[Federal Register Volume 62, Number 234 (Friday, December 5, 1997)]
[Notices]
[Pages 64434-64435]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31842]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39365; File No. SR-ODD-97-2]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Order Granting Accelerated Approval of Proposed Supplement to Options 
Disclosure Document Regarding Mutual Fund Index Options

November 26, 1997.
    On November 13, 1997, The Options Clearing Corporation (``OCC'') 
submitted to the Securities and Exchange Commission (``SEC'' or 
``Commission''), pursuant to Rule 9b-1 under the Securities Exchange 
Act of 1934 (``Act''),\1\ five definitive copies of a Supplement to its 
options disclosure document (``ODD''), which describes, among other 
things, the risks and characteristics of trading in options on mutual 
fund indexes.
---------------------------------------------------------------------------

    \1\ 17 CFR 240.9b-1.
---------------------------------------------------------------------------

    The Commission has approved an options exchange proposal to list 
and trade options on particular mutual fund indexes.\2\ OCC now 
proposes this Supplement, which is to be read in conjunction with the 
more general ODD entitled ``Characteristics and Risks of Standardized 
Options,'' that provides disclosures to specifically accommodate the 
introduction of mutual fund index options and to reflect current rules 
of options markets on which mutual fund index options are approved for 
trading. Pursuant to Rule 9b-1, the Supplement will have to be provided 
to investors in mutual fund index options whose account is approved for 
trading standardized options.
---------------------------------------------------------------------------

    \2\ See Securities Exchange Act Release No. 39244 (October 15, 
1997) (order approving proposed rule change by the Chicago Board 
Options Exchange, Incorporated, relating to the listing and trading 
of options on the Lipper Analytical/Salomon Brothers Growth and 
Growth & Income Fund Indexes).
---------------------------------------------------------------------------

    The Commission has reviewed the ODD Supplement and finds that it 
complies with Rule 9b-1 under the Act. The Supplement is intended to be 
read in conjunction with the ODD, which discusses the characteristics 
and risks of options generally. The Supplement provides additional 
information regarding mutual fund index options sufficient to further 
describe the special characteristics and risks of these products.
    Rule 9b-1 provides that an options market must file five 
preliminary copies of an amended ODD with the Commission at least 30 
days prior to the date definitive copies of the ODD are furnished to 
customers, unless the Commission determines otherwise, having due 
regard to the adequacy of information disclosed and the protection of 
investors.\3\ The Commission has reviewed the Supplement, and finds 
that it is consistent with the protection of investors and in the 
public interest to allow the distribution of the Supplement as of the 
date of this order.
---------------------------------------------------------------------------

    \3\ This provision is intended to permit the Commission either 
to accelerate or extend the time period in which definitive copies 
of a disclosure document may be distributed to the public.
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Rule 9b-1 under the Act,\4\ 
that the proposed Supplement (SR-ODD-97-2) regarding mutual fund index 
options is approved, on an accelerated basis.

    \4\ 17 CFR 240.9b-1.
---------------------------------------------------------------------------

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 200.30-3 (a)(39).

---------------------------------------------------------------------------

[[Page 64435]]

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-31842 Filed 12-4-97; 8:45 am]
BILLING CODE 8010-01-M