Document ID: SEC-2015-0113-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Options Clearing Corp.
Posted Date: 2015-01-20T05:00Z

[Federal Register Volume 80, Number 12 (Tuesday, January 20, 2015)]
[Notices]
[Pages 2760-2762]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-00701]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74042; File No. SR-OCC-2015-01]

Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing of Proposed Rule Change Concerning the Date of the 
Annual Meeting of The Options Clearing Corporation's Stockholders

January 13, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that, on January 7, 2015, The Options Clearing Corporation (``OCC'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change described in I Items I, II and III below, which 
Items have been prepared by OCC. OCC filed the proposed rule change 
pursuant to Section 19(b)(3)(A) \3\ of the Act and Rule 19b-4(f)(3) \4\

[[Page 2761]]

thereunder, so that the proposal was effective upon filing with the 
Commission. The Commission is publishing this notice to solicit 
comments on the rule change from interested parties.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(3).
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    This proposed rule change would provide OCC with flexibility with 
respect to setting the date for the annual meeting of OCC's 
stockholders.

II. Clearing Agency'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.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

1. Purpose
    The purpose of this proposed rule change is to provide OCC with 
administrative flexibility with respect to setting the date of the 
annual meeting of OCC's stockholders. As background, a corporation 
incorporated under the laws of the State of Delaware, such as OCC, must 
hold an annual meeting of its stockholders.\5\ Currently, Article II, 
Section 1 of OCC's By-Laws provides that the date of the annual meeting 
of OCC's stockholders shall be the fourth Tuesday in April of each 
year. OCC desires to adopt a less prescriptive definition of when the 
annual meeting of stockholders shall occur (consistent with the laws of 
the State of Delaware) to, for example, permit the meeting to coincide 
with a meeting of its Board of Directors. OCC therefore is proposing to 
amend Article II, Section 1 of its By-Laws to provide that the annual 
meeting of OCC's stockholders shall be a date no later than April 30th 
of each year as determined by OCC's Board of Directors. OCC believes 
that by providing it with the administrative flexibility to hold the 
annual meeting of its stockholders on a date before April 30th of each 
year, OCC will be able to function in a more efficient manner by, for 
example, scheduling the annual meeting of stockholders to coincide with 
a meeting of OCC's Board of Directors so that, for those directors 
first elected at such annual meeting of stockholders, they may 
participate at such meeting of the Board of Directors. The proposed 
rule change will not affect clearing members, or other users of OCC's 
services.
---------------------------------------------------------------------------

    \5\ 8 Del. C. 1953, Sec.  211.
---------------------------------------------------------------------------

2. Statutory Basis
    OCC believes that the proposed rule change is consistent with 
Section 17A(b)(3)(C) of the Securities Exchange Act of 1934, as amended 
(the ``Act''),\6\ since the proposed rule change is ministerial in 
nature and does not affect the fair representation of its stockholders 
in the administration of OCC's affairs, nor does it affect the ability 
of OCC's clearing members to participate in the selection of OCC's 
Board of Directors, since OCC is not proposing to change the provisions 
of Article III, Section 5 of its By-Laws, which provides the means by 
which clearing members may participate in the selection of OCC's Board 
of Directors. In addition, OCC believes that the proposed rule change 
is consistent with Section 17A(b)(3)(F) of the Act \7\ because it is 
designed to protect investors and the public interest. By permitting 
the annual meeting of OCC's stockholders to be held on an earlier date, 
any newly elected directors would be able to participate in the first 
meeting of OCC's Board of Directors thereby better ensuring that the 
persons sitting on OCC's Board of Directors are most suited to serve 
OCC in a given year, which, in turn, provides for better protection of 
investors and is in the public interest. The proposed rule change is 
not inconsistent with the existing By-Laws or Rules of OCC, including 
any By-Laws proposed to be amended.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78q-1(b)(3)(C).
    \7\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

(B) Clearing Agency's Statement on Burden on Competition

    OCC does not believe that the proposed rule change would impose any 
burden on competition.\8\ Changes to the rules of a clearing agency may 
have an impact on the participants in a clearing agency and the markets 
that the clearing agency serves. This proposed rule change affects OCC 
in that it amends the By-Law prescribing the date on which the annual 
meeting of OCC's stockholders shall occur. The proposed modifications 
would not unfairly inhibit access to OCC's services or disadvantage or 
favor any particular user in relationship to another user because they 
relate to the administration of OCC and would not impose any burden on 
clearing members or other OCC participants.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------

    For the foregoing reasons, OCC believes that the proposed rule 
change is in the public interest, would be consistent with the 
requirements of the Act applicable to clearing agencies and would not 
impose a burden on competition.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change 
Received From Members, Participants or Others

    Written comments on the proposed rule change 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) of the Act and paragraph (f) of Rule 19b-4 thereunder. At 
any time within 60 days of the filing of the proposed rule change, the 
Commission summarily may temporarily suspend 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.

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 email to rule-comments@sec.gov. Please include 
File Number SR-OCC-2015-01 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-OCC-2015-01. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method of submission. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml).

[[Page 2762]]

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 Web site viewing and printing in 
the Commission's Public Reference Section, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available 
for inspection and copying at the principal office of OCC and on OCC's 
Web site at http://www.theocc.com/components/docs/legal/rules_and_bylaws/sr_occ_15_01.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-2015-01 and should be submitted on or before 
February 10, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2015-00701 Filed 1-16-15; 8:45 am]
BILLING CODE 8011-01-P