Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Correct an Inadvertent Omission in a Prior Rule Change Filing Related to the Definition of Hedge Clearing Member, 61436-61437 [2013-24163]
Download as PDF
61436
Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Notices
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEARCA–2013–98 and should be
submitted on or before October 24,
2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24249 Filed 10–2–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70545; File No. SR–OCC–
2013–15]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Correct
an Inadvertent Omission in a Prior
Rule Change Filing Related to the
Definition of Hedge Clearing Member
September 27, 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
September 19, 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.
tkelley on DSK3SPTVN1PROD with NOTICES
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
OCC proposes to correct an
inadvertent omission in a prior rule
change filing related to the definition of
Hedge Clearing Member.
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
17 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
VerDate Mar<15>2010
18:29 Oct 02, 2013
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
The purpose of this proposed rule
change is to correct an inadvertent
omission in a prior rule change filing
related to the definition of ‘‘Hedge
Clearing Member’’ in OCC’s By-Laws
(‘‘By-Laws’’). By way of background, in
2002 OCC proposed, and the SEC
approved, certain rule changes to OCC’s
Stock Loan/Hedge Program (‘‘Hedge
Program’’) (SR–OCC–2002–11).5 As part
of that proposed rule change, OCC
deleted and relocated an existing
interpretation to Article V, Section 1
relating to the designation of a Hedge
Clearing Member. In connection with
relocating the interpretation, OCC also
amended the interpretation so that
designation as a Hedge Clearing Member
was no longer pre-conditioned upon the
Clearing Member also being a Stock
Clearing Member. However, a
concurrent change to the definition of
Hedge Clearing Member was not made
at that time, thereby creating an
inconsistency between the description
of Hedge Clearing Member found in
Article V of the By-Laws and the
definition of Hedge Clearing Member
found in Article I of the By-Laws. OCC
now proposes to resolve this
inconsistency by making a technical
correction to the definition of Hedge
Clearing Member in Article I of the ByLaws so that it is consistent with the
description of Hedge Clearing Member
found in Article V of the By-Laws.
As described above, through SR–
OCC–2002–11, OCC made certain
changes its Hedge Program. One such
change was that OCC determined that it
was no longer necessary to require that
a Hedge Clearing Member initially be
designated as a ‘‘Stock’’ Clearing
Member and, accordingly, updated
Article V of the By-Laws. However,
through an inadvertent oversight, a
concurrent change to Article I of the ByLaws was not made at that time.
Accordingly, OCC now proposes to
make a technical correction to the
Article I definition of Hedge Clearing
Member so that it is consistent with the
description of Hedge Clearing Member
5 Securities and Exchange Act Release No. 34–
47898 (May 21, 2003), 68 FR 32164 (May 29, 2003).
Jkt 232001
PO 00000
Frm 00116
Fmt 4703
Sfmt 4703
found in Article V of the By-Laws by
removing the reference to ‘‘Stock’’
Clearing Member from the definition of
Hedge Clearing Member. This proposed
change will resolve the inconsistency
within the By-Laws with respect to the
definition of Hedge Clearing Member.
The proposed change to OCC’s ByLaws is consistent with the purposes
and requirements of Section
17A(b)(3)(F) 6 of the Act 7 and Rule
17Ad–22(d)(2) 8 thereunder because it
will prevent unfair discrimination in the
admission of participants, or among
participants, in the use of OCC’s Hedge
Program and ensure that OCC’s By-Laws
are reasonably designed to have
participation requirements that are
objective, publicly disclosed and permit
fair and open access. The proposed
changes are also intended to remove
potential impediments to, and will
perfect the mechanism of a national
system for, the prompt and accurate
clearance and settlement of securities
transactions.
(B) Clearing Agency’s Statement on
Burden on Competition
OCC does not believe that the
proposed rule change would impact, or
impose a burden on competition that is
not necessary or appropriate in
furtherance of the purposes of the Act.
The proposed change, which will apply
to all clearing members, is
administrative in nature and will correct
an inconsistency within OCC’s By-Laws.
Accordingly, the proposed change will
reduce unnecessary administrative
burdens on its clearing members,
including any such burdens that may
impact competition.
(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
The foregoing rule change has become
effective upon filing pursuant to Section
19(b)(3)(A) of the Act 9 and Rule 19b–
4(f)(1) 10 thereunder, the proposed rule
change is filed for immediate
effectiveness inasmuch as it constitutes
6 15
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78a et seq.
8 17 CFR 240.17Ad–22(d)(2).
9 15 U.S.C. 78s(b)(3).
10 17 CFR 240.19b–4(f)(1).
7 15
E:\FR\FM\03OCN1.SGM
03OCN1
Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Notices
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 § 40.6. At any time within 60
days of the filing of such 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.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:
tkelley on DSK3SPTVN1PROD with NOTICES
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–2013–15 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–2013–15. 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
11 15
U.S.C. 78s(b)(3)(C).
VerDate Mar<15>2010
18:29 Oct 02, 2013
Jkt 232001
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_
15.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–2013–15 and should
be submitted on or before October 24,
2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
Authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24163 Filed 10–2–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70558; File No. SR–CME–
2013–22]
Self-Regulatory Organizations;
Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Related to the Liquidity Factor
of CME’s CDS Margin Methodology
September 30, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’ or ‘‘Act’’),1 and Rule
19b–4 thereunder,2 notice is hereby
given that on September 19, 2013,
Chicago Mercantile Exchange Inc.
(‘‘CME’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change described in
Items I and II below, which Items have
been prepared primarily by CME. CME
filed the proposal pursuant to Section
19(b)(3)(A) of the Act,3 and Rule 19b–
4(f)(4)(ii) thereunder,4 so that the
proposal was effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
for interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CME proposes to make an adjustment
to one particular component of its
current CDS margin model. The
proposed rule change is described
12 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).
4 17 CFR 240.19b–4(f)(4)(ii).
1 15
PO 00000
Frm 00117
Fmt 4703
Sfmt 4703
61437
below. Italicized text indicates
additions; bracketed text indicates
deletions.
*
*
*
*
*
CME CDS Liquidity Margin Factor
Calculation Methodology
The Liquidity Factor will be
calculated as the sum of two
components:
(1) A concentration charge for market
exposure as a function of absolute
Spread DV01 (a portfolio sensitivity to
1% par spread shock); and
(2) A concentration charge for
portfolio basis exposure as a function of
Residual Spread DV01 (which is the
difference between the Gross Spread
DV01 and the Net Spread DV01 of the
portfolio).
CME will also establish a floor
component to the Liquidity Factor using
the current Gross Notional Function
with the following modifications: (1) the
concentration scalar will be removed;
and (2) the maximum DST would be
replaced by series-tenor specific DST
values based on the series and tenor of
the relevant HY and IG positions, as
applicable.
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
CME included statements concerning
the purpose 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. CME has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
CME’s currently approved credit
default swap margin methodology
utilizes a ‘‘multi-factor’’ portfolio model
to determine margin requirements for
the credit default swap (‘‘CDS’’) index
products accepted for clearing at CME.
The model incorporates risk-based
factors that are designed to represent the
different risks inherent to CDS products.
The factors are aggregated to determine
the total amount of margin required to
protect a portfolio against exposures
resulting from daily changes in CDS
spreads. For both total and minimum
margin calculations, CME evaluates
each CDS contract held within a
portfolio. These positions are
E:\FR\FM\03OCN1.SGM
03OCN1
Agencies
[Federal Register Volume 78, Number 192 (Thursday, October 3, 2013)]
[Notices]
[Pages 61436-61437]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-24163]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70545; File No. SR-OCC-2013-15]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Correct an Inadvertent Omission in a Prior Rule Change Filing Related
to the Definition of Hedge Clearing Member
September 27, 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 September 19, 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 correct an inadvertent omission in a prior rule
change filing related to the definition of Hedge Clearing Member.
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
The purpose of this proposed rule change is to correct an
inadvertent omission in a prior rule change filing related to the
definition of ``Hedge Clearing Member'' in OCC's By-Laws (``By-Laws'').
By way of background, in 2002 OCC proposed, and the SEC approved,
certain rule changes to OCC's Stock Loan/Hedge Program (``Hedge
Program'') (SR-OCC-2002-11).\5\ As part of that proposed rule change,
OCC deleted and relocated an existing interpretation to Article V,
Section 1 relating to the designation of a Hedge Clearing Member. In
connection with relocating the interpretation, OCC also amended the
interpretation so that designation as a Hedge Clearing Member was no
longer pre-conditioned upon the Clearing Member also being a Stock
Clearing Member. However, a concurrent change to the definition of
Hedge Clearing Member was not made at that time, thereby creating an
inconsistency between the description of Hedge Clearing Member found in
Article V of the By-Laws and the definition of Hedge Clearing Member
found in Article I of the By-Laws. OCC now proposes to resolve this
inconsistency by making a technical correction to the definition of
Hedge Clearing Member in Article I of the By-Laws so that it is
consistent with the description of Hedge Clearing Member found in
Article V of the By-Laws.
---------------------------------------------------------------------------
\5\ Securities and Exchange Act Release No. 34-47898 (May 21,
2003), 68 FR 32164 (May 29, 2003).
---------------------------------------------------------------------------
As described above, through SR-OCC-2002-11, OCC made certain
changes its Hedge Program. One such change was that OCC determined that
it was no longer necessary to require that a Hedge Clearing Member
initially be designated as a ``Stock'' Clearing Member and,
accordingly, updated Article V of the By-Laws. However, through an
inadvertent oversight, a concurrent change to Article I of the By-Laws
was not made at that time. Accordingly, OCC now proposes to make a
technical correction to the Article I definition of Hedge Clearing
Member so that it is consistent with the description of Hedge Clearing
Member found in Article V of the By-Laws by removing the reference to
``Stock'' Clearing Member from the definition of Hedge Clearing Member.
This proposed change will resolve the inconsistency within the By-Laws
with respect to the definition of Hedge Clearing Member.
The proposed change to OCC's By-Laws is consistent with the
purposes and requirements of Section 17A(b)(3)(F) \6\ of the Act \7\
and Rule 17Ad-22(d)(2) \8\ thereunder because it will prevent unfair
discrimination in the admission of participants, or among participants,
in the use of OCC's Hedge Program and ensure that OCC's By-Laws are
reasonably designed to have participation requirements that are
objective, publicly disclosed and permit fair and open access. The
proposed changes are also intended to remove potential impediments to,
and will perfect the mechanism of a national system for, the prompt and
accurate clearance and settlement of securities transactions.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1(b)(3)(F).
\7\ 15 U.S.C. 78a et seq.
\8\ 17 CFR 240.17Ad-22(d)(2).
---------------------------------------------------------------------------
(B) Clearing Agency's Statement on Burden on Competition
OCC does not believe that the proposed rule change would impact, or
impose a burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The proposed change, which will
apply to all clearing members, is administrative in nature and will
correct an inconsistency within OCC's By-Laws. Accordingly, the
proposed change will reduce unnecessary administrative burdens on its
clearing members, including any such burdens that may impact
competition.
(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
The foregoing rule change has become effective upon filing pursuant
to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(1) \10\
thereunder, the proposed rule change is filed for immediate
effectiveness inasmuch as it constitutes
[[Page 61437]]
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 such 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.\11\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3).
\10\ 17 CFR 240.19b-4(f)(1).
\11\ 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 proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-OCC-2013-15 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-2013-15. 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_15.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-2013-15 and
should be submitted on or before October 24, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated Authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24163 Filed 10-2-13; 8:45 am]
BILLING CODE 8011-01-P