC’s Data Distribution
Services, internet access to OCC
information and data systems, and
OCC’s theoretical profit and loss values
service.
B. Proposed By-Law and Rule Changes
OCC proposes to amend the
applicable provisions of its By-Laws to
state that both the form of clearing
member application and the form of
clearing member agreement be specified
by OCC generally, rather than its Board
of Directors. The requirement that the
Board of Directors approve the form of
such documents is overly ministerial
given that OCC’s By-Laws specify the
substantive requirements of both the
clearing member application and the
clearing member agreement.
OCC also proposes to amend its
Agreement for OCC Services to reflect
operational changes OCC made since
OCC first created the agreement. These
changes include broader references to
‘‘clearing services’’ provided by OCC
and not only to ‘‘options’’ clearing
services. Advanced notice of 90 days of
fee changes would be eliminated
because fee changes to the ancillary
services program are filed as rule
changes and are infrequent in nature.
Language would be added to the
Agreement for OCC Services such that
the clearing member authorizes OCC to
withdraw funds from the clearing
member’s firm account, on or after the
fifth business day following the end of
the calendar month. This language
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conforms to OCC Rules. In addition, a
provision referring to the exclusivity of
the warranties set forth in the
Agreement for OCC Services would be
eliminated because the agreement
contains no warranty provisions. Any
applicable warranty provisions would
be contained within the ancillary
supplements to the Agreement for OCC
Services.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
III. Discussion
[Release No. 34–67785; File No. SR–
NYSEArca–2012–48]
directs
Section 19(b)(2)(C) of the
the Commission to approve a proposed
rule change of a self-regulatory
organization if it finds that such
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to such organization. Section
17A(b)(3)(F) of the Act 4 requires, among
other things, that the rules of a clearing
agency are designed to remove
impediments to and perfect the
mechanism of a national system for the
prompt and accurate clearance and
settlement of securities transactions.
The Commission believes that these
changes are consistent with the
requirements of Section 17A of the Act 5
and the rules and regulations
thereunder applicable to OCC. The
changes to OCC’s By-Laws eliminate
inefficient and burdensome
administrative procedures which
unnecessarily require OCC’s Board
approval for the form of clearing
member application and agreement. The
changes to the Agreement for OCC
Services are designed to reflect
operational changes OCC made since
creating the agreement.
Act 3
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal is
consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the Act 6
and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,7 that the
proposed rule change (File No. SR–
OCC–2012–12) be, and hereby is,
approved.8
3 15
U.S.C. 78s(b)(2)(C).
U.S.C. 78q–1(b)(3)(F).
5 15 U.S.C. 78q–1.
6 Id.
7 15 U.S.C. 78s(b)(2).
8 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).
4 15
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[FR Doc. 2012–22242 Filed 9–10–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Approving a
Proposed Rule Change Amending
NYSE Arca Equities Rule 7.31(h) To
Add a PL Select Order
September 5, 2012.
I. Introduction
On May 22, 2012, 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 amend NYSE Arca Equities
Rule 7.31(h) to add a PL Select Order.
The proposed rule change was
published for comment in the Federal
Register on June 8, 2012.3 A designation
of a longer period for Commission
action was published in the Federal
Register on July 26, 2012.4 The
Commission received no comment
letters regarding the proposed rule
change. This order approves the
proposed rule change.
II. Description of the Proposal
The Exchange proposes to amend
NYSE Arca Equities Rule 7.31(h) to add
a PL Select Order. The PL Select Order
would be a subset of a Passive Liquidity
(‘‘PL’’) Order.5 NYSE Arca Equities Rule
7.31(h)(7) would define the PL Select
Order as a PL Order that would not
interact with an incoming order that: (i)
Has an immediate-or-cancel (‘‘IOC’’)
time in force condition,6 (ii) is an ISO,7
or (iii) is larger than the size of the PL
Select Order. The PL Select Order
9 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. 67101
(June 4, 2012), 77 FR 34115 (‘‘Notice’’).
4 See Securities Exchange Act Release No. 67475
(July 20, 2012), 77 FR 43879 (Notice of Designation
of a Longer Period for Commission Action on
Proposed Rule Change Amending NYSE Arca
Equities Rule 7.31(h) To Add a PL Select Order
Type).
5 See NYSE Arca Equities Rule 7.31(h)(4).
6 See NYSE Arca Equities Rule 7.31(e).
7 See NYSE Arca Equities Rule 7.31(jj).
1 15
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]]>Agencies
[Federal Register Volume 77, Number 176 (Tuesday, September 11, 2012)]
[Notices]
[Pages 55887-55888]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-22242]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67782; File No. SR-OCC-2012-12]
Self-Regulatory Organizations; the Options Clearing Corporation;
Order Approving Proposed Rule Change To Amend OCC's By-Laws To Allow
the Corporation To Approve OCC's Form of Clearing Member Application
and Form of Clearing Agreement
September 5, 2012.
I. Introduction
On July 16, 2012, The Options Clearing Corporation (``OCC'' or the
``Corporation'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change SR-OCC-2012-12 pursuant to
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'').\1\
The proposed rule change was published for comment in the Federal
Register on August 1, 2012.\2\ The Commission received no comment
letters. For the reasons discussed below, the Commission is granting
approval of the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ Securities Exchange Act Release No. 34-67506 (July 26,
2012), 77 FR 45702 (August 1, 2012).
---------------------------------------------------------------------------
II. Description
The proposed rule change would amend OCC's By-Laws to allow the
Corporation to approve OCC's form of clearing member application and
form of clearing agreement. The proposed rule change also amends the
Agreement for OCC Services to reflect operational changes OCC made
since OCC first created the agreement.
A. Background
Currently, OCC's Board of Directors must approve the form of OCC's
clearing member application and form of clearing agreement. OCC
requires applicants for clearing membership at OCC to complete an
application and, once an applicant becomes a clearing member, requires
clearing members to enter into a clearing member agreement. OCC's By-
Laws and Rules set forth the qualifications and requirements for
clearing membership at OCC. The
[[Page 55888]]
clearing member application is designed to elicit relevant information
from an applicant for clearing membership in order for OCC to determine
if the applicant meets OCC's qualifications for clearing membership.
The clearing member agreement is a contract between OCC and a clearing
member whereby the clearing member agrees to meet all of the
requirements of clearing membership at OCC. The By-Laws require OCC's
Board of Directors to approve both the form of clearing member
application and the form of clearing member agreement.
In addition to the clearing member agreement, clearing members may
also enter into an Agreement for OCC Services. The Agreement for OCC
Services sets forth certain ancillary services OCC provides to its
clearing members that are in addition to those services set forth in
the By-Laws and Rules. The Agreement for OCC Services is set up as a
master agreement. Clearing members may then choose the specific
ancillary services they desire and then execute the appropriate
ancillary services supplement. Such ancillary services may include, for
example, access to OCC's Data Distribution Services, internet access to
OCC information and data systems, and OCC's theoretical profit and loss
values service.
B. Proposed By-Law and Rule Changes
OCC proposes to amend the applicable provisions of its By-Laws to
state that both the form of clearing member application and the form of
clearing member agreement be specified by OCC generally, rather than
its Board of Directors. The requirement that the Board of Directors
approve the form of such documents is overly ministerial given that
OCC's By-Laws specify the substantive requirements of both the clearing
member application and the clearing member agreement.
OCC also proposes to amend its Agreement for OCC Services to
reflect operational changes OCC made since OCC first created the
agreement. These changes include broader references to ``clearing
services'' provided by OCC and not only to ``options'' clearing
services. Advanced notice of 90 days of fee changes would be eliminated
because fee changes to the ancillary services program are filed as rule
changes and are infrequent in nature. Language would be added to the
Agreement for OCC Services such that the clearing member authorizes OCC
to withdraw funds from the clearing member's firm account, on or after
the fifth business day following the end of the calendar month. This
language conforms to OCC Rules. In addition, a provision referring to
the exclusivity of the warranties set forth in the Agreement for OCC
Services would be eliminated because the agreement contains no warranty
provisions. Any applicable warranty provisions would be contained
within the ancillary supplements to the Agreement for OCC Services.
III. Discussion
Section 19(b)(2)(C) of the Act \3\ directs the Commission to
approve a proposed rule change of a self-regulatory organization if it
finds that such proposed rule change is consistent with the
requirements of the Act and the rules and regulations thereunder
applicable to such organization. Section 17A(b)(3)(F) of the Act \4\
requires, among other things, that the rules of a clearing agency are
designed to remove impediments to and perfect the mechanism of a
national system for the prompt and accurate clearance and settlement of
securities transactions.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78s(b)(2)(C).
\4\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
The Commission believes that these changes are consistent with the
requirements of Section 17A of the Act \5\ and the rules and
regulations thereunder applicable to OCC. The changes to OCC's By-Laws
eliminate inefficient and burdensome administrative procedures which
unnecessarily require OCC's Board approval for the form of clearing
member application and agreement. The changes to the Agreement for OCC
Services are designed to reflect operational changes OCC made since
creating the agreement.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
IV. Conclusion
On the basis of the foregoing, the Commission finds that the
proposal is consistent with the requirements of the Act and in
particular with the requirements of Section 17A of the Act \6\ and the
rules and regulations thereunder.
---------------------------------------------------------------------------
\6\ Id.
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\7\ that the proposed rule change (File No. SR-OCC-2012-12) be, and
hereby is, approved.\8\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(2).
\8\ 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.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-22242 Filed 9-10-12; 8:45 am]
BILLING CODE 8011-01-P
