Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Correct an Inadvertent Omission in a Prior Proposed Rule Change Concerning OCC's Schedule of Fees, 67108-67110 [2021-25624]
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khammond on DSKJM1Z7X2PROD with NOTICES
67108
Federal Register / Vol. 86, No. 224 / Wednesday, November 24, 2021 / Notices
may request, (i) a record of all
investments in Potential Co-Investment
Transactions made by any of the other
Regulated Funds or any Affiliated
Funds during the preceding quarter that
fell within the Regulated Fund’s thencurrent Objectives and Strategies and
Board-Established Criteria that were not
made available to the Regulated Fund,
and an explanation of why such
investment opportunities were not made
available to the Regulated Fund; (ii) a
record of all Follow-On Investments in
and Dispositions of investments in any
issuer in which the Regulated Fund
holds any investments by any Affiliated
Fund or other Regulated Fund during
the prior quarter; and (iii) all
information concerning Potential CoInvestment Transactions and CoInvestment Transactions, including
investments made by other Regulated
Funds or any Affiliated Funds that the
Regulated Fund considered but declined
to participate in, so that the
Independent Trustees, may determine
whether all Potential Co-Investment
Transactions and Co-Investment
Transactions during the preceding
quarter, including those investments
that the Regulated Fund considered but
declined to participate in, comply with
the Conditions.
(b) All information presented to the
Regulated Fund’s Board pursuant to this
Condition will be kept for the life of the
Regulated Fund and at least two years
thereafter, and will be subject to
examination by the Commission and its
staff.
(c) Each Regulated Fund’s chief
compliance officer, as defined in rule
38a–1(a)(4), will prepare an annual
report for its Board each year that
evaluates (and documents the basis of
that evaluation) the Regulated Fund’s
compliance with the terms and
Conditions of the application and the
procedures established to achieve such
compliance.
(d) The Independent Trustees will
consider at least annually whether
continued participation in new and
existing Co-Investment Transactions is
in the Regulated Fund’s best interests.
11. Record Keeping. Each Regulated
Fund will maintain the records required
by section 57(f)(3) of the Act as if each
of the Regulated Funds were a BDC and
each of the investments permitted under
these Conditions were approved by the
Required Majority under section 57(f).
12. Trustee Independence. No
Independent Trustee of a Regulated
Fund will also be a director, general
partner, managing member or principal,
or otherwise be an ‘‘affiliated person’’
(as defined in the Act) of any Affiliated
Fund.
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17:05 Nov 23, 2021
Jkt 256001
13. Expenses. The expenses, if any,
associated with acquiring, holding or
disposing of any securities acquired in
a Co-Investment Transaction (including,
without limitation, the expenses of the
distribution of any such securities
registered for sale under the Securities
Act) will, to the extent not payable by
the Advisers under their respective
advisory agreements with the Regulated
Funds and the Affiliated Funds, be
shared by the Regulated Funds and any
participating Affiliated Funds in
proportion to the relative amounts of the
securities held or being acquired or
disposed of, as the case may be.
14. Transaction Fees.27 Any
transaction fee (including break-up,
structuring, monitoring or commitment
fees but excluding brokerage or
underwriting compensation permitted
by section 17(e) or 57(k)) received in
connection with any Co-Investment
Transaction will be distributed to the
participants on a pro rata basis based on
the amounts they invested or
committed, as the case may be, in such
Co-Investment Transaction. If any
transaction fee is to be held by an
Adviser pending consummation of the
transaction, the fee will be deposited
into an account maintained by an
Adviser at a bank or banks having the
qualifications prescribed in section
26(a)(1), and the account will earn a
competitive rate of interest that will also
be divided pro rata among the
participants. None of the Adviser, the
Affiliated Funds, the other Regulated
Funds or any affiliated person of the
Affiliated Funds or the Regulated Funds
will receive any additional
compensation or remuneration of any
kind as a result of or in connection with
a Co-Investment Transaction other than
(i) in the case of the Regulated Funds
and the Affiliated Funds, the pro rata
transaction fees described above and
fees or other compensation described in
Condition 2(c)(iii)(B)(z), (ii) brokerage or
underwriting compensation permitted
by section 17(e) or 57(k) or (iii) in the
case of the Adviser, investment advisory
compensation paid in accordance with
investment advisory agreements
between the applicable Regulated
Fund(s) or Affiliated Fund(s) and its
Adviser.
15. Independence. If the Holders own
in the aggregate more than 25 percent of
the Shares of a Regulated Fund, then the
Holders will vote such Shares in the
same percentages as the Regulated
Fund’s other shareholders (not
27 Applicants are not requesting and the
Commission is not providing any relief for
transaction fees received in connection with any
Co-Investment Transaction.
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
including the Holders) when voting on
(1) the election of directors; (2) the
removal of one or more directors; or (3)
any other matter under either the Act or
applicable State law affecting the
Board’s composition, size or manner of
election.
For the Commission, by the Division of
Investment Management, under delegated
authority.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–25628 Filed 11–23–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93612; File No. SR–OCC–
2021–012]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Correct
an Inadvertent Omission in a Prior
Proposed Rule Change Concerning
OCC’s Schedule of Fees
November 18, 2021.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’ or ‘‘Act’’),1 and Rule
19b–4 thereunder,2 notice is hereby
given that on November 8, 2021, The
Options Clearing Corporation (‘‘OCC’’)
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared primarily by OCC.
OCC filed the proposed rule change
pursuant to Section 19(b)(3)(A)(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 correct an inadvertent omission
in OCC’s schedule of fees that was the
subject of a prior rule filing. OCC’s
schedule of fees is included as Exhibit
5 to File No. SR–OCC–2021–012.
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.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
2 17
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Federal Register / Vol. 86, No. 224 / Wednesday, November 24, 2021 / Notices
All capitalized terms not defined herein
have the same meaning as set forth in
the OCC By-Laws 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 to correct an inadvertent omission
in the prior rule filing that established
a fee holiday for the period from
November 1, 2021, and ending
December 31, 2021.6 Based on OCC’s
financial position as a result of historic
contract volume, and consistent with
Clearing fees effective June 1, 2021
67109
OCC’s Capital Management Policy, that
prior filing reduced its per contract and
per trade clearing fees to $0 for the last
two months of 2021. However, through
an inadvertent oversight, two line items
in the schedule of fees related to
clearing fees were not reduced
accordingly: (1) The minimum monthly
clearing fee of $200 and (2) a fee of
$0.02 per side for linkage transactions,
capped at $55 per trade per side.7 OCC
is now proposing to correct the schedule
of fees set forth in Exhibit 5 to File No.
SR–OCC–2021–012 to reflect that OCC
will not collect these fees during the fee
holiday.
Proposed fee holiday from November 1, 2021 to December 31, 2021
Linkage per side ...........................................................
Minimum Monthly Clearing Fee ...................................
* $0.02
200.00
Linkage per side ...........................................................
Minimum Monthly Clearing Fee ...................................
$0.00
0.00
* A Linkage transaction that includes more than 2,750 contracts will be charged a flat fee of $55.00 per trade per side.
khammond on DSKJM1Z7X2PROD with NOTICES
corrections are reasonably designed to
provide participants sufficient
information to evaluate OCC’s fees, in
accordance with SEC Rule 17Ad–
22(e)(23)(ii).11
The proposed rule change is not
inconsistent with the existing rules of
OCC, including any other rules
proposed to be amended.
(2) Statutory Basis
Section 17A(b)(3)(D) of the Act 8
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
correction of inadvertent omissions to
OCC’s schedule of fees would facilitate
the equitable allocation of fees among
its participants because it would
eliminate inadvertent discrepancies in
the application of the fee holiday that
might otherwise impact certain market
participants differently depending on
the business they conduct through OCC.
The corrected fees would be equally
applicable to all market participants. As
a result, OCC believes that the proposed
corrections would provide for the
equitable allocation of reasonable fees in
accordance with Section 17A(b)(3)(D) of
the Act.9
In addition, SEC Rule 17Ad–
22(e)(23)(ii) 10 provides that a covered
clearing agency must establish,
implement, maintain and enforce
written policies and procedures
reasonably designed to provide
sufficient information to enable
participants to identify and evaluate the
risks, fees, and other material costs they
incur by participating in the covered
clearing agency. By correcting OCC’s
schedule of fees consistent with the
intent of the fee holiday, OCC would
eliminate ambiguity that might
otherwise persist about whether OCC
intends to charge the minimum monthly
clearing fee and the fee for linkage
transactions while the fee holiday is in
effect, which it does not. Accordingly,
OCC believes that the proposed
Section 17A(b)(3)(I) of the Act 12
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 fee
holiday with respect to these fees
applies equally to all users of OCC.
Accordingly, OCC does not believe that
the proposed rule change would have
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 Exchange Act Release No. 93195 (Sept. 29,
2021), 86 FR 55039 (Oct. 5, 2021) (File No. SR–
OCC–2021–009).
7 The linkage fee was added to OCC’s schedule of
fees in 2012 so that OCC could, for the purposes
of charging a clearing fee, treat routing trades
executed in accordance with the Options Order
Protection and Locked/Crossed Market Plan the
same as market maker/specialist scratch trades,
which were subject to a reduced ‘‘scratch fee.’’ See
Exchange Act Release No. 68025 (Oct. 10, 2012), 77
FR 63398 (Oct. 16, 2012) (File No. SR–OCC–2012–
18). In 2016, OCC simplified its schedule of fees by,
among other things, eliminating the scratch fee but
retained the linkage per side fee. See Exchange Act
Release No. 77336 (Mar. 10, 2016), 81 FR 14153
(Mar. 16, 2016) (File No. SR–OCC–2016–005).
8 15 U.S.C. 78q–1(b)(3)(D).
9 15 U.S.C. 78q–1(b)(3)(D).
10 17 CFR 240.17AD–22(e)(23)(ii).
11 17 CFR 240.17AD–22(e)(23)(ii).
12 15 U.S.C. 78q–1(b)(3)(I).
The listing of the fees in the schedule
of fees would be reordered to group
these two fees with the other clearing
fees that are subject to the fee holiday.
Like the changes to OCC’s clearing fees
set forth in File No. SR–OCC–2021–009,
the linkage per side fee and the
minimum monthly clearing fee will
revert to the fee schedule in effect before
November 1, 2021 and OCC will remove
the fee holiday from its schedule of fees
effective the first trading day of 2022.
No fees for transactions occurring
within the fee holiday period have been
collected because clearing fees are due
to OCC the month after the fees are
incurred. OCC will not collect fees for
transactions that occurred between
November 1, 2021 through the first date
it may implement the corrected fee
schedule after completing all regulatory
actions necessary to make the proposed
corrections.
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17:05 Nov 23, 2021
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Fmt 4703
Sfmt 4703
(B) Clearing Agency’s Statement on
Burden on Competition
E:\FR\FM\24NON1.SGM
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67110
Federal Register / Vol. 86, No. 224 / Wednesday, November 24, 2021 / Notices
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) 13
of the Act, and Rule 19b–4(f)(2)
thereunder,14 the proposed rule change
is filed for immediate effectiveness as it
constitutes a change in fees charged to
OCC’s 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. The proposal
shall not take effect until all regulatory
actions required with respect to the
proposal are completed.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:
khammond on DSKJM1Z7X2PROD 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–2021–012 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Vanessa Countryman, Secretary,
Securities and Exchange Commission,
100 F Street NE, Washington, DC
20549–1090.
All submissions should refer to File
Number SR–OCC–2021–012. 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
13 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
15 Notwithstanding its immediate effectiveness,
implementation of this rule change will be delayed
until this change is deemed certified under CFTC
Regulation 40.6.
14 17
VerDate Sep<11>2014
17:05 Nov 23, 2021
Jkt 256001
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.
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–2021–012 and
should be submitted on or before
December 15, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–25624 Filed 11–23–21; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[License No. 03/03–0283]
Conflicts of Interest Exemption;
Boathouse Capital III, L.P.
Notice is hereby given that Boathouse
Capital III, L.P., 353 W Lancaster
Avenue, Suite 200, Wayne, PA 19087, a
Federal Licensee under the Small
Business Investment Act of 1958, as
amended (‘‘the Act’’), in connection
with the financing of a small business
concern, has sought an exemption under
Section 312 of the Act and Section
107.730, Financings which Constitute
Conflicts of Interest of the Small
Business Administration (‘‘SBA’’) Rules
and Regulations (13 CFR 107.730).
Boathouse Capital III, L.P. is seeking a
written exemption from SBA for a
proposed financing to Splashlight
16 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00092
Fmt 4703
Sfmt 4703
Holding, LLC, 75 Varick Street, 3rd
Floor, New York, NY 10013.
The financing is brought within the
purview of § 107.730(a) of the
Regulations because Splashlight
Holding, LLC. is an Associate of
Boathouse Capital III, L.P. because
Associate Boathouse Capital II, L.P.
owns a greater than ten percent interest
in Splashlight Holding, LLC, therefore
this transaction is considered Financing
which constitute conflicts of interest
requiring SBA’s prior written
exemption.
Notice is hereby given that any
interested person may submit written
comments on this transaction within
fifteen days of the date of this
publication to the Associate
Administrator, Office of Investment and
Innovation, U.S. Small Business
Administration, 409 Third Street SW,
Washington, DC 20416.
United States Small Business
Administration.
Bailey G. DeVries,
Associate Administrator, Office of Investment
and Innovation.
[FR Doc. 2021–25696 Filed 11–23–21; 8:45 am]
BILLING CODE P
SMALL BUSINESS ADMINISTRATION
[License No. 04/04–0333]
Notice Seeking Exemption Under
Section 312 of the Small Business
Investment Act, Conflicts of Interest;
Five Points Mezzanine Fund III, L.P.
Notice is hereby given that Five
Points Mezzanine Fund III, L.P., 101 N.
Cherry Street, Winston-Salem, NC
27101, a Federal Licensee under the
Small Business Investment Act of 1958,
as amended (‘‘the Act’’), in connection
with the financing of a small concern,
has sought an exemption under Section
312 of the Act and Section 107.730,
Financings which Constitute Conflicts
of Interest of the U.S. Small Business
Administration (‘‘SBA’’) Rules and
Regulations (13 CFR 107.730). Five
Points Mezzanine Fund III, L.P.
proposes to purchase its pro rata share
of a recent debt financing from BMO
Harris Bank, N.A. in Welcome Dairy
Holdings, LLC, 225567 Silver Maple
Lane, Colby, WI.
The financing is brought within the
purview of § 107.730(a) and (d) of the
Regulations because RCP Advisors, an
Associate of Five Points Mezzanine
Fund III, L.P., indirectly owns more
than ten percent of Welcome Dairy
Holdings, LLC, and therefore this
transaction is considered a financing of
an Associate requiring prior SBA
approval.
E:\FR\FM\24NON1.SGM
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]]>Agencies
[Federal Register Volume 86, Number 224 (Wednesday, November 24, 2021)]
[Notices]
[Pages 67108-67110]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-25624]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93612; File No. SR-OCC-2021-012]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Correct an Inadvertent Omission in a Prior Proposed Rule Change
Concerning OCC's Schedule of Fees
November 18, 2021.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act'' or ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on November 8, 2021, The Options Clearing
Corporation (``OCC'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared primarily by
OCC. OCC filed the proposed rule change pursuant to Section
19(b)(3)(A)(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 correct an inadvertent
omission in OCC's schedule of fees that was the subject of a prior rule
filing. OCC's schedule of fees is included as Exhibit 5 to File No. SR-
OCC-2021-012. 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.
[[Page 67109]]
All capitalized terms not defined herein have the same 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 to correct an inadvertent omission in the prior rule
filing that established a fee holiday for the period from November 1,
2021, and ending December 31, 2021.\6\ Based on OCC's financial
position as a result of historic contract volume, and consistent with
OCC's Capital Management Policy, that prior filing reduced its per
contract and per trade clearing fees to $0 for the last two months of
2021. However, through an inadvertent oversight, two line items in the
schedule of fees related to clearing fees were not reduced accordingly:
(1) The minimum monthly clearing fee of $200 and (2) a fee of $0.02 per
side for linkage transactions, capped at $55 per trade per side.\7\ OCC
is now proposing to correct the schedule of fees set forth in Exhibit 5
to File No. SR-OCC-2021-012 to reflect that OCC will not collect these
fees during the fee holiday.
---------------------------------------------------------------------------
\6\ See Exchange Act Release No. 93195 (Sept. 29, 2021), 86 FR
55039 (Oct. 5, 2021) (File No. SR-OCC-2021-009).
\7\ The linkage fee was added to OCC's schedule of fees in 2012
so that OCC could, for the purposes of charging a clearing fee,
treat routing trades executed in accordance with the Options Order
Protection and Locked/Crossed Market Plan the same as market maker/
specialist scratch trades, which were subject to a reduced ``scratch
fee.'' See Exchange Act Release No. 68025 (Oct. 10, 2012), 77 FR
63398 (Oct. 16, 2012) (File No. SR-OCC-2012-18). In 2016, OCC
simplified its schedule of fees by, among other things, eliminating
the scratch fee but retained the linkage per side fee. See Exchange
Act Release No. 77336 (Mar. 10, 2016), 81 FR 14153 (Mar. 16, 2016)
(File No. SR-OCC-2016-005).
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Clearing fees effective June 1, 2021 Proposed fee holiday from November 1, 2021 to
December 31, 2021
----------------------------------------------------------------------------------------------------------------
Linkage per side.............................. * $0.02 Linkage per side................ $0.00
Minimum Monthly Clearing Fee.................. 200.00 Minimum Monthly Clearing Fee.... 0.00
----------------------------------------------------------------------------------------------------------------
* A Linkage transaction that includes more than 2,750 contracts will be charged a flat fee of $55.00 per trade
per side.
The listing of the fees in the schedule of fees would be reordered
to group these two fees with the other clearing fees that are subject
to the fee holiday. Like the changes to OCC's clearing fees set forth
in File No. SR-OCC-2021-009, the linkage per side fee and the minimum
monthly clearing fee will revert to the fee schedule in effect before
November 1, 2021 and OCC will remove the fee holiday from its schedule
of fees effective the first trading day of 2022.
No fees for transactions occurring within the fee holiday period
have been collected because clearing fees are due to OCC the month
after the fees are incurred. OCC will not collect fees for transactions
that occurred between November 1, 2021 through the first date it may
implement the corrected fee schedule after completing all regulatory
actions necessary to make the proposed corrections.
(2) Statutory Basis
Section 17A(b)(3)(D) of the Act \8\ 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 correction of inadvertent omissions to OCC's schedule of
fees would facilitate the equitable allocation of fees among its
participants because it would eliminate inadvertent discrepancies in
the application of the fee holiday that might otherwise impact certain
market participants differently depending on the business they conduct
through OCC. The corrected fees would be equally applicable to all
market participants. As a result, OCC believes that the proposed
corrections would provide for the equitable allocation of reasonable
fees in accordance with Section 17A(b)(3)(D) of the Act.\9\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78q-1(b)(3)(D).
\9\ 15 U.S.C. 78q-1(b)(3)(D).
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In addition, SEC Rule 17Ad-22(e)(23)(ii) \10\ provides that a
covered clearing agency must establish, implement, maintain and enforce
written policies and procedures reasonably designed to provide
sufficient information to enable participants to identify and evaluate
the risks, fees, and other material costs they incur by participating
in the covered clearing agency. By correcting OCC's schedule of fees
consistent with the intent of the fee holiday, OCC would eliminate
ambiguity that might otherwise persist about whether OCC intends to
charge the minimum monthly clearing fee and the fee for linkage
transactions while the fee holiday is in effect, which it does not.
Accordingly, OCC believes that the proposed corrections are reasonably
designed to provide participants sufficient information to evaluate
OCC's fees, in accordance with SEC Rule 17Ad-22(e)(23)(ii).\11\
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\10\ 17 CFR 240.17AD-22(e)(23)(ii).
\11\ 17 CFR 240.17AD-22(e)(23)(ii).
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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 \12\ 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 fee holiday with respect to these fees applies
equally to all users of OCC. Accordingly, OCC does not believe that the
proposed rule change would have
[[Page 67110]]
any impact or impose a burden on competition.
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\12\ 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
Pursuant to Section 19(b)(3)(A)(ii) \13\ of the Act, and Rule 19b-
4(f)(2) thereunder,\14\ the proposed rule change is filed for immediate
effectiveness as it constitutes a change in fees charged to OCC's
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. The proposal shall
not take effect until all regulatory actions required with respect to
the proposal are completed.\15\
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\13\ 15 U.S.C. 78s(b)(3)(A)(ii).
\14\ 17 CFR 240.19b-4(f)(2).
\15\ 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-2021-012 on the subject line.
Paper Comments
Send paper comments in triplicate to Vanessa Countryman,
Secretary, Securities and Exchange Commission, 100 F Street NE,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-OCC-2021-012. 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.
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-2021-012 and should be
submitted on or before December 15, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-25624 Filed 11-23-21; 8:45 am]
BILLING CODE 8011-01-P
