Self-Regulatory Organizations; The Options Clearing Corporation; Order Granting Approval of Accelerated Delivery of Supplement to the Options Disclosure Document Reflecting Certain Changes to Disclosure Regarding Adjustments for Cash Dividends and Distributions in Respect of Options Overlying Less than 100 Shares To Accommodate the Trading of Mini Options, 74043-74044 [2012-29930]
Download as PDF
Federal Register / Vol. 77, No. 239 / Wednesday, December 12, 2012 / Notices
Exchange withdrew the proposed rule
change, as modified by Amendment
Nos. 1 and 2 thereto (SR–NASDAQ–
2012–043).
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68368; File No. SR–ODD–
2012–02]
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–29960 Filed 12–11–12; 8:45 am]
BILLING CODE 8011–01–P
Self-Regulatory Organizations; The
Options Clearing Corporation; Order
Granting Approval of Accelerated
Delivery of Supplement to the Options
Disclosure Document Reflecting
Certain Changes to Disclosure
Regarding Adjustments for Cash
Dividends and Distributions in Respect
of Options Overlying Less than 100
Shares To Accommodate the Trading
of Mini Options
mstockstill on DSK4VPTVN1PROD with
December 6, 2012.
(consolidated trades in all U.S. markets) (‘‘ATV’’) of
1.0 million shares or more for three consecutive
months (the previously proposed termination
threshold was average daily trading volume of 2.0
million shares or more traded on NASDAQ for three
consecutive months); and (v) amend the definition
of ‘‘MQP Company’’ to clarify that such term means
a fund sponsor or issuer, as applicable, that lists an
MQP Security on the Exchange pursuant to the
MQP (the previously proposed definition defined
an ‘‘MQP Company’’ as a fund sponsor or ‘‘other
entity’’ that lists an MQP Security on the Exchange
pursuant to the MQP).
In Amendment No. 2, the Exchange further
proposed to amend the filing to state that while the
Exchange originally proposed a termination
threshold of 2.0 million shares or more ATV for
three consecutive months, it is scaling back the
threshold to better provide an opportunity to
observe the impact, if any, on MQP Securities that
exceed the threshold and ‘‘graduate’’ from the MQP.
The Exchange notes that it has compiled statistics
indicating that ‘‘graduation’’ from the MQP may
occur more frequently at a 1.0 million ATV
threshold than at a 2.0 million ATV threshold, and
includes a chart showing from years 2001 to 2012
the number of ETFs that would have graduated
from the MQP under the 2.0 million and 1.0 million
ATV thresholds. Finally, in Amendment No. 2, the
Exchange proposed to amend the filing to make the
following additional representations: (i) the
Exchange represents that it will post on its Web site
the monthly reports that it provides to the
Commission relating to the MQP during the pilot
period; (ii) the Exchange represents that it will
endeavor to provide similar data to the Commission
about comparable products that are listed on the
Exchange that are not in the MQP and any other
MQP-related data and analysis requested by
Commission staff for the purpose of evaluating the
efficacy of the MQP; and (iii) the Exchange
represents that it will issue to its members an
information bulletin about the MQP prior to
operation of the MQP.
11 17 CFR 200.30–3(a)(12).
VerDate Mar<15>2010
15:48 Dec 11, 2012
Jkt 229001
On October 2, 2012, The Options
Clearing Corporation (‘‘OCC’’) submitted
to the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Rule 9b–1 under the Securities
Exchange Act of 1934 (‘‘Act’’),1 five
preliminary copies of a supplement
(‘‘November 2012 Supplement’’) to
amend the options disclosure document
(‘‘ODD’’) to reflect certain changes to
disclosure regarding adjustments for
cash dividends and distributions in
respect of options overlying less than
100 shares to accommodate the trading
of mini options.2 On November 14,
2012, the OCC submitted to the
Commission definitive copies of the
November 2012 Supplement.3
The ODD currently contains general
disclosures on the characteristics and
risks of trading standardized options. In
September 2012, the Commission
approved proposed rule changes that
permitted the International Securities
Exchange, LLC and NYSE Arca, Inc. to
list and trade mini options (‘‘Mini
Options’’) overlying 10 shares of SPDR
S&P 500 ETF, Apple Inc., SPDR Gold
Trust, Google Inc., and Amazon.com,
Inc.4 Subsequently, NASDAQ OMX
PHLX LLC filed a proposed rule change
to list and trade these Mini Options.5
The current proposed November 2012
1 17
CFR 240.9b–1.
letter from Jean M. Cawley, Senior Vice
President, Deputy General Counsel and Chief
Compliance Officer, OCC, to Sharon Lawson, Senior
Special Counsel, Division of Trading and Markets
(‘‘Division’’), Commission, dated October 1, 2012.
3 See letter from Jean M. Cawley, Senior Vice
President, Deputy General Counsel and Chief
Compliance Officer, OCC, to Sharon Lawson, Senior
Special Counsel, Division, Commission, dated
November 9, 2012.
4 See Securities Exchange Act Release No. 67948
(September 28, 2012), 77 FR 60735 (October 4,
2012) (SR–NYSEArca–2012–64 and SR–ISE–2012–
58).
5 See Securities Exchange Act Release No. 68132
(November 1, 2012), 77 FR 66904 (November 7,
2012) (SR–Phlx–2012–126) (notice of filing and
immediate effectiveness of proposed rule change to
list and trade Mini Options).
2 See
PO 00000
Frm 00071
Fmt 4703
Sfmt 4703
74043
Supplement amends the ODD disclosure
to accommodate adjustments for cash
dividends and distributions in respect
of options overlying less than 100
shares.6 This change will help to ensure
that Mini Options are adjusted when the
corresponding standard-sized options
are adjusted. Specifically, the November
2012 Supplement would make clear that
no adjustment will normally be made
for any cash dividend or distribution
that amounts to less than $0.125 per
underlying share. In addition, for
contracts originally listed with a unit of
trading larger than 100 shares, the
November 2012 Supplement will
continue to provide that no adjustment
normally would be made for any cash
dividend or distribution that amounts to
less than $12.50 per contract. The
proposed supplement is intended to be
read in conjunction with the more
general ODD, which discusses the
characteristics and risks of options
generally.7
Rule 9b–1(b)(2)(i) under the Act 8
provides that an options market must
file five copies of an amendment or
supplement to the ODD with the
Commission at least 30 days prior to the
date definitive copies are furnished to
customers, unless the Commission
determines otherwise, having due
regard to the adequacy of the
information disclosed and the public
interest and protection of investors.9 In
addition, five copies of the definitive
ODD, as amended or supplemented,
6 The Commission recently approved a proposed
rule change by the OCC to make similar changes to
its By-Laws. See Securities Exchange Act Release
Nos. 67917 (September 24, 2012), 77 FR 59687
(September 28, 2012) (‘‘OCC Notice’’) and 68104
(October 25, 2012), 77 FR 65917 (October 31, 2012)
(SR–OCC–2012–16). In its filing, the OCC stated
that without the By-Law amendments, some cash
dividends or distributions that would exceed the
adjustment threshold in the case of standard
options would not exceed the adjustment threshold
in the case of a Mini Option because the per
contract distribution on the Mini Option would be
only 1⁄10th of the distribution on the standard
option and the adjustment threshold was stated on
a per contract basis rather than a per share basis.
Therefore, the OCC amended, with Commission
approval, the adjustment threshold from $12.50 per
contract to $0.125 per share. In its filing, the OCC
also stated that it did not intend for the rule change
to affect options contracts that were originally listed
with units of trading in excess of 100 shares.
7 The Commission notes that the options markets
must continue to ensure that the ODD is in
compliance with the requirements of Rule 9b–
1(b)(2)(i) under the Act, 17 CFR 240.9b–1(b)(2)(i),
including when changes regarding Mini Options are
made in the future. Any future changes to the rules
of the options markets concerning Mini Options
would need to be submitted to the Commission
under Section 19(b) of the Act. 15 U.S.C. 78s(b).
8 17 CFR 240.9b–1(b)(2)(i).
9 This provision permits the Commission to
shorten or lengthen the period of time which must
elapse before definitive copies may be furnished to
customers.
E:\FR\FM\12DEN1.SGM
12DEN1
74044
Federal Register / Vol. 77, No. 239 / Wednesday, December 12, 2012 / Notices
must be filed with the Commission not
later than the date the amendment or
supplement, or the amended ODD, is
furnished to customers. The
Commission has reviewed the proposed
November 2012 Supplement, and the
amendments to the ODD contained
therein, and finds that, having due
regard to the adequacy of the
information disclosed and the public
interest and protection of investors, the
supplement may be furnished to
customers as of the date of this order.
It is therefore ordered, pursuant to
Rule 9b–1 under the Act,10 that
definitive copies of the November 2012
Supplement to the ODD (SR–ODD–
2012–02), reflecting changes to
disclosure regarding adjustments for
cash dividends and distributions in
respect of options overlying less than
100 shares, may be furnished to
customers as of the date of this order.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–29930 Filed 12–11–12; 8:45 am]
BILLING CODE 8011–01–P
for the document by entering ‘‘Public
Notice ####’’ in the Search bar. If
necessary, use the Narrow by Agency
filter option on the Results page.
• Email: PPTFormsOfficer@state.gov.
• Mail: PPT Forms Officer, U.S.
Department of State, 2100 Pennsylvania
Avenue NW., Room 3030, Washington,
DC 20037.
• Fax: (202) 663–2410.
• Hand Delivery or Courier: PPT
Forms Officer, U.S. Department of State,
2100 Pennsylvania Avenue NW., Room
3030, Washington, DC 20037.
You must include the DS form
number (if applicable), information
collection title, and the OMB control
number in any correspondence.
FOR FURTHER INFORMATION CONTACT:
Direct requests for additional
information regarding the collection
listed in this notice, including requests
for copies of the proposed collection
instrument and supporting documents,
to PPT Forms Officer, U.S. Department
of State, 2100 Pennsylvania Avenue
NW., Room 3030, Washington, DC
20037 who may be reached on (202)
663–2457 or at
PPTFormsOfficer@state.gov.
SUPPLEMENTARY INFORMATION:
DEPARTMENT OF STATE
[Public Notice 8110]
60-Day Notice of Proposed Information
Collection: Statement of Consent:
Issuance of a U.S. Passport to a Minor
Under Age 16
Notice of request for public
comment.
ACTION:
The Department of State is
seeking Office of Management and
Budget (OMB) approval for the
information collection described below.
In accordance with the Paperwork
Reduction Act of 1995, we are
requesting comments on this collection
from all interested individuals and
organizations. The purpose of this
notice is to allow 60 days for public
comment preceding submission of the
collection to OMB.
DATES: The Department will accept
comments from the public up to
February 11, 2013.
ADDRESSES: You may submit comments
by any of the following methods:
• Web: Persons with access to the
Internet may use the Federal Docket
Management System (FDMS) to
comment on this notice by going to
www.Regulations.gov. You can search
mstockstill on DSK4VPTVN1PROD with
SUMMARY:
10 17
11 17
CFR 240.9b–1.
CFR 200.30–3(a)(39).
VerDate Mar<15>2010
15:48 Dec 11, 2012
Jkt 229001
• Title of Information Collection:
Statement of Consent: Issuance of a U.S.
Passport to a Minor under Age 16.
• OMB Control Number: 1405–0129.
• Type of Request: Revision of a
Currently Approved Collection.
• Originating Office: Bureau of
Consular Affairs, Passport Services,
Office of Program Management and
Operational Support, Program
Coordination Division (CA/PPT/PMO/
PC).
• Form Number: DS–3053.
• Respondents: Individuals or
Households.
• Estimated Number of Respondents:
1,260,000 respondents per year.
• Estimated Number of Responses:
1,260,000 responses per year.
• Average Time Per Response: 5
minutes.
• Total Estimated Burden Time:
105,000 hours per year.
• Frequency: On occasion.
• Obligation to Respond: Required to
Obtain or Retain a Benefit.
We are soliciting public comments to
permit the Department to:
• Evaluate whether the proposed
information collection is necessary for
the proper functions of the Department.
• Evaluate the accuracy of our
estimate of the time and cost burden for
this proposed collection, including the
validity of the methodology and
assumptions used.
PO 00000
Frm 00072
Fmt 4703
Sfmt 4703
• Enhance the quality, utility, and
clarity of the information to be
collected.
• Minimize the reporting burden on
those who are to respond, including the
use of automated collection techniques
or other forms of information
technology.
Please note that comments submitted
in response to this Notice are public
record. Before including any detailed
personal information, you should be
aware that your comments as submitted,
including your personal information,
will be available for public review.
Abstract of Proposed Collection
The information collected on the DS–
3053, ‘‘Statement of Consent: Issuance
of a U.S. Passport to a Minor under Age
16’’, is used in conjunction with the
DS–11, ‘‘Application for a U.S.
Passport’’. When a minor under the age
16 applies for a passport and one of the
minor’s parents or legal guardians is
unavailable at the time the passport
application is executed, a completed
and notarized DS–3053 can be used as
the statement of consent. If the required
statement is not submitted, the minor
cannot receive a U.S. passport. The
required statement may be submitted in
other formats provided they meet
statutory and regulatory requirements.
The legal authority permitting this
information collection assists the
Department of State to administer the
regulations in 22 CFR 51.27 requiring
that both parents and/or any guardian
consent to the issuance of a passport to
a minor under age 16, except where one
parent has sole custody. This regulation
was mandated by Section 236 of the
Admiral James W. Nance and Meg
Donovan Foreign Relations
authorization Act, Fiscal Year 2000 and
2001 (enacted by Public Law 106–113,
Div. B, Section 1000 (a)(7)), and helps
to prevent international child
abduction.
Methodology
Passport Services collects information
from U.S. citizens and non-citizen
nationals when they complete and
submit the DS–3053, ‘‘Statement of
Consent: Issuance of a U.S. Passport to
a Minor under Age 16’’. Passport
applicants can either download the DS–
3053 from the Internet or obtain the
form from an Acceptance Facility/
Passport Agency. The form must be
completed, signed, and submitted along
with the applicant’s DS–11,
‘‘Application for a U.S. Passport’’.
E:\FR\FM\12DEN1.SGM
12DEN1
Agencies
[Federal Register Volume 77, Number 239 (Wednesday, December 12, 2012)]
[Notices]
[Pages 74043-74044]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-29930]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68368; File No. SR-ODD-2012-02]
Self-Regulatory Organizations; The Options Clearing Corporation;
Order Granting Approval of Accelerated Delivery of Supplement to the
Options Disclosure Document Reflecting Certain Changes to Disclosure
Regarding Adjustments for Cash Dividends and Distributions in Respect
of Options Overlying Less than 100 Shares To Accommodate the Trading of
Mini Options
December 6, 2012.
On October 2, 2012, The Options Clearing Corporation (``OCC'')
submitted to the Securities and Exchange Commission (``Commission''),
pursuant to Rule 9b-1 under the Securities Exchange Act of 1934
(``Act''),\1\ five preliminary copies of a supplement (``November 2012
Supplement'') to amend the options disclosure document (``ODD'') to
reflect certain changes to disclosure regarding adjustments for cash
dividends and distributions in respect of options overlying less than
100 shares to accommodate the trading of mini options.\2\ On November
14, 2012, the OCC submitted to the Commission definitive copies of the
November 2012 Supplement.\3\
---------------------------------------------------------------------------
\1\ 17 CFR 240.9b-1.
\2\ See letter from Jean M. Cawley, Senior Vice President,
Deputy General Counsel and Chief Compliance Officer, OCC, to Sharon
Lawson, Senior Special Counsel, Division of Trading and Markets
(``Division''), Commission, dated October 1, 2012.
\3\ See letter from Jean M. Cawley, Senior Vice President,
Deputy General Counsel and Chief Compliance Officer, OCC, to Sharon
Lawson, Senior Special Counsel, Division, Commission, dated November
9, 2012.
---------------------------------------------------------------------------
The ODD currently contains general disclosures on the
characteristics and risks of trading standardized options. In September
2012, the Commission approved proposed rule changes that permitted the
International Securities Exchange, LLC and NYSE Arca, Inc. to list and
trade mini options (``Mini Options'') overlying 10 shares of SPDR S&P
500 ETF, Apple Inc., SPDR Gold Trust, Google Inc., and Amazon.com,
Inc.\4\ Subsequently, NASDAQ OMX PHLX LLC filed a proposed rule change
to list and trade these Mini Options.\5\ The current proposed November
2012 Supplement amends the ODD disclosure to accommodate adjustments
for cash dividends and distributions in respect of options overlying
less than 100 shares.\6\ This change will help to ensure that Mini
Options are adjusted when the corresponding standard-sized options are
adjusted. Specifically, the November 2012 Supplement would make clear
that no adjustment will normally be made for any cash dividend or
distribution that amounts to less than $0.125 per underlying share. In
addition, for contracts originally listed with a unit of trading larger
than 100 shares, the November 2012 Supplement will continue to provide
that no adjustment normally would be made for any cash dividend or
distribution that amounts to less than $12.50 per contract. The
proposed supplement is intended to be read in conjunction with the more
general ODD, which discusses the characteristics and risks of options
generally.\7\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 67948 (September 28,
2012), 77 FR 60735 (October 4, 2012) (SR-NYSEArca-2012-64 and SR-
ISE-2012-58).
\5\ See Securities Exchange Act Release No. 68132 (November 1,
2012), 77 FR 66904 (November 7, 2012) (SR-Phlx-2012-126) (notice of
filing and immediate effectiveness of proposed rule change to list
and trade Mini Options).
\6\ The Commission recently approved a proposed rule change by
the OCC to make similar changes to its By-Laws. See Securities
Exchange Act Release Nos. 67917 (September 24, 2012), 77 FR 59687
(September 28, 2012) (``OCC Notice'') and 68104 (October 25, 2012),
77 FR 65917 (October 31, 2012) (SR-OCC-2012-16). In its filing, the
OCC stated that without the By-Law amendments, some cash dividends
or distributions that would exceed the adjustment threshold in the
case of standard options would not exceed the adjustment threshold
in the case of a Mini Option because the per contract distribution
on the Mini Option would be only \1/10\th of the distribution on the
standard option and the adjustment threshold was stated on a per
contract basis rather than a per share basis. Therefore, the OCC
amended, with Commission approval, the adjustment threshold from
$12.50 per contract to $0.125 per share. In its filing, the OCC also
stated that it did not intend for the rule change to affect options
contracts that were originally listed with units of trading in
excess of 100 shares.
\7\ The Commission notes that the options markets must continue
to ensure that the ODD is in compliance with the requirements of
Rule 9b-1(b)(2)(i) under the Act, 17 CFR 240.9b-1(b)(2)(i),
including when changes regarding Mini Options are made in the
future. Any future changes to the rules of the options markets
concerning Mini Options would need to be submitted to the Commission
under Section 19(b) of the Act. 15 U.S.C. 78s(b).
---------------------------------------------------------------------------
Rule 9b-1(b)(2)(i) under the Act \8\ provides that an options
market must file five copies of an amendment or supplement to the ODD
with the Commission at least 30 days prior to the date definitive
copies are furnished to customers, unless the Commission determines
otherwise, having due regard to the adequacy of the information
disclosed and the public interest and protection of investors.\9\ In
addition, five copies of the definitive ODD, as amended or
supplemented,
[[Page 74044]]
must be filed with the Commission not later than the date the amendment
or supplement, or the amended ODD, is furnished to customers. The
Commission has reviewed the proposed November 2012 Supplement, and the
amendments to the ODD contained therein, and finds that, having due
regard to the adequacy of the information disclosed and the public
interest and protection of investors, the supplement may be furnished
to customers as of the date of this order.
---------------------------------------------------------------------------
\8\ 17 CFR 240.9b-1(b)(2)(i).
\9\ This provision permits the Commission to shorten or lengthen
the period of time which must elapse before definitive copies may be
furnished to customers.
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Rule 9b-1 under the Act,\10\
that definitive copies of the November 2012 Supplement to the ODD (SR-
ODD-2012-02), reflecting changes to disclosure regarding adjustments
for cash dividends and distributions in respect of options overlying
less than 100 shares, may be furnished to customers as of the date of
this order.
---------------------------------------------------------------------------
\10\ 17 CFR 240.9b-1.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(39).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-29930 Filed 12-11-12; 8:45 am]
BILLING CODE 8011-01-P