Document ID: SEC-2013-1731-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Options Clearing Corp.
Posted Date: 2013-10-03T04:00Z

[Federal Register Volume 78, Number 192 (Thursday, October 3, 2013)]
[Notices]
[Pages 61436-61437]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-24163]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70545; File No. SR-OCC-2013-15]

Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Correct an Inadvertent Omission in a Prior Rule Change Filing Related 
to the Definition of Hedge Clearing Member

September 27, 2013.
    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 September 19, 2013, The Options Clearing Corporation (``OCC'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change 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) \3\ of the Act and Rule 
19b-4(f)(4)(ii) \4\ 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.
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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)(iii).
    \4\ 17 CFR 240.19b-4(f)(4)(ii).
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    OCC proposes to correct an inadvertent omission in a prior rule 
change filing related to the definition of Hedge Clearing Member.

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

    The purpose of this proposed rule change is to correct an 
inadvertent omission in a prior rule change filing related to the 
definition of ``Hedge Clearing Member'' in OCC's By-Laws (``By-Laws''). 
By way of background, in 2002 OCC proposed, and the SEC approved, 
certain rule changes to OCC's Stock Loan/Hedge Program (``Hedge 
Program'') (SR-OCC-2002-11).\5\ As part of that proposed rule change, 
OCC deleted and relocated an existing interpretation to Article V, 
Section 1 relating to the designation of a Hedge Clearing Member. In 
connection with relocating the interpretation, OCC also amended the 
interpretation so that designation as a Hedge Clearing Member was no 
longer pre-conditioned upon the Clearing Member also being a Stock 
Clearing Member. However, a concurrent change to the definition of 
Hedge Clearing Member was not made at that time, thereby creating an 
inconsistency between the description of Hedge Clearing Member found in 
Article V of the By-Laws and the definition of Hedge Clearing Member 
found in Article I of the By-Laws. OCC now proposes to resolve this 
inconsistency by making a technical correction to the definition of 
Hedge Clearing Member in Article I of the By-Laws so that it is 
consistent with the description of Hedge Clearing Member found in 
Article V of the By-Laws.
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    \5\ Securities and Exchange Act Release No. 34-47898 (May 21, 
2003), 68 FR 32164 (May 29, 2003).
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    As described above, through SR-OCC-2002-11, OCC made certain 
changes its Hedge Program. One such change was that OCC determined that 
it was no longer necessary to require that a Hedge Clearing Member 
initially be designated as a ``Stock'' Clearing Member and, 
accordingly, updated Article V of the By-Laws. However, through an 
inadvertent oversight, a concurrent change to Article I of the By-Laws 
was not made at that time. Accordingly, OCC now proposes to make a 
technical correction to the Article I definition of Hedge Clearing 
Member so that it is consistent with the description of Hedge Clearing 
Member found in Article V of the By-Laws by removing the reference to 
``Stock'' Clearing Member from the definition of Hedge Clearing Member. 
This proposed change will resolve the inconsistency within the By-Laws 
with respect to the definition of Hedge Clearing Member.
    The proposed change to OCC's By-Laws is consistent with the 
purposes and requirements of Section 17A(b)(3)(F) \6\ of the Act \7\ 
and Rule 17Ad-22(d)(2) \8\ thereunder because it will prevent unfair 
discrimination in the admission of participants, or among participants, 
in the use of OCC's Hedge Program and ensure that OCC's By-Laws are 
reasonably designed to have participation requirements that are 
objective, publicly disclosed and permit fair and open access. The 
proposed changes are also intended to remove potential impediments to, 
and will perfect the mechanism of a national system for, the prompt and 
accurate clearance and settlement of securities transactions.
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    \6\ 15 U.S.C. 78q-1(b)(3)(F).
    \7\ 15 U.S.C. 78a et seq.
    \8\ 17 CFR 240.17Ad-22(d)(2).
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(B) Clearing Agency's Statement on Burden on Competition

    OCC does not believe that the proposed rule change would impact, or 
impose a burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed change, which will 
apply to all clearing members, is administrative in nature and will 
correct an inconsistency within OCC's By-Laws. Accordingly, the 
proposed change will reduce unnecessary administrative burdens on its 
clearing members, including any such burdens that may impact 
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 upon filing pursuant 
to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(1) \10\ 
thereunder, the proposed rule change is filed for immediate 
effectiveness inasmuch as it constitutes

[[Page 61437]]

a stated policy, practice or interpretation with respect to the 
meaning, administration or enforcement of an existing rule. OCC will 
delay the implementation of the rule change until it is deemed 
certified under CFTC Regulation Sec.  40.6. At any time within 60 days 
of the filing of such 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.\11\
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    \9\ 15 U.S.C. 78s(b)(3).
    \10\ 17 CFR 240.19b-4(f)(1).
    \11\ 15 U.S.C. 78s(b)(3)(C).
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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-2013-15 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-2013-15. 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_13_15.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-2013-15 and 
should be submitted on or before October 24, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated Authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24163 Filed 10-2-13; 8:45 am]
BILLING CODE 8011-01-P