50418 Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices

19(b)(3)(A) of the Act at such time as NSCC

determines the fees to be charged for APS services.

9The full text of each of these technical rule

changes is set forth in Exhibit A of NSCC’s filing

and subsequent amendments thereto, each of which

is available for inspection and copying at the

Commission’s Public Reference Room or through

NSCC.

10 15 U.S.C. 78q–1(b)(3)(F).

11 17 CFR 200.30–3(a)(12).

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

2The Commission has modified the text of the

summaries prepared by OCC.

3For a discussion of the PHLX proposal, refer to

Securities Exchange Act Release No. 38867 (May

22, 1997), 62 FR 29385 [File No. SR–PHLX–97–22]

(notice of proposed rule change to list and trade

options on the Mexican peso). The PHLX proposal

has not received final approval from the

Commission.

The proposed rule change amends

NSCC’s Rule 3 (Lists to be Maintained)

to indicate that NSCC will maintain a

list of annuity plans that may be the

subject of orders processed through

APS. The proposed rule change amends

NSCC’s Rule 57 (Annuities Processing

Service) to clarify what governs these

Phase I aspects of APS.

The proposed rule change also makes

technical amendments to the following

NSCC rules to accommodate the APS

service, annuities agency members, and

annuities carrier members: Rule 1

(Definitions and Descriptions), Rule 5

(General Provisions), Rule 6

(Distribution Facilities), Rule 12

(Settlement), Rule 17 (Fine Payments),

Rule 18 (Procedures For When the

Corporation Declines or Ceases to Act),

Rule 20 (Insolvency), Rule 22

(Suspension of Rules), Rule 24 (Charges

for Services Rendered), Rule 26 (Bills

Rendered), Rule 27 (Admission to

Premises of the Corporation—Powers of

Attorney, Etc.), Rule 29 (Qualified

Securities Depositories), Rule 32

(Facsimile Signatures), Rule 33

(Procedures), Rule 34 (Insurance), Rule

35 (Financial Reports), Rule 36 (Rule

Changes), Rule 37 (Hearing Procedures),

Rule 39 (Special Representative/Index

Receipt Agent), Rule 45 (Notices), Rule

46 (Restrictions on Access to Services),

Rule 48 (Disciplinary Proceedings), Rule

55 (Settling Banks), Procedure VIII

(Money Settlement Service), Procedure

XV (Clearing Fund Formula and Others

Matters), Addendum D (Statement of

Policy—Envelope Settlement Service),

and Addendum F (Statement of Policy—

In Relation to Same Day Funds

Settlement).9

II. Discussion

Section 17A(b)(3)(F) 10 of the Act

requires that the rules of a clearing

agency be designed to facilitate the

prompt and accurate clearance and

settlement of securities transactions.

The Commission believes that NSCC’s

proposed rule change is consistent with

its obligations under the Act because

APS will provide centralized

communication between insurance

carriers and broker-dealers, banks, and

their affiliated insurance agencies. APS

also permits commission and charge

back transactions to be processed in a

standardized and automated

environment. Because the activities will

be handled through NSCC, the time and

cost associated with processing should

be reduced. Thus, the proposal

promotes the prompt and accurate

clearance and settlement of securities

transactions.

III. Conclusion

On the basis of the foregoing, the

Commission finds that the proposal is

consistent with the requirements of the

Act and in particular with the

requirements of Section 17A of the Act

and the rules and regulations

thereunder.

It Is Therefore Ordered, pursuant to

Section 19(b)(2) of the Act, that the

proposed rule change (File No. SR–

NSCC–96–21) be, and hereby is,

approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–25447 Filed 9–24–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39088; International Series

Release No. 1102; File No. SR–OCC–97–10]

Self-Regulatory Organizations, the

Options Clearing Corporation; Notice

of Filing and Order Granting

Accelerated Approval of a Proposed

Rule Change Seeking Approval to

Issue, Clear, and Settle Flexibly

Structured Options on the Mexican

Peso

September 17, 1997.

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

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

June 24, 1997, The Options Clearing

Corp. (‘‘OCC’’) filed with the Securities

and Exchange Commission

(‘‘Commission’’) the proposed rule

change as described in Items I and II

below, which items have been prepared

primarily by OCC. The Commission is

publishing this notice and order to

solicit comments from interested

persons and to grant accelerated

approval, conditioned as described

below, of the proposal.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The proposed rule change will allow

OCC to issue, clear, and settle option

transactions where the Mexican peso is

either the trading currency or the

underlying currency.

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 such statements.2

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

Under the proposed rule change, OCC

will issue, clear, and settle flexibly

structured option contracts where the

Mexican peso is either the trading

currency or the underlying currency.

The Philadelphia Stock Exchange

(‘‘PHLX’’) has proposed to list and trade

such foreign currency options through

its customized options facility.3 The

PHLX rule filing proposes to enable its

members to trade customized contracts

between the peso and United States

dollar. The PHLX rule filing further

proposed to offer cross-rate contracts for

the Mexican peso against the Canadian

dollar.

Currently, OCC has approval to list

and clear flexibly structured option

contracts on any combination of the

following currencies: (1) Australian

dollars, (2) British pounds, (3) Canadian

dollars, (4) German deutsche marks, (5)

European Economic Community

currency units, (6) French francs, (7)

Italian lire, (8) Japanese yen, (9) Spanish

pesetas, (10) Swiss francs, and (11)

United States dollars. OCC is now

proposing to add the Mexican peso to

that list of approved currencies.

Options on the peso will be cleared

and settled in accordance with the

clearance and settlement mechanisms

already in place for flexibly structured

foreign currency options and for crossrate foreign currency options. In

addition, options on the peso will be
Federal Register / Vol. 62, No. 186 / Thursday, September 25, 1997 / Notices 50419

4 15 U.S.C. 78q–1(b)(3)(F).

5 Id.

6Supra note 3.

7 15 U.S.C. 78s(b)(2).

8 17 CFR 200.30–3(a)(12).

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

2The Commission has modified the text of the

summaries prepared by OCC.

margined like OCC’s existing foreign

currency and cross-rate foreign currency

option contracts. Accordingly, OCC has

determined that no changes to its bylaws or rules are necessary to

accommodate these new contracts.

OCC believes the proposed rule

change is consistent with the

requirements of Section 17A(b)(3)(F) of

the Act 4 and the rules and regulations

thereunder because it promotes

efficiencies in the clearance and

settlement of securities transactions.

(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 were not and are

not intended to be solicited with respect

to the proposed rule change, and none

were received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Section 17A(b)(3)(F) of the Act 5

requires that the rules of a clearing

agency be designed to assure the

safeguarding of securities and funds

which are in the custody and control of

the clearing agency or for which it is

responsible. OCC’s proposal will allow

the clearance and settlement of flexibly

structured option contracts where the

peso is either the trading currency or the

underlying currency by using existing

OCC systems, rules, and procedures

already in place for flexibly structured

foreign currency options and for crossrate foreign currency options. Due to the

similarity of these option contracts to

the option contracts currently cleared

and settled in OCC’s existing system,

OCC should be able to implement the

clearance and settlement of such

options safely and in a manner

consistent with its obligations under

Section 17A. Thus, the Commission is

approving OCC’s proposal, subject to

the Commission’s approval of the

proposed rule change contained in File

No. SR–PHLX–97–22.6

The Commission finds good cause for

approving the proposed rule change

prior to the thirtieth day after the

publication of notice of the filing.

Approving prior to the thirtieth day

after publication of notice will allow

OCC to issue, clear, and settle flexibly

structured options and cross-rate foreign

currency options on the Mexican peso

as soon as the Commission approves

PHLX’s trading of such options.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing.

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, N.W.,

Washington, D.C. 20549. 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, 450 Fifth Street, N.W.,

Washington, D.C. 20549. Copies of such

filing also will be available for

inspection and copying at the principal

office of OCC. All submissions should

refer to File No. SR–OCC–97–10 and

should be submitted by October 16,

1997.

It Is Therefore Ordered, pursuant to

Section 19(b)(2) of the Act,7 that the

proposed rule change (File No. SR–

OCC–97–10) be and hereby is approved,

subject to the Commission’s final

approval of the proposed rule change

contained in File No. SR–PHLX–97–22.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–25375 Filed 9–24–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39094; File No. SR–OCC–

97–06]

Self-Regulatory Organizations, The

Options Clearing Corporation; Notice

of Filing and Order Granting

Accelerated Approval of a Proposed

Rule Change to Issue, Clear, and Settle

Packaged Spread Options

September 19, 1997.

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

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

May 15, 1997, The Options Clearing

Corporation (‘‘OCC’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) and on July 1, 1997,

amended the proposed rule change as

described in Items I and II below, which

Items have been prepared primarily by

OCC. The Commission is publishing

this notice and order to solicit

comments from interested persons and

to grant accelerated approval,

conditioned as described below, of the

proposed rule change.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The purpose of the proposed rule

change is to amend OCC’s by-laws and

rules to permit OCC to issue, clear, and

settle packaged spread options, which

have been proposed for trading by the

Chicago Board Options Exchange

(‘‘CBOE’’).

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 such statements.2

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

1. Description of Packaged Spreads

The purpose of the proposed rule

change is to amend OCC’s by-laws and

rules to permit OCC to issue, clear, and