[Federal Register Volume 65, Number 237 (Friday, December 8, 2000)]
[Notices]
[Pages 77058-77059]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31276]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43637; File No. SR-OCC-00-11]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to Investment of Excess Funds and to Procedures Applicable to 
the Safeguarding of Such Investments

November 29, 2000.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\, notice is hereby given that on October 5, 2000, 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 parties.
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    \1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The proposed rule change would allow OCC to amend its By-Laws to 
expand the types of investments that OCC may make its funds in excess 
of those needed for working capital and to update the procedures 
applicable to the safeguarding of such investments.\2\
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    \2\ A copy of the text of OCC's proposed rule change and the 
attached exhibit are available at the Commission's Public Reference 
Section or through OCC.
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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\
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    \3\ The Commission has modified the text of the summaries 
prepared by OCC.
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A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The purpose of this rule change is to expand the types of 
investments that OCC is permitted to make its funds in excess of those 
needed for working capital and to update the procedures applicable to 
the safeguarding of such investments.
    Article IX, section 1(a) currently provides that the board of 
directors may invest OCC's excess funds in Government securities. The 
By-Laws are amended to allow the board or a committee thereof to 
approve the investment of OCC's funds in other securities or financial 
instruments. This change permits portfolio diversification and allows 
OCC to hedge its obligation under stock-based compensation plans. The 
By-Laws are further amended to explicitly allow OCC to hold securities 
in accounts at registered broker-dealers. Section 1(a) currently 
provides that one director (other than the Management Director) must 
act jointly with an officer of OCC to access or withdraw securities 
that are the property of OCC. Section 1(a) is being amended to allow 
withdrawals by joint action of an officer of the rank of vice president 
or above and the treasurer or an assistant treasurer.
    The proposed rule change is consistent with the requirements of 
section 17A of the Act because it provides reasonable procedures 
governing the investment of OCC funds in excess of those needed for 
working capital and for the safeguarding of such investments.

(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 have been received.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    The foregoing rule change has become effective pursuant to section 
19(b)(3)(A)(iii) of the Act and Rule 19b-4(f)(3) thereunder as it is 
concerned solely with the administration of a self-regulatory 
organization. At any time within sixty days of the filing of such 
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. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 
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, 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,

[[Page 77059]]

450 Fifth Street, NW., Washington, DC 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-00-11 and should 
be submitted by December 29, 2000.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-31276 Filed 12-7-00; 8:45 am]
BILLING CODE 8010-01-M