Document ID: SEC-2007-1714-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; proposed rule changes:  Options Clearing Corp.
Posted Date: 2007-12-17T05:00Z

[Federal Register: December 17, 2007 (Volume 72, Number 241)]
[Notices]               
[Page 71464-71465]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17de07-118]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56931; File No. SR-OCC-2007-07]

 
Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to Yield-Based Treasury Securities

December 7, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on May 24, 2007, 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)(iii) of the Act\2\ and Rule 19b-4(f)(4) \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. 78q-1(b)(3)(A)(iii).
    \3\ 17 CFR 240.19b-4(f)(4).

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[[Page 71465]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change would make minor technical changes to 
Sections 3 and 4 of Article XVI of OCC's By-Laws pertaining to yield-
based Treasury options.

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 purpose of this rule change is to make minor technical changes 
to Sections 3 and 4 of Article XVI of OCC's By-Laws, pertaining to 
yield-based Treasury options. In 2004, OCC amended Sections 3 and 4 of 
Article XVI to conform those sections to the corresponding By-Law 
provisions governing index options. \5\ However, OCC delayed 
implementing these changes until they were disclosed in a supplement to 
the options disclosure document, Characteristics and Risks of 
Standardized Options. \6\ Distribution of such a supplement recently 
began. In connection with preparing the supplement, OCC determined that 
minor technical changes to Sections 3 and 4 of Article XVI were 
warranted in order to more precisely conform these Sections to the 
disclosures made in the supplement. OCC also determined to correct an 
erroneous cross-reference to another By-Laws provision.
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    \5\ Securities Exchange Act Release No. 50895 (December 20, 
2004), 69 FR 78085 (December 29, 2004) (File No. SR-OCC-2004-11).
    \6\ Securities Exchange Act Release No. 55702 (May 3, 2007), 72 
FR 26671 (May 10, 2007) (File No. SR-ODD-2007-02).
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    The proposed change is consistent with Section 17A of the Act 
because it more precisely conforms the terms of Sections 3 and 4 of 
Article XVI to disclosures made in a supplement to the options 
disclosure document, thereby increasing the protection of investors and 
promoting the prompt and accurate clearance and settlement of yield-
based Treasury options. The proposed rule change is not inconsistent 
with the existing rules of OCC, including any other rules proposed to 
be amended.

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)(iii) of the Act \7\ and Rule 19b-4(f)(4) \8\ promulgated 
thereunder because the proposal effects a change in an existing service 
of OCC that (A) does not adversely affect the safeguarding of 
securities or funds in the custody or control of OCC or for which it is 
responsible and (B) does not significantly affect the respective rights 
or obligations of OCC or persons using the service. At any time within 
sixty days of the filing of the proposed rule change, the Commission 
could have summarily abrogated such rule change if it appeared to the 
Commission that such action was 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)(iii).
    \8\ 17 CFR 240.19b-4(f)(4).
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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-2007-07 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-2007-07. 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 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-2007-07 and should be 
submitted on or before January 7, 2008.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority. \9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-24308 Filed 12-14-07; 8:45 am]

BILLING CODE 8011-01-P