[Federal Register Volume 89, Number 189 (Monday, September 30, 2024)]
[Notices]
[Pages 79668-79672]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-22265]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-101151; File No. SR OCC-2024-012]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change by 
The Options Clearing Corporation Concerning Updates to OCC's Capital 
Management Policy

September 24, 2024.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Exchange Act'' or ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice 
is hereby given that on September 16, 2024, The Options Clearing 
Corporation (``OCC'' or ``Corporation'') filed with the Securities and 
Exchange Commission (``SEC'' or ``Commission'') the proposed rule 
change as described in Items I, II, and III below, which Items have 
been prepared primarily by OCC. OCC filed the proposed rule change 
pursuant to Section 19(b)(3)(A) \3\ of the Act and Rule 19b-4(f)(6) \4\ 
thereunder. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    This proposed rule change would to: (1) revise OCC's Capital 
Management Policy to update its plan for raising additional capital 
(``Replenishment Plan'') should OCC experience potential general 
business losses, (2) amend OCC's schedule of fees necessary to reflect 
the proposed change in OCC's Capital Management Plan, and (3) update 
OCC Rule 101 to maintain consistency with the proposed change in OCC's 
Capital Management Policy.
    Proposed changes to OCC's Capital Management Policy, schedule of 
fees, and Rule 101 are included in Exhibits 5A, 5B, and 5C to File No. 
SR-OCC-2024-012, respectively. Material proposed to be added is marked 
by underlining and material proposed to be deleted is marked in 
strikethrough text. All capitalized terms not defined herein have the 
same meaning as set forth in the OCC By-Laws and Rules.\5\
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    \5\ https://www.theocc.com/Company-Information/Documents-and-Archives/By-Laws-and-Rules.
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II. Clearing Agency'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.

[[Page 79669]]

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

1. Purpose
    OCC's Capital Management Policy was adopted in 2019, and it 
establishes the principles used to quantify, monitor and manage the 
level of OCC's Equity \6\ such that OCC maintains liquid net assets 
funded by equity (``LNAFBE'') \7\ to cover potential general business 
losses and continue operations and services as a going concern if 
losses materialize under a range of scenarios, including adverse market 
conditions.
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    \6\ The Capital Management Policy defines ``Equity'' as 
shareholders' equity as shown on OCC's Statement of Financial 
Condition.
    \7\ The Capital Management Policy defines ``LNAFBE'' as the 
level of cash and cash equivalents, no greater than Equity, less any 
approved adjustments (i.e., agency-related liabilities such as 
Section 31 fees held by OCC and the Minimum Corporate Contribution).
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    A main component of the Capital Management Policy is OCC's plan to 
replenish its capital in the event it falls close to or below its 
target capital (as defined below, ``Replenishment Plan''), as required 
by SEC Rule 17Ad-22(e)(15)(iii).\8\ This rule provides that OCC must 
maintain a ``viable plan, approved by the board of directors and 
updated at least annually, for raising additional Equity should its 
Equity fall close to or below the amount required under SEC Rule 17Ad-
22(e)(15)(ii).'' \9\ In satisfaction with SEC Rule 17Ad-22(e)(15)(iii), 
OCC's Replenishment Plan establishes a plan for accessing additional 
capital should OCC's Equity fall below certain thresholds.
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    \8\ 17 CFR 240.17Ad-22(e)(15)(iii).
    \9\ Id. (emphasis added).
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    OCC's existing Replenishment Plan provides that (i) should OCC's 
Equity less the Minimum Corporate Contribution fall below 110% of the 
Target Capital Requirement (as defined by the Capital Management 
Policy, ``Early Warning''), Management would recommend to the Board 
whether to implement a fee increase in an amount the Board determines 
necessary and appropriate to raise additional Equity; (ii) should OCC's 
Equity less the Minimum Corporate Contribution fall below 90% of the 
Target Capital Requirement or fall below the Target Capital Requirement 
for a period of ninety consecutive days (as defined in the Capital 
Management Policy, ``Trigger Event''), OCC would contribute the funds 
held under OCC's Executive Deferred Compensation Plan Trust which are 
(a) deposited on and after January 1, 2020 in respect of the 
Corporation's Executive Deferred Compensation Plan (``EDCP'') and (b) 
in excess of amounts necessary to pay for the benefits accrued and 
vested under the EDCP as of such date (defined in Chapter 1 of OCC's 
Rules as ``EDCP Unvested Balance''); and (iii) should the contribution 
of the EDCP Unvested Balance fail to cure the Trigger Event, or if a 
further Trigger Event occurs, OCC will charge an Operational Loss Fee 
in equal shares to the Clearing Members.
    OCC's existing Replenishment Plan states that in the event of a 
Trigger Event, OCC will first contribute the funds necessary to cure 
such loss with the EDCP Unvested Balance. If the loss cannot be cured 
after applying all available EDCP Unvested Balance, OCC will then 
charge an Operational Loss Fee in equal share to each Clearing Member.
    The purpose of this proposed rule change is to revise the 
Replenishment Plan in the Capital Management Policy so that the Early 
Warning and Trigger Event are measured against LNAFBE rather than 
Equity. At the time the Capital Management Policy was adopted, LNAFBE 
and Equity were much closer in size than they are currently. Given the 
growing difference between Equity and LNAFBE, it is possible that in 
the event of an operational loss, LNAFBE may fall below the Target 
Capital Requirement, but Equity would remain above the Early Warning 
and Trigger Event. In that instance, OCC would not be able to access 
the Operational Loss Fee to bring LNAFBE above the Target Capital 
Requirement because OCC's Equity would still be above the Trigger 
Event. Consequently, OCC proposes to amend the Replenishment Plan in 
the Capital Management Policy such that the Early Warning and Trigger 
Event are measured against LNAFBE, rather than Equity. As defined in 
the Capital Management Policy, LNAFBE will always be less than or equal 
to Equity. By amending the Replenishment Plan in the Capital Management 
Policy so that the Early Warning and Trigger Event are measured against 
LNAFBE, rather than Equity, OCC will have the ability to access its 
Replenishment Plan, including the Operational Loss Fee, in the event 
its LNAFBE falls below regulatory minimums.
    To implement the proposed changes in the Replenishment Plan in the 
Capital Management Policy, OCC also proposes to update its schedule of 
fees to revise the Operational Loss Fee such that OCC would charge the 
Operational Loss Fee if OCC's LNAFBE falls below the Trigger Event.
Proposed Changes
    As described in detail below, OCC proposes to revise the 
Replenishment Plan under its Capital Management Policy so that the 
Early Warning and Trigger Event are measured against LNAFBE, rather 
than Equity. OCC also proposes to make conforming changes to its 
schedule of fees necessary to implement the proposed changes in the 
Replenishment Plan to promote compliance with SEC Rule 17Ad-
22(e)(15)(iii).
    In addition, OCC proposes to incorporate several non-substantive 
changes to the Capital Management Policy, including updating the header 
text at the beginning of the document to incorporate additional 
sections to promote clarity and consistency for document use and 
management. Specifically, OCC's proposed changes add the following 
sections to the header at the beginning of the document: (i) Policy 
Owner, (ii) Document Type, (iii) Board Approval, (iv) Rule Filed, and 
(iv) Version Number. To promote additional clarity, OCC's proposed 
changes also add the term ``version'' prior to the header labeled as 
``effective date.'' Finally, OCC's proposed changes eliminate the 
header labeled as ``scope'' as OCC believes this section is unnecessary 
for document use and management.
Replenishment Plan
i. Early Warning
    OCC would revise the Replenishment Plan's Early Warning so that it 
is measured against LNAFBE. Specifically, the Capital Management Policy 
would define the Early Warning to be when LNAFBE, rather than Equity 
less the Minimum Corporate Contribution, falls below 110% of the Target 
Capital Requirement.\10\ OCC proposes replacing Equity with LNAFBE 
within the Capital Management Policy to reflect this change to the 
Early Warning as well as the change to the definition of Trigger Event 
described below. After this

[[Page 79670]]

replacement, the Capital Management Policy would explain that in the 
event of an operational loss, OCC would first use LNAFBE, rather than 
Equity less the Minimum Corporate Contribution, above 110% of Target 
Capital. The proposed changes would further describe that in the event 
OCC's LNAFBE, rather than equity, breaches the Early Warning, 
Management would recommend to the Board whether to implement a fee 
increase in an amount the Board determines necessary and appropriate to 
raise additional LNAFBE, rather than Equity. The recommendation whether 
to implement the fee increase would be informed by several factors 
including, but not limited to, the facts, circumstances and root cause 
of a decrease in LNAFBE, rather than Equity, below the Early Warning.
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    \10\ OCC's Capital Management Policy explains how OCC sets its 
Target Capital Requirement, including how OCC may set its Target 
Capital Requirement to retain ``additional Equity generated from 
revenue.'' To conform with the proposed changes, OCC proposes to 
modify those references to ``additional Equity generated from 
revenue, in the form of LNAFBE.'' Specifically, OCC's proposed 
changes would clarify that OCC can retain additional Equity 
generated from revenue, in the form of LNAFBE, for capital 
expenditures following a recommendation by Management and Board 
approval. OCC's proposed changes would also clarify that the Board 
would (a) determine if the capital needs are necessary and 
appropriate and, if so, (b) determine whether to (i) increase the 
Target Capital Requirement or (ii) retain the additional Equity, in 
the form of LNAFBE, as an amount in excess of the Target Capital 
Requirement.
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ii. Trigger Event
    OCC would further revise the Replenishment Plan's Trigger Event so 
that it is measured against LNAFBE. Specifically, the Capital 
Management Policy would define a Trigger Event to be when OCC's LNAFBE, 
rather than Equity less the Minimum Corporate Contribution, falls below 
90% of the Target Capital Requirement or remains below the Target 
Capital Requirement for ninety consecutive calendar days. If a Trigger 
Event occurs, OCC would first contribute the funds necessary to cure 
such loss with the EDCP Unvested Balance. To reflect the new definition 
of Trigger Event, the Capital Management Policy would be changed to 
explain that if OCC's LNAFBE, rather than Equity, remains below 90% of 
the Target Capital Requirement after applying the EDCP Unvested 
Balance, or if a further Trigger Event occurs after applying all 
available EDCP Unvested Balance, OCC would charge an Operational Loss 
Fee \11\ in equal share to each Clearing Member payable on five 
business days' notice, to raise additional capital. The Capital 
Management Policy would be edited to provide that, in the event less 
than the full amount of the maximum Operational Loss Fee is needed to 
return OCC's LNAFBE, rather than Equity, to 110% of the Target Capital 
Requirement, OCC would charge only that amount necessary to return 
OCC's LNAFBE, rather than Equity, to 110% of the Target Capital 
Requirement. This change better ensures that OCC holds the mandated 
amount of LNAFBE. The proposed changes to the Capital Management Policy 
would also remove the term ``threshold'' after Early Warning and 
Trigger Event where the Early Warning and Trigger Event already 
incorporate that concept and clarify that Trigger means Trigger Event 
in the Replenishment Plan.
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    \11\ OCC has outlined when the Operational Loss Fee can be 
charged in OCC's Schedule of Fees in Exhibit 5B.
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Capital Monitoring
    OCC proposes to update the heading of section B in Exhibit 5A from 
``Monitoring Equity Levels'' to ``Capital Monitoring'' to more closely 
align with the other headings throughout this document, and clarify the 
information that is described in this section. The Capital Management 
Policy describes how Management reviews periodic analyses of LNAFBE, 
including projecting future volume, expenses, cash flows, capital needs 
and other factors to help ensure adequate financial resources are 
available to meet general business obligations. The proposed changes to 
the Capital Management Policy would provide that Management also 
reviews an analysis of LNAFBE, as opposed to Equity,\12\ at least 
monthly to ensure: (i) an Early Warning has not occurred or is not 
reasonably expected to occur prior to the next review; and (ii) a 
Trigger Event has not occurred and is not expected to occur prior to 
the next review. The Capital Management Policy would explain that at 
each regularly scheduled Board and Compensation and Performance 
Committee (``CPC'') meeting, the Chief Financial Officer (``CFO'') 
would report on the firm's LNAFBE, rather than Equity, relative to the 
Target Capital Requirements, Early Warning and Trigger Event. The 
Capital Management Policy would also provide that if OCC suffers a 
catastrophic or sizable loss during the month, and such loss amount is 
known or can reasonably be estimated, Management should review a 
forecast of the impact on LNAFBE, rather than Equity. Finally, the 
Capital Management Policy would state that if such forecast 
demonstrates that LNAFBE, rather than Equity, has fallen below the 
Early Warning or Trigger Event, Management should promptly notify the 
Board.
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    \12\ Separately from the Capital Management Policy's measurement 
of LNAFBE against the Early Warning and Trigger Event, OCC also 
reviews its Equity on an at-least monthly basis for purposes of 
measuring its financial resources, including OCC's own capital and 
any other financial resources deemed acceptable by the CFTC, to 
satisfy the CFTC's requirement that OCC cover its operating costs 
for a period of at least one year on a rolling basis. See 17 CFR 
39.11(a)(2).
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Capital Management
    In addition to the Replenishment Plan, the Capital Management 
Policy also addresses certain actions the Board may take based on, and 
which impact, the level of OCC's Equity or LNAFBE, including the 
circumstances under which the Board may consider using tools to lower 
Clearing Members' cost of participation such as through a fee decrease, 
fee hold and fee refund. Consistent with the changes to measure the 
aforementioned thresholds against LNAFBE, OCC would amend the Capital 
Management Policy to provide that the Board may only use such tools if 
LNAFBE, rather than Equity, is above 110% of the Target Capital 
Requirement. In practice, OCC would not have taken such measures if its 
LNAFBE was below 110% of the Target Capital Requirement. This change 
would clearly express that practice in the Capital Management Policy.
Proposed Changes to OCC Rule 101
    Consistent with the proposed changes to the Capital Management 
Policy, OCC also proposes to amend the definition of ``Target Capital 
Requirement'' as defined in OCC Rule 101.\13\ The Rules use that term 
to provide for the variable amount of skin-in-the-game (i.e., LNAFBE in 
excess of 110% of the Target Capital Requirement) that OCC would 
contribute to cover losses or liquidity shortfalls arising from a 
Clearing Member default under OCC Rule 1006 in specified circumstances. 
As described in Exhibit 5C to File No. SR-OCC-2024-012, OCC proposes to 
replace the term ``shareholders' equity'' with ``liquid net asses 
funded by equity (``LNAFBE'')'' within the definition of Target Capital 
Requirement. Revising the definition of Target Capital Requirement to 
refer to the level of LNAFBE, as opposed to shareholder's equity, would 
maintain consistency with the above referenced changes to OCC's Capital 
Management Policy.
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    \13\ https://www.theocc.com/Company-Information/Documents-and-Archives/By-Laws-and-Rules.
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Fee Schedule
    OCC would also amend its fee schedule to reflect the conditions 
under which it would charge the Operational Loss Fee. As described in 
Exhibit 5B to File No. SR-OCC-2024-012, OCC would charge the 
Operational Loss Fee in equal shares to Clearing Members to raise 
additional capital if OCC's LNAFBE, as opposed to Equity less the 
Minimum Corporate Contribution, falls below 90% of the Target Capital 
Requirement or below the Target Capital Requirement for a period of 
ninety consecutive calendar days, after first applying the unvested 
balance held in respect of OCC's EDCP. Furthermore, if less than the 
full amount of the

[[Page 79671]]

maximum Operational Loss Fee is needed to return OCC's LNAFBE, as 
opposed to Equity, to 110% of the Target Capital Requirement, OCC would 
charge only that amount necessary to return OCC's LNAFBE to 110% of the 
Target Capital Requirement.
2. Statutory Basis
    OCC believes the proposed rule change is consistent with Section 
17A of the Exchange Act \14\ and the rules and regulations thereunder. 
In particular, OCC believes that the Capital Management Policy is 
consistent with Section 17A(b)(3)(F) of the Exchange Act \15\ and Rule 
17Ad-22(e)(15).\16\
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    \14\ 15 U.S.C. 78q-1.
    \15\ 15 U.S.C. 78q-1(b)(3)(F).
    \16\ 17 CFR 240.17Ad-22(e)(15).
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    Section 17A(b)(3)(F) of the Exchange Act requires, in part, that 
the rules of a clearing agency be designed to promote the prompt and 
accurate clearance and settlement of securities transactions, and, in 
general, to protect investors and the public interest.\17\ The Capital 
Management Policy is designed to ensure that OCC holds sufficient 
LNAFBE such that it could continue to promptly and accurately clear and 
settle securities transactions even if it suffered significant 
operational losses. Holding sufficient LNAFBE would help OCC to absorb 
such operational losses and avoid a disruption that could negatively 
impact OCC's prompt and accurate clearing and settlement of 
transactions. Furthermore, by maintaining sufficient LNAFBE, OCC will 
ensure adequate financial resources are available to meet general 
business obligations. In addition, OCC would protect the interests of 
investors and the general public through the Capital Management Policy, 
which is designed to ensure that such losses would not result in a 
failure or disruption of a Systemically Important Financial Market 
Utility (``SIFMU''), as OCC is designated by the Financial Stability 
Oversight Council (``FSOC'') pursuant to the Payment, Clearing and 
Settlement Supervision Act.\18\ FSOC has concluded that a failure or 
disruption at OCC would negatively affect significant dollar value and 
volume transactions in the options and futures markets, impose material 
losses on OCC counterparties and create liquidity and credit problems 
for financial institutions and others that rely on the markets OCC 
serves, and that such credit and liquidity problems would spread 
quickly and broadly among financial institutions and other markets. 
\19\ Accordingly, FSOC determined that a failure or disruption at OCC 
could threaten the stability of the U.S. financial system.\20\ 
Therefore, OCC believes that the Capital Management Policy, which is 
reasonably designed to ensure that OCC has sufficient LNAFBE to 
continue operations in the event of an operational loss, is consistent 
with the requirements of Section 17A(b)(3)(F) of the Exchange Act by 
protecting investors and the public interest.\21\
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    \17\ 15 U.S.C. 78q-1(b)(3)(F).
    \18\ 12 U.S.C. 5463.
    \19\ FSOC Annual Report, Appendix A, at 187 (2012), available at 
https://home.treasury.gov/system/files/261/here.pdf.
    \20\ Id.
    \21\ 15 U.S.C. 78q-1(b)(3)(F).
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    Rule 17Ad-22(e)(15)(iii) requires, in part, that OCC establish, 
implement, maintain and enforce written policies and procedures 
reasonably designed to identify, monitor, and manage OCC's general 
business risk, including by maintaining a viable plan, approved by the 
Board and updated at least annually, for raising additional equity 
should its equity fall below the required amount under Rule 17Ad-
22(e)(15)(ii).\22\ The amendments to the Replenishment Plan in the 
Capital Management Policy, OCC's schedule of fees, and OCC's Rules are 
reasonably designed to establish a viable plan to raise additional 
capital in an amount up to the amount the Board determines annually to 
be sufficient to ensure recovery or orderly wind-down should OCC's 
LNAFBE fall close to or below its Target Capital Requirements. In 
addition, by providing that the Early Warning and Trigger Event be 
measured against LNAFBE, rather than Equity, this will ensure that OCC 
has access to its Replenishment Plan, including the Operational Loss 
Fee, to cover potential general business losses so that OCC can 
continue operations and services as a going concern if those losses 
materialize, as required under Rule 17Ad-22(e)(15).\23\ Furthermore, 
this proposed rule change would effectuate changes to the Replenishment 
Plan approved by OCC's Board during its annual review, consistent with 
Rule 17Ad-22(e)(15)(iii).\24\
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    \22\ 17 CFR 240.17Ad-22(e)(15)(iii).
    \23\ 17 CFR 240.17Ad-22(e)(15).
    \24\ 17 CFR 240.17Ad-22(e)(15)(iii).
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    The Capital Management Policy is also designed to identify, monitor 
and manage OCC's general business risk, consistent with Rule 17Ad-
22(e)(15),\25\ by providing that OCC would perform an analysis of its 
LNAFBE on at least a monthly basis to ensure that OCC's LNAFBE has not 
fallen below the Early Warning or Trigger Event and is not likely to 
fall below those thresholds prior to the next review. The Capital 
Management Policy's requirement that Management report on the firm's 
LNAFBE relative to the Early Warning and Trigger Event at each 
regularly scheduled Board meeting is also designed to identify, 
monitor, and manage OCC's general business risk. The Capital Management 
Policy's requirement that the Board be promptly notified in the event 
of an Early Warning or Trigger Event is also reasonably designed to 
ensure that OCC can act quickly to ensure OCC's compliance with the 
LNAFBE-holding requirements of Rule 17Ad-22(e)(15).\26\
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    \25\ 17 CFR 240.17Ad-22(e)(15).
    \26\ Id.
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(B) Clearing Agency's Statement on Burden on Competition

    Section 17A(b)(3)(I) of the Act \27\ requires that the rules of a 
clearing agency not impose any burden on competition not necessary or 
appropriate in furtherance of the purposes of the Act. OCC believes 
that the proposed changes to its Capital Management Policy and its 
schedule of fees to measure the Early Warning and Trigger Event against 
LNAFBE, rather than Equity, and to its Rules, would not have any 
impact, or impose any burden, on competition that is not necessary or 
appropriate in furtherance of the purposes of the Exchange Act. As 
described above, the Replenishment Plan is designed for OCC to access 
additional capital should OCC's LNAFBE fall below certain thresholds so 
OCC can meet the requirements of SEC Rule 17Ad-22(e)(15) and serve its 
Clearing Members and the public interest.
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    \27\ 15 U.S.C. 78q-1(b)(3)(I).
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    Any barrier to entry that the Operational Loss Fee may impose is 
appropriate in furtherance of the Exchange Act, and the rules the SEC 
has promulgated thereunder. Pursuant to SEC Rule 17Ad-
22(e)(15)(iii),\28\ OCC must hold minimum LNAFBE and have a viable plan 
to replenish equity should OCC's equity fall close to or below those 
minimums. It is entirely appropriate that the Clearing Members that 
benefit equally from OCC's services share the burden equally should OCC 
experience an operational loss that threatens its ability to continue 
providing those services and comply with its regulatory obligations.
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    \28\ 17 CFR 240.17Ad-22(e)(15)(iii).

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[[Page 79672]]

(C) Clearing Agency'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 change and none have been received. OCC will 
notify the Commission of any written comments received by OCC. 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

    Because the foregoing proposed rule change does not:
    (i) significantly affect the protection of investors or the public 
interest;
    (ii) impose any significant burden on competition; and
    (iii) become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to Section 19(b)(3)(A) of the Act \29\ and 
Rule 19b-4(f)(6) \30\ thereunder.
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    \29\ 15 U.S.C. 78s(b)(3)(A).
    \30\ 17 CFR 240.19b-4(f)(6).
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    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.
    The proposal shall not take effect until all regulatory actions 
required with respect to the proposal are completed.\31\
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    \31\ Notwithstanding its immediate effectiveness, implementation 
of this rule change will be delayed until this change is deemed 
certified under CFTC Regulation 40.6.
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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

    <bullet> Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#483a3d242d652b2725252d263c3b083b2d2b662f273e"><span class="__cf_email__" data-cfemail="cdbfb8a1a8e0aea2a0a0a8a3b9be8dbea8aee3aaa2bb">[email protected]</span></a>. Please include 
file number SR-OCC-2024-012 on the subject line.

Paper Comments

    <bullet> Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to file number SR-OCC-2024-012. This file 
number should be included on the subject line if email 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 website (https://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 such filing also will be available for 
inspection and copying at the principal office of OCC and on OCC's 
website at https://www.theocc.com/Company-Information/Documents-and-Archives/By-Laws-and-Rules.
    Do not include personal identifiable information in submissions; 
you should submit only information that you wish to make available 
publicly. We may redact in part or withhold entirely from publication 
submitted material that is obscene or subject to copyright protection. 
All submissions should refer to file number SR-OCC-2024-012 and should 
be submitted on or before October 21, 2024.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\32\
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    \32\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-22265 Filed 9-27-24; 8:45 am]
BILLING CODE 8011-01-P


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