Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Revise the Options Clearing Corporation's Schedule of Fees, 50858-50860 [2020-17966]
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Federal Register / Vol. 85, No. 160 / Tuesday, August 18, 2020 / Notices
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange does not believe that the
proposed changes will impose any
burden on intra-market competition that
is not necessary or appropriate in
furtherance of the purposes of the Act,
as the proposed rule change would
apply equally to all TPHs that submit
auction responses. As noted above, all
market participants are able to submit
auction responses. Additionally, the
Exchange believes the adoption of a
priority queue for auction responses
would have little impact to non-auction
response message traffic. As discussed,
auction response messages account for
an incredibly small fraction of message
traffic submitted to the Exchange. The
Exchange therefore believes the
processing of such a small amount of
message traffic via a priority queue
would have a minimal impact on the
processing of non-auction response
messages in the general queue.
Moreover, the Exchange believes it’s
reasonable to adopt a priority queue for
auction responses as compared to other
messages because auction responses are
submitted only for the purpose of
executing (and possibly providing price
improvement) in auctions with short
durations, whereas other messages are
generally submitted to rest in or execute
against the book (and generally not used
to submit liquidity into auctions).
Lastly, the Exchange does not believe
the proposed rule change will impose
any burden on inter-market competition
that is not necessary or appropriate in
furtherance of the purposes of the Act,
as the proposed change affects how the
System processes auction responses that
may only participate in auctions that
occur on the Exchange.
jbell on DSKJLSW7X2PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
www.miaxoptions.com/sites/default/files/pagefiles/MIAX_Express_Interface_MEI_v2.8.pdf.
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designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the Exchange consents, the Commission
will:
A. By order approve or disapprove
such proposed rule change, or
B. institute proceedings to determine
whether the proposed rule change
should be 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–
CBOE–2020–072 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–2020–072. 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 website (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 website 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 the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
PO 00000
Frm 00062
Fmt 4703
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to make available publicly. All
submissions should refer to File
Number SR–CBOE–2020–072, and
should be submitted on or before
September 8, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–17962 Filed 8–17–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–89534; File No. SR–OCC–
2020–009]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Revise
the Options Clearing Corporation’s
Schedule of Fees
August 12, 2020.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 31,
2020, the Options Clearing Corporation
(‘‘OCC’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared by OCC. OCC filed
the proposed rule change pursuant to
Section 19(b)(3)(A)(ii) 3 of the Act and
Rule 19b–4(f)(2) 4 thereunder 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
from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The proposed rule change by OCC
would revise OCC’s Schedule of Fees
effective September 1, 2020, to
implement a decrease in clearing fees.
OCC’s Schedule of Fees is included in
Exhibit 5 to File No. SR–OCC–2020–
009. Material proposed to be added to
OCC’s Schedule of Fees as currently in
effect is underlined and material
proposed to be deleted is marked in
strikethrough text. All capitalized terms
not defined herein have the same
16 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)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
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Federal Register / Vol. 85, No. 160 / Tuesday, August 18, 2020 / Notices
meaning as set forth in the OCC ByLaws and Rules.5
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
The purpose of this proposed rule
change is to revise OCC’s Schedule of
Fees effective September 1, 2020, to
implement a decrease in clearing fees.
Under OCC’s capital management
policy, if OCC’s Equity exceeds 110
percent of the Target Capital
Requirement plus the amount of
approved capital expenditures, OCC’s
Board may reduce the cost of clearing by
lowering fees, declaring a fee holiday, or
issuing refunds.6 As of December 31,
50859
2019, OCC maintained shareholders’
equity of approximately $351.3
million.7 OCC has experienced record
volumes in 2020 while maintaining
expenses at or around the budgeted
amount. Accordingly, OCC proposes to
modify its fee schedule to: (i) Decrease
its per contract clearing fee from $0.055
to $0.045 per contract; and (ii) adjust the
quantity of contracts at which the fixed,
per trade clearing fee begins from trades
with more than 999 contracts per trade
to trades with more than 1222 contracts
per trade as set forth in the Schedule of
Fees depicted below.8
CLEARING FEES
Current fee schedule
Proposed fee schedule
Clearing fees
Clearing fees
Trades with contracts of 0–999 .....
Trades with contracts of more than
999.
$0.055/contract .............................
$55/trade .......................................
OCC proposes to make the fee change
effective September 1, 2020, because
OCC believes that this date is the first
date that the industry could be prepared
to process the new fee without
disruption based on consultations with
market participants.9
(2) Statutory Basis
jbell on DSKJLSW7X2PROD with NOTICES
Section 17A(b)(3)(D) of the Act 10
requires that the rules of a clearing
agency provide for the equitable
allocation of reasonable dues, fees, and
other charges among its participants.
OCC believes that the proposed fee
change is reasonable because it is
designed to decrease the cost of clearing
while maintaining sufficient reserves in
the form of liquid net assets to cover
OCC’s operating expenses and address
potential business or operational losses
so that OCC can continue to meet its
obligations as a systemically important
financial market utility to Clearing
Members and the general public if such
losses were to materialize (including
through a recovery or orderly winddown of critical operations and services)
and thereby facilitate compliance with
5 OCC’s By-Laws and Rules can be found on
OCC’s public website: https://www.theocc.com/
Company-Information/Documents-and-Archives/
By-Laws-and-Rules.
6 See Securities Exchange Release No. 88029 (Jan.
24, 2020), 85 Fed. Red. 5500, 5502 (Jan. 30, 2020)
(File No. SR–OCC–2019–007) and Securities
Exchange Release No. 87257 (Oct. 8, 2019), 84 FR
VerDate Sep<11>2014
17:50 Aug 17, 2020
Jkt 250001
Trades with contracts of 0–1222 ..
Trades with contracts of more
than 1222.
$0.045/contract.
$55/trade.
certain requirements of Rule 17Ad–
22(e)(15)(ii).11
In determining the appropriate level
of the proposed fee decrease, OCC’s
Board and Compensation and
Performance Committee considered a
variety of factors, including projected
average daily volume, operating income,
and margin and a scenario analysis
modeling the sensitivity of operating
income and margin, adjusting for
different volume levels, clearing fees
and potential year-end refunds against
the thresholds set forth in OCC’s Capital
Management Policy. The Compensation
and Performance Committee also
considered a sensitivity analysis
assessing the minimum average daily
volume required to support the
proposed decrease.12 OCC believes that
the proposed decrease in clearing fees is
reasonable and consistent with its
existing By-Laws and Rules. OCC also
believes that the proposed fee change
would result in an equitable allocation
of fees among its participants because it
would be equally applicable to all
market participants transacting at a
given level of contract volume. As a
result, OCC believes that the proposed
fee schedule provides for the equitable
allocation of reasonable fees in
accordance with Section 17A(b)(3)(D) of
the Act.13
The proposed rule change is not
inconsistent with the existing rules of
OCC, including any other rules
proposed to be amended.
55194, 55196 (Oct. 15, 2019) (File No. SR–OCC–
2019–805).
7 See OCC Audited Financials 2019 available at
https://www.theocc.com/getattachment/b12dec9978ee-4ac0-b83e-94ec65ca7e94/attachment.aspx.
8 These changes are also reflected in Exhibit 5 to
File No. SR–OCC–2020–009.
9 OCC notes that a mid-month change to clearing
fees could introduce operational disruption to
Clearing Members due to the impact on their billing
processes.
10 15 U.S.C. 78q–1(b)(3)(D).
11 17 CFR 240.17Ad–22(e)(15)(ii).
12 A summary of the scenario and sensitivity
analyses is included in confidential Exhibit 3 to
File No. SR–OCC–2020–009.
13 15 U.S.C. 78q–1(b)(3)(D).
14 15 U.S.C. 78q–1(b)(3)(I).
PO 00000
Frm 00063
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(B) Clearing Agency’s Statement on
Burden on Competition
Section 17A(b)(3)(I) of the Act 14
requires that the rules of a clearing
agency not impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. OCC does not
believe that the proposed rule change
would have any impact or impose a
burden on competition. Although this
proposed rule change affects clearing
members, their customers, and the
markets that OCC serves, OCC believes
that the proposed rule change would not
disadvantage or favor any particular
user of OCC’s services in relationship to
another user because the proposed
clearing fees apply equally to all users
of OCC. Accordingly, OCC does not
believe that the proposed rule change
E:\FR\FM\18AUN1.SGM
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50860
Federal Register / Vol. 85, No. 160 / Tuesday, August 18, 2020 / Notices
would have any impact or impose a
burden on 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
Pursuant to Section 19(b)(3)(A)(ii) 15
of the Act, and Rule 19b–4(f)(2)
thereunder,16 the proposed rule change
is filed for immediate effectiveness as it
constitutes a change in fees charged to
OCC Clearing Members. 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.17
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:
jbell on DSKJLSW7X2PROD 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–2020–009 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–2020–009. 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 website (https://www.sec.gov/
15 15
U.S.C. 78s(b)(3)(A)(ii).
16 17 CFR 240.19b–4(f)(2).
17 Notwithstanding its immediate effectiveness,
implementation of this rule change will be delayed
until this change is deemed certified under CFTC
Regulation 40.6.
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17:50 Aug 17, 2020
Jkt 250001
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 website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of OCC and on OCC’s website at
https://www.theocc.com/about/
publications/bylaws.jsp.
All comments received will be posted
without change. Persons submitting
comments are cautioned that we do not
redact or edit personal identifying
information from comment submissions.
You should submit only information
that you wish to make available
publicly.
All submissions should refer to File
Number SR–OCC–2020–009 and should
be submitted on or before September 8,
2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–17966 Filed 8–17–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: U.S. Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Rule 15c1–6; SEC File No. 270–423, OMB
Control No.3235–0472
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rule 15c1–6 (17 CFR
240.15c1–6) under the Securities
18 17
PO 00000
Exchange Act of 1934 (15 U.S.C. 78a et
seq.). The Commission plans to submit
this existing collection of information to
the Office of Management and Budget
(‘‘OMB’’) for extension and approval.
Rule 15c1–6 states that any brokerdealer trying to sell to or buy from a
customer a security in a primary or
secondary distribution in which the
broker-dealer is participating or is
otherwise financially interested must
give the customer written notification of
the broker-dealer’s participation or
interest at or before completion of the
transaction. The Commission estimates
that approximately 365 respondents will
collect information annually under Rule
15c1–6 and that each respondent will
spend approximately 10 hours annually
complying with the collection of
information requirement for a total
burden of approximately 3,650 hours
per year in the aggregate.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information to be collected; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549, or send an email to: PRA_
Mailbox@sec.gov.
Dated: August 13, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–18001 Filed 8–17–20; 8:45 am]
BILLING CODE 8011–01–P
CFR 200.30–3(a)(12).
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]]>Agencies
[Federal Register Volume 85, Number 160 (Tuesday, August 18, 2020)]
[Notices]
[Pages 50858-50860]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17966]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-89534; File No. SR-OCC-2020-009]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Revise the Options Clearing Corporation's Schedule of Fees
August 12, 2020.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on July 31, 2020, the Options Clearing Corporation (``OCC'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I, II, and III below, which Items
have been prepared by OCC. OCC filed the proposed rule change pursuant
to Section 19(b)(3)(A)(ii) \3\ of the Act and Rule 19b-4(f)(2) \4\
thereunder 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 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)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The proposed rule change by OCC would revise OCC's Schedule of Fees
effective September 1, 2020, to implement a decrease in clearing fees.
OCC's Schedule of Fees is included in Exhibit 5 to File No. SR-OCC-
2020-009. Material proposed to be added to OCC's Schedule of Fees as
currently in effect is underlined and material proposed to be deleted
is marked in strikethrough text. All capitalized terms not defined
herein have the same
[[Page 50859]]
meaning as set forth in the OCC By-Laws and Rules.\5\
---------------------------------------------------------------------------
\5\ OCC's By-Laws and Rules can be found on OCC's public
website: https://www.theocc.com/Company-Information/Documents-and-Archives/By-Laws-and-Rules.
---------------------------------------------------------------------------
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
The purpose of this proposed rule change is to revise OCC's
Schedule of Fees effective September 1, 2020, to implement a decrease
in clearing fees. Under OCC's capital management policy, if OCC's
Equity exceeds 110 percent of the Target Capital Requirement plus the
amount of approved capital expenditures, OCC's Board may reduce the
cost of clearing by lowering fees, declaring a fee holiday, or issuing
refunds.\6\ As of December 31, 2019, OCC maintained shareholders'
equity of approximately $351.3 million.\7\ OCC has experienced record
volumes in 2020 while maintaining expenses at or around the budgeted
amount. Accordingly, OCC proposes to modify its fee schedule to: (i)
Decrease its per contract clearing fee from $0.055 to $0.045 per
contract; and (ii) adjust the quantity of contracts at which the fixed,
per trade clearing fee begins from trades with more than 999 contracts
per trade to trades with more than 1222 contracts per trade as set
forth in the Schedule of Fees depicted below.\8\
---------------------------------------------------------------------------
\6\ See Securities Exchange Release No. 88029 (Jan. 24, 2020),
85 Fed. Red. 5500, 5502 (Jan. 30, 2020) (File No. SR-OCC-2019-007)
and Securities Exchange Release No. 87257 (Oct. 8, 2019), 84 FR
55194, 55196 (Oct. 15, 2019) (File No. SR-OCC-2019-805).
\7\ See OCC Audited Financials 2019 available at https://www.theocc.com/getattachment/b12dec99-78ee-4ac0-b83e-94ec65ca7e94/attachment.aspx.
\8\ These changes are also reflected in Exhibit 5 to File No.
SR-OCC-2020-009.
Clearing Fees
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Current fee schedule Proposed fee schedule
----------------------------------------------------------------------------------------------------------------
Clearing fees Clearing fees
----------------------------------------------------------------------------------------------------------------
Trades with contracts of 0-999....... $0.055/contract........ Trades with contracts $0.045/contract.
of 0-1222.
Trades with contracts of more than $55/trade.............. Trades with contracts $55/trade.
999. of more than 1222.
----------------------------------------------------------------------------------------------------------------
OCC proposes to make the fee change effective September 1, 2020,
because OCC believes that this date is the first date that the industry
could be prepared to process the new fee without disruption based on
consultations with market participants.\9\
---------------------------------------------------------------------------
\9\ OCC notes that a mid-month change to clearing fees could
introduce operational disruption to Clearing Members due to the
impact on their billing processes.
---------------------------------------------------------------------------
(2) Statutory Basis
Section 17A(b)(3)(D) of the Act \10\ requires that the rules of a
clearing agency provide for the equitable allocation of reasonable
dues, fees, and other charges among its participants. OCC believes that
the proposed fee change is reasonable because it is designed to
decrease the cost of clearing while maintaining sufficient reserves in
the form of liquid net assets to cover OCC's operating expenses and
address potential business or operational losses so that OCC can
continue to meet its obligations as a systemically important financial
market utility to Clearing Members and the general public if such
losses were to materialize (including through a recovery or orderly
wind-down of critical operations and services) and thereby facilitate
compliance with certain requirements of Rule 17Ad-22(e)(15)(ii).\11\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78q-1(b)(3)(D).
\11\ 17 CFR 240.17Ad-22(e)(15)(ii).
---------------------------------------------------------------------------
In determining the appropriate level of the proposed fee decrease,
OCC's Board and Compensation and Performance Committee considered a
variety of factors, including projected average daily volume, operating
income, and margin and a scenario analysis modeling the sensitivity of
operating income and margin, adjusting for different volume levels,
clearing fees and potential year-end refunds against the thresholds set
forth in OCC's Capital Management Policy. The Compensation and
Performance Committee also considered a sensitivity analysis assessing
the minimum average daily volume required to support the proposed
decrease.\12\ OCC believes that the proposed decrease in clearing fees
is reasonable and consistent with its existing By-Laws and Rules. OCC
also believes that the proposed fee change would result in an equitable
allocation of fees among its participants because it would be equally
applicable to all market participants transacting at a given level of
contract volume. As a result, OCC believes that the proposed fee
schedule provides for the equitable allocation of reasonable fees in
accordance with Section 17A(b)(3)(D) of the Act.\13\
---------------------------------------------------------------------------
\12\ A summary of the scenario and sensitivity analyses is
included in confidential Exhibit 3 to File No. SR-OCC-2020-009.
\13\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------
The proposed rule change is not inconsistent with the existing
rules of OCC, including any other rules proposed to be amended.
(B) Clearing Agency's Statement on Burden on Competition
Section 17A(b)(3)(I) of the Act \14\ requires that the rules of a
clearing agency not impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Act. OCC does not
believe that the proposed rule change would have any impact or impose a
burden on competition. Although this proposed rule change affects
clearing members, their customers, and the markets that OCC serves, OCC
believes that the proposed rule change would not disadvantage or favor
any particular user of OCC's services in relationship to another user
because the proposed clearing fees apply equally to all users of OCC.
Accordingly, OCC does not believe that the proposed rule change
[[Page 50860]]
would have any impact or impose a burden on competition.
---------------------------------------------------------------------------
\14\ 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
Pursuant to Section 19(b)(3)(A)(ii) \15\ of the Act, and Rule 19b-
4(f)(2) thereunder,\16\ the proposed rule change is filed for immediate
effectiveness as it constitutes a change in fees charged to OCC
Clearing Members. 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.\17\
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\15\ 15 U.S.C. 78s(b)(3)(A)(ii).
\16\ 17 CFR 240.19b-4(f)(2).
\17\ Notwithstanding its immediate effectiveness, implementation
of this rule change will be delayed until this change is deemed
certified under CFTC Regulation 40.6.
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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 [email protected]. Please include
File Number SR-OCC-2020-009 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-2020-009. 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 website (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 website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filing also will be available for inspection
and copying at the principal office of OCC and on OCC's website at
https://www.theocc.com/about/publications/bylaws.jsp.
All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly.
All submissions should refer to File Number SR-OCC-2020-009 and
should be submitted on or before September 8, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-17966 Filed 8-17-20; 8:45 am]
BILLING CODE 8011-01-P
