19512 Federal Register / Vol. 76, No. 67 / Thursday, April 7, 2011 / Notices 

5 15 U.S.C. 78f(b). 

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(1). 

9 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

Adding and Removing Liquidity in 

Section I of the Exchange’s Fee 

Schedule. The Exchange is also 

proposing to make conforming 

amendments within Section I of the Fee 

Schedule to change ‘‘QQQQ’’ to ‘‘QQQ’’ 

in the remainder of that Section. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 5 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 6

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest. The 

Exchange believes that updating the 

Exchange’s Fee Schedule to amend the 

‘‘QQQQ’’ symbol to ‘‘QQQ’’ will provide 

its members clarity as to which symbols 

are subject to the Fees and Rebates for 

Adding and Removing Liquidity in 

Section I of the Exchange’s Fee 

Schedule. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Pursuant to Section 19(b)(3)(A) of the 

Act 7 and Rule 19b–4(f)(1)8 thereunder, 

the Exchange has designated this 

proposal as one that constitutes a stated 

policy, practice or interpretation with 

respect to the meaning, administration, 

or enforcement of an existing rule of the 

SRO, and therefore has become 

effective. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–Phlx-2011–39 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–Phlx-2011–39. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://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 

a.m. and 3 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; the 

Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–Phlx– 

2011–39 and should be submitted on or 

before April 28, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8231 Filed 4–6–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64167; File No. SR–OCC– 

2011–03] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing of Proposed Rule Change to 

Allow for an Expansion of OCC’s 

Internal Cross-Margining Program to 

Include the Ability of a Pair of Affiliated 

Clearing Members to Establish an 

Internal Non-Proprietary CrossMargining Account 

April 1, 2011. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder 2

notice is hereby given that on March 17, 

2011, 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 primarily by OCC. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The proposed rule change would 

expand OCC’s internal cross-margining 

program to permit a pair of affiliated 

clearing members to establish a crossmargining account (‘‘Internal NonProprietary Cross-Margining Account’’) 

in which securities and security futures 

that are cleared by OCC in its capacity 

as a securities clearing agency may be 

cross-margined with commodity futures 

and options on such futures that are 

cleared by OCC in its capacity as a 

derivatives clearing organization 

(‘‘DCO’’) registered with the Commodity 

Futures Trading Commission (‘‘CFTC’’) 

under the Commodity Exchange Act 

(‘‘CEA’’). 

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Federal Register / Vol. 76, No. 67 / Thursday, April 7, 2011 / Notices 19513 

3The Commission has modified the text of the 

summaries prepared by OCC. 

4Securities Exchange Act Release No. 34–50509 

(October 8, 2004), 69 FR 61289 (October 15, 2004). 

5A market professional could be a market-maker, 

specialist or person acting in a similar capacity on 

a securities exchange, or a member of a futures 

exchange trading for its own account. A nonproprietary market professional is any market 

professional that is required to be treated as a 

‘‘customer’’ under the CEA, and therefore excludes 

any market professional that is affiliated with the 

carrying clearing member in a way that would cause 

its account to be treated as a ‘‘proprietary account’’ 

under Section 1.3(y) of the CFTC’s regulations. 

6Securities Exchange Act Release No. 34–26153 

(October 3, 1988), 53 FR 39567 (October 7, 1988). 

7 15 U.S.C. 78q–1. 

8Securities Exchange Act Release No. 34–32708 

(August 2, 1993), 58 FR 42586 (August 10, 1993). 

II. Self-Regulatory Organization’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.3

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In 2004, the CFTC and the 

Commission 4 approved OCC’s proposal 

to create an ‘‘internal cross-margining’’ 

program under which an OCC clearing 

member could elect to cross-margin a 

non-proprietary futures account of a 

‘‘market professional’’ (as defined in 

OCC’s By-Laws) 5 with a nonproprietary securities account 

containing positions of the same market 

professional. At OCC, the securities and 

futures positions of all market 

professionals with cross-margined 

accounts at the clearing member are 

combined in a single Internal NonProprietary Cross-Margining Account of 

the clearing member at OCC. The 

existing program, which has operated 

successfully since 2004, requires that 

the same clearing member clear the 

securities and futures positions. In 

contrast, the existing cross-margining 

programs between OCC and other DCOs 

such as the clearing division of the 

Chicago Mercantile Exchange (‘‘CME’’) 

and ICE Clear U.S. permit crossmargining where the member of the 

futures clearing organization is a 

different entity from its affiliate that is 

an OCC clearing member. The purpose 

of this proposed rule change is to 

expand the existing internal crossmargining program in an analogous way 

so that it would permit an Internal NonProprietary Cross-Margining Account to 

be maintained at OCC jointly by a pair 

of affiliated clearing members that clear 

transactions in securities options and in 

futures products through two different 

entities. In order to participate, both 

OCC clearing members would have to be 

affiliates of one another and would have 

to be registered as both a futures 

commission merchant under the CEA 

and as a broker-dealer under the Act. 

OCC’s current internal crossmargining program does not provide for 

internal cross-margining accounts to be 

carried jointly by a pair of affiliated 

clearing members because OCC did not 

believe in 2004 that there was any 

clearing member demand for such a 

service. Recently, however, OCC has 

learned that there is demand for such a 

service. Under OCC’s current proposal, 

two affiliated clearing members could 

jointly maintain an Internal NonProprietary Cross-Margining Account. 

The clearing member that normally 

clears transactions in securities options 

would submit transactions in eligible 

securities options to the account for 

clearance, and the clearing member that 

normally clears transactions in futures 

products would submit transactions in 

eligible futures products to the account 

for clearance. 

OCC proposes to amend its current 

By-Laws and Rules governing internal 

cross-margining to create rules similar 

to the rules of the long-standing crossmargining program for affiliated clearing 

members between OCC and CME, for 

example. In the case of the crossmargining programs between OCC and 

other DCOs, there are two accounts at 

the clearing level—one at each of the 

participating clearing organizations. In 

the internal cross-margining program, 

there is no need for two separate 

accounts, which would in any event be 

margined together and for which the 

affiliated clearing members would in 

any event be jointly and severally liable 

as they are for the two accounts in the 

case of the OCC–CME program. 

Article VI, Section 25(b) of OCC’s ByLaws currently requires clearing 

members to obtain a ‘‘Market 

Professional’s Agreement for Internal 

Cross-Margining’’ from each market 

professional whose positions are 

included in an Internal Non-Proprietary 

Cross-Margining Account. OCC 

proposes to use a modified form of this 

agreement for an account held jointly by 

a pair of affiliated clearing members. 

The proposed form of the agreement, 

titled ‘‘Market Professional’s Agreement 

for Internal Cross-Margining (Affiliated 

Clearing Members)’’ is attached as 

Exhibit 5A to this proposed rule change 

filing. The existing ‘‘Market 

Professional’s Agreement for Internal 

Cross-Margining’’ applicable to the 

internal cross-margining program for 

single clearing members has been 

retitled ‘‘Market Professional’s 

Agreement for Internal Cross-Margining 

(Single Clearing Member)’’ and is 

attached as Exhibit 5B to this proposed 

rule change filing. In addition to 

modifying the title to the form of the 

agreement applicable to single clearing 

members, a sentence has been added at 

the end of paragraph seven of that 

agreement to conform it to the 

corresponding provision in the form of 

the agreement for affiliated clearing 

members. OCC does not intend to 

require current participants in the 

internal cross-margining program to 

obtain reexecuted agreements in 

updated form because the modifications 

are clarifications only and not 

substantive changes. 

As in the case of the existing internal 

cross-margining program, the Internal 

Non-Proprietary Cross-Margining 

Account would be treated as a 

segregated futures account under 

Section 4d of the CEA and, in 

accordance with Appendix B to Part 190 

of the CFTC’s regulations, would be 

separately segregated from the regular 

segregated futures account that an OCC 

clearing member may maintain under 

Article VI, Section 3(f) of OCC’s ByLaws. In order to expand the internal 

cross-margining program to include 

accounts carried by pairs of affiliated 

clearing members, OCC is requesting 

that the CFTC either issue a new or 

amended order under Section 4d of the 

CEA. 

Since it granted approval of the first 

cross-margining program in 1988,6 the 

Commission has found that crossmargining programs are consistent with 

clearing agency responsibilities under 

Section 17A of the Act7 and highly 

beneficial to the clearing organization, 

its clearing members and the public. 

OCC believes that cross-margining 

programs enhance clearing member and 

systemic liquidity, resulting in lower 

initial margin deposits. They reduce the 

risk that a clearing member will become 

insolvent in a distressed market and the 

corresponding risk that one insolvency 

could lead to multiple insolvencies in a 

ripple effect, and they enhance the 

security of the clearing system.8

OCC would not implement the 

internal cross-margining program for 

affiliated clearing members until such 

time after the CFTC has issued an order 

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19514 Federal Register / Vol. 76, No. 67 / Thursday, April 7, 2011 / Notices 

9 17 CFR 200.30–3(a)(12). 

or amended order under Section 4d of 

the CEA as discussed above. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

OCC does not believe that the 

proposed rule change would impose any 

burden on competition. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received from 

Members, Participants or Others 

Written comments relating to the 

proposed rule change have not been 

solicited or received. OCC will notify 

the Commission of any written 

comments received by OCC. 

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 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: (A) By 

order approve or disapprove the 

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 Commissions Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml) or send an e-mail to 

rule-comments@sec.gov. Please include 

File Number SR–OCC–2011–03 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–OCC–2011–03. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://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 Section, 100 F Street, NE., 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of such filings 

will also be available for inspection and 

copying at the principal office of OCC 

and on OCC’s Web site at http:// 

www.optionsclearing.com/components/ 

docs/legal/rules_and_bylaws/ 

sr_occ_11_03.pdf. 

All comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–OCC–2011–03 and should 

be submitted on or before April 28, 

2011. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8235 Filed 4–6–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[File No. 500–1] 

In the Matter of: Sabratek Corp., SAN 

Holdings, Inc., SBD International, Inc. 

(n/k/a Solargy Systems, Inc.), Scantek 

Medical, Inc., SciLabs Holdings, Inc., 

The SCO Group, Inc., Secure 

Technologies Group, Inc., Secured 

Digital Applications, Inc., Senco 

Sensors, Inc., Sentex Sensing 

Technology, Inc., Serefex Corp., 

SinoFresh HealthCare, Inc., Sonoma 

College, Inc., and Source Petroleum 

Inc.; Order of Suspension of Trading 

April 5, 2011. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Sabratek 

Corp. because it has not filed any 

periodic reports since the period ended 

March 31, 1999. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of SAN 

Holdings, Inc. because it has not filed 

any periodic reports since the period 

ended June 30, 2007. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of SBD 

International, Inc. (n/k/a Solargy 

Systems, Inc.) because it has not filed 

any periodic reports since the period 

ended September 30, 2006. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Scantek 

Medical, Inc. because it has not filed 

any periodic reports since the period 

ended March 31, 2003. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of SciLabs 

Holdings, Inc. because it has not filed 

any periodic reports since the period 

ended March 31, 2002. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of The SCO 

Group, Inc. because it has not filed any 

periodic reports since the period ended 

January 31, 2009. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Secure 

Technologies Group, Inc. because it has 

not filed any periodic reports since the 

period ended December 31, 2004. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Secured 

Digital Applications, Inc. because it has 

not filed any periodic reports since the 

period ended September 30, 2008. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Senco 

Sensors, Inc. because it has not filed any 

periodic reports since the period ended 

November 30, 1999. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Sentex 

Sensing Technology, Inc. because it has 

not filed any periodic reports since the 

period ended August 31, 2007. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

mstockstill on DSKH9S0YB1PROD with NOTICES