Document ID: SEC-2019-1494-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: The Options Clearing Corp.
Posted Date: 2019-10-15T04:00Z

[Federal Register Volume 84, Number 199 (Tuesday, October 15, 2019)]
[Notices]
[Pages 55189-55190]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22385]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87246; File No. SR-OCC-2019-007]

Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing of Partial Amendment No. 1 and Notice of Designation 
of Longer Period for Commission Action on Proposed Rule Change 
Concerning a Proposed Capital Management Policy That Would Support the 
Options Clearing Corporation's Function as a Systemically Important 
Financial Market Utility

October 8, 2019.

I. Introduction

    On August 9, 2019, the Options Clearing Corporation (``OCC'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change SR-OCC-2019-007 (``Proposed Rule Change'') 
pursuant to Section 19(b) of the Securities Exchange Act of 1934 
(``Exchange Act'') \1\ and Rule 19b-4 \2\ thereunder to adopt a policy 
concerning capital management at OCC, which includes OCC's plan to 
replenish its capital in the event it falls close to or below target 
capital levels.\3\ The Proposed Rule Change was published for public 
comment in the Federal Register on August 27, 2019.\4\ The Commission 
received comments regarding the Proposed Rule Change.\5\ On September

[[Page 55190]]

11, 2019, OCC filed a partial amendment (``Partial Amendment No. 1'') 
to modify the Proposed Rule Change.\6\ The Commission is publishing 
this notice to solicit comments on Partial Amendment No. 1 from 
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Notice of Filing infra note 4, at 84 FR 44952.
    \4\ Securities Exchange Act Release No. 86725 (Aug. 21, 2019), 
84 FR 44952 (Aug. 27, 2019) (SR-OCC-2019-007) (``Notice of 
Filing''). OCC also filed a related advance notice (SR-OCC-2019-805) 
(``Advance Notice'') with the Commission pursuant to Section 
806(e)(1) of Title VIII of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act, entitled the Payment, Clearing, and 
Settlement Supervision Act of 2010 and Rule 19b-4(n)(1)(i) under the 
Exchange Act. 12 U.S.C. 5465(e)(1). 15 U.S.C. 78s(b)(1) and 17 CFR 
240.19b-4. The Advance Notice was published in the Federal Register 
on September 11, 2019. Securities Exchange Act Release No. 86888 
(Sep. 5, 2019), 84 FR 47990 (Sep. 11, 2019) (SR-OCC-2019-805).
    \5\ See letter from Jacqueline Mesa, Chief Operating Officer & 
Senior Vice President of Global Policy Futures Industry Association 
(``FIA''), dated September 17, 2019, to Vanessa Countryman, 
Secretary, Commission (``FIA Letter''); letter from Joseph P. 
Kamnik, Senior Vice President and Chief Regulatory Counsel, OCC, 
dated September 20, 2019 to Vanessa Countryman, Secretary, 
Commission (``OCC Letter''); letter from Steven Morrison, SVP, 
Associate General Counsel, LPL Financial (``LPL'') to Brent J. 
Fields, Secretary, Commission, dated September 17, 2019 (received 
September 26, 2019) (``LPL Letter''), available at https://www.sec.gov/comments/sr-occ-2019-007/srocc2019007.htm.
    \6\ In Partial Amendment No. 1, OCC appended an Exhibit 2 to the 
materials filed on August 9, 2019 regarding File No. SR-OCC-2019-
007. The appended Exhibit 2 consists of communications from OCC 
concerning the proposal dated after OCC filed the proposal on August 
9, 2019 and does not change the purpose of or basis for the Proposed 
Rule Change. References to the Proposed Rule Change from this point 
forward refer to the Proposed Rule Change, as amended by Partial 
Amendment No. 1.
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II. 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 Exchange 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-2019-007 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-OCC-2019-007. 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 filings will also be available for inspection 
and copying at the principal office of OCC and OCC's website at https://www.theocc.com/about/publications/bylaws.jsp.
    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-2019-007 and 
should be submitted on or before October 30, 2019.

III. Designation of Longer Period for Commission Action

    Section 19(b)(2) of the Exchange Act \7\ provides that, within 45 
days of the publication of notice of the filing of a proposed rule 
change, or within such longer period up to 90 days as the Commission 
may designate if it finds such longer period to be appropriate and 
publishes its reasons for so finding, or as to which the self-
regulatory organization consents, the Commission shall either approve 
the proposed rule change, disapprove the proposed rule change, or 
institute proceedings to determine whether the proposed rule change 
should be disapproved. The 45th day after publication of the Notice of 
Filing is October 11, 2019. The Commission is extending this 45-day 
time period.
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    \7\ 15 U.S.C. 78s(b)(2).
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    In order to provide the Commission with sufficient time to consider 
the Proposed Rule Change, the Commission finds that it is appropriate 
to designate a longer period within which to take action on the 
Proposed Rule Change.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Exchange Act,\8\ designates November 25, 2019 as the date by which the 
Commission shall either approve, disapprove, or institute proceedings 
to determine whether to disapprove proposed rule change SR-OCC-2019-
007.
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    \8\ Id.
    \9\ 17 CFR 200.30-3(a)(31).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-22385 Filed 10-11-19; 8:45 am]
 BILLING CODE 8011-01-P