Document ID: SEC-2008-0155-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Options Clearing Corporation
Posted Date: 2008-01-30T05:00Z

[Federal Register: January 30, 2008 (Volume 73, Number 20)]
[Notices]               
[Page 5618-5619]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30ja08-131]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57192; File No. SR-OCC-2007-17]

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

January 24, 2008.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 7, 2007, 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. OCC filed the proposed rule change pursuant to section 
19(b)(3)(A)(ii) of the Act \2\ and Rule 19b-4(f)(2) thereunder \3\ so 
that the proposal was effective upon filing with the Commission. 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).
    \2\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \3\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change would implement a new discounted fee 
schedule and continue the market maker scratch fee discount with all 
changes being effective January 1, 2008.

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.\4\
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    \4\ 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

    Effective May 1, 2007, OCC adopted a new permanent reduced clearing 
fee schedule for (i) securities options and

[[Page 5619]]

(ii) security futures where at least one side of the trade is cleared 
by an OCC clearing member.\5\ Simultaneous with the adoption of the new 
standard clearing fee schedule, OCC additionally discounted clearing 
fees. Effective September 1 through December 31, 2007, OCC further 
reduced its discounted clearing fees and halved the market-maker 
scratch fee.\6\ Effective January 1, 2008, OCC will implement a new 
discounted clearing fee schedule that will replace the May 1 discounted 
fees and will continue the discounted market-maker scratch fee of $0.01 
per side. The following chart sets forth the new discounted clearing 
fee schedule.
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    \5\ Securities Exchange Act Release No. 55709 (May 4, 2007), 72 
FR 26669 (May 10, 2007) [File No. SR-OCC-2007-05].
    \6\ Securities Exchange Act Release No. 56386 (September 11, 
2007), 72 FR 53273 (September 18, 2007) [File No. SR-OCC-2007-09]. 
In addition, OCC permanently adopted the standard fee schedule for 
commodity futures and eliminated the alternative fee schedule 
previously offered to futures markets.

------------------------------------------------------------------------
                                   Current permanent      Discounted
                                     standard fee        standard fee
         Contracts/trade               schedule,           schedule,
                                   effective May 1,   effective  January
                                         2007               1, 2008
------------------------------------------------------------------------
1-500...........................  $0.05/contract....  $0.03/contract.
501-1,000.......................  $0.04/contract....  $0.024/contract.
1,001-2,000.....................  $0.03/contract....  $18.00 (capped).
>2,000..........................  $55.00 (capped)...  $18.00 (capped).
------------------------------------------------------------------------

    The discounted clearing fee schedule and market maker scratch fee 
will remain in effect until further action by OCC's Board of Directors.
    The adoption of the new discounted fee schedule reflects the strong 
contract volume experienced by OCC in 2007. OCC believes that these 
discounted fees will financially benefit clearing members and other 
market participants without adversely affecting OCC's ability to meet 
its expenses and maintain an acceptable level of retained earnings.
    The proposed rule change is consistent with the requirements of 
section 17A of the Act \7\ and the rules and regulations thereunder 
applicable to OCC because it benefits clearing members and other market 
participants by discounting fees and allocating them in a fair and 
equitable manner. The proposed rule change is not inconsistent with the 
existing rules of OCC, including any other rules proposed to be 
amended.
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    \7\ 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

    Written comments were not and are not intended to be solicited with 
respect to the proposed rule change, and none have been received.

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 \8\ and Rule 19b-4(f)(2) \9\ 
thereunder because the proposed rule establishes or changes a due, fee, 
or other charge. At any time within sixty days of the filing of such 
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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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 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-2007-17 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-OCC-2007-17. 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 Room, 100 F Street, 
NE., Washington, DC 20549, on official business days between the hours 
of 10 a.m. and 3 p.m. The text of the proposed rule change is available 
at OCC, the Commission's Public Reference Room, and http://www.theocc.com/publications/rules/proposed_changes/sr_occ_
 07_

17.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-
2007-17 and should be submitted on or before February 20, 2008.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
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    \10\ 17 CFR 200.30-3(a)(12).
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 [FR Doc. E8-1614 Filed 1-29-08; 8:45 am]

BILLING CODE 8011-01-P