Document ID: SEC-2007-1284-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Options Clearing Corp.
Posted Date: 2007-09-18T04:00Z

[Federal Register: September 18, 2007 (Volume 72, Number 180)]
[Notices]               
[Page 53273-53274]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18se07-78]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56386; File No. SR-OCC-2007-09]

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

 September 11, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on August 2, 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. 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).
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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 reduce certain OCC clearing fees.

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.\2\
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    \2\ 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 additional fee 
reductions. First, OCC is further reducing its currently discounted 
standard clearing fee schedule, as described in the following chart.\3\
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    \3\ The standard fee schedule currently applies to (i) 
securities options, (ii) security futures where at least one side of 
the trade is cleared by an OCC Clearing Member, and (iii) commodity 
futures traded on the Philadelphia Board of Trade.

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                                          Current permanent     Discounted standard fee  Discounted standard fee
           Contracts/Trade              standard fee schedule,     schedule, effective     schedule, effective
                                        effective May 1, 2007         May 1, 2007           September 1, 2007
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1-500................................  $0.05/contract.........  $0.035/contract........  $0.02/contract.
501-1,000............................  $0.04/contract.........  $0.028/contract........  $0.016/contract.
1,001-2,000..........................  $0.03/contract.........  $0.021/contract........  $15.00 (capped).
>2,000...............................  $55.00 (capped)........  $35.00 (capped)........  $15.00 (capped).
----------------------------------------------------------------------------------------------------------------

    Second, OCC is halving the standard market maker scratch fee to one 
cent per side. The discounted clearing fees and market-maker scratch 
fees will be effective from September 1 through December 31, 2007. 
Third, OCC is converting the CBOE Futures Exchange (``CFE'') to its 
standard rebate-eligible fee schedule, effective September 1, 2007. As 
a result, clearing fees charged for CFE transactions will be reduced. 
The outdated alternative fee schedule offered to futures markets also 
will be eliminated.
    The reductions in OCC's clearing fees reflect the strong contract 
volume experienced by OCC this year to date. OCC believes that these 
fee changes 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 Section 17A of the Act 
because it benefits clearing members and other market participants by 
reducing and discounting clearing 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.

(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

    Because the foregoing rule change changes fees charged clearing 
members by OCC, it has become effective pursuant to Section 
19(b)(3)(A)(ii) of the

[[Page 53274]]

Act \4\ and Rule 19b-4(f)(2) \5\ thereunder. 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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    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 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-2007-09 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-2007-09. 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-2007-09 and should be 
submitted on or before October 9, 2007.

Florence E. Harmon.
Deputy Secretary.
 [FR Doc. E7-18271 Filed 9-17-07; 8:45 am]

BILLING CODE 8010-01-P