47174 Federal Register / Vol. 86, No. 160 / Monday, August 23, 2021 / Notices 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(1). 

5 17 CFR 240.19b–4(f)(4). 

6OCC’s By-Laws and Rules can be found on 

OCC’s public website: https://www.theocc.com/ 

Company-Information/Documents-and-Archives/ 

By-Laws-and-Rules. 

7See Securities Exchange Act Release (‘‘Exchange 

Act Release’’) No. 67706 (Aug. 22, 2012), 77 FR 

52082 (Aug. 28, 2012) (File No. SR–OCC–2012–10). 

8See Exchange Act Release No. 58352 (Aug. 13, 

2008), 73 FR 48421, 48422 (Aug. 19, 2008) (File No. 

SR–OCC–2008–17). 

9See Exchange Act Release No. 63120 (Oct. 15, 

2010), 75 FR 65538 (Oct. 25, 2010) (File No. SR– 

OCC–2010–17). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92690; File No. SR–OCC– 

2021–008] 

Self-Regulatory Organizations; the 

Options Clearing Corporation; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Make 

Technical Changes to the By-Laws and 

Rules of the Options Clearing 

Corporation 

August 17, 2021. 

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 August 6, 2021, the 

Options Clearing Corporation (‘‘OCC’’) 

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 by OCC. OCC filed 

the proposed rule change pursuant to 

Section 19(b)(3)(A)(ii) 3 of the Act and 

Rule 19b–4(f)(1) 4 and (f)(4) 5 thereunder 

so that the proposal was effective upon 

filing with the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

This proposed rule change would 

amend OCC’s By-Laws and Rules to (i) 

correct typographical errors, (ii) make 

conforming changes intended by prior 

proposed rule change filings, (iii) 

correct erroneous cross-references, and 

(iv) remove certain inoperative 

provisions and clarifying certain other 

provisions related to OCC’s Clearing 

Member Trade Assignment (‘‘CMTA’’) 

process. Amendments to OCC’s By-Laws 

and Rules are included in Exhibit 5 of 

filing SR–OCC–2021–008. Material 

proposed to be added is marked by 

underlining, and material proposed to 

be deleted is marked with strikethrough 

text. All terms with initial capitalization 

that are not otherwise defined herein 

have the same meaning as set forth in 

the By-Laws and Rules.6

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. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

(1) Purpose 

OCC is proposing to amend its ByLaws and Rules to (1) correct 

typographical errors, (2) make 

conforming changes intended by prior 

proposed rule change filings, (3) correct 

erroneous cross-references and (4) 

remove certain inoperative provisions 

and clarifying certain other provisions 

related to OCC’s CMTA process. 

1. Typographical Error Correction 

First, OCC has identified several 

typographical errors in the text of the 

proposed rule change as submitted to 

the SEC: 

• The definition of ‘‘Clearing 

Member’’ in Article I of the By-Laws 

would be amended to reflect that the 

plural of the defined term ‘‘BOUND’’ is 

‘‘BOUNDs,’’ not ‘‘BOUNDS.’’ The same 

change would be made to Rule 

401(a)(3). 

• The definition of ‘‘Equity 

Exchange’’ in Article I of the By-Laws 

would be amended to correct a reference 

to ‘‘Section VIIA’’ of the By-Laws. There 

is no ‘‘Section VIIA’’ of the By-Laws; the 

references should be to ‘‘Article VIIA.’’ 

• The definition of ‘‘Hedge Clearing 

Member’’ in Article I of the By-Laws 

would be amended to replace a 

reference to ‘‘Stock Clearing Member,’’ 

which is not a term defined by the ByLaws or Rules, with ‘‘Clearing Member.’’ 

• Article IV, Section 3 of the By-Laws 

would be amended to re-insert a comma 

within a series in the second sentence 

that was inadvertently removed. 

• Article IX, Section 5 of the By-Laws 

would be amended to employ more 

standard American spelling of 

‘‘depositories.’’ 

• Article XXI, Section 2(a)(2) of the 

By-Laws would be amended to correct 

capitalization of the word ‘‘accordance.’’ 

• Interpretations and Policies to Rule 

1309 and Rule 1405 would be 

renumbered to conform to the standard 

numbering convention for such 

Interpretations and Policies. 

• Rule 1403(a) would be amended to 

correct the verb tense in the second 

clause. 

• Interpretation and Policy .01 to 

Rule 2210A would be amended to 

correct a typographical error in the 

possessive of ‘‘Clearing Member.’’ 

2. Conforming Changes 

Second, OCC has identified instances 

in which the changes OCC intended to 

make in prior rule change filings were 

not applied to all affected provisions. 

This proposed rule change would apply 

conforming changes to OCC’s By-Laws 

and Rules reflecting the intended 

changes to the affected provisions: 

• Article VI, Section 3(d) of the ByLaws would be deleted. The provision 

allows for Clearing Members to establish 

and maintain Pledge Accounts to the 

extent permitted by OCC’s Rules—Rules 

which OCC eliminated in 2012 when it 

terminated the Pledge Program.7

Because OCC’s Rules no longer permit 

Pledge Accounts, Section 3(d) of ByLaw Article VI is now inoperative and 

can be eliminated. 

• Article XXVI, Section 1 of the ByLaws would be amended by deleting the 

definition of ‘‘index group.’’ That 

defined term was previously deleted 

from Article XVII because it was not 

used elsewhere in that Article.8

Likewise, the term is not used elsewhere 

in Article XXVI. In addition, the 

definition of ‘‘index multiplier’’ would 

be amended to reflect that the 

referenced definition is found in Article 

I, not Article XVII as currently 

indicated. 

• Rule 504(c) would be amended to 

use the term ‘‘non-guaranteed 

settlement,’’ rather than ‘‘money-only 

settlement.’’ Paragraph (c) was 

inadvertently excluded from a prior rule 

change filing that applied the same 

change to other paragraphs of that 

Rule.9 Consequently, OCC would also 

renumber paragraphs (d) through (g), as 

they appeared in that filing, as 

paragraphs (e) through (h). 

• Interpretation and Policy .14 to 

Rule 604 would be amended to reflect 

the deletion of a former provision under 

Rule 604(b)(4). Rule 604(b)(4) limited 

the amount of margin credit of any 

single issue to 10% of the margin 


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Federal Register / Vol. 86, No. 160 / Monday, August 23, 2021 / Notices 47175 

10See Exchange Act Release No. 72206 (May 21, 

2014), 79 FR 30674, 30675 (May 28, 2014) (File No. 

SR–OCC–2014–07). As OCC explained, the 

limitation on margin credit was no longer necessary 

after eliminating preferred stock as an acceptable 

form of margin asset because additional charges for 

concentration positions are already determined 

under OCC’s System for Theoretical Analysis and 

Numerical Simulations (‘‘STANS’’). 

11See Exchange Act Release No. 58258 (July 30, 

2008), 73 FR 46133 (Aug. 7, 2008) (File No. SR– 

OCC–2008–12. 

12See Exchange Act Release No. 67835 (Sept. 12, 

2012), 77 FR 57602 (Sept. 18, 2012) (File No. SR– 

OCC–2012–14). 

13See Exchange Act Release No. 80171 (Mar. 8, 

2017), 82 FR 13690 (Mar. 14, 2017) (File No. SR– 

OCC–2017–004); Exchange Act Release No. 59294 

(Jan. 23, 2009), 74 FR 5958 (Feb. 3, 2009) (File No. 

SR–OCC–2008–20). 

14Specifically, OCC would update the crossreferences in the bracketed parentheticals that 

identify By-Laws or Rules supplemented or 

replaced by Article XII, Section 4A; Article XIII, 

Sections 1 and 3; Article XV, Section 1; Article XVI, 

Section 1; and Article XVII, Section 1 of the ByLaws and Rules 1401, 1402, 1403, 1404, 1503, 1703, 

1704, 1805, and 2704. OCC would also amend 

erroneous cross-references in Rules 101, 304(a), 

309(f), and 803 and Article XV, Section 1 of the ByLaws. The rationale for these amendments and the 

identification of the intervening rule filings that 

renumbered the referenced provisions is included 

in Exhibit 3 to File No. SR–OCC–2021–008. 

Notwithstanding the amendments to Article XV, 

that Article remains inoperative until further notice 

by OCC. See Exchange Act Release No. 58977 (Nov. 

19, 2008), 73 FR 72097, 72098 (Nov. 26, 2008) (File 

No. SR–OCC–2008–09). 

15The practice of referring to definition sections 

by number dates to OCC’s original practice of 

adding new definitions sequentially to the end of 

the definition sections, which OCC ceased when it 

alphabetized the definition sections. See Exchange 

Act Release No. 30327 (Jan. 31, 1992), 57 FR 4785– 

01 (Feb. 7, 1992) (File No. SR–OCC–92–4). 

16See OCC Rule 401(a) (‘‘Such confirmed trade 

information shall also include a Customer CMTA 

Indicator, a CMTA Customer Identifier, and an IB 

Identifier to the extent required under applicable 

Exchange rules.’’). 

17See Exchange Act Release No. 51350 (Mar. 9, 

2005), 70 FR 12934 (Mar. 16, 2005) (File No. SR– 

OCC–2004–19). 

18 15 U.S.C. 78q–1(b)(3)(F). 

19 17 CFR 240.17Ad–22(e)(1). 

20 15 U.S.C. 78q–1(b)(3)(I). 

deposited by Clearing Members. OCC 

intended to remove that limitation when 

it eliminated preferred stock as a form 

of margin asset.10 Consequently, the 

Interpretation and Policy’s application 

of that now defunct provision to subaccounts is no longer relevant. 

• Rule 705 would be amended to 

reflect that interests or gains received or 

accrued on the investment of margins 

deposited in respect of cross margin 

accounts shall belong to the Corporation 

or the Participating CCO(s) (rather than 

‘‘and’’) as may be determined by mutual 

agreement between the parties, 

consistent with unmarked changes in 

the text as filed in connection with a 

prior proposed rule change.11

• Interpretation and Policy .02 to 

Rule 1106 would be renumbered as .01, 

consistent with the deletion of the 

immediately Interpretation and Policy 

by a previous proposed rule change.12

• Rule 2205 would be amended to 

reflect that OCC shall ‘‘make available,’’ 

rather than ‘‘issue,’’ information 

concerning stock loan positions and 

stock borrow positions resulting from 

Stock Loans, consistent with unmarked 

changes in the text as filed in 

connection with prior proposed rule 

changes.13

3. Correcting Erroneous CrossReferences 

Third, OCC has identified erroneous 

cross-references to provisions that have 

been renumbered by prior rule changes. 

This proposed rule change would 

correct these erroneous crossreferences.14 In the case of erroneous 

cross-references to definitions found in 

Article I of the By-Laws or Rule 101, 

OCC is proposing to replace citations to 

numbered paragraphs with references to 

the defined term. OCC believes citations 

to numbered paragraphs are 

unnecessary for definition sections that 

are alphabetized,15 and referring to the 

definitions by term rather than number 

will help avoid the need to update 

cross-references whenever the definition 

sections are amended. 

4. Amendments to CMTA Processes 

Finally, OCC is proposing to remove 

references to certain identifiers related 

to the Clearing Member Trade 

Assignment (‘‘CMTA’’) process that 

were never implemented. Specifically, 

the provisions related to the Customer 

CMTA Indicator, CMTA Customer 

Identifier, and IB Identifier in Article I 

of the By-Laws, Rule 401, and Rule 407 

contemplated that participant exchanges 

would adopt rules to implement them, 

which did not occur.16 OCC proposes to 

remove the changes applied when it 

added the capacity for those 

identifiers.17

OCC would also clarify Rule 407(b) to 

address situations where the account 

designated by the Carrying Clearing 

Member to receive confirmed trades is 

not approved to hold a specific 

confirmed trade. Rule 407(b) does not 

provide for what happens in this event. 

In such cases, it is OCC’s practice to 

default to the Carrying Clearing 

Member’s customer or segregated 

futures account, as applicable, or, if the 

Carrying Clearing Member does not 

maintain such an account, to the 

Carrying Clearing Member’s firm 

account. In addition, OCC would delete 

the last sentence of Rule 407(b), which 

provides for default accounts if an 

Executing Clearing Member failed to 

designate a default account for failed 

transactions. Executing Clearing 

Members are required to make a 

designation prior to engaging in 

transactions, so the situation this 

provision is intended to address could 

not occur. Therefore, this last sentence 

is unnecessary and can be eliminated. 

OCC believes that these proposed 

changes help to clarify OCC’s Rules 

with respect to default accounts and 

reflect OCC’s current practice. 

(2) Statutory Basis 

OCC believes the proposed rule 

changes are consistent with Section 17A 

of the Securities Exchange Act of 1934 

(‘‘Exchange Act’’) and the rules and 

regulations thereunder. Section 

17A(b)(3)(F) 18 of the Exchange Act 

requires, among other things, that the 

rules of a clearing agency be designed to 

promote the prompt and accurate 

clearance and settlement of securities 

and derivatives transactions and protect 

investors and the public interest. By 

correcting typographical errors, 

omissions and erroneous crossreferences in OCC’s By-Laws and Rules, 

as well as removing inoperative 

provisions, the proposed rule changes 

facilitate the administration of existing 

rules intended to promote the prompt 

and accurate clearance and settlement of 

securities and derivatives transactions 

and protect investors and the public 

interest. 

In addition, Rule 17Ad–22(e)(1) 

requires OCC to, among other things, 

maintain written policies and 

procedures reasonably designed to, 

among other things, ensure a wellfounded, clear, transparent, and 

enforceable legal basis for each aspect of 

OCC’s activities.19 By correcting errors 

and omissions in the text as filed with 

the SEC and removing inoperative 

provisions, the changes discussed above 

are intended to support the maintenance 

of OCC’s By-Laws and Rules and 

improve their clarity and transparency. 

The proposed rule change is not 

inconsistent with any existing rules of 

OCC, including any other rules 

proposed to be amended. 

(B) Clearing Agency’s Statement on 

Burden on Competition 

Section 17A(b)(3)(I) of the Exchange 

Act 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 Exchange Act.20 As 

discussed above, the proposed changes 

would correct typographical errors, 

omissions and erroneous crossreferences and remove certain 


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47176 Federal Register / Vol. 86, No. 160 / Monday, August 23, 2021 / Notices 

21 15 U.S.C. 78s(b)(3)(A)(ii). 

22 17 CFR 240.19b–4(f)(1). 

23 17 CFR 240.19b–4(f)(4). 

24Notwithstanding its immediate effectiveness, 

implementation of this rule change will be delayed 

until this change is deemed certified under 

Commodity Futures Trading Commission 

Regulation 40.6. 25 17 CFR 200.30–3(a)(12). 

inoperative provisions. These proposed 

changes are technical in nature and 

would not impact the rights or 

obligations of Clearing Members or 

other participants in a way that would 

benefit or disadvantage any participant 

versus another participant. Accordingly, 

OCC does not believe that the proposed 

corrections to its By-Laws and Rules 

have any impact, or impose any burden, 

on competition. 

(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 rule change, and none 

have been received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Pursuant to Section 19(b)(3)(A)(ii) 21

of the Act, and Rule 19b–4(f)(1) 22 and 

(f)(4) 23 thereunder, the proposed rule 

change is filed for immediate 

effectiveness. 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.24

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 email to rule-comments@

sec.gov. Please include File Number SR– 

OCC–2021–008 on the subject line. 

Paper Comments 

• 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–2021–008. 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 (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 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 

10:00 a.m. and 3:00 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/CompanyInformation/Documents-and-Archives/ 

By-Laws-and-Rules. 

All comments received will be posted 

without change. Persons submitting 

comments are cautioned that we do not 

redact or edit personal identifying 

information from comment submissions. 

You should submit only information 

that you wish to make available 

publicly. 

All submissions should refer to File 

Number SR–OCC–2021–008 and should 

be submitted on or before September 13, 

2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2021–17966 Filed 8–20–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meetings 

TIME AND DATE: 2:00 p.m. on Thursday, 

August 26, 2021. 

PLACE: The meeting will be held via 

remote means and/or at the 

Commission’s headquarters, 100 F 

Street NE, Washington, DC 20549. 

STATUS: This meeting will be closed to 

the public. 

MATTERS TO BE CONSIDERED: 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the closed meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

In the event that the time, date, or 

location of this meeting changes, an 

announcement of the change, along with 

the new time, date, and/or place of the 

meeting will be posted on the 

Commission’s website at https://

www.sec.gov. 

The General Counsel of the 

Commission, or his designee, has 

certified that, in his opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) 

and (10) and 17 CFR 200.402(a)(3), 

(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and 

(a)(10), permit consideration of the 

scheduled matters at the closed meeting. 

The subject matter of the closed 

meeting will consist of the following 

topics: 

Institution and settlement of 

injunctive actions; 

Institution and settlement of 

administrative proceedings; 

Resolution of litigation claims; and 

Other matters relating to examinations 

and enforcement proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting agenda items that 

may consist of adjudicatory, 

examination, litigation, or regulatory 

matters. 

CONTACT PERSON FOR MORE INFORMATION: 

For further information; please contact 

Vanessa A. Countryman from the Office 

of the Secretary at (202) 551–5400. 

Dated: August 19, 2021. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2021–18218 Filed 8–19–21; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92689; File No. SR– 

CboeBZX–2021–052] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing of 

a Proposed Rule Change To List and 

Trade Shares of the Global X Bitcoin 

Trust Under BZX Rule 14.11(e)(4), 

Commodity-Based Trust Shares 

August 17, 2021. 

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

Securities Exchange Act of 1934 (the 


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