Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To: (i) Provide Clarification Regarding the Applicability of Certain Provisions of OCC's By-Laws and Rules to Certain U.S. Dollar-Settled Gold Futures Designed to Replicate Positions in the Spot Market; and (ii) Remove Provisions Applicable Only to the Now-Discontinued U.S. Dollar-Settled Gold Futures That Were Based on the Value of Gold in the Spot Market With an Additional Daily Cost of Carry Feature, 48214-48216 [2013-19040]
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<![CDATA[
48214
Federal Register / Vol. 78, No. 152 / Wednesday, August 7, 2013 / Notices
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
should refer to File Number SR–CBOE–
2013–073 and should be submitted on
or before August 28, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–19037 Filed 8–6–13; 8:45 am]
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–CBOE–2013–073 on the
subject line.
mstockstill on DSK4VPTVN1PROD with NOTICES
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:
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To: (i)
Provide Clarification Regarding the
Applicability of Certain Provisions of
OCC’s By-Laws and Rules to Certain
U.S. Dollar-Settled Gold Futures
Designed to Replicate Positions in the
Spot Market; and (ii) Remove
Provisions Applicable Only to the NowDiscontinued U.S. Dollar-Settled Gold
Futures That Were Based on the Value
of Gold in the Spot Market With an
Additional Daily Cost of Carry Feature
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–CBOE–2013–073. 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 the Exchange. 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
publicly available. All submissions
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BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70092; File No. SR–OCC–
2013–11]
August 1, 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 July 25,
2013, The Options Clearing Corporation
(‘‘OCC’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change described in
Items I, II and III below, which Items
have been prepared primarily by OCC.
OCC filed the proposed rule change
pursuant to Section 19(b)(3)(A)(iii) 3 of
the Act and Rule 19b–4(f)(4)(ii) 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 parties.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
OCC proposes to do the following: (i)
Provide clarification regarding the
applicability of certain provisions of
OCC’s By-Laws and Rules to certain
U.S. dollar-settled gold futures designed
to replicate positions in the spot market
19 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(4)(ii).
1 15
PO 00000
Frm 00080
Fmt 4703
Sfmt 4703
(‘‘GLN 10 oz. Gold Futures’’) 5 proposed
to be traded by NASDAQ OMX Futures
Exchange, Inc. (‘‘NFX’’); and (ii) remove
provisions applicable only to the nowdiscontinued U.S. dollar-settled gold
futures that were based on the value of
gold in the spot market with an
additional daily cost of carry feature
that was designed to reflect the
difference between the overnight lease
rate for gold and the overnight interest
rate for the U.S. dollar, which were also
traded by NFX (‘‘Swap Point Gold
Futures’’).
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission,
OCC included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. OCC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
OCC is proposing to modify its rules
to provide clarification regarding the
applicability of certain provisions of
OCC’s By-Laws and Rules to the
clearance and settlement of GLN 10 oz.
Gold Futures, which are proposed to be
traded by NFX. A GLN 10 oz. Gold
Future is a U.S. dollar-settled futures
contract that tracks spot gold prices
using a single contract month for a
particular year. OCC’s existing By-Laws
and Rules already adequately
accommodate OCC’s clearing and
settlement of GLN 10 oz. Gold Futures.
However, OCC is proposing certain
amendments in order to eliminate any
potential confusion regarding the
applicability of certain provisions that
were specific to the now-discontinued
Swap Point Gold Futures contracts. GLN
10 oz. Gold Futures differ from Swap
Point Gold Futures, which previously
were but are no longer cleared by OCC,
in that they do not include a Cost of
Carry Payment (defined below). Swap
Point Gold Futures were U.S. dollarsettled futures contracts based on the
value of gold with an additional daily
cost of carry/interest payment feature
that was designed to reflect the
difference between the overnight lease
rate for gold and the overnight interest
rate for the U.S. dollar (the ‘‘Cost of
5 ‘‘GLN’’ will be the ticker symbol for these
futures contracts.
E:\FR\FM\07AUN1.SGM
07AUN1
Federal Register / Vol. 78, No. 152 / Wednesday, August 7, 2013 / Notices
Carry Payment’’). NFX has advised OCC
that it has no present intention to clear
swap point contracts in the future.
mstockstill on DSK4VPTVN1PROD with NOTICES
(i) OCC’s Proposed By-Laws and Rules
Changes
OCC proposes to delete paragraph (f)
of Rule 1301, which provided for OCC’s
determination of the Cost of Carry
Payment to be paid or received by
buyers and sellers of outstanding spot
futures contracts. GLN 10 oz. Gold
Futures do not possess this Cost of Carry
Payment feature, and therefore Rule
1301(f) is not applicable to them. Swap
Point Gold Futures—the only product
previously cleared by OCC that
possessed the Cost of Carry Payment
feature—are no longer cleared by OCC,
and Rule 1301(f) therefore is no longer
needed, and OCC proposes to delete the
provision from its Rules. Accordingly,
the defined terms ‘‘cost of carry
payment’’ and ‘‘spot future,’’ which
were only utilized in the context of the
cost of carry payment, are both
superfluous, and OCC proposes to
delete them from Article I of the ByLaws. OCC also proposes to delete a
reference in Section 2(a) of Article XII
of OCC’s By-Laws to the applicability of
the cost of carry payment provisions of
Rule 1301 to buyers and sellers of spot
futures.
(ii) OCC’s Amendment to the Clearing
Agreement and Schedule C
OCC performs the clearing function
for NFX pursuant to the Clearing
Agreement. The Clearing Agreement
provides that NFX will provide
settlement prices to OCC and indemnify
OCC in the event that OCC uses an
incorrect settlement price provided by
NFX. Additionally, it provides that NFX
will provide certain additional data
necessary for the calculating of the Cost
of Carry Payment (‘‘Swap Point Data’’)
and indemnify OCC in the event OCC
uses incorrect Swap Point Data
provided by NFX. As OCC will no
longer be clearing Swap Point Gold
Futures, there is no need for the
Clearing Agreement to address NFX’s
providing Swap Point Data, or for NFX
to indemnify OCC for its use of such
Swap Point Data. Therefore, OCC
proposes to enter into an amendment to
the Clearing Agreement deleting these
provisions. The Clearing Agreement will
continue to provide for NFX’s
indemnification of OCC in the event
that OCC uses an incorrect settlement
price provided by NFX. A copy of the
proposed amendment to the Clearing
Agreement is attached hereto as Exhibit
3A.
Pursuant to the terms of the Clearing
Agreement, OCC has agreed to clear the
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17:03 Aug 06, 2013
Jkt 229001
specific types of contracts enumerated
in the Agreement and may agree to clear
additional types through the execution
by both parties of a new ‘‘Schedule C’’
to the Agreement. A copy of the
proposed new Schedule C providing for
the clearance of GLN 10 oz. Gold
Futures is attached hereto as Exhibit 3B.
(iii) Effect on Clearing Members
The proposed rule change relates to
the clearing of a new product and will
affect clearing members and their
customers to the extent that they seek to
trade GLN 10 oz. Gold Futures. The
change will affect all such clearing
members equally and should not impose
any compliance burdens on clearing
members, because GLN 10 oz. Gold
Futures will be cleared using existing
systems and will be margined similarly
to other existing products.
The proposed changes to OCC’s ByLaws and Rules are consistent with the
purposes and requirements of Section
17A(b)(3)(A) of the Securities Exchange
Act of 1934, as amended (the ‘‘Exchange
Act’’ or ‘‘Act’’) 6, because they are
designed to permit OCC to perform
clearing services for products that are
subject to the jurisdiction of the
Commodity Futures Trading
Commission (the ‘‘CFTC’’) without
adversely affecting OCC’s obligations
with respect to the prompt and accurate
clearance and settlement of securities
transactions or the protection of
securities investors and the public
interest. They accomplish this purpose
by providing clarification regarding the
applicability of certain provisions of
OCC’s By-Laws and Rules to GLN 10 oz.
Gold Futures, and remove provisions of
OCC’s By-Laws and Rules that are only
applicable to Swap Point Gold Futures,
a discontinued product. The proposed
rule change is not inconsistent with any
rules of OCC, including any rules
proposed to be amended.
(B) Clearing Agency’s Statement on
Burden on Competition
OCC does not believe that the
proposed rule change would impose any
burden on competition that is not
necessary or appropriate in furtherance
of the Act because it relates solely to a
commodity futures product subject to
the exclusive jurisdiction of the
Commodity Futures Trading
Commission and therefore will not have
any impact, or impose any burden, on
competition in securities markets or any
other market governed by the Act.
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants or Others
Written comments on the proposed
rule change were not and are not
intended to be solicited with respect to
the proposed rule change and none have
been received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
This proposed rule change is filed for
immediate effectiveness pursuant to
Section 19(b)(3)(A)(iii) of the Act 7 and
Rule 19b–4(f)(4)(ii) 8 thereunder.
Pursuant to Rule 19b–4(f)(4)(ii),9 a rule
change may take effect upon filing if it
primarily affects the clearing operations
of the clearing agency with respect to
products that are not securities and does
not significantly affect any securities
clearing operations of the clearing
agency or any rights or obligations of the
clearing agency with respect to
securities clearing or persons using such
securities-clearing service. As described
above, this proposed rule change
concerns futures products that are
subject to the primary jurisdiction of the
CFTC and does not adversely affect
OCC’s obligations with respect to the
prompt and accurate clearance and
settlement of securities transactions or
the protection of securities investors
and the public interest. Notwithstanding
the foregoing, OCC will delay its
implementation of this rule change until
it is deemed certified under Regulation
§ 40.6 10 of the CFTC.
At any time within 60 days of the
filing of this proposed rule change, the
Commission summarily may
temporarily suspend this 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.11
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:
7 15
8 17
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(4)(ii).
9 Id.
10 17
6 15
PO 00000
U.S.C. 78q–1.
Frm 00081
Fmt 4703
11 15
Sfmt 4703
48215
E:\FR\FM\07AUN1.SGM
CFR Part 40.
U.S.C. 78s(b)(3)(C).
07AUN1
48216
Federal Register / Vol. 78, No. 152 / Wednesday, August 7, 2013 / Notices
Electronic Comments
DEPARTMENT OF STATE
• 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-2013–11 on the
subject line.
[Public Notice 8412]
Paper Comments
mstockstill on DSK4VPTVN1PROD with NOTICES
• 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–2013–11. 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 of submission. The
Commission will post all comments on
the Commission’s Internet Web site
(https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Section, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 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_11.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–2013–11 and should
be submitted on or before August 28,
2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
Authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–19040 Filed 8–6–13; 8:45 am]
BILLING CODE 8011–01–P
Culturally Significant Objects Imported
for Exhibition Determinations:
‘‘Heaven and Earth: Art of Byzantium
from Greek Collections’’
Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, and Delegation of
Authority No. 236–3 of August 28, 2000,
I hereby determine that the objects to be
included in the exhibition ‘‘Heaven and
Earth: Art of Byzantium from Greek
Collections,’’ imported from abroad for
temporary exhibition within the United
States, are of cultural significance. The
objects are imported pursuant to loan
agreements with the foreign owners or
custodians. I also determine that the
exhibition or display of the exhibit
objects at the National Gallery of Art,
Washington, DC, from on or about
October 6, 2013, until on or about
March 2, 2014, the J. Paul Getty
Museum, Los Angeles, California, from
on or about April 9, 2014, until on or
about August 5, 2014, and at possible
additional exhibitions or venues yet to
be determined, is in the national
interest. I have ordered that Public
Notice of these Determinations be
published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: For
further information, including a list of
the exhibit objects, contact Paul W.
Manning, Attorney-Adviser, Office of
the Legal Adviser, U.S. Department of
State (telephone: 202–632–6469). The
mailing address is U.S. Department of
State, SA–5, L/PD, Fifth Floor (Suite
5H03), Washington, DC 20522–0505.
SUMMARY:
Dated: July 30, 2013.
Ann Stock,
Assistant Secretary, Bureau of Educational
and Cultural Affairs, Department of State.
[FR Doc. 2013–19086 Filed 8–6–13; 8:45 am]
BILLING CODE 4710–05–P
DEPARTMENT OF STATE
[Public Notice 8410]
Culturally Significant Objects Imported
for Exhibition Determinations:
‘‘Balthus: Cats and Girls—Paintings
and Provocations’’
Notice is hereby given of the
following determinations: Pursuant to
SUMMARY:
12 17
CFR 200.30–3(a)(12).
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17:03 Aug 06, 2013
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PO 00000
Frm 00082
Fmt 4703
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the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, and Delegation of
Authority No. 236–3 of August 28, 2000,
I hereby determine that the objects to be
included in the exhibition ‘‘Balthus:
Cats and Girls—Paintings and
Provocations,’’ imported from abroad for
temporary exhibition within the United
States, are of cultural significance. The
objects are imported pursuant to loan
agreements with the foreign owners or
custodians. I also determine that the
exhibition or display of the exhibit
objects at the Metropolitan Museum of
Art, New York, New York, from on or
about September 23, 2013, until on or
about January 12, 2014, and at possible
additional exhibitions or venues yet to
be determined, is in the national
interest. I have ordered that Public
Notice of these Determinations be
published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: For
further information, including a list of
the exhibit objects, contact Paul W.
Manning, Attorney-Adviser, Office of
the Legal Adviser, U.S. Department of
State (telephone: 202–632–6469). The
mailing address is U.S. Department of
State, SA–5, L/PD, Fifth Floor (Suite
5H03), Washington, DC 20522–0505.
Dated: July 29, 2013.
Ann Stock,
Assistant Secretary, Bureau of Educational
and Cultural Affairs, Department of State.
[FR Doc. 2013–19079 Filed 8–6–13; 8:45 am]
BILLING CODE 4710–05–P
DEPARTMENT OF STATE
[Public Notice 8411]
Culturally Significant Objects Imported
for Exhibition Determinations: ‘‘Wols:
Retrospective’’
Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, and Delegation of
Authority No. 236–3 of August 28, 2000,
I hereby determine that the objects to be
included in the exhibition ‘‘Wols:
Retrospective,’’ imported from abroad
for temporary exhibition within the
United States, are of cultural
SUMMARY:
E:\FR\FM\07AUN1.SGM
07AUN1
]]>Agencies
[Federal Register Volume 78, Number 152 (Wednesday, August 7, 2013)]
[Notices]
[Pages 48214-48216]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-19040]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70092; File No. SR-OCC-2013-11]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
To: (i) Provide Clarification Regarding the Applicability of Certain
Provisions of OCC's By-Laws and Rules to Certain U.S. Dollar-Settled
Gold Futures Designed to Replicate Positions in the Spot Market; and
(ii) Remove Provisions Applicable Only to the Now-Discontinued U.S.
Dollar-Settled Gold Futures That Were Based on the Value of Gold in the
Spot Market With an Additional Daily Cost of Carry Feature
August 1, 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 July 25, 2013, The Options Clearing Corporation (``OCC'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change described in Items I, II and III below, which
Items have been prepared primarily by OCC. OCC filed the proposed rule
change pursuant to Section 19(b)(3)(A)(iii) \3\ of the Act and Rule
19b-4(f)(4)(ii) \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 parties.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
OCC proposes to do the following: (i) Provide clarification
regarding the applicability of certain provisions of OCC's By-Laws and
Rules to certain U.S. dollar-settled gold futures designed to replicate
positions in the spot market (``GLN 10 oz. Gold Futures'') \5\ proposed
to be traded by NASDAQ OMX Futures Exchange, Inc. (``NFX''); and (ii)
remove provisions applicable only to the now-discontinued U.S. dollar-
settled gold futures that were based on the value of gold in the spot
market with an additional daily cost of carry feature that was designed
to reflect the difference between the overnight lease rate for gold and
the overnight interest rate for the U.S. dollar, which were also traded
by NFX (``Swap Point Gold Futures'').
---------------------------------------------------------------------------
\5\ ``GLN'' will be the ticker symbol for these futures
contracts.
---------------------------------------------------------------------------
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, OCC included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. OCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
OCC is proposing to modify its rules to provide clarification
regarding the applicability of certain provisions of OCC's By-Laws and
Rules to the clearance and settlement of GLN 10 oz. Gold Futures, which
are proposed to be traded by NFX. A GLN 10 oz. Gold Future is a U.S.
dollar-settled futures contract that tracks spot gold prices using a
single contract month for a particular year. OCC's existing By-Laws and
Rules already adequately accommodate OCC's clearing and settlement of
GLN 10 oz. Gold Futures. However, OCC is proposing certain amendments
in order to eliminate any potential confusion regarding the
applicability of certain provisions that were specific to the now-
discontinued Swap Point Gold Futures contracts. GLN 10 oz. Gold Futures
differ from Swap Point Gold Futures, which previously were but are no
longer cleared by OCC, in that they do not include a Cost of Carry
Payment (defined below). Swap Point Gold Futures were U.S. dollar-
settled futures contracts based on the value of gold with an additional
daily cost of carry/interest payment feature that was designed to
reflect the difference between the overnight lease rate for gold and
the overnight interest rate for the U.S. dollar (the ``Cost of
[[Page 48215]]
Carry Payment''). NFX has advised OCC that it has no present intention
to clear swap point contracts in the future.
(i) OCC's Proposed By-Laws and Rules Changes
OCC proposes to delete paragraph (f) of Rule 1301, which provided
for OCC's determination of the Cost of Carry Payment to be paid or
received by buyers and sellers of outstanding spot futures contracts.
GLN 10 oz. Gold Futures do not possess this Cost of Carry Payment
feature, and therefore Rule 1301(f) is not applicable to them. Swap
Point Gold Futures--the only product previously cleared by OCC that
possessed the Cost of Carry Payment feature--are no longer cleared by
OCC, and Rule 1301(f) therefore is no longer needed, and OCC proposes
to delete the provision from its Rules. Accordingly, the defined terms
``cost of carry payment'' and ``spot future,'' which were only utilized
in the context of the cost of carry payment, are both superfluous, and
OCC proposes to delete them from Article I of the By-Laws. OCC also
proposes to delete a reference in Section 2(a) of Article XII of OCC's
By-Laws to the applicability of the cost of carry payment provisions of
Rule 1301 to buyers and sellers of spot futures.
(ii) OCC's Amendment to the Clearing Agreement and Schedule C
OCC performs the clearing function for NFX pursuant to the Clearing
Agreement. The Clearing Agreement provides that NFX will provide
settlement prices to OCC and indemnify OCC in the event that OCC uses
an incorrect settlement price provided by NFX. Additionally, it
provides that NFX will provide certain additional data necessary for
the calculating of the Cost of Carry Payment (``Swap Point Data'') and
indemnify OCC in the event OCC uses incorrect Swap Point Data provided
by NFX. As OCC will no longer be clearing Swap Point Gold Futures,
there is no need for the Clearing Agreement to address NFX's providing
Swap Point Data, or for NFX to indemnify OCC for its use of such Swap
Point Data. Therefore, OCC proposes to enter into an amendment to the
Clearing Agreement deleting these provisions. The Clearing Agreement
will continue to provide for NFX's indemnification of OCC in the event
that OCC uses an incorrect settlement price provided by NFX. A copy of
the proposed amendment to the Clearing Agreement is attached hereto as
Exhibit 3A.
Pursuant to the terms of the Clearing Agreement, OCC has agreed to
clear the specific types of contracts enumerated in the Agreement and
may agree to clear additional types through the execution by both
parties of a new ``Schedule C'' to the Agreement. A copy of the
proposed new Schedule C providing for the clearance of GLN 10 oz. Gold
Futures is attached hereto as Exhibit 3B.
(iii) Effect on Clearing Members
The proposed rule change relates to the clearing of a new product
and will affect clearing members and their customers to the extent that
they seek to trade GLN 10 oz. Gold Futures. The change will affect all
such clearing members equally and should not impose any compliance
burdens on clearing members, because GLN 10 oz. Gold Futures will be
cleared using existing systems and will be margined similarly to other
existing products.
The proposed changes to OCC's By-Laws and Rules are consistent with
the purposes and requirements of Section 17A(b)(3)(A) of the Securities
Exchange Act of 1934, as amended (the ``Exchange Act'' or ``Act'') \6\,
because they are designed to permit OCC to perform clearing services
for products that are subject to the jurisdiction of the Commodity
Futures Trading Commission (the ``CFTC'') without adversely affecting
OCC's obligations with respect to the prompt and accurate clearance and
settlement of securities transactions or the protection of securities
investors and the public interest. They accomplish this purpose by
providing clarification regarding the applicability of certain
provisions of OCC's By-Laws and Rules to GLN 10 oz. Gold Futures, and
remove provisions of OCC's By-Laws and Rules that are only applicable
to Swap Point Gold Futures, a discontinued product. The proposed rule
change is not inconsistent with any rules of OCC, including any rules
proposed to be amended.
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\6\ 15 U.S.C. 78q-1.
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(B) Clearing Agency's Statement on Burden on Competition
OCC does not believe that the proposed rule change would impose any
burden on competition that is not necessary or appropriate in
furtherance of the Act because it relates solely to a commodity futures
product subject to the exclusive jurisdiction of the Commodity Futures
Trading Commission and therefore will not have any impact, or impose
any burden, on competition in securities markets or any other market
governed by the Act.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others
Written comments on the proposed rule change were not and are not
intended to be solicited with respect to the proposed rule change and
none have been received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
This proposed rule change is filed for immediate effectiveness
pursuant to Section 19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-
4(f)(4)(ii) \8\ thereunder. Pursuant to Rule 19b-4(f)(4)(ii),\9\ a rule
change may take effect upon filing if it primarily affects the clearing
operations of the clearing agency with respect to products that are not
securities and does not significantly affect any securities clearing
operations of the clearing agency or any rights or obligations of the
clearing agency with respect to securities clearing or persons using
such securities-clearing service. As described above, this proposed
rule change concerns futures products that are subject to the primary
jurisdiction of the CFTC and does not adversely affect OCC's
obligations with respect to the prompt and accurate clearance and
settlement of securities transactions or the protection of securities
investors and the public interest. Notwithstanding the foregoing, OCC
will delay its implementation of this rule change until it is deemed
certified under Regulation Sec. 40.6 \10\ of the CFTC.
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\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(4)(ii).
\9\ Id.
\10\ 17 CFR Part 40.
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At any time within 60 days of the filing of this proposed rule
change, the Commission summarily may temporarily suspend this 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.\11\
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\11\ 15 U.S.C. 78s(b)(3)(C).
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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:
[[Page 48216]]
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-2013-11 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-2013-11. 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 of submission. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for Web site
viewing and printing in the Commission's Public Reference Section, 100
F Street NE., Washington, DC 20549, on official business days between
the hours of 10:00 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_11.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-2013-11 and
should be submitted on or before August 28, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated Authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-19040 Filed 8-6-13; 8:45 am]
BILLING CODE 8011-01-P
