Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Provide Clarifying Language To Conform Interpretive Guidance Concerning Options Overlying Fund Shares With OCC's By-Laws Governing Adjustments, 13715-13716 [2013-04552]

Download as PDF Federal Register / Vol. 78, No. 40 / Thursday, February 28, 2013 / Notices II. Notice of Filings The Commission establishes Docket Nos. MC2013–40 and CP2013–52 to consider the Request pertaining to the proposed Priority Mail Contract 55 product and the related contract, respectively. Interested persons may submit comments on whether the Postal Service’s filings in the captioned dockets are consistent with the policies of 39 U.S.C. 3632, 3633, or 3642, 39 CFR 3015.5, and 39 CFR part 3020, subpart B. Comments are due no later than March 4, 2013. The public portions of these filings can be accessed via the Commission’s Web site (https:// www.prc.gov). The Commission appoints Lyudmila Y. Bzhilyanskaya to serve as Public Representative in these dockets. III. Ordering Paragraphs It is ordered: 1. The Commission establishes Docket Nos. MC2013–40 and CP2013–52 to consider the matters raised in each docket. 2. Pursuant to 39 U.S.C. 505, Lyudmila Y. Bzhilyanskaya is appointed to serve as an officer of the Commission to represent the interests of the general public in these proceedings (Public Representative). 3. Comments by interested persons in these proceedings are due no later than March 4, 2013. 4. Responses by the Postal Service to the Commission’s request for supplemental information are due no later than March 1, 2013. 5. The Secretary shall arrange for publication of this order in the Federal Register. By the Commission. Ruth Ann Abrams, Acting Secretary. [FR Doc. 2013–04611 Filed 2–27–13; 8:45 am] BILLING CODE 7710–FW–P The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on February 21, 2013, it filed with the Postal Regulatory Commission a Request of the United States Postal Service To Add Express Mail Contract 14 to Competitive Product List. Documents are available at www.prc.gov, Docket Nos. MC2013–41, CP2013–53. SUPPLEMENTARY INFORMATION: Stanley F. Mires, Attorney, Legal Policy & Legislative Advice. [FR Doc. 2013–04602 Filed 2–27–13; 8:45 am] BILLING CODE 7710–12–P Product Change—Priority Mail Negotiated Service Agreement ACTION: Postal ServiceTM. Notice. The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule’s Competitive Products List. SUMMARY: DATES: Effective date: February 28, 2013. FOR FURTHER INFORMATION CONTACT: Elizabeth A. Reed, 202–268–3179. The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on February 21, 2013, it filed with the Postal Regulatory Commission a Request of the United States Postal Service To Add Priority Mail Contract 55 to Competitive Product List. Documents are available at www.prc.gov, Docket Nos. MC2013–40, CP2013–52. SUPPLEMENTARY INFORMATION: POSTAL SERVICE Stanley F. Mires, Attorney, Legal Policy & Legislative Advice. Product Change—Express Mail Negotiated Service Agreement [FR Doc. 2013–04605 Filed 2–27–13; 8:45 am] BILLING CODE 7710–12–P Postal ServiceTM. ACTION: Notice. AGENCY: The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule’s Competitive Products List. DATES: Effective date: February 28, 2013. FOR FURTHER INFORMATION CONTACT: Elizabeth A. Reed, 202–268–3179. mstockstill on DSK4VPTVN1PROD with NOTICES SUMMARY: VerDate Mar<15>2010 19:12 Feb 27, 2013 Jkt 229001 PO 00000 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–68962; File No. SR–OCC– 2013–01] Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Provide Clarifying Language To Conform Interpretive Guidance Concerning Options Overlying Fund Shares With OCC’s By-Laws Governing Adjustments February 21, 2013. POSTAL SERVICE AGENCY: 13715 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 February 14, 2013, The Options Clearing Corporation (‘‘OCC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the rule change described in Items I, II and III below, which items have been prepared primarily by OCC. OCC filed the proposal pursuant to Section 19(b)(3)(A)(i) of the Act,3 and Rule 19b– 4(f)(1) 4 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 persons. I. Self-Regulatory Organization’s Statement of Terms of Substance of the Proposed Rule Change OCC is providing clarifying language to conform interpretive guidance concerning options on fund shares with certain By-Law provisions that govern adjustments of contracts. II. Self-Regulatory Organization’s Statement of 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 rule change and discussed any comments it received on the 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 such statements.5 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(i). 4 17 CFR 240.19b–4(f)(1). 5 The Commission has modified the text of the summaries prepared by OCC. 2 17 Frm 00098 Fmt 4703 Sfmt 4703 E:\FR\FM\28FEN1.SGM 28FEN1 13716 Federal Register / Vol. 78, No. 40 / Thursday, February 28, 2013 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES A. Self-Regulatory Organization’s Statement of Purpose of, and Statutory Basis for, the Proposed Rule Change The purpose of the rule change is to make a technical correction in Interpretation and Policy .08 to Article VI, Section 11A (‘‘Interpretation and Policy .08’’) that relates to OCC’s amendment of Section 11A in connection with equity options that are originally listed with a unit of trading of 10 shares (‘‘Mini Options’’), which was previously approved by the Commission.6 The correction to Interpretation and Policy .08 clarifies that the same adjustment treatment thresholds that were added to Article VI, Section 11A(c)(ii), by Commission approval of SR–OCC–2012–16 (‘‘Mini Options Rule Change’’), are also meant to extend to options contracts overlying fund shares. Commission approval of SR–OCC– 2012–16 amended Section 11A(c)(ii) to provide that it is the general rule that no adjustment will be made for a cash dividend or distribution by the issuer of the underlying security if such dividend or distribution is less than $.0125 per share, provided that if a contract is originally listed with a unit of trading larger than 100 shares the applicable threshold is $12.50 per contract. The rule change to Interpretation and Policy .08 specifically addresses the adjustment treatment of distributions on contracts overlying fund shares. Interpretation and Policy .08 currently does not expressly indicate that options on fund shares are subject to the same adjustment treatment thresholds that are set out in Article VI, Section 11A(c)(ii) as a result of the Mini Options Rule Change. The rule change clarifies that the adjustment thresholds are the same. In connection with the Mini Options Rule Change, the Commission approved an amendment of the options disclosure document (‘‘ODD’’), Characteristics and Risks of Standardized Options, to reflect the adjustment thresholds specified in Article VI, Section 11A(c)(ii).7 No further supplementation of the ODD is necessary since this rule change is consistent with those adjustment thresholds. OCC believes that the rule change is consistent with Section 17A of the Act 8, and the rules and regulations 6 Securities Exchange Act Release No. 34–68104 (October 25, 2012); 77 FR 65917 (October 31, 2012) (SR–OCC–2012–16) (Securities and Exchange Commission Order Granting Accelerated Approval of Proposed Rule Change To Accommodate Equity Options That Have a Unit of Trading of 10 Shares). 7 Securities Exchange Act Release No. 34–68368 (December 6, 2012); 77 FR 74043 (December 12, 2012) (SR–ODD–2012–02). 8 15 U.S.C. 78q–1. VerDate Mar<15>2010 19:12 Feb 27, 2013 Jkt 229001 thereunder, because the modifications clarify that the rules concerning adjustments of contracts overlying fund shares are meant to be consistent with the rules governing options on shares of common preferred stock. OCC believes that this clarification helps to ensure that the rules of OCC are designed to foster cooperation and coordination with persons engaged in the clearance and settlement of securities transactions and thereby promotes the prompt and accurate clearance and settlement of securities transactions.9 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 No. SR–OCC–2013–01 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. B. Self-Regulatory Organization’s Statement on Burden on Competition All submissions should refer to File Number SR–OCC–2013–01. This file OCC does not believe the rule change number should be included on the would impose any burden on subject line if email is used. To help the competition that is not necessary or Commission process and review your appropriate in furtherance of the comments more efficiently, please use purposes of the Act. only one method. The Commission will post all comments on the Commission’s C. Self-Regulatory Organization’s Internet Web site (https://www.sec.gov/ Statement on Comments on the rules/sro.shtml). Copies of the Proposed Rule Change Received From submission, all subsequent Members, Participants, or Others amendments, all written statements Written comments on the rule change with respect to the proposed rule were not and are not intended to be change that are filed with the solicited and none have been received. Commission, and all written communications relating to the III. Date of Effectiveness of the proposed rule change between the Proposed Rule Change and Timing for Commission and any person, other than Commission Action those that may be withheld from the The foregoing rule change has become public in accordance with the effective pursuant to Section provisions of 5 U.S.C. 552, will be 19(b)(3)(A)(i) 10 of the Act and Rule 19b– available for Web site viewing and 4(f)(1) 11 thereunder because it printing in the Commission’s Public constitutes a stated policy, practice, or Reference Room, 100 F Street NE., interpretation with respect to the Washington, DC 20549 on official meaning, administration, or business days between the hours of enforcement of an existing rule. OCC 10:00 a.m. and 3:00 p.m. Copies of such will delay the implementation of the filing also will be available for rule change until it is deemed certified inspection and copying at the principal under CFTC Regulation § 40.6. At any office of OCC and on OCC’s Web site at time within 60 days of the filing of the https://www.theocc.com/components/ rule change, the Commission summarily docs/legal/rules_and_bylaws/ may temporarily suspend such rule sr_occ_13_01.pdf. change if it appears to the Commission All comments received will be posted that such action is necessary or without change; the Commission does appropriate in the public interest, for not edit personal identifying the protection of investors, or otherwise information from submissions. You in furtherance of the purposes of the should submit only information that Act.12 you wish to make available publicly. All submissions should refer to File IV. Solicitation of Comments Number SR–OCC–2013–01 and should Interested persons are invited to be submitted on or before March 21, submit written data, views, and 2013. arguments concerning the foregoing, For the Commission, by the Division of including whether the rule change is Trading and Markets, pursuant to delegated consistent with the Act. Comments may authority.13 be submitted by any of the following Kevin M. O’Neill, methods: Deputy Secretary . 9 15 U.S.C. 78q–1(b)(3)(F). U.S.C. 78s(b)(3)(A)(i). 11 17 CFR 240.19b–4(f)(1). 12 15 U.S.C. 78s(b)(3)(C). 10 15 PO 00000 Frm 00099 Fmt 4703 Sfmt 9990 [FR Doc. 2013–04552 Filed 2–27–13; 8:45 am] BILLING CODE 8011–01–P 13 17 E:\FR\FM\28FEN1.SGM CFR 200.30–3(a)(12). 28FEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 78, Number 40 (Thursday, February 28, 2013)]
[Notices]
[Pages 13715-13716]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-04552]


=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68962; File No. SR-OCC-2013-01]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Provide Clarifying Language To Conform Interpretive Guidance Concerning 
Options Overlying Fund Shares With OCC's By-Laws Governing Adjustments

February 21, 2013.
    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 February 14, 2013, The Options Clearing Corporation (``OCC'') filed 
with the Securities and Exchange Commission (``Commission'') the rule 
change described in Items I, II and III below, which items have been 
prepared primarily by OCC. OCC filed the proposal pursuant to Section 
19(b)(3)(A)(i) of the Act,\3\ and Rule 19b-4(f)(1) \4\ 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 persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(i).
    \4\ 17 CFR 240.19b-4(f)(1).
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I. Self-Regulatory Organization's Statement of Terms of Substance of 
the Proposed Rule Change

    OCC is providing clarifying language to conform interpretive 
guidance concerning options on fund shares with certain By-Law 
provisions that govern adjustments of contracts.

II. Self-Regulatory Organization's Statement of 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 rule change and discussed 
any comments it received on the 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 such statements.\5\
---------------------------------------------------------------------------

    \5\ The Commission has modified the text of the summaries 
prepared by OCC.

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

[[Page 13716]]

A. Self-Regulatory Organization's Statement of Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The purpose of the rule change is to make a technical correction in 
Interpretation and Policy .08 to Article VI, Section 11A 
(``Interpretation and Policy .08'') that relates to OCC's amendment of 
Section 11A in connection with equity options that are originally 
listed with a unit of trading of 10 shares (``Mini Options''), which 
was previously approved by the Commission.\6\ The correction to 
Interpretation and Policy .08 clarifies that the same adjustment 
treatment thresholds that were added to Article VI, Section 11A(c)(ii), 
by Commission approval of SR-OCC-2012-16 (``Mini Options Rule 
Change''), are also meant to extend to options contracts overlying fund 
shares.
---------------------------------------------------------------------------

    \6\ Securities Exchange Act Release No. 34-68104 (October 25, 
2012); 77 FR 65917 (October 31, 2012) (SR-OCC-2012-16) (Securities 
and Exchange Commission Order Granting Accelerated Approval of 
Proposed Rule Change To Accommodate Equity Options That Have a Unit 
of Trading of 10 Shares).
---------------------------------------------------------------------------

    Commission approval of SR-OCC-2012-16 amended Section 11A(c)(ii) to 
provide that it is the general rule that no adjustment will be made for 
a cash dividend or distribution by the issuer of the underlying 
security if such dividend or distribution is less than $.0125 per 
share, provided that if a contract is originally listed with a unit of 
trading larger than 100 shares the applicable threshold is $12.50 per 
contract. The rule change to Interpretation and Policy .08 specifically 
addresses the adjustment treatment of distributions on contracts 
overlying fund shares. Interpretation and Policy .08 currently does not 
expressly indicate that options on fund shares are subject to the same 
adjustment treatment thresholds that are set out in Article VI, Section 
11A(c)(ii) as a result of the Mini Options Rule Change. The rule change 
clarifies that the adjustment thresholds are the same.
    In connection with the Mini Options Rule Change, the Commission 
approved an amendment of the options disclosure document (``ODD''), 
Characteristics and Risks of Standardized Options, to reflect the 
adjustment thresholds specified in Article VI, Section 11A(c)(ii).\7\ 
No further supplementation of the ODD is necessary since this rule 
change is consistent with those adjustment thresholds.
---------------------------------------------------------------------------

    \7\ Securities Exchange Act Release No. 34-68368 (December 6, 
2012); 77 FR 74043 (December 12, 2012) (SR-ODD-2012-02).
---------------------------------------------------------------------------

    OCC believes that the rule change is consistent with Section 17A of 
the Act \8\, and the rules and regulations thereunder, because the 
modifications clarify that the rules concerning adjustments of 
contracts overlying fund shares are meant to be consistent with the 
rules governing options on shares of common preferred stock. OCC 
believes that this clarification helps to ensure that the rules of OCC 
are designed to foster cooperation and coordination with persons 
engaged in the clearance and settlement of securities transactions and 
thereby promotes the prompt and accurate clearance and settlement of 
securities transactions.\9\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78q-1.
    \9\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    OCC does not believe the rule change would impose any burden on 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments on the rule change were not and are not intended 
to be solicited and none have been received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(i) \10\ of the Act and Rule 19b-4(f)(1) \11\ thereunder 
because it constitutes a stated policy, practice, or interpretation 
with respect to the meaning, administration, or enforcement of an 
existing rule. OCC will delay the implementation of the rule change 
until it is deemed certified under CFTC Regulation Sec.  40.6. At any 
time within 60 days of the filing of the 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.\12\
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(i).
    \11\ 17 CFR 240.19b-4(f)(1).
    \12\ 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the 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 No. SR-OCC-2013-01 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-2013-01. 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 
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available 
for inspection and copying at the principal office of OCC and on OCC's 
Web site at https://www.theocc.com/components/docs/legal/rules_and_bylaws/sr_occ_13_01.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-2013-01 
and should be submitted on or before March 21, 2013.
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
Kevin M. O'Neill,
Deputy Secretary .
[FR Doc. 2013-04552 Filed 2-27-13; 8:45 am]
BILLING CODE 8011-01-P

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