Document ID: SEC-2009-0460-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Options Clearing Corp.
Posted Date: 2009-04-06T04:00Z

[Federal Register: April 6, 2009 (Volume 74, Number 64)]
[Notices]               
[Page 15573-15574]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06ap09-144]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59635; File No. SR-OCC-2009-03]

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

March 26, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 6, 2009, 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)(ii) of the Act \2\ and Rule 19b-4(f)(2) \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. 78s-1(b)(3)(A)(ii).
    \3\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change implements changes to OCC's Schedule of 
Fees, effective May 1, 2009, to reflect the adoption of a fee for 
transactions in OCC's Stock Loan/Hedge and Market Loan Programs.

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

    OCC's Stock Loan/Hedge Program, which allows approved Clearing 
Members to register their privately negotiated securities lending 
transactions with OCC, benefits OCC's Clearing Members and the industry 
by reducing the cost of credit, increasing operational efficiency, and 
providing stability through a central counterparty guarantee. 
Transactions have been free to Stock Loan/Hedge participants since the 
program's inception nearly fifteen years ago.
    On January 31, 2009, OCC launched its Market Loan Program to create 
a framework for OCC to provide clearing services for stock loan and 
borrow transactions effected through electronic trading systems, such 
as the market operated by Automated Equity Finance Markets, Inc. 
(``AQS''), a wholly-owned subsidiary of Quadriserve, Inc.\5\ Although 
receiving securities lending transactions executed through electronic 
trading markets will expand the number of securities lending 
transactions that will be cleared and settled by OCC, OCC also 
anticipates that such expansion will cause OCC to incur higher ongoing 
administrative, maintenance, and systems costs.
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    \5\ See Securities Exchange Act Release No. 59294 (January 23, 
2009), 74 FR 5954 (February 3, 2009) (File No. SR-OCC-2008-20). 
OCC's By-Laws and Rules governing the Market Loan Program and the 
provisions governing the Stock Loan/Hedge Program are substantively 
the same, except where differences are clearly intended or where the 
context requires a different interpretation based on the nature of 
the transaction.
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    In order to adequately cover costs of operating the Programs, 
effective May 1, 2009, OCC will implement a one dollar ($1.00) 
transaction fee against all new loan activity that will be assessed to 
each lender and borrower participating in OCC's Stock and Market Loan 
Programs. The transaction fee will be calculated daily, will be billed 
monthly, will only apply to new loans, and will not be assessed to 
recall and return transactions.
    The proposed rule change is consistent with Section 17A of the Act 
because it benefits clearing members and other market participants by 
keeping fees associated with OCC's Stock and Market Loan Programs as 
low as possible while allowing OCC to adequately cover the ongoing 
administrative costs. The Programs, in

[[Page 15574]]

turn, benefit OCC's Clearing Members and the industry by reducing the 
cost of credit, increasing operational efficiency, and providing 
stability through a central counterparty guarantee. 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)(ii) of the Act \6\ and Rule 19b-4(f)(2) \7\ promulgated 
thereunder because the proposal changes a due, fee, or other charge 
applicable only to a member. 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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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 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-2009-03 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-2009-03. 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-2009-03 and should be 
submitted on or before April 27, 2009.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E9-7581 Filed 4-3-09; 8:45 am]

BILLING CODE 8011-01-P