Document ID: SEC-2010-0410-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Options Clearing Corp.
Posted Date: 2010-03-18T04:00Z

[Federal Register: March 18, 2010 (Volume 75, Number 52)]
[Notices]               
[Page 13169-13170]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18mr10-108]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61692; File No. SR-OCC-2010-0]

 
Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing of Proposed Rule Change Relating to ETFS Palladium 
Shares And ETFS Platinum Shares

March 11, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 
1934,\1\ notice is hereby given that on March 1, 2010, The Options 
Clearing Corporation (``OCC'') filed with the Securities and Exchange 
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 the 
Substance of the Proposed Rule Change

    The proposed rule change would add ETFS Palladium Shares and ETFS 
Platinum Shares to the interpretation following the definition of 
``fund share'' in Article I, Section 1 of OCC's By-Laws.

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.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The purpose of the proposed rule change is to remove any potential 
cloud on the jurisdictional status of options or security futures on 
ETFS Palladium Shares or ETFS Platinum Shares. To accomplish this 
purpose, OCC is proposing to amend the interpretation following the 
definition of ``fund share'' in Article I, Section 1 of OCC's By-Laws. 
On May 30, 2008, the Commission approved rule filing SR-OCC-2008-07, 
which added the interpretation with respect to the treatment and 
clearing of options and security futures on SPDR Gold Shares.\2\ On 
December 4, 2008, the Commission approved rule filings SR-OCC-2008-13 
and SR-OCC-2008-14, which amended the interpretation to extend similar 
treatment to options and security futures on iShares[supreg] COMEX Gold 
Shares and iShares[supreg] Silver Shares.\3\ On February 25, 2010, the 
Commission approved rule filing SR-OCC-2009-20, which extended similar 
treatment to options and security futures on ETFS Physical Swiss Gold 
Shares and ETFS Physical Silver Shares.\4\ Under the current proposed 
rule change, OCC would also (i) clear and treat as securities options 
any option contracts on ETFS Palladium Shares and ETFS Platinum Shares 
that are traded on securities exchanges and (ii) clear and treat as 
security futures any futures contracts on ETFS Palladium Shares and 
ETFS Platinum Shares.
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    \2\ Securities Exchange Act Release No. 57895, 73 FR 32066 (June 
5, 2008).
    \3\ Securities Exchange Act Release No. 59054, 73 FR 75159 (Dec. 
10, 2008).
    \4\ Securities Exchange Act Release No. 61591, 75 FR 9979 (Mar. 
4, 2010).
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    In its capacity as a ``derivatives clearing organization'' 
registered with the Commodity Futures Trading Commission (``CFTC''), 
OCC is filing this proposal for prior approval by the CFTC pursuant to 
provisions of the Commodity Exchange Act (``CEA'') in order to 
foreclose any potential liability under the CEA based on an argument 
that the clearing by OCC of such options as securities options or the 
clearing of such futures as security futures constitutes a violation of 
the CEA. The products for which approval is requested are essentially 
the same as the options and security futures on SPDR Gold Shares, 
iShares[reg] COMEX Gold Shares, and iShares[reg] Silver Shares that OCC 
currently clears pursuant to the rule changes referred to above and 
exemptions issued by the CFTC.\5\ OCC believes that this filing raises 
no new regulatory or policy issues.
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    \5\ CFTC Order Exempting the Trading and Clearing of Certain 
Products Related to SPDR Gold Trust Shares, 73 FR 31981 (June 5, 
2008). CFTC Order Exempting the Trading and Clearing of Certain 
Products Related to iShares[reg] COMEX Gold Trust Shares and 
iShares[reg] Silver Trust Shares, 73 FR 79830 (Dec. 3, 2008).
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    OCC states that the proposed interpretation of OCC's By-Laws is 
consistent with the purposes and requirements of Section 17A of the Act 
\6\ because it is designed to promote the prompt and accurate clearance 
and settlement of transactions in securities options and security 
futures, to foster cooperation and coordination with persons engaged in 
the clearance and settlement of such transactions, to remove 
impediments to and perfect the mechanism of a national system for the 
prompt and accurate clearance and settlement of such transactions, and, 
in general, to protect investors and the public interest. OCC states 
that the proposed rule change accomplishes these purposes by reducing 
the likelihood of a dispute as to the Commission's jurisdiction or 
shared jurisdiction in the case of security futures over derivatives 
based on ETFS Palladium Shares or ETFS Platinum Shares. OCC also states 
that the

[[Page 13170]]

proposed rule change is not inconsistent with OCC's By-Laws and Rules.
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    \6\ 15 U.S.C. 78q-1.
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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

    OCC has not solicited or received written comments relating to the 
proposed rule change. OCC will notify the Commission of any written 
comments it receives.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within thirty-five days of the date of publication of this notice 
in the Federal Register or within such longer period (i) as the 
Commission may designate up to ninety days of such date if it finds 
such longer period to be appropriate and publishes its reasons for so 
finding, or (ii) as to which the self-regulatory organization consents, 
the Commission will:
    (A) By order approve the proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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 No. SR-OCC-2010-03 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-OCC-2010-03. 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 Web site viewing and 
printing 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 OCC's principal office and on OCC's Web site 
at http://www.theocc.com/publications/rules/proposed_changes/
proposed_changes.jspU>. 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 submission should refer to File No. SR-
OCC-2010-03 and should be submitted on or before April 8, 2010.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-5914 Filed 3-17-10; 8:45 am]
BILLING CODE 8011-01-P