Document ID: SEC-2009-0543-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Change: Options Clearing Corp.
Posted Date: 2009-04-20T04:00Z

[Federal Register: April 20, 2009 (Volume 74, Number 74)]
[Notices]               
[Page 18015-18017]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20ap09-126]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59764; File No. SR-OCC-2009-07]

 
Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Revise Fee Schedule

April 14, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934

[[Page 18016]]

(``Act''),\1\ notice is hereby given that on April 9, 2009, The Options 
Clearing Corporation (``OCC'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change 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 parties.
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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 Substance 
of the Proposed Rule Change

    The purpose of the proposed rule change is to revise OCC's fee 
schedule for OneChicago, LLC (``ONE'').

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 these 
statements.\2\
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    \2\ The Commission has modified the text of the summaries 
prepared by OCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    Under OCC's Standard Fee Schedule, clearing members pay OCC's 
standard clearing fees and are eligible to receive rebates of excess 
clearing fees when and as determined by OCC's Board of Directors. When 
negotiating its clearing agreement with OCC, ONE negotiated the right 
to pay clearing fees based on an Alternate Fee Schedule that was 
ineligible for rebates in order to avoid the uncertainty of a rebate 
that might be less than expected.\3\
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    \3\ \\ Under the Alternate Fee Schedule, different fees were 
charged to ONE when Chicago Mercantile Exchange (``CME''), as an 
associated clearinghouse (``ACH''), was on one or both sides of the 
trades.
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    In 2005, OCC began to charge ONE clearing fees for trades where 
both sides are cleared by OCC clearing members based on OCC's rebate-
eligible Standard Fee Schedule.\4\ Since 2005, OCC adopted further 
discounts to its Standard Fee Schedule such that the fees charged to 
ONE under the Alternate Fee Schedule for trades where one side is 
cleared by CME are now substantially higher than OCC's discounted fees 
in effect for other trades.\5\
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    \4\ There were no changes made, however, to the fees charged 
where CME, as an ACH, was on one or both sides of a trade. In such 
cases, the Alternate Fee Schedule remained in effect.
    \5\ OCC's current discounted fee schedule is as follows:
    3[cent] per contract for trades of 1 to 500 contracts,
    2.4[cent] per contract for trades of 501 to 1,000 contracts,
    $18.00 per trade (capped) for trades of 1,001 to 2,000 
contracts, and
    $18.00 per trade (capped) for trades larger than 2,001 
contracts.
    Under the Alternate Fee Schedule, fees for trades where one side 
of the trade is cleared by CME are as follows:
    5[cent] per contract for trades of 1 to 500 contracts,
    4.25[cent] per contract for trades of 501 to 1,000 contracts,
    3.5[cent] per contract for trades of 1,001 to 2,000 contracts,
    $61.00 per trade for trades larger than 2,000 contracts.
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    In response to a request by ONE, OCC has agreed to reduce OCC's 
fees for trades on ONE where one side is cleared by CME. Accordingly, 
effective April 1, 2009, OCC will charge ONE clearing fees for trades 
where one side is cleared through CME based on the Standard Fee 
Schedule as in effect from time to time.
    OCC believes that the proposed rule change is consistent with the 
requirements of Section 17A(b)(3)(D) of the Act \6\ and the rules and 
regulations thereunder applicable to OCC because it provides for the 
equitable allocation of reasonable dues, fees, and other charges among 
OCC's participants by providing the benefit of OCC's discounted, 
rebate-eligible clearing fee schedule to more trades effected on a 
market for which OCC provides clearance and settlement services.
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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 will have any 
impact on or impose any burden on competition.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received from Members, Participants, or Others

    No written comments relating to the proposed rule change have been 
solicited or received. 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

    The foregoing rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-4(f)(2) \8\ 
thereunder because the proposed rule change establishes or changes a 
due, fee, or other charge applicable only to a participant. At any time 
within sixty days of the filing of the proposed rule change, the 
Commission may summarily abrogate 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.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
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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

     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 Number SR-OCC-2009-07 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-OCC-2009-07. 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 inspection and 
copying in the Commission's Public Reference Section, 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 filings also will be available for 
inspection and copying at the principal office of OCC and on

[[Page 18017]]

OCC's Web site at http://www.optionsclearing.com/publications/rules/
proposed_changes/sr_occ_09_07.pdf. 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 submissions 
should refer to File Number SR-OCC-2009-07 and should be submitted on 
or before May 11, 2009.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Florence E. Harmon,
Deputy Secretary.
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    \9\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E9-8964 Filed 4-17-09; 8:45 am]

BILLING CODE 8010-01-P