Document ID: SEC-2010-0739-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Options Clearing Corp.
Posted Date: 2010-05-19T04:00Z

[Federal Register: May 19, 2010 (Volume 75, Number 96)]
[Notices]               
[Page 28085-28086]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19my10-114]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62094; File No. SR-OCC-2010-07]

 
Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing of Proposed Rule Change Relating to Clearing Options 
on the CBOE Gold ETF Volatility Index

May 13, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 
1934,\1\ notice is hereby given that on April 26, 2010, The Options 
Clearing Corporation (``OCC'') filed with the Securities and Exchange 
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 persons.
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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 the 
Substance of the Proposed Rule Change

    The proposed rule change would allow OCC to add an interpretation 
following the introduction in Article XVII of OCC's By-Laws to clarify 
that OCC will clear and treat as securities options any option 
contracts on the CBOE Gold ETF Volatility Index.

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.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The purpose of the proposed rule change is to make clear that 
options on the CBOE Gold ETF Volatility Index, which is an index that 
measures the implied volatility of options on the SPDR Gold Trust, 
which is an exchange-traded fund designed to reflect the performance of 
gold bullion. To accomplish this purpose, OCC is proposing to add an 
interpretation following the introduction in Article XVII of OCC's By-
Laws, clarifying that OCC will clear and treat as securities options 
any option contracts on the CBOE Gold ETF Volatility Index.\2\ On May 
30, 2008, the Commission approved rule filing SR-OCC-2008-07, which 
added a similar interpretation with respect to the treatment and 
clearing of options on shares of the SPDR Gold Trust.\3\ On December 4, 
2008, the Commission approved rule filings SR-OCC-2008-13 and SR-OCC-
2008-14, which extended similar treatment to options on iShares[supreg] 
COMEX Gold Shares and iShares[supreg] Silver Shares.\4\ On February 25, 
2010, the Commission approved rule filing SR-OCC-2009-20, which 
extended similar treatment to options and security futures on ETFS 
Physical Swiss

[[Page 28086]]

Gold Shares and ETFS Physical Silver Shares.\5\
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    \2\ The specific language of the proposed interpretation can be 
found on OCC's Web site at http://www.theocc.com/publications/rules/
proposed_changes/proposed_changes.jspU.
    \3\ Securities Exchange Act Release No. 57895, 73 FR 32066 (June 
5, 2008).
    \4\ Securities Exchange Act Release No. 59054, 73 FR 75159 (Dec. 
10, 2008). These filings also provided that futures on the exchange-
traded funds in question would be cleared and treated as security 
futures.
    \5\ Securities Exchange Act Release No. 61591, 75 FR 9979 (Mar. 
4, 2010).
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    In its capacity as a ``derivatives clearing organization'' 
registered as such with the CFTC, OCC is filing this proposed rule 
change for prior approval by the CFTC pursuant to provisions of the 
Commodity Exchange Act (``CEA'') in order to foreclose any potential 
liability under the CEA based on an argument that the clearing by OCC 
of such options as securities options constitutes a violation of the 
CEA.
    OCC states that the proposed interpretation of OCC's By-Laws is 
consistent with the purposes and requirements of Section 17A of the Act 
\6\ because it is designed to promote the prompt and accurate clearance 
and settlement of transactions in securities options, to foster 
cooperation and coordination with persons engaged in the clearance and 
settlement of such transactions, to remove impediments to and perfect 
the mechanism of a national system for the prompt and accurate 
clearance and settlement of such transactions, and, in general, to 
protect investors and the public interest. It does so by reducing the 
likelihood of a dispute as to OCC's treatment of options based on the 
CBOE Gold ETF Volatility Index. The proposed rule change is not 
inconsistent with the By-Laws and Rules of OCC.
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    \6\ 15 U.S.C. 78q-1.
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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

    OCC has not solicited or received written comments relating to the 
proposed rule change. OCC will notify the Commission of any written 
comments it receives.

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

    Within thirty-five days of the date of publication of this notice 
in the Federal Register or within such longer period (i) as the 
Commission may designate up to ninety days of such date if it finds 
such longer period to be appropriate and publishes its reasons for so 
finding or (ii) as to which the self-regulatory organization consents, 
the Commission will:
    (A) By order approve the proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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 e-mail to rule-comments@sec.gov. Please include 
File No. SR-OCC-2010-07 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File No. SR-OCC-2010-07. This file 
number should be included on the subject line if e-mail 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 Web site (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 Web site 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 OCC's principal office and on OCC's Web site 
at http://www.theocc.com/publications/rules/proposed_changes/
proposed_changes.jspU. All comments received will be posted without 
change; the Commission does not edit personal identifying information 
from submissions. You should submit only information that you wish to 
make available publicly. All submission should refer to File No. SR-
OCC-2010-07 and should be submitted on or before June 9, 2010.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-11940 Filed 5-18-10; 8:45 am]
BILLING CODE 8010-01-P