Document ID: SEC-2009-0870-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Ancillary Fee Changes
Posted Date: 2009-06-29T04:00Z

[Federal Register: June 29, 2009 (Volume 74, Number 123)]
[Notices]               
[Page 31079-31080]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29jn09-112]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60144; File No. SR-OCC-2009-11]

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

June 19, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on May 28, 2009, The Options 
Clearing Corporation (``OCC'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change as 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) \3\ thereunder 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 persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78s-1(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 (i) reduce ancillary service fees 
charged to Tier I, II, III, and IV clearing members and (ii) reduce 
leased line charges for subscribing clearing members.

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 such 
statements.\4\
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    \4\ The Commission has modified parts of these statements.
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A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The principal purpose of this rule change is to effect certain fee 
changes with respect to OCC's ancillary services program.
    In addition to clearing and settlement services, OCC provides its 
clearing members with a number of ancillary services, which range from 
on-line access to OCC systems to report and data distribution 
offerings. Hardware and communication lines support these ancillary 
service offerings. In August 2002, OCC implemented a four-tiered fee 
structure for its ancillary services with a different bundle of 
services offered at a fixed cost for each tier and revised its leased 
line charges for subscribing clearing members.\5\ OCC periodically 
reviews these fees based on changes in costs, infrastructure, and 
operational changes.\6\
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    \5\ Securities Exchange Act Release No. 46339 (August 12, 2002), 
67 FR 53828 (August 19, 2002) (File No. SR-OCC-2002-17).
    \6\ For example, in 2006 OCC reduced the tiered fee structure to 
reflect changes in infrastructure and disaster recovery protocols. 
Securities Exchange Act Release No. 53812 (May 16, 2006), 71 FR 
29699 (May 23, 2006) (SR-OCC-2006-03).
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    Pursuant to such a review, effective June 1, 2009, OCC will reduce 
the fixed monthly ancillary fees charged to Tier I, II, III, and IV 
clearing members and the leased line charges for subscribing clearing 
members. The following chart summarizes the ancillary services 
associated with each tier and the related fee changes:

----------------------------------------------------------------------------------------------------------------
                                                                                 Cost
             Tier                Ancillary services  -----------------------------------------------------------
                                                                Previous                      June 2009
----------------------------------------------------------------------------------------------------------------
I............................  ENCORE Access........  $2,100/month................  $1,500/month.
                               MyOCC Access
                               Data Service--
                                proprietary position
                                and trade data
                                (includes
                                transmission to
                                service bureau)
                               Report Bundle
                               Series File
                               Open Interest File

[[Page 31080]]

                               Prices File
                               Stock Loan File
                               Theoretical Profit
                                and Loss Values
                               Leased line charges
                                are additional
                               Additional clearing    $850/clearing number/month..  No Additional Charge.
                                numbers.
II...........................  ENCORE Access........  $1,650/month................  $1,000/month.
                               MyOCC Access
                               Data Service--
                                proprietary position
                                and trade data
                                (includes
                                transmission to
                                service bureau)
                               Report Bundle
                               Leased line charges
                                are additional
III..........................  ENCORE Access........  $950/month..................  $650/month.
                               MyOCC Access
IV (Stock Loan Only).........  ENCORE Access........  $400/month..................  $300/month.
                               MyOCC Access
----------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------
     Monthly leased line charges          Previous          June 2009
------------------------------------------------------------------------
T1 line to a Midwest clearing member            $1,500            $1,000
T1 line to an East Coast clearing                2,500             1,500
 member.............................
T1 line to a West Coast clearing                 3,500             2,000
 member.............................
------------------------------------------------------------------------

    OCC's Schedule of Fees as of June, 2009, which reflects the 
foregoing changes, is attached as Exhibit 5 to Filing No. OCC-2009-11.

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 pursuant to Section 
19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-4(f)(2) \8\ promulgated 
thereunder because the proposal changes a due, fee, or other charge 
applicable only to a member. 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-2009-11 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-2009-11. 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. Copies of such filing also will be available for 
inspection and copying at the principal office of OCC. 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-2009-11 and should be 
submitted on or before July 20, 2009.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-15226 Filed 6-26-09; 8:45 am]

BILLING CODE 8010-01-P