Document ID: SEC-2008-0776-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: The Options Clearing Corp.
Posted Date: 2008-06-05T04:00Z

[Federal Register: June 5, 2008 (Volume 73, Number 109)]
[Notices]               
[Page 32066-32067]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05jn08-97]                         

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57895; File No. SR-OCC-2008-07]

 
Self-Regulatory Organizations; The Options Clearing Corporation; 
Order Granting Approval of a Proposed Rule Change, as Modified by 
Amendment No. 1, Relating to SPDR Gold Shares

May 30, 2008.

I. Introduction

    On March 7, 2008, The Options Clearing Corporation (``OCC'') filed 
with the Securities and Exchange Commission (``Commission'') proposed 
rule change SR-OCC-2008-07 pursuant to Section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'').\1\ Notice of the proposal 
was published in the Federal Register on March 17, 2008, and was 
republished on April 25, 2008.\2\ On May 22, 2008, OCC filed Amendment 
No. 1 to the proposed rule change.\3\ No comment letters were received. 
For the reasons discussed below, the Commission is granting approval of 
the proposed rule change, as amended.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ Securities Exchange Act Release Nos. 57466 (March 11, 2008), 
73 FR 14297 and 57695 (April 21, 2008), 73 FR 22452. The Commission 
republished notice of the proposed rule change in order to add 
footnote 6 to Section IV, Solicitation of Comments.
    \3\ Although the proposed rule change was amended after it was 
noticed for comment in the Federal Register, republication of the 
notice is not necessary because the post-notice amendment made only 
a technical change to reflect that streetTRACKS Gold Trust has been 
re-named SPDR Gold Trust.
---------------------------------------------------------------------------

II. Description

    The rule change helps to clarify the manner in which options and 
security futures on SPDR Gold Shares will be treated and cleared by 
adding an interpretation to the definition of ``fund share'' in Article 
I, Section 1 of OCC's By-Laws.\4\ Under the interpretation, OCC will 
clear and treat as securities options any option contracts on SPDR Gold 
Shares, which are traded on securities exchanges. Similarly, OCC will 
clear and treat as security futures any futures contracts on SPDR Gold 
Shares.\5\
---------------------------------------------------------------------------

    \4\ The new interpretation replaces the interpretation that was 
added to OCC's By-Laws by File No. SR-OCC-2008-04, which was 
effective upon filing. At the request of the Commission, OCC 
withdrew SR-OCC-2008-04 from consideration by the Commission in 
conjunction with the submission of this filing, SR-OCC-2008-07.
    \5\ The exact language of the interpretation can be found at 
http://www.optionsclearing.com/publications/rules/proposed_changes/
sr_occ_08_07.pdf.
---------------------------------------------------------------------------

    In its capacity as a ``derivatives clearing organization'' 
registered with the Commodity Futures Trading Commission (``CFTC''), 
OCC also filed the proposed rule change with the CFTC for prior 
approval by the CFTC pursuant to provisions of the Commodity Exchange 
Act (``CEA'').\6\
---------------------------------------------------------------------------

    \6\ OCC's filing with the CFTC can be found at http://
www.cftc.gov/stellent/groups/public/@rulesandproducts/documents/
ifdocs/rul030708occ001.pdf.
---------------------------------------------------------------------------

III. Discussion

    Section 17A(b)(3)(F) of the 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 transactions.\7\ By 
amending its By-Laws to help clarify that options and security

[[Page 32067]]

futures on SPDR Gold Shares will be treated and cleared as securities 
options or security futures, OCC's proposed rule change should help 
clarify the jurisdictional status of such contracts and accordingly 
should help to promote the prompt and accurate clearance and settlement 
of securities transactions. In accordance with the Memorandum of 
Understanding entered into between the CFTC and the Commission on March 
11, 2008, and in particular the addendum thereto concerning Principles 
Governing the Review of Novel Derivative Products, the Commission 
believes that novel derivative products that implicate areas of 
overlapping regulatory concern should be permitted to trade in either 
or both a CFTC- or Commission-regulated environment, in a manner 
consistent with laws and regulations (including the appropriate use of 
all available exemptive and interpretive authority).
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

IV. Conclusion

    On the basis of the foregoing, the Commission finds that the 
proposed rule change is consistent with the requirements of the Act and 
in particular Section 17A of the Act and the rules and regulations 
thereunder.\8\
---------------------------------------------------------------------------

    \8\ In approving the proposed rule change, the Commission 
considered the proposal's impact on efficiency, competition and 
capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (File No. SR-OCC-2008-07), as modified by 
Amendment No. 1, be and hereby is approved.

    By the Commission.
Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-12519 Filed 6-4-08; 8:45 am]

BILLING CODE 8010-01-P