Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing of Proposed Rule Change to Comply With Recently Adopted Commodity Futures Trading Commission Requirements for Derivatives Clearing Organizations That Accept Deposits of Futures Customer Funds, 13366-13368 [2014-05055]

Download as PDF 13366 Federal Register / Vol. 79, No. 46 / Monday, March 10, 2014 / Notices emcdonald on DSK67QTVN1PROD with NOTICES employees is a critical component of the federal regulatory scheme.’’ 8 Effective and comprehensive supervisory policies and procedures, among other things, are critical to a firm’s ability to surveil for misconduct. Accordingly, the Commission believes the proposed rule change would help TPHs prevent fraudulent and manipulative acts and practices and improve investor protection by requiring TPHs to clearly delineate their supervisory obligations. In particular, the Commission believes that compelling every TPH to establish and maintain written supervisory procedures regarding each of their business activities and associated persons would provide TPHs and their supervisory personnel with a clearer understanding of their supervisory responsibilities to help them carry out those responsibilities. In addition, the Commission believes that requiring TPHs to inspect all of their offices or locations at least once every three calendar years would strengthen TPHs’ ability to carry out their compliance and surveillance functions. Similarly, the Commission believes that requiring TPHs to conduct an annual review and submit to the Exchange on an annual basis a written report on the TPH’s supervision and compliance efforts during the preceding year would help foster a culture of compliance within each TPH by promoting a dialogue throughout the TPH of its compliance efforts and procedures. By requiring written supervisory procedures and inspections that are reasonably designed to prevent and detect violations of applicable securities laws and regulations, as well as Exchange rules, the proposed rule would help to ensure that TPHs have the necessary processes in place to identify potential rule violations or inappropriate activity. Consequently, the Commission believes that the Exchange’s proposal would foster an environment within each TPH that is more likely to help decrease the likelihood of fraudulent and manipulative acts and practices and increase investor protection. Accordingly, the Commission believes that the proposed rule change is consistent with the Act. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,9 that the 8 Commission, Division of Market Regulation (now known as Division of Trading and Markets), Staff Legal Bulletin No. 17: Remote Office Supervision (Mar. 19, 2004). 9 15 U.S.C. 78s(b)(2). VerDate Mar<15>2010 18:00 Mar 07, 2014 Jkt 232001 proposed rule change (SR–CBOE–2013– 126) be, and hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–05031 Filed 3–7–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–71646; File No. SR–OCC– 2014–03] Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing of Proposed Rule Change to Comply With Recently Adopted Commodity Futures Trading Commission Requirements for Derivatives Clearing Organizations That Accept Deposits of Futures Customer Funds March 4, 2014. 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 19, 2014, The Options Clearing Corporation (‘‘OCC’’) 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 OCC. OCC filed the proposed rule change pursuant to Section 19(b)(3)(A) 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 This proposed rule change by OCC would amend OCC’s By-Laws and Rules to allow OCC to comply with recently adopted Commodity Futures Trading Commission (‘‘CFTC’’) requirements for derivatives clearing organizations (‘‘DCOs’’), such as OCC, that accept deposits of futures customer funds from futures commission merchants (‘‘FCMs’’). 10 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 00095 Fmt 4703 Sfmt 4703 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 1. Purpose OCC is proposing to modify its rules to allow it to comply with new CFTC requirements imposed on depositories that accept deposits of futures customer funds from FCMs. Recent amendments to CFTC Regulation § 1.20 5 require that FCMs only deposit futures customer funds with depositories that agree to grant the CFTC’s Division of Swap Dealer and Intermediary Oversight (‘‘DSIO’’) and the CFTC’s Division of Clearing and Risk, as well as representatives of the FCM’s designated self-regulatory organization, certain access and examination rights (‘‘CFTC Access and Examination Rights’’).6 OCC, as a CFTC-registered DCO, functions as a depository with respect to any futures customer funds deposited by clearing members that are FCMs. Consequently, for these FCM clearing members to continue to use OCC as their DCO, OCC must agree to comply with the CFTC Access and Examination Rights. Pursuant to CFTC Regulation § 1.20(d)(1),7 OCC and the clearing member may make this agreement either by providing a written acknowledgment 5 17 CFR 1.20. Regulation § 1.20(d)(3) (17 CFR 1.20(d)(3)) also provides that FCMs may only deposit futures customer funds with depositories that agree to provide the director of the DSIO with ‘‘direct, readonly electronic access to transaction and account balance information’’ for the futures customer accounts. Based on discussions with staff from the CFTC’s Division of Clearing and Risk on December 16, 2013 and subsequently confirmed via email, it is OCC’s understanding that, as a DCO that serves as a depository with respect to deposits of futures customer funds by its clearing members that are FCMs, it will not be required to provide this direct electronic access, because the CFTC did not intend for the requirement set forth in § 1.20(d)(3) to apply to a DCO that has submitted to the CFTC rules that provide for the segregation of customer funds in accordance with all relevant provisions of the Commodity Exchange Act and the rules and orders promulgated thereunder. Consequently, OCC is not including this direct electronic access requirement among the other CFTC Access and Examination Rights addressed in this Rule Change. 7 17 CFR 1.20(d)(1). 6 CFTC E:\FR\FM\10MRN1.SGM 10MRN1 emcdonald on DSK67QTVN1PROD with NOTICES Federal Register / Vol. 79, No. 46 / Monday, March 10, 2014 / Notices letter to the clearing member with respect to each segregated futures account and segregated futures professional account containing futures customer funds or by adopting rules that provide for the segregation of futures customer funds in accordance with the Commodity Exchange Act and all relevant CFTC regulations and orders promulgated thereunder. In Sections 3(f) and 3(j) of Article VI of OCC’s By-Laws, OCC already states that it agrees to comply with applicable regulations of the CFTC pertaining to the holding of segregated funds by clearing organizations of contract markets with respect to its segregated futures accounts and segregated futures professional accounts. OCC proposes to amend the language in both provisions to incorporate OCC’s agreement to comply with the Commodity Exchange Act itself and all applicable CFTC orders, and to more precisely conform to the exact language requirements of CFTC Regulation § 1.20(d)(1). In order to provide certainty to its clearing members that are FCMs, OCC is proposing to add Interpretation and Policy .10 to Section 3 of Article VI of OCC’s By-Laws,8 so that OCC also explicitly agrees to comply with the CFTC Access and Examination Rights set forth in newly adopted CFTC Regulation § 1.20(d)(5) and (6) with respect to all segregated futures accounts and segregated futures professional accounts.9 Additionally, Interpretation and Policy .10 will provide that all clearing members that open segregated futures accounts or segregated futures professional accounts have authorized and directed OCC’s compliance with the CFTC Access and Examination Rights without further notice or consent. To this same end, OCC also proposes to amend Interpretation and Policy .11 to OCC Rule 604 to clarify that any cash deposited as margin in a segregated futures professional account will be handled in the same manner as OCC currently handles cash deposited as margin in a segregated futures account— i.e., if such funds are invested, they will be invested in accordance with CFTC Regulations §§ 1.25, 1.26 and 1.27 and any other CFTC rules pertaining to a DCO’s investment of futures customer funds. Not previously mentioning ‘‘segregated futures professional accounts’’ alongside ‘‘segregated futures accounts’’ in this Interpretation and Policy was an unintentional oversight, 8 OCC intends to publish an Information Memo to inform its clearing members of the filing of this rule change. 9 17 CFR 1.20(d)(5)–(6). VerDate Mar<15>2010 18:00 Mar 07, 2014 Jkt 232001 and OCC proposes to make this change in the interest of completeness—it does not reflect a change in policy regarding its handling of futures customer funds deposited in segregated futures professional accounts. 2. Statutory Basis OCC believes the proposed rule change is consistent with Section 17A(b)(3)(F) of the Act,10 and the rules and regulations thereunder, including Rule 17Ad–22(d)(3),11 because it is intended to protect investors and the public interest by ensuring OCC holds futures customer funds in a manner that minimizes the risk of loss and delay in access to such funds. As described above, the proposed rule change is designed to address OCC’s handling of futures customer funds related to its performance of clearing services for products that are subject to the jurisdiction of the CFTC. The proposed change will ensure that OCC holds futures customers funds in accordance with new requirements promulgated by the CFTC designed to protect futures customers and provide for safer futures markets. The proposed change will not adversely affect OCC’s obligations with respect to the prompt and accurate clearance and settlement of securities transactions. The proposed rule change is not inconsistent with any rules of OCC, including any other 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 12 because it relates solely to OCC’s activities relating to the clearing of commodity futures products subject to the exclusive jurisdiction of the CFTC and therefore would 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. 10 15 U.S.C. 78q–1(b)(3)(F). CFR 240.17Ad–22(d)(3). 12 15 U.S.C. 78q–1(b)(3)(I). 11 17 PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 13367 III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change primarily affects the clearing operations of OCC with respect to products that are not securities and does not significantly affect any securities clearing operations of OCC or any rights or obligations of OCC with respect to securities clearing or persons using such securities-clearing service, the foregoing rule change has become effective pursuant to Section 19(b)(3)(A) 13 of the Act and Rule 19b– 4(f)(4)(ii) thereunder.14 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.15 IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml ); or • Send an email to rulecomments@sec.gov. Please include File Number SR–OCC–2014–03 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–2014–03. 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 13 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(4)(ii). OCC has indicated that it will delay the implementation of the rule change until it is deemed certified under CFTC Regulation § 40.6. 15 15 U.S.C. 78s(b)(3)(C). 14 17 E:\FR\FM\10MRN1.SGM 10MRN1 13368 Federal Register / Vol. 79, No. 46 / Monday, March 10, 2014 / Notices 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_14_ 03.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–2014–03 and should be submitted on or before March 31, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–05055 Filed 3–7–14; 8:45 am] BILLING CODE 8011–01–P SOCIAL SECURITY ADMINISTRATION Agency Information Collection Activities: Proposed Request and Comment Request The Social Security Administration (SSA) publishes a list of information collection packages requiring clearance by the Office of Management and Budget (OMB) in compliance with Public Law 104–13, the Paperwork Reduction Act of 1995, effective October 1, 1995. This notice includes revisions of OMB-approved information collections. SSA is soliciting comments on the accuracy of the agency’s burden estimate; the need for the information; its practical utility; ways to enhance its quality, utility, and clarity; and ways to minimize burden on respondents, including the use of automated collection techniques or other forms of information technology. Mail, email, or fax your comments and recommendations on the information collection(s) to the OMB Desk Officer and SSA Reports Clearance Officer at the following addresses or fax numbers. (OMB), Office of Management and Budget, Attn: Desk Officer for SSA, Fax: 202–395–6974, Email address: OIRA_Submission@omb.eop.gov. (SSA), Social Security Administration, OLCA, Attn: Reports Clearance Director, 3100 West High Rise, 6401 Security Blvd., Baltimore, MD 21235, Fax: 410–966–2830, Email address: OR.Reports.Clearance@ssa.gov. I. The information collections below are pending at SSA. SSA will submit them to OMB within 60 days from the date of this notice. To be sure we consider your comments, we must receive them no later than May 9, 2014. Individuals can obtain copies of the collection instruments by writing to the above email address. 1. Statement Regarding Marriage—20 CFR 404.726—0960–0017. According to section 216(h)(1)(A) of the Social Security Act (Act), SSA must apply state law when determining an individual’s marital status. Some state laws recognize marriages without a ceremony (i.e., common-law marriages). In such cases, SSA provides the same spouse or widow(er) benefits to common-law spouses as it does to ceremonially married spouses. To determine if someone is a common-law spouse, SSA must elicit information from blood relatives or other persons who are knowledgeable about the alleged common-law relationship. SSA uses Form SSA–753, Statement Regarding Marriage, to collect information from third parties to verify the applicant’s statements about intent, cohabitation, and holding out to the public as married, which are the basic tenets of a common-law marriage. SSA uses the information to determine if a valid marital relationship exists, and if the common-law spouse is entitled to Social Security spouse or widow(er) benefits. The respondents are third parties who can confirm or deny an alleged common-law marriage. Type of Request: Revision of an OMBapproved information collection. Modality of completion Number of respondents Frequency of response Average burden per response (minutes) Estimated total annual burden (hours) SSA–753 .......................................................................................................... 40,000 1 9 6,000 emcdonald on DSK67QTVN1PROD with NOTICES 2. Request for Review of Hearing Decision/Order—20 CFR 404.967— 404.981, 416.1467–416.1481—0960– 0277. Claimants have a statutory right under the Act and current regulations to request review of an administrative law judge’s (ALJ) hearing decision or dismissal of a hearing request on Title II and Title XVI claims. Claimants may request Appeals Council review by filing a written request using Form HA– 520. SSA uses the information to establish the claimant filed the request for review within the prescribed time and to ensure the claimant completed the requisite steps permitting the Appeals Council review. The Appeals Council uses the information to: (1) Document the claimant’s reason(s) for disagreeing with the ALJ’s decision or dismissal; (2) determine whether the claimant has additional evidence to submit; and (3) determine whether the claimant has a representative or wants to appoint one. The respondents are claimants requesting review of an ALJ’s decision or dismissal of hearing. Type of Request: Revision of an OMBapproved information collection. Modality of completion Number of respondents Frequency of response Average burden per response (minutes) Estimated total annual burden (hours) HA–520 ............................................................................................................ 171,000 1 10 28,500 16 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 18:55 Mar 07, 2014 Jkt 232001 PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 E:\FR\FM\10MRN1.SGM 10MRN1

Agencies

[Federal Register Volume 79, Number 46 (Monday, March 10, 2014)]
[Notices]
[Pages 13366-13368]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-05055]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71646; File No. SR-OCC-2014-03]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing of Proposed Rule Change to Comply With Recently 
Adopted Commodity Futures Trading Commission Requirements for 
Derivatives Clearing Organizations That Accept Deposits of Futures 
Customer Funds

March 4, 2014.
    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 19, 2014, The Options Clearing Corporation (``OCC'') 
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 OCC. OCC filed the proposed rule change 
pursuant to Section 19(b)(3)(A) \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).
    \4\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    This proposed rule change by OCC would amend OCC's By-Laws and 
Rules to allow OCC to comply with recently adopted Commodity Futures 
Trading Commission (``CFTC'') requirements for derivatives clearing 
organizations (``DCOs''), such as OCC, that accept deposits of futures 
customer funds from futures commission merchants (``FCMs'').

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

1. Purpose
    OCC is proposing to modify its rules to allow it to comply with new 
CFTC requirements imposed on depositories that accept deposits of 
futures customer funds from FCMs. Recent amendments to CFTC Regulation 
Sec.  1.20 \5\ require that FCMs only deposit futures customer funds 
with depositories that agree to grant the CFTC's Division of Swap 
Dealer and Intermediary Oversight (``DSIO'') and the CFTC's Division of 
Clearing and Risk, as well as representatives of the FCM's designated 
self-regulatory organization, certain access and examination rights 
(``CFTC Access and Examination Rights'').\6\ OCC, as a CFTC-registered 
DCO, functions as a depository with respect to any futures customer 
funds deposited by clearing members that are FCMs. Consequently, for 
these FCM clearing members to continue to use OCC as their DCO, OCC 
must agree to comply with the CFTC Access and Examination Rights. 
Pursuant to CFTC Regulation Sec.  1.20(d)(1),\7\ OCC and the clearing 
member may make this agreement either by providing a written 
acknowledgment

[[Page 13367]]

letter to the clearing member with respect to each segregated futures 
account and segregated futures professional account containing futures 
customer funds or by adopting rules that provide for the segregation of 
futures customer funds in accordance with the Commodity Exchange Act 
and all relevant CFTC regulations and orders promulgated thereunder.
---------------------------------------------------------------------------

    \5\ 17 CFR 1.20.
    \6\ CFTC Regulation Sec.  1.20(d)(3) (17 CFR 1.20(d)(3)) also 
provides that FCMs may only deposit futures customer funds with 
depositories that agree to provide the director of the DSIO with 
``direct, read-only electronic access to transaction and account 
balance information'' for the futures customer accounts. Based on 
discussions with staff from the CFTC's Division of Clearing and Risk 
on December 16, 2013 and subsequently confirmed via email, it is 
OCC's understanding that, as a DCO that serves as a depository with 
respect to deposits of futures customer funds by its clearing 
members that are FCMs, it will not be required to provide this 
direct electronic access, because the CFTC did not intend for the 
requirement set forth in Sec.  1.20(d)(3) to apply to a DCO that has 
submitted to the CFTC rules that provide for the segregation of 
customer funds in accordance with all relevant provisions of the 
Commodity Exchange Act and the rules and orders promulgated 
thereunder. Consequently, OCC is not including this direct 
electronic access requirement among the other CFTC Access and 
Examination Rights addressed in this Rule Change.
    \7\ 17 CFR 1.20(d)(1).
---------------------------------------------------------------------------

    In Sections 3(f) and 3(j) of Article VI of OCC's By-Laws, OCC 
already states that it agrees to comply with applicable regulations of 
the CFTC pertaining to the holding of segregated funds by clearing 
organizations of contract markets with respect to its segregated 
futures accounts and segregated futures professional accounts. OCC 
proposes to amend the language in both provisions to incorporate OCC's 
agreement to comply with the Commodity Exchange Act itself and all 
applicable CFTC orders, and to more precisely conform to the exact 
language requirements of CFTC Regulation Sec.  1.20(d)(1). In order to 
provide certainty to its clearing members that are FCMs, OCC is 
proposing to add Interpretation and Policy .10 to Section 3 of Article 
VI of OCC's By-Laws,\8\ so that OCC also explicitly agrees to comply 
with the CFTC Access and Examination Rights set forth in newly adopted 
CFTC Regulation Sec.  1.20(d)(5) and (6) with respect to all segregated 
futures accounts and segregated futures professional accounts.\9\ 
Additionally, Interpretation and Policy .10 will provide that all 
clearing members that open segregated futures accounts or segregated 
futures professional accounts have authorized and directed OCC's 
compliance with the CFTC Access and Examination Rights without further 
notice or consent. To this same end, OCC also proposes to amend 
Interpretation and Policy .11 to OCC Rule 604 to clarify that any cash 
deposited as margin in a segregated futures professional account will 
be handled in the same manner as OCC currently handles cash deposited 
as margin in a segregated futures account--i.e., if such funds are 
invested, they will be invested in accordance with CFTC Regulations 
Sec. Sec.  1.25, 1.26 and 1.27 and any other CFTC rules pertaining to a 
DCO's investment of futures customer funds. Not previously mentioning 
``segregated futures professional accounts'' alongside ``segregated 
futures accounts'' in this Interpretation and Policy was an 
unintentional oversight, and OCC proposes to make this change in the 
interest of completeness--it does not reflect a change in policy 
regarding its handling of futures customer funds deposited in 
segregated futures professional accounts.
---------------------------------------------------------------------------

    \8\ OCC intends to publish an Information Memo to inform its 
clearing members of the filing of this rule change.
    \9\ 17 CFR 1.20(d)(5)-(6).
---------------------------------------------------------------------------

2. Statutory Basis
    OCC believes the proposed rule change is consistent with Section 
17A(b)(3)(F) of the Act,\10\ and the rules and regulations thereunder, 
including Rule 17Ad-22(d)(3),\11\ because it is intended to protect 
investors and the public interest by ensuring OCC holds futures 
customer funds in a manner that minimizes the risk of loss and delay in 
access to such funds. As described above, the proposed rule change is 
designed to address OCC's handling of futures customer funds related to 
its performance of clearing services for products that are subject to 
the jurisdiction of the CFTC. The proposed change will ensure that OCC 
holds futures customers funds in accordance with new requirements 
promulgated by the CFTC designed to protect futures customers and 
provide for safer futures markets. The proposed change will not 
adversely affect OCC's obligations with respect to the prompt and 
accurate clearance and settlement of securities transactions. The 
proposed rule change is not inconsistent with any rules of OCC, 
including any other rules proposed to be amended.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78q-1(b)(3)(F).
    \11\ 17 CFR 240.17Ad-22(d)(3).
---------------------------------------------------------------------------

(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 \12\ because it relates solely to OCC's 
activities relating to the clearing of commodity futures products 
subject to the exclusive jurisdiction of the CFTC and therefore would 
not have any impact or impose any burden on competition in securities 
markets or any other market governed by the Act.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------

(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

    Because the proposed rule change primarily affects the clearing 
operations of OCC with respect to products that are not securities and 
does not significantly affect any securities clearing operations of OCC 
or any rights or obligations of OCC with respect to securities clearing 
or persons using such securities-clearing service, the foregoing rule 
change has become effective pursuant to Section 19(b)(3)(A) \13\ of the 
Act and Rule 19b-4(f)(4)(ii) thereunder.\14\ 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.\15\
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(4)(ii). OCC has indicated that it will 
delay the implementation of the rule change until it is deemed 
certified under CFTC Regulation Sec.  40.6.
    \15\ 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-2014-03 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-2014-03. 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

[[Page 13368]]

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_14_03.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-2014-03 and should be submitted on or before March 
31, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-05055 Filed 3-7-14; 8:45 am]
BILLING CODE 8011-01-P
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