Self-Regulatory Organizations; Options Clearing Corporation; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Partial Amendment No. 1 and Amendment No. 2, Concerning Modifications to the Amended and Restated Stock Options and Futures Settlement Agreement Between the Options Clearing Corporation and the National Securities Clearing Corporation, 14121-14122 [2024-03776]
Download as PDF
<![CDATA[
Federal Register / Vol. 89, No. 38 / Monday, February 26, 2024 / Notices
Dated: February 22, 2024.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–04030 Filed 2–22–24; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–428, OMB Control No.
3235–0478]
khammond on DSKJM1Z7X2PROD with NOTICES
Proposed Collection; Comment
Request; Extension: Rule 11a1–1(T)
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736.
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 11a1–1(T) (17 CFR
240.11a1–1(T)), under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.) (‘‘Exchange Act’’). The
Commission plans to submit this
existing collection of information to the
Office of Management and Budget
(‘‘OMB’’) for extension and approval.
On January 27, 1976, the Commission
adopted Rule 11a1–1(T)—Transactions
Yielding Priority, Parity, and
Precedence (17 CFR 240.11a1–1(T))
under the Exchange Act (15 U.S.C. 78a
et seq.) to exempt certain transactions of
exchange members for their own
accounts that would otherwise be
prohibited under Section 11(a) of the
Exchange Act. The Rule provides that a
member’s proprietary order may be
executed on the exchange of which the
trader is a member, if, among other
things: (1) the member discloses that a
bid or offer for its account is for its
account to any member with whom
such bid or offer is placed or to whom
it is communicated; (2) any such
member through whom that bid or offer
is communicated discloses to others
participating in effecting the order that
it is for the account of a member; and
(3) immediately before executing the
order, a member (other than a specialist
in such security) presenting any order
for the account of a member on the
exchange clearly announces or
otherwise indicates to the specialist and
to other members then present that he
is presenting an order for the account of
a member.
Without these requirements, it would
not be possible for the Commission to
monitor its mandate under the Exchange
VerDate Sep<11>2014
16:23 Feb 23, 2024
Jkt 262001
Act to promote fair and orderly markets
and ensure that exchange members
have, as the principal purpose of their
exchange memberships, the conduct of
a public securities business.
There are approximately 531
respondents that require an aggregate
total of approximately 15 hours per year
to comply with this Rule. Each of these
approximately 531 respondents makes
an estimated 20 annual responses, for an
aggregate of 10,620 responses per year.
Each response takes approximately 5
seconds to complete. Thus, the total
time burden per year is approximately
15 hours (10,620 × 5 seconds/60
seconds per minute/60 minutes per
hour = 14.7618 hours rounded up to 15
hours). The approximate internal cost of
compliance per hour is approximately
$405, resulting in a total internal cost of
compliance of approximately $6,075 per
year (15 hours @$405).
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 will 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 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 by
April 26, 2024.
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 John
Pezzullo, 100 F Street NE, Washington,
DC 20549, or send an email to: PRA_
Mailbox@sec.gov.
Dated: February 21, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–03853 Filed 2–23–24; 8:45 am]
BILLING CODE 8011–01–P
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
14121
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99568; File No. SR–OCC–
2023–007]
Self-Regulatory Organizations;
Options Clearing Corporation; Notice
of Designation of Longer Period for
Commission Action on Proceedings To
Determine Whether To Approve or
Disapprove a Proposed Rule Change,
as Modified by Partial Amendment No.
1 and Amendment No. 2, Concerning
Modifications to the Amended and
Restated Stock Options and Futures
Settlement Agreement Between the
Options Clearing Corporation and the
National Securities Clearing
Corporation
February 20, 2024.
On August 10, 2023, the Options
Clearing Corporation (‘‘OCC’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change SR–OCC–2023–
007 (‘‘Proposed Rule Change’’) pursuant
to section 19(b) of the Securities
Exchange Act of 1934 (‘‘Exchange
Act’’) 1 and Rule 19b–4 2 thereunder to
modify the Amended and Restated
Stock Options and Futures Settlement
Agreement dated August 5, 2017,
between OCC and National Securities
Clearing Corporation (‘‘NSCC’’), OCC’s
rules related to liquidity risk
management, and OCC’s rules related to
default management in connection with
the proposed modifications to the
Existing Accord.3 The Proposed Rule
Change was published for public
comment in the Federal Register on
August 30, 2023.4
On September 25, 2023, pursuant to
section 19(b)(2) of the Exchange Act,5
the Commission designated a longer
period within which to approve,
disapprove, or institute proceedings to
determine whether to approve or
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Notice of Filing infra note 4, at 88 FR 59976.
4 Securities Exchange Act Release No. 98215
(Aug. 24, 2023), 88 FR 59976 (Aug. 30, 2023) (File
No. SR–OCC–2023–007) (‘‘Notice of Filing’’). OCC
also filed a related advance notice (SR–OCC–2023–
801) (‘‘Advance Notice’’) with the Commission
pursuant to Section 806(e)(1) of Title VIII of the
Dodd-Frank Wall Street Reform and Consumer
Protection Act, entitled the Payment, Clearing, and
Settlement Supervision Act of 2010 and Rule 19b–
4(n)(1)(i) under the Exchange Act. 12 U.S.C.
5465(e)(1). 15 U.S.C. 78s(b)(1) and 17 CFR 240.19b–
4, respectively. The Advance Notice was published
in the Federal Register on August 30, 2023.
Securities Exchange Act Release No. 98214 (Aug.
24, 2023), 88 FR 59988 (Aug. 30, 2023) (File No.
SR–OCC–2023–801).
5 15 U.S.C. 78s(b)(2).
2 17
E:\FR\FM\26FEN1.SGM
26FEN1
14122
Federal Register / Vol. 89, No. 38 / Monday, February 26, 2024 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES
disapprove the Proposed Rule Change.6
On November 8, 2023, OCC filed a
Partial Amendment No. 1 to the
Proposed Rule Change.7 On November
14, 2023, the Commission published
notice of Partial Amendment No. 1 and
instituted proceedings, pursuant to
section 19(b)(2)(B) of the Exchange Act,8
to determine whether to approve or
disapprove the proposed rule change, as
modified by the Partial Amendment No.
1.9 On January 23, 2024, OCC filed
Amendment No. 2 to the Proposed Rule
Change, which was published in the
Federal Register for public comment on
January 30, 2024.10 The Commission
has received comments regarding the
Proposed Rule Change.11
Section 19(b)(2) of the Exchange
Act 12 provides that proceedings to
determine whether to approve or
disapprove a proposed rule change must
be concluded within 180 days of the
date of publication of notice of filing of
the proposed rule change. The time for
conclusion of the proceedings may be
6 Securities Exchange Act Release No. 98508 (Sep.
25, 2023), 88 FR 67407 (Sep. 29, 2023) (File No. SR–
OCC–2023–007).
7 Partial Amendment No. 1 delays
implementation of the proposed change; however,
Partial Amendment No. 1 was amended and
replaced by Amendment No. 2. See Notice of
Amendment infra note 10, at 89 FR 5974.
8 15 U.S.C. 78s(b)(2)(B).
9 See Securities Exchange Act Release No. 98932
(Nov. 14, 2023), 88 FR 80781 (Nov. 20, 2023) (File
No. SR–OCC–2023–007).
10 See Securities Exchange Act Release No. 99426
(Jan. 24, 2024), 89 FR 5974 (Jan. 30, 2024) (File No.
SR–OCC–2023–007) (‘‘Notice of Amendment’’).
Amendment No. 2 adds a second phase of changes
to the proposed rule change. The changes added in
Phase 2 include improved information sharing
between OCC and NSCC and are designed to
facilitate the shortening of the standard settlement
cycle for most broker-dealer transactions from T+2
to T+1. See Securities Exchange Act Release No.
96930 (Feb. 15, 2023), 88 FR 13872 (Mar. 6, 2023)
(File No. S7–05–22).
11 Comments on the Advance Notice are available
at https://www.sec.gov/comments/sr-occ-2023-801/
srocc2023801.htm. The Commission received one
comment supporting the proposed changes. See
comment from John P. Davidson, Principal, Pirnie
Advisory (Oct. 4, 2023), available at https://
www.sec.gov/comments/sr-occ-2023-801/
srocc2023801-268179-645042.htm. Since the
proposal contained in the Advance Notice was also
filed as a proposed rule change, all public
comments received on the proposal are considered
regardless of whether the comments are submitted
on the Proposed Rule Change or the Advance
Notice. Comments on the Proposed Rule Change are
available at https://www.sec.gov/comments/sr-occ2023-007/srocc2023007.htm. The Commission
received comments on the proposed rule change
that express concerns unrelated to the substance of
the filing. See, e.g., comment from Gregory
Englebert (Feb. 2, 2024) (raising concerns about a
conflict of interest in the role of Financial Risk
Management Officers as well as margin calls)
comment from Curtis H. (Feb. 3, 2024) (referencing
short selling and margin), and comment from CK
Kashyap (Feb. 5, 2024) (referring to broker risk
management in response to margin).
12 15 U.S.C. 78s(b)(2).
VerDate Sep<11>2014
16:23 Feb 23, 2024
Jkt 262001
extended for up to 60 days if the
Commission determines that a longer
period is appropriate and publishes the
reasons for such determination.13 The
180th day after publication of the Notice
in the Federal Register is February 26,
2024.
The Commission is extending the
period for Commission action on the
Proposed Rule Change, as modified by
Partial Amendment No. 1 and
Amendment No. 2 (hereinafter, the
‘‘Proposed Rule Change’’). The
Commission finds that it is appropriate
to designate a longer period within
which to take action on the Proposed
Rule Change so that the Commission has
sufficient time to consider the issues
raised by the Proposed Rule Change and
to take action on the Proposed Rule
Change. Accordingly, pursuant to
section 19(b)(2)(B)(ii)(II) of the Exchange
Act,14 the Commission designates April
26, 2024, as the date by which the
Commission should either approve or
disapprove the Proposed Rule Change
SR–OCC–2023–007.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–03776 Filed 2–23–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99567; File No. SR–NSCC–
2023–007]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Designation of
Longer Period for Commission Action
on Proceedings To Determine Whether
To Approve or Disapprove a Proposed
Rule Change, as Modified by Partial
Amendment No. 1 and Amendment No.
2, To Modify the Amended and
Restated Stock Options and Futures
Settlement Agreement and Make
Certain Revisions to the NSCC Rules
February 20, 2024.
On August 10, 2023, National
Securities Clearing Corporation
(‘‘NSCC’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
proposed rule change SR–NSCC–2023–
007 (‘‘Proposed Rule Change’’) pursuant
to Section 19(b) of the Securities
Exchange Act of 1934 (‘‘Exchange
13 15
U.S.C 78s(b)(2)(B)(ii)(II).
14 Id.
15 17
PO 00000
CFR 200.30–3(a)(57).
Frm 00083
Fmt 4703
Sfmt 4703
Act’’) 1 and Rule 19b–4 2 thereunder to
modify the Amended and Restated
Stock Options and Futures Settlement
Agreement dated August 5, 2017,
between NSCC and the Options Clearing
Corporation (‘‘OCC’’) and make certain
revisions to NSCC’s related Rules &
Procedures.3 The Proposed Rule Change
was published for public comment in
the Federal Register on August 30,
2023.4
On September 25, 2023, pursuant to
section 19(b)(2) of the Exchange Act,5
the Commission designated a longer
period within which to approve,
disapprove, or institute proceedings to
determine whether to approve or
disapprove the Proposed Rule Change.6
On November 8, 2023, NSCC filed a
Partial Amendment No. 1 to the
Proposed Rule Change.7 On November
14, 2023, the Commission published
notice of Partial Amendment No. 1 and
instituted proceedings, pursuant to
section 19(b)(2)(B) of the Exchange Act,8
to determine whether to approve or
disapprove the proposed rule change, as
modified by the Partial Amendment No.
1.9 On January 24, 2024, NSCC filed
Amendment No. 2 to the Proposed Rule
Change, which was published in the
Federal Register for public comment on
January 31, 2024.10 The Commission
has received no comments regarding the
substance of the Proposed Rule
Change.11
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Capitalized terms not defined herein are defined
in the NSCC Rules. The NSCC Rules are available
at www.dtcc.com/-/media/Files/Downloads/legal/
rules/nscc_rules.pdf.
4 Securities Exchange Act Release No. 98213
(Aug. 24, 2023), 88 FR 59968 (Aug. 30, 2023) (File
No. SR–NSCC–2023–007) (‘‘Notice of Filing’’).
5 15 U.S.C. 78s(b)(2).
6 Securities Exchange Act Release No. 98508 (Sep.
25, 2023), 88 FR 67407 (Sep. 29, 2023) (File No. SR–
NSCC–2023–007).
7 Partial Amendment No. 1 delays
implementation of the proposed change; however,
Partial Amendment No. 1 was amended and
replaced by Amendment No. 2. See Notice of
Amendment infra note 10, at 89 FR 6140.
8 15 U.S.C. 78s(b)(2)(B).
9 Securities Exchange Act Release No. 98930
(Nov. 14, 2023), 88 FR 80790 (Nov. 20, 2023) (File
No. SR–NSCC–2023–007).
10 Securities Exchange Act Release No. 99432
(Jan. 25, 2024), 89 FR 6140 (Jan. 31, 2024) (File No.
SR–NSCC–2023–007) (‘‘Notice of Amendment’’).
Amendment No. 2 adds a second phase of changes
to the proposed rule change. The changes added in
Phase 2 include improved information sharing
between OCC and NSCC and are designed to
facilitate the shortening of the standard settlement
cycle for most broker-dealer transactions from T+2
to T+1. See Securities Exchange Act Release No.
96930 (Feb. 15, 2023), 88 FR 13872 (Mar. 6, 2023)
(File No. S7–05–22).
11 The Commission received comments
expressing general concerns unrelated to the
substance of the filing. See, e.g., comments from JT
Clark (Oct. 10, 2024) (general concern about
2 17
E:\FR\FM\26FEN1.SGM
26FEN1
]]>Agencies
[Federal Register Volume 89, Number 38 (Monday, February 26, 2024)]
[Notices]
[Pages 14121-14122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03776]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99568; File No. SR-OCC-2023-007]
Self-Regulatory Organizations; Options Clearing Corporation;
Notice of Designation of Longer Period for Commission Action on
Proceedings To Determine Whether To Approve or Disapprove a Proposed
Rule Change, as Modified by Partial Amendment No. 1 and Amendment No.
2, Concerning Modifications to the Amended and Restated Stock Options
and Futures Settlement Agreement Between the Options Clearing
Corporation and the National Securities Clearing Corporation
February 20, 2024.
On August 10, 2023, the Options Clearing Corporation (``OCC'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change SR-OCC-2023-007 (``Proposed Rule Change'')
pursuant to section 19(b) of the Securities Exchange Act of 1934
(``Exchange Act'') \1\ and Rule 19b-4 \2\ thereunder to modify the
Amended and Restated Stock Options and Futures Settlement Agreement
dated August 5, 2017, between OCC and National Securities Clearing
Corporation (``NSCC''), OCC's rules related to liquidity risk
management, and OCC's rules related to default management in connection
with the proposed modifications to the Existing Accord.\3\ The Proposed
Rule Change was published for public comment in the Federal Register on
August 30, 2023.\4\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Notice of Filing infra note 4, at 88 FR 59976.
\4\ Securities Exchange Act Release No. 98215 (Aug. 24, 2023),
88 FR 59976 (Aug. 30, 2023) (File No. SR-OCC-2023-007) (``Notice of
Filing''). OCC also filed a related advance notice (SR-OCC-2023-801)
(``Advance Notice'') with the Commission pursuant to Section
806(e)(1) of Title VIII of the Dodd-Frank Wall Street Reform and
Consumer Protection Act, entitled the Payment, Clearing, and
Settlement Supervision Act of 2010 and Rule 19b-4(n)(1)(i) under the
Exchange Act. 12 U.S.C. 5465(e)(1). 15 U.S.C. 78s(b)(1) and 17 CFR
240.19b-4, respectively. The Advance Notice was published in the
Federal Register on August 30, 2023. Securities Exchange Act Release
No. 98214 (Aug. 24, 2023), 88 FR 59988 (Aug. 30, 2023) (File No. SR-
OCC-2023-801).
---------------------------------------------------------------------------
On September 25, 2023, pursuant to section 19(b)(2) of the Exchange
Act,\5\ the Commission designated a longer period within which to
approve, disapprove, or institute proceedings to determine whether to
approve or
[[Page 14122]]
disapprove the Proposed Rule Change.\6\ On November 8, 2023, OCC filed
a Partial Amendment No. 1 to the Proposed Rule Change.\7\ On November
14, 2023, the Commission published notice of Partial Amendment No. 1
and instituted proceedings, pursuant to section 19(b)(2)(B) of the
Exchange Act,\8\ to determine whether to approve or disapprove the
proposed rule change, as modified by the Partial Amendment No. 1.\9\ On
January 23, 2024, OCC filed Amendment No. 2 to the Proposed Rule
Change, which was published in the Federal Register for public comment
on January 30, 2024.\10\ The Commission has received comments regarding
the Proposed Rule Change.\11\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(2).
\6\ Securities Exchange Act Release No. 98508 (Sep. 25, 2023),
88 FR 67407 (Sep. 29, 2023) (File No. SR-OCC-2023-007).
\7\ Partial Amendment No. 1 delays implementation of the
proposed change; however, Partial Amendment No. 1 was amended and
replaced by Amendment No. 2. See Notice of Amendment infra note 10,
at 89 FR 5974.
\8\ 15 U.S.C. 78s(b)(2)(B).
\9\ See Securities Exchange Act Release No. 98932 (Nov. 14,
2023), 88 FR 80781 (Nov. 20, 2023) (File No. SR-OCC-2023-007).
\10\ See Securities Exchange Act Release No. 99426 (Jan. 24,
2024), 89 FR 5974 (Jan. 30, 2024) (File No. SR-OCC-2023-007)
(``Notice of Amendment''). Amendment No. 2 adds a second phase of
changes to the proposed rule change. The changes added in Phase 2
include improved information sharing between OCC and NSCC and are
designed to facilitate the shortening of the standard settlement
cycle for most broker-dealer transactions from T+2 to T+1. See
Securities Exchange Act Release No. 96930 (Feb. 15, 2023), 88 FR
13872 (Mar. 6, 2023) (File No. S7-05-22).
\11\ Comments on the Advance Notice are available at https://www.sec.gov/comments/sr-occ-2023-801/srocc2023801.htm. The
Commission received one comment supporting the proposed changes. See
comment from John P. Davidson, Principal, Pirnie Advisory (Oct. 4,
2023), available at https://www.sec.gov/comments/sr-occ-2023-801/srocc2023801-268179-645042.htm. Since the proposal contained in the
Advance Notice was also filed as a proposed rule change, all public
comments received on the proposal are considered regardless of
whether the comments are submitted on the Proposed Rule Change or
the Advance Notice. Comments on the Proposed Rule Change are
available at https://www.sec.gov/comments/sr-occ-2023-007/srocc2023007.htm. The Commission received comments on the proposed
rule change that express concerns unrelated to the substance of the
filing. See, e.g., comment from Gregory Englebert (Feb. 2, 2024)
(raising concerns about a conflict of interest in the role of
Financial Risk Management Officers as well as margin calls) comment
from Curtis H. (Feb. 3, 2024) (referencing short selling and
margin), and comment from CK Kashyap (Feb. 5, 2024) (referring to
broker risk management in response to margin).
---------------------------------------------------------------------------
Section 19(b)(2) of the Exchange Act \12\ provides that proceedings
to determine whether to approve or disapprove a proposed rule change
must be concluded within 180 days of the date of publication of notice
of filing of the proposed rule change. The time for conclusion of the
proceedings may be extended for up to 60 days if the Commission
determines that a longer period is appropriate and publishes the
reasons for such determination.\13\ The 180th day after publication of
the Notice in the Federal Register is February 26, 2024.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(2).
\13\ 15 U.S.C 78s(b)(2)(B)(ii)(II).
---------------------------------------------------------------------------
The Commission is extending the period for Commission action on the
Proposed Rule Change, as modified by Partial Amendment No. 1 and
Amendment No. 2 (hereinafter, the ``Proposed Rule Change''). The
Commission finds that it is appropriate to designate a longer period
within which to take action on the Proposed Rule Change so that the
Commission has sufficient time to consider the issues raised by the
Proposed Rule Change and to take action on the Proposed Rule Change.
Accordingly, pursuant to section 19(b)(2)(B)(ii)(II) of the Exchange
Act,\14\ the Commission designates April 26, 2024, as the date by which
the Commission should either approve or disapprove the Proposed Rule
Change SR-OCC-2023-007.
---------------------------------------------------------------------------
\14\ Id.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-03776 Filed 2-23-24; 8:45 am]
BILLING CODE 8011-01-P
