Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make a Change Which Would Authorize the Executive Chairman, the Management Vice Chairman, or the President To Delegate to Other OCC Officers Their Authority To Review and Approve Certain Clearing Member Business Expansion Requests and Changes in Facilities Management Arrangements, Provided That Such Delegate Is an Officer of the Rank of Senior Vice President or Higher, 19141-19143 [2014-07643]
Download as PDF
Federal Register / Vol. 79, No. 66 / Monday, April 7, 2014 / Notices
uninterrupted, thereby avoiding
investor confusion that could result
from a temporary interruption in the
pilot program. For this reason, the
Commission designates the proposed
rule change to be operative upon
filing.11
At any time within 60 days of the
filing of the proposed 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.
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:
mstockstill on DSK4VPTVN1PROD 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–
CBOE–2014–027 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CBOE–2014–027. 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 at 100 F Street NE.,
Washington, DC 20549–1090 on official
11 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Mar<15>2010
17:49 Apr 04, 2014
Jkt 232001
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
available publicly. All submissions
should refer to File Number SR–CBOE–
2014–027, and should be submitted on
or before April 28, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–07633 Filed 4–4–14; 8:45 am]
19141
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
This proposed rule change by OCC
would make an administrative rule
change to its By-Laws and Rules
(collectively, ‘‘Rules’’) which would
authorize the Executive Chairman, the
Management Vice Chairman, or the
President to delegate to other OCC
officers their authority to review and
approve certain clearing member
business expansion requests and
changes in facilities management
arrangements, provided that such
delegate is an officer of the rank of
Senior Vice President or higher.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71846; File No. SR–OCC–
2014–06]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Make a
Change Which Would Authorize the
Executive Chairman, the Management
Vice Chairman, or the President To
Delegate to Other OCC Officers Their
Authority To Review and Approve
Certain Clearing Member Business
Expansion Requests and Changes in
Facilities Management Arrangements,
Provided That Such Delegate Is an
Officer of the Rank of Senior Vice
President or Higher
April 1, 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 March 28,
2014, The Options Clearing Corporation
(‘‘OCC’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I and II below, which Items
have been prepared by the clearing
agency. OCC filed the proposal pursuant
to Section 19(b)(3)(A) of the Act 3 and
Rule 19b–4(f)(6) thereunder.4 The
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)(6). As required by Rule
19b-4(f)(6)(iii) of the Act, OCC has given the
Commission written notice of its intent to file the
proposed rule change, along with a brief description
and text of the proposed rule change, at least five
business days prior to the date of filing of the
1 15
PO 00000
Frm 00097
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, the
clearing agency 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. The
clearing agency has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such 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 expand the number of OCC
officers with delegated authority to
review and approve certain business
expansion requests and changes in
facilities management arrangements i.e.,
a request or change for which a clearing
member has sought review on an
expedited basis. Currently, OCC’s Rules
provide that the Executive Chairman,
the Management Vice Chairman or the
President are the only OCC officers with
such delegated authority. OCC proposes
that these officers be allowed to delegate
their authority to perform such reviews
and approve such requests or changes to
any officer of the rank of Senior Vice
President or higher.
By way of background, OCC’s Risk
Committee (‘‘Committee’’) is responsible
for reviewing and approving clearing
member requests to clear a type or a
kind of transaction for which it is not
currently approved to clear through
OCC (i.e., a business expansion
proposed rule change, or such sorter time as
designated by the Commission.
E:\FR\FM\07APN1.SGM
07APN1
mstockstill on DSK4VPTVN1PROD with NOTICES
19142
Federal Register / Vol. 79, No. 66 / Monday, April 7, 2014 / Notices
request).5 The Committee is also
responsible for making certain
determinations with respect to facilities
management arrangements between
clearing members. Specifically, the
Committee determines whether a
clearing member receiving facilities
management services has the
operational capability, experience and
competence to perform the obligations
of clearing membership should the
facilities management agreement
(‘‘FMA’’) with another clearing member
be terminated.6 In addition, if a clearing
member proposes to enter into an FMA
to receive facilities management
services, the Committee must determine
that the FMA meets certain conditions
set forth in OCC’s By-Laws.7
The Committee has delegated the
Executive Chairman, the Management
Vice Chairman or the President with
authority to review and approve both
business expansion requests and
requests to enter into a facilities
management arrangements in response
to requests by clearing members for
expedited review. Such approval is then
subject to the Committee’s review and
ratification at its next regularly
scheduled meeting. In light of recent
changes to OCC’s management
structure,8 as well as a recommendation
from the Committee’s Chairman, OCC is
now proposing to provide the same
expedited review and approval
authority to any OCC officer of the rank
of Senior Vice President or higher who
has been delegated by the Executive
Chairman, the Management Vice
Chairman or the President with such
authority. OCC believes the proposed
change will provide it with operational
flexibility because additional
individuals will be able to provide
expedited approval of business
expansion requests and facilitates
management arrangements. Approvals
by such delegates would be subject to
Committee review and ratification, as
described above.
In accordance with the above OCC is
proposing to amend OCC By-Law,
Article 5, Section 1, Interpretation and
Policy .03, which concerns business
expansion requests and OCC Rule 309,
Interpretation and Policy .01 and .02,
which concerns facilities management
arrangements.
OCC believes that the proposed rule
change is consistent with Section
5 OCC By-Law, Article V, Section 1, Interpretation
and Policy .03(e).
6 OCC Rule 309.
7 OCC By-Law, Article V, Section 1, Interpretation
and Policy .05.
8 See Securities Exchange Act Release No. 70076
(July 30, 2013), 78 FR 47449 (August 5, 2013), (SR–
OCC–2013–09).
VerDate Mar<15>2010
17:49 Apr 04, 2014
Jkt 232001
17A(b)(3)(F) of the Act 9 because it is
designed to promote the prompt and
accurate clearance and settlement of
securities transactions and the
protection of securities investors and
the public interest, by allowing
additional OCC officers to review and
approve business expansion requests
and facilities management arrangements
on an expedited basis. By allowing the
Executive Chairman, the Management
Vice Chairman or the President to
delegate authority to review and provide
expedited approval of business
expansion requests and facilities
management arrangements to OCC
officers of the rank of Senior Vice
President or higher, clearing members
and their customers will have more
timely access to OCC services for which
they qualify. The proposed rule change
is not inconsistent with any rules of
OCC, including those 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 purposes of the Act.10 The
proposed rule change will help ensure
that OCC will be able to provide fair and
open access to its services in a timely
and efficient manner because additional
OCC officers will be able to provide
approval of business expansion requests
and facilities management
arrangements. To the extent OCC’s
clearing members are affected by the
proposed rule change, OCC believes
that, by allowing an officer of the rank
of Senior Vice President or higher who
has been delegated by the Executive
Chairman, the Management Vice
Chairman or the President with
authority to review and provide
expedited approval of business
expansion requests and facilities
management arrangements, all of OCC’s
clearing members will have greater
access to its services. Accordingly, OCC
does not believe that the proposed rule
will impose any burden on competition
that is not necessary or appropriate in
furtherance of the purposes of 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
9 15
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78q–1(b)(3)(I).
10 15
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
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 foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, if
consistent with the protection of
investors and the public interest, it has
become effective pursuant to Section
19(b)(3)(A) of the Act and Rule 19b–
4(f)(6)(iii) thereunder.
At any time within 60 days of the
filing of the proposed 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. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) of the Act 11 to
determine whether the proposed rule
should be approved or disapproved.
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–2014–06 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–OCC–2014–06. 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
11 15
E:\FR\FM\07APN1.SGM
U.S.C. 78s(b)(2)(B).
07APN1
Federal Register / Vol. 79, No. 66 / Monday, April 7, 2014 / Notices
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 the
filing also will be available for
inspection and copying at the principal
office of OCC and on OCC’s Web site
(https://www.theocc.com/about/
publications/bylaws.jsp). 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–
2014–06 and should be submitted on or
before April 28, 2014
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–07643 Filed 4–4–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71845; File No. SR–
NYSEArca–2014–31]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Its Option
Trading Rules To Extend the Operation
of Its Pilot Program Regarding
Minimum Value Sizes for Opening
Transactions in New Series of Flexible
Exchange Options
mstockstill on DSK4VPTVN1PROD with NOTICES
April 1, 2014.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on March
27, 2014, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
12 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b-4.
1 15
VerDate Mar<15>2010
17:49 Apr 04, 2014
Jkt 232001
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
option trading rules to extend the
operation of its pilot program (‘‘Pilot
Program’’) regarding minimum value
sizes for opening transactions in new
series of flexible exchange options
(‘‘FLEX Options’’), currently scheduled
to expire on March 31, 2014, until the
earlier of July 31, 2014 or approval of
the Exchange’s proposal to adopt the
Pilot Program on a permanent [sic]. The
text of the proposed rule change is
available on the Exchange’s Web site at
www.nyse.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization 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 those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange hereby proposes to
amend its option trading rules to extend
the operation of its Pilot Program
regarding minimum value sizes for
opening transactions in new FLEX
series, currently scheduled to expire on
March 31, 2014,4 until July 31, 2014.
The Exchange has submitted a separate
filing to the Commission proposing to
adopt the existing Pilot Program on a
permanent basis.5 The Exchange is
submitting this proposed four-month
extension of the Pilot Program so that
4 See Securities Exchange Act Release No. 69267
(April 2, 2013), 77 FR 20997 (April 8, 2013) (SR–
NYSEArca–2013–27).
5 SR–NYSEArca–2014–25, proposing to adopt the
Pilot Program on a permanent Basis [sic] was
submitted to the Commission on March 17 [sic],
2014.
PO 00000
Frm 00099
Fmt 4703
Sfmt 4703
19143
the program may continue to operate
uninterrupted while the Commission
considers the Exchange’s proposed
adoption of the Pilot Program on a
permanent basis. Accordingly, the
proposed extension to the Pilot Program
will end the earlier of July 31, 2014 or
approval of the Exchange’s proposal to
adopt the Pilot Program on a permanent
basis.
This filing does not propose any
substantive changes to the Pilot Program
and contemplates that all other terms of
FLEX Options will remain the same.
Overall, the Exchange believes that
extending the Pilot Program will benefit
public customers and other market
participants who will be able to use
FLEX Options to manage risk for smaller
portfolios. In support of the proposed
extension of the Pilot Program, and as
required by the terms of the Pilot
Program’s implementation,6 the
Exchange has submitted to the
Commission a Pilot Program Report that
provides an analysis of the Pilot
Program covering the period during
which the Pilot Program has been in
effect. This Pilot Program Report
includes (i) data and analysis on the
open interest and trading volume in (a)
FLEX Equity Options that have opening
transactions in new FLEX series with a
minimum size of 0 to 249 contracts and
less than $1 million in underlying
value; (b) FLEX Index Options that have
opening transactions in new FLEX
series with a minimum opening size of
less than $10 million in underlying
equivalent value; and (ii) analysis on the
types of investors that initiated opening
FLEX Equity and Index Options
transactions in new FLEX series (i.e.,
institutional, high net worth, or retail).
The Pilot Program Report has been
submitted to the Commission as Exhibit
3 to SR–NYSEArca–2014 [sic].7
The Exchange believes that there is
sufficient investor interest and demand
in the Pilot Program to warrant
extension for another three months. The
Exchange believes that the Pilot
Program has provided investors with
additional means of managing their risk
exposures and carrying out their
investment objectives. The Exchange
has not experienced any adverse market
effects with respect to the Pilot Program.
In the event the Exchange does not
receive approval to adopt the Pilot
Program on a permanent basis by July
31, 2014 and proposes an additional
extension of the Pilot Program, the
Exchange will submit, along with any
filing proposing such amendments to
the Pilot Program, an additional Pilot
6 See
infra note 7 [sic].
note 5.
7 Supra
E:\FR\FM\07APN1.SGM
07APN1
Agencies
[Federal Register Volume 79, Number 66 (Monday, April 7, 2014)]
[Notices]
[Pages 19141-19143]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-07643]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71846; File No. SR-OCC-2014-06]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Make a Change Which Would Authorize the Executive Chairman, the
Management Vice Chairman, or the President To Delegate to Other OCC
Officers Their Authority To Review and Approve Certain Clearing Member
Business Expansion Requests and Changes in Facilities Management
Arrangements, Provided That Such Delegate Is an Officer of the Rank of
Senior Vice President or Higher
April 1, 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 March 28, 2014, The Options Clearing Corporation (``OCC'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the clearing agency. OCC filed the proposal
pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6)
thereunder.\4\ The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6). As required by Rule 19b-4(f)(6)(iii)
of the Act, OCC has given the Commission written notice of its
intent to file the proposed rule change, along with a brief
description and text of the proposed rule change, at least five
business days prior to the date of filing of the proposed rule
change, or such sorter time as designated by the Commission.
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
This proposed rule change by OCC would make an administrative rule
change to its By-Laws and Rules (collectively, ``Rules'') which would
authorize the Executive Chairman, the Management Vice Chairman, or the
President to delegate to other OCC officers their authority to review
and approve certain clearing member business expansion requests and
changes in facilities management arrangements, provided that such
delegate is an officer of the rank of Senior Vice President or higher.
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, the clearing agency 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. The clearing agency has prepared summaries,
set forth in sections A, B, and C below, of the most significant
aspects of such 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 expand the number of
OCC officers with delegated authority to review and approve certain
business expansion requests and changes in facilities management
arrangements i.e., a request or change for which a clearing member has
sought review on an expedited basis. Currently, OCC's Rules provide
that the Executive Chairman, the Management Vice Chairman or the
President are the only OCC officers with such delegated authority. OCC
proposes that these officers be allowed to delegate their authority to
perform such reviews and approve such requests or changes to any
officer of the rank of Senior Vice President or higher.
By way of background, OCC's Risk Committee (``Committee'') is
responsible for reviewing and approving clearing member requests to
clear a type or a kind of transaction for which it is not currently
approved to clear through OCC (i.e., a business expansion
[[Page 19142]]
request).\5\ The Committee is also responsible for making certain
determinations with respect to facilities management arrangements
between clearing members. Specifically, the Committee determines
whether a clearing member receiving facilities management services has
the operational capability, experience and competence to perform the
obligations of clearing membership should the facilities management
agreement (``FMA'') with another clearing member be terminated.\6\ In
addition, if a clearing member proposes to enter into an FMA to receive
facilities management services, the Committee must determine that the
FMA meets certain conditions set forth in OCC's By-Laws.\7\
---------------------------------------------------------------------------
\5\ OCC By-Law, Article V, Section 1, Interpretation and Policy
.03(e).
\6\ OCC Rule 309.
\7\ OCC By-Law, Article V, Section 1, Interpretation and Policy
.05.
---------------------------------------------------------------------------
The Committee has delegated the Executive Chairman, the Management
Vice Chairman or the President with authority to review and approve
both business expansion requests and requests to enter into a
facilities management arrangements in response to requests by clearing
members for expedited review. Such approval is then subject to the
Committee's review and ratification at its next regularly scheduled
meeting. In light of recent changes to OCC's management structure,\8\
as well as a recommendation from the Committee's Chairman, OCC is now
proposing to provide the same expedited review and approval authority
to any OCC officer of the rank of Senior Vice President or higher who
has been delegated by the Executive Chairman, the Management Vice
Chairman or the President with such authority. OCC believes the
proposed change will provide it with operational flexibility because
additional individuals will be able to provide expedited approval of
business expansion requests and facilitates management arrangements.
Approvals by such delegates would be subject to Committee review and
ratification, as described above.
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 70076 (July 30,
2013), 78 FR 47449 (August 5, 2013), (SR-OCC-2013-09).
---------------------------------------------------------------------------
In accordance with the above OCC is proposing to amend OCC By-Law,
Article 5, Section 1, Interpretation and Policy .03, which concerns
business expansion requests and OCC Rule 309, Interpretation and Policy
.01 and .02, which concerns facilities management arrangements.
OCC believes that the proposed rule change is consistent with
Section 17A(b)(3)(F) of the Act \9\ because it is designed to promote
the prompt and accurate clearance and settlement of securities
transactions and the protection of securities investors and the public
interest, by allowing additional OCC officers to review and approve
business expansion requests and facilities management arrangements on
an expedited basis. By allowing the Executive Chairman, the Management
Vice Chairman or the President to delegate authority to review and
provide expedited approval of business expansion requests and
facilities management arrangements to OCC officers of the rank of
Senior Vice President or higher, clearing members and their customers
will have more timely access to OCC services for which they qualify.
The proposed rule change is not inconsistent with any rules of OCC,
including those proposed to be amended.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
(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 purposes of the Act.\10\ The proposed rule change
will help ensure that OCC will be able to provide fair and open access
to its services in a timely and efficient manner because additional OCC
officers will be able to provide approval of business expansion
requests and facilities management arrangements. To the extent OCC's
clearing members are affected by the proposed rule change, OCC believes
that, by allowing an officer of the rank of Senior Vice President or
higher who has been delegated by the Executive Chairman, the Management
Vice Chairman or the President with authority to review and provide
expedited approval of business expansion requests and facilities
management arrangements, all of OCC's clearing members will have
greater access to its services. Accordingly, OCC does not believe that
the proposed rule will impose any burden on competition that is not
necessary or appropriate in furtherance of the purposes of the Act.
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\10\ 15 U.S.C. 78q-1(b)(3)(I).
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(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 foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, if consistent with
the protection of investors and the public interest, it has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
At any time within 60 days of the filing of the proposed 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. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) of the Act \11\ to determine whether the proposed
rule should be approved or disapproved.
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\11\ 15 U.S.C. 78s(b)(2)(B).
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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:
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-2014-06 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-OCC-2014-06. 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
[[Page 19143]]
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
the filing also will be available for inspection and copying at the
principal office of OCC and on OCC's Web site (https://www.theocc.com/about/publications/bylaws.jsp). 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-2014-06 and should be submitted on or before April
28, 2014
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. 2014-07643 Filed 4-4-14; 8:45 am]
BILLING CODE 8011-01-P