Document ID: SEC-2014-0972-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Options Clearing Corp.
Posted Date: 2014-06-11T04:00Z

[Federal Register Volume 79, Number 112 (Wednesday, June 11, 2014)]
[Notices]
[Pages 33610-33611]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-13560]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72330; File No. SR-OCC-2014-11]

Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing of Proposed Rule Change To Correct an Inadvertent 
Omission in a Prior Proposed Rule Change Concerning OCC's Clearing Fee 
Schedule

June 5, 2014.
    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 May 28, 2014, 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) \3\ of the Act and Rule 19b-4(f)(2) \4\ 
thereunder.\5\
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    \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)(2).
    \5\ Notwithstanding its immediate effectiveness, implementation 
of this rule change will be delayed until this rule change is deemed 
certified under CFTC Regulation Sec.  40.6.
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    OCC proposes to amend its Schedule of Fees in order to correct an 
inadvertent omission in the Schedule of Fees that was the subject of a 
prior rule change.

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 correct an 
inadvertent omission in the Schedule of Fees that was the subject of a 
prior rule filing. In March 2014, OCC filed, for immediate 
effectiveness, a proposal with the Commission to amend its Schedule of 
Fees, effective April 1, 2014 (``Filing 2014-05'').\6\ Filing 2014-05 
has since been published on the Commission's Web site and in the 
Federal Register. However, through an inadvertent oversight, the 
Schedule of Fees attached as Exhibit 5 to Filing 2014-05 did not 
include a reference to the ``decentralized linkage'' fee.\7\ OCC is now 
proposing to correct the Schedule of Fees set forth in Exhibit 5 in 
order to properly reflect the decentralized linkage fee of two cents 
($0.02) that has

[[Page 33611]]

been applied since its adoption.\8\ In addition, OCC proposes to add 
language to its Schedule of Fees to clarify the trade volume number 
(i.e., more than 2750 contracts) at which market maker/specialist 
scratch trades and decentralized linkage trades are charged a flat fee 
of $55 per trade, per side instead of a per trade, per side fee of two 
cents ($0.02). Except for the aforementioned changes, the Schedule of 
Fees set forth in Exhibit 5 to this proposed rule change is the same as 
the Schedule of Fees contained in Exhibit 5 to Filing 2014-05.
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    \6\ See Securities and Exchange Act Release No. 71769 (March 21, 
2014), 79 FR 17214 (March 27, 2014) (SR-OCC-2014-05). This filing 
reinstated the permanent reduced fee rates adopted, effective May 1, 
2007, for securities options and securities futures.
    \7\ The decentralized linkage fee was added to OCC's Schedule of 
Fees in 2012 so that OCC could, for the purposes of charging a 
clearing fee, treat routing trades executed in accordance with the 
Options Order Protection and Locked/Crossed Market Plan the same as 
market maker/specialist scratch trades. See Securities and Exchange 
Act Release No. 68025 (October 10, 2012), 77 FR 63398 (October 16, 
2012) (SR-OCC-2012-18).
    \8\ OCC considers the decentralized linkage trade to be 
substantially similar to a market maker/scratch trade. Id. Therefore 
the decentralized linkage fee will be the same as the market maker/
scratch fee set forth in Filing 2014-05.
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2. Statutory Basis
    OCC believes the proposed rule change is consistent with Section 
17A(b)(3)(D) \9\ of the Act because it corrects an inadvertent omission 
in OCC's Schedule of Fees, thereby ensuring transparency regarding 
fees. As there is no intentional change in the Fee Schedule, OCC will 
continue to equitably allocate fees among its clearing members and 
other market participants. The proposed rule change is not inconsistent 
with the existing rules of the OCC including any other rules proposed 
to be amended.
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    \9\ 15 U.S.C. 78q-1(b)(3)(D).
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(B) Clearing Agency's Statement on Burden on Competition

    OCC does not believe that the proposed rule change would impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.\10\
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    \10\ 15 U.S.C. 78q-1(b)(3)(I).
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    Changes to the rules of a clearing agency may have an impact on the 
participants in a clearing agency, their customers, and the markets 
that the clearing agency serves. This proposed rule change primarily 
affects such users and OCC believes that the proposed modifications 
would not disadvantage or favor any particular user in relationship to 
another user because the discount is being eliminated for, and the 
clearing fees apply equally to, all users of OCC's services.
    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 that is unnecessary or inappropriate in 
furtherance of the purposes of the Act.

(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) \11\ of the Act and Rule 19b-4(f)(2) \12\ 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.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 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 email to rule-comments@sec.gov. Please include 
File Number SR-OCC-2014-11 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-2014-11. 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). 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_14_11.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-2014-11 
and should be submitted on or before July 2, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-13560 Filed 6-10-14; 8:45 am]
BILLING CODE 8011-01-P