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 Amendments Nos. 2 and 3, by The Options Clearing Corporation To Establish a Margin Add-On Charge That Would Be Applied to All Clearing Member Accounts To Help Mitigate the Risks Arising From Intraday and Overnight Trading Activity, 9352 [2025-02432]

Agencies

• SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 90, Number 27 (Tuesday, February 11, 2025)]
[Notices]
[Page 9352]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-02432]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-102358; File No. SR-OCC-2024-010]


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 Amendments Nos. 
2 and 3, by The Options Clearing Corporation To Establish a Margin Add-
On Charge That Would Be Applied to All Clearing Member Accounts To Help 
Mitigate the Risks Arising From Intraday and Overnight Trading Activity

February 5, 2025.
    On July 25, 2024, the Options Clearing Corporation (``OCC'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change SR-OCC-2024-010, pursuant to Section 19(b) of the 
Securities Exchange Act of 1934 (``Exchange Act'') \1\ and Rule 19b-4 
\2\ thereunder, to establish a margin add-on charge that would be 
applied to all Clearing Member accounts to assist with mitigating the 
risks arising from intraday and overnight trading activity, 
particularly activity attributable to short-dated options trading.\3\ 
The proposed rule change was published for public comment in the 
Federal Register on August 12, 2024.\4\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Notice of Filing infra note 4, at 89 FR 65695.
    \4\ Securities Exchange Act Release No. 100664 (Aug. 6, 2024), 
89 FR 65695 (Aug. 12, 2024) (File No. SR-OCC-2024-010) (``Notice of 
Filing'').
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    On September 4, 2024, OCC partially amended the proposed rule 
change to include as Exhibit 2 an information memorandum OCC published 
on its website informing OCC's membership of the details of the margin 
add-on charge.\5\ On September 25, 2024, pursuant to Section 19(b)(2) 
of the Exchange Act,\6\ the Commission issued a Notice of Filing of 
Partial Amendment No. 1 and designated a longer period within which to 
approve, disapprove, or institute proceedings to determine whether to 
approve or disapprove the proposed rule change, as modified by Partial 
Amendment No. 1.\7\ On November 7, 2024, the Commission 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 Partial Amendment No. 1.\9\
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    \5\ See OCC Info Memo #55123, Intraday Risk Monitoring (dated 
Aug. 30, 2024), available at https://infomemo.theocc.com/infomemos?number=55123. The amendment did not change the purpose or 
basis of the proposed rule change.
    \6\ 15 U.S.C. 78s(b)(2).
    \7\ Securities Exchange Act Release No. 101193 (Sept. 25, 2024), 
89 FR 79977 (Oct. 1, 2024) (File No. SR-OCC-2024-010).
    \8\ 15 U.S.C. 78s(b)(2)(B).
    \9\ See Securities Exchange Act Release No. 101551 (Nov. 7, 
2024), 89 FR 90155 (Nov. 14, 2024) (File No. SR-OCC-2024-010).
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    On January 8, 2025, OCC filed Amendment No. 2 to the proposed rule 
change to (1) incorporate certain modifications to address comments 
from industry participants, (2) conform the proposed rule change to the 
Commission's final rule amending the Covered Clearing Agency (``CCA'') 
Standards regarding intraday margin calls,\10\ and (3) extend the 
implementation timeframe in response to industry concerns about the 
need for additional time to prepare for the proposed changes. On 
January 14, 2025, OCC filed Amendment No. 3 to the proposed rule 
change, which supersedes Amendment No. 2, to correct typographical and 
formatting errors (hereinafter ``Proposed Rule Change''). On January 
15, 2025, pursuant to Section 19(b)(2) of the Exchange Act,\11\ the 
Commission issued a Notice of Filing of Amendment No. 3.\12\ The 
Commission has received comments regarding the Proposed Rule 
Change.\13\
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    \10\ See Exchange Act Release No. 101446 (Oct. 25, 2024), 89 FR 
91000 (Nov 18, 2024) (File No. S7-10-23) (``Covered Clearing Agency 
Resilience and Recovery and Orderly Wind-Down Plans'').
    \11\ 15 U.S.C. 78s(b)(2).
    \12\ Securities Exchange Act Release No. 102202 (Jan. 15, 2025), 
90 FR 7722 (Jan. 22, 2025) (File No. SR-OCC-2024-010) (``Notice of 
Filing of Amendment No. 3'').
    \13\ Comments on the proposed rule change are available at 
https://www.sec.gov/comments/sr-occ-2024-010/srocc2024010.htm.
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    Section 19(b)(2) of the Exchange Act \14\ 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.\15\ The 180th day after publication of 
the Notice of Filing in the Federal Register is February 8, 2025.
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    \14\ 15 U.S.C. 78s(b)(2).
    \15\ 15 U.S.C. 78s(b)(2)(B)(ii)(II).
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    The Commission is extending the period for Commission action on 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,\16\ the Commission designates 
April 9, 2025, as the date by which the Commission should either 
approve or disapprove the Proposed Rule Change SR-OCC-2024-010.
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    \16\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(57).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-02432 Filed 2-10-25; 8:45 am]
BILLING CODE 8011-01-P