Document ID: SEC-2010-1477-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Options Clearing Corp.
Posted Date: 2010-09-27T04:00Z

[Federal Register: September 27, 2010 (Volume 75, Number 186)]
[Notices]               
[Page 59303-59304]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27se10-140]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62956; File No. SR-OCC-2010-09]

 
Self-Regulatory Organizations; The Options Clearing Corporation; 
Order Granting Approval of Proposed Rule Change Relating to Sprott 
Physical Gold Shares

September 20, 2010.

I. Introduction

    On June 7, 2010, The Options Clearing Corporation (``OCC'') filed 
with the Securities and Exchange Commission the proposed rule change 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 \1\ 
and Rule 19b-4 thereunder \2\ to clarify that OCC will clear and treat 
as options on securities any option contract on Sprott Physical Gold 
Shares that are traded on a securities exchange and will clear and 
treat as security futures any futures contracts on Sprott Physical Gold 
Shares. The proposed rule change was published for comment in the 
Federal Register on June 28, 2010.\3\ No comment letters were received 
on the proposal. This order approves the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 62329 (June 21, 2010), 
75 FR 36724.
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II. Description of the Proposal

    The proposed rule change will add an interpretation following the 
definition of ``fund share'' in Article I, Section 1(F)(8), of OCC's 
By-Laws to clarify that OCC will clear and treat as options on 
securities any option contract on Sprott Physical Gold Shares that is 
traded on a securities exchange and will clear and treat as security 
futures any futures contracts on Sprott Physical Gold Shares.\4\ This 
treatment is essentially the same as that extended to other options 
that OCC currently clears clears pursuant to rule changes approved by 
the Commission.\5\
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    \4\ The specific language of the new interpretation can be found 
on OCC's Web site at http://www.theocc.com/about/publications/
bylaws.jsp.
    \5\ Securities and Exchange Commission Release Nos. 57895 (May 
30, 2008), 73 FR 32066 (June 5, 2008) (SPDR Gold Trust); 59054 (Dec. 
4, 2008), 73 FR 75159 (Dec. 10, 2008) (iShares COMEX Gold Shares and 
iShares Silver Shares); 61591 (Feb. 25, 2010), 75 FR 9979 (Mar. 4, 
2010) (ETFS Physical Gold Shares and ETFS Physical Silver Shares); 
61958 (Apr. 22, 2010), 75 FR 22673 (Apr. 29, 2010) (ETFS Palladium 
Shares And ETFS Platinum Shares).
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    In its capacity as a ``derivatives clearing organization'' 
registered as such with the CFTC, OCC also filed this proposed rule 
change for prior approval by the CFTC pursuant to provisions of the 
Commodity Exchange Act (``CEA'') in order to foreclose potential 
liability based on an argument that the clearing by OCC of such options 
as securities options constitutes a violation of the CEA.

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 and 
derivative transactions.\6\ By amending its By-Laws to make clear that 
OCC will clear and treat as options on securities any option contract 
on Sprott Physical Gold Shares that is traded on a securities exchange 
and will clear and treat as security futures any futures contracts on 
Sprott Physical Gold Shares, OCC's rule change should help clarify 
OCC's treatment of such contracts and accordingly should help to 
promote the prompt and accurate clearance and settlement of securities 
transactions and of derivative 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 a CFTC or Commission-regulated environment or both 
in a manner consistent with laws and regulations (including the 
appropriate use of all available exemptive and interpretive authority).
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    \6\ 15 U.S.C. 78q-1(b)(3)(F).

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[[Page 59304]]

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 \7\ and the rules and regulations 
thereunder.
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    \7\ 15 U.S.C. 78q-1.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (File No. SR-OCC-2010-09) be and 
hereby is approved.\9\
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    \8\ 15 U.S.C. 78s(b)(2).
    \9\ 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).

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-24174 Filed 9-24-10; 8:45 am]
BILLING CODE 8010-01-P