46278 Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Notices 

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the self-regulatory organization 

to submit to the Commission written notice of its 

intent to file the proposed rule change, along with 

a brief description and text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. The 

Exchange has satisfied this requirement. 8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Commission has modified the text of the 

summaries prepared by OCC. 

additional options in seeking trade 

executions on our trading facilities. 

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. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

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. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change: (i) Does not significantly affect 

the protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) by its terms, does not become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, if 

consistent with the protection of 

investors and the public interest, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 6 and Rule 19b– 

4(f)(6) thereunder.7

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

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. 

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–CHX–2009–13 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–CHX–2009–13. 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 inspection and copying in 

the Commission’s Public Reference 

Room on official business days between 

the hours of 10 a.m. and 3 p.m. Copies 

of such 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–CHX– 

2009–13 and should be submitted on or 

before September 29, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–21639 Filed 9–4–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60602; File No. SR–OCC– 

2009–14] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing of Proposed Rule Change To 

Clear Options Based on Index-Linked 

Securities 

September 1, 2009. 

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 August 

12, 2009, The Options Clearing 

Corporation (‘‘OCC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change 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 parties. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The proposed rule change seeks to 

permit OCC to clear options based on 

index-linked securities (‘‘Index-Linked 

Securities’’). 

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 

Index-Linked Securities are nonconvertible debt of a major financial 

institution that typically have a term of 

at least one year but not greater than 

thirty years and that provide for 

payment at maturity based upon the 

performance of an index or indices of 

equity securities or futures contracts, 

one or more physical commodities, 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Notices 46279 

4Securities Exchange Act Release No. 51808 (Jun. 

9, 2005), 70 FR 37496 (Jun. 29, 2005). ‘‘NMS Stock’’ 

is defined in Rule 600(b)(47) of Regulation NMS as 

‘‘any NMS security other than an option.’’ The 

definition of ‘‘NMS Security’’ in Rule 600(b)(46) of 

Regulation NMS includes any security for which 

transaction reports are collected and disseminated 

under an effective national market system plan. 

Because Index-Linked Securities are exchange 

traded, they fall within this definition. 5 15 U.S.C. 78q–1. 6 17 CFR 200.30–3(a)(12). 

currencies or debt securities, or a 

combination of any of the foregoing. 

Index-Linked Securities are traded on 

national securities exchanges and meet 

the definition of ‘‘NMS Stock’’ under 

regulation NMS.4 The options 

exchanges will treat options on IndexLinked Securities (‘‘Index-Linked 

Security Options’’) as standardized 

equity options for listing and trading 

purposes and will generally govern their 

trading by the same rules that are 

applicable to trading in other equity 

options. Exercises of Index-Linked 

Security Options will be settled by 

delivery of the underlying securities in 

the same manner as exercises of equity 

options. 

OCC is proposing to amend its ByLaws and Rules to accommodate IndexLinked Security Options. OCC is 

proposing to add a definition of ‘‘indexlinked security’’ to Article I of its ByLaws, to amend the definition of ‘‘stock 

option contract’’ in Article I of its ByLaws to include Index-Linked Security 

Options, and to amend the definition of 

‘‘non-equity securities option contract’’ 

in Article I of its By-Laws to clarify that 

Index-Linked Security Options are 

excluded from the definition. OCC also 

is proposing to amend Interpretation 

and Policy .05 to Article VI, Section 11A 

of its By-Laws to clarify that call of an 

entire class of Index-Linked Securities 

will result in an adjustment of IndexLinked Security Options in the event of 

a cash merger, but that a partial call will 

not result in an adjustment. OCC also is 

proposing to add Interpretation and 

Policy .10 to Article VI, Section 11A of 

the By-Laws that would state that 

interest payments on Index-Linked 

Securities generally will be considered 

‘‘ordinary cash dividends or 

distributions’’ within the meaning of 

paragraph (c) Article VI, Section 11A. In 

addition, OCC is proposing to add 

language to Rule 604(b)(4)(iii) stating 

that for the purposes of Rule 604, IndexLinked Securities will be treated as 

stock, assuming they meet the basic 

listing requirement applicable to stocks. 

Finally, OCC is proposing to amend 

Rule 604(b)(4) to conform to its practice 

of limiting the value of securities with 

the same CUSIP number, as opposed to 

securities of the same issuer, to 10% of 

the margin requirement of an account, 

and proposing to add Interpretation and 

Policy .14 to Rule 604(b)(4) stating that 

OCC may disapprove for margin credit 

a security that otherwise meets the Rule 

604(b) criteria if other factors warrant 

such a disapproval. 

OCC believes that the proposed rule 

change is consistent with the 

requirements of Section 17A of the Act 5

and the rules and regulations 

thereunder because the proposed 

change will promote the prompt and 

accurate clearance and settlement of 

transaction in Index-Linked Security 

Options by providing that such options 

will be cleared and settled subject to the 

same rules and procedures that have 

been used successfully by OCC to clear 

and settle stock options. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

OCC does not believe that the 

proposed rule change will have any 

impact or 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 thirty-five days of the date of 

publication of this notice in the Federal 

Register or within such longer period: 

(i) As the Commission may designate up 

to ninety days of such date 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 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 (http://www.sec.gov/ 

rules/sro.shtml) or 

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

Number SR–OCC–2009–14 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–2009–14. 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 inspection and copying 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 also will be 

available for inspection and copying at 

the principal office of OCC and on 

OCC’s Web site at http:// 

www.optionsclearing.com/publications/ 

rules/proposed_changes/ 

sr_occ_09_14.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– 

2009–14 and should be submitted on or 

before September 23, 2009. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–21638 Filed 9–4–09; 8:45 am] 

BILLING CODE 8010–01–P 


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