Document ID: SEC-2009-1714-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Options Clearing Corp.
Posted Date: 2009-12-07T05:00Z

[Federal Register: December 7, 2009 (Volume 74, Number 233)]
[Notices]               
[Page 64116-64117]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07de09-939]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61078; File No. SR-OCC-2009-18]

 
Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing of Proposed Rule Change to Allow Members To Deposit 
Customer Fully Paid or Excess Margin Securities to the Extent Permitted 
by No-Action Relief or Interpretive Guidance From the Commission or 
Interpretive Guidance From a Self-Regulatory Organization

November 30, 2009.
    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 October 23, 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. 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\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The purpose of this proposed rule change is to allow members to 
deposit customer fully paid or excess margin securities to the extent 
that activity is consistent with Rule 15c3-3 \3\ of the Act and is 
permitted by no-action relief or interpretive guidance from the 
Commission or interpretive guidance from a Self-Regulatory Organization 
(``SRO'').
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    \3\ 17 CFR 240.15c3-3.
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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 these 
statements.\4\
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    \4\ The Commission has modified the text of the summaries 
prepared by OCC.

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[[Page 64117]]

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

    OCC rules currently prohibit members from depositing with OCC fully 
paid or excess margin securities that are carried for the account of a 
customer. This prohibition is intended to conform OCC's treatment of 
customer fully paid and excess margin securities to the requirements of 
Rule 15c3-3. The purpose of this proposed rule change is to allow 
members to deposit customer fully paid or excess margin securities to 
the extent that activity is consistent with Rule 15c3-3 and is 
permitted pursuant to no-action relief or interpretive guidance from 
the Commission or interpretive guidance from an SRO.
    Currently, a Commission no-action letter and related interpretive 
guidance from the New York Stock Exchange permits fully paid or excess 
margin securities carried in a customer account to be deposited with 
OCC in two circumstances. First, if a customer makes a specific deposit 
of fully paid or excess margin securities with a member to secure its 
obligations as an option writer \5\ then the member may in turn deposit 
the customer's securities with OCC.\6\ Second, any fully paid or excess 
margin securities held by a member to secure a customer's obligations 
may be posted as margin with OCC to the extent of 140% of the 
difference between
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    \5\ OCC Rule 610(e)-(f).
    \6\ New York Stock Exchange, New York Stock Exchange Rule 
Interpretations Handbook 505 (2004)(Interpretation 01 of Securities 
Exchange Act Rule 15c3-3(c) citing Chicago Board Options Exchange, 
Inc., SEC No-Action Letter (Feb. 19, 1975)).
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    the daily marking price deposits action: \7\ and the original 
proceeds of the customer's transaction.\8\ This proposed rule change 
would permit members to deposit customer fully paid or excess margin 
securities in these two circumstances as well as in any future 
circumstances identified by no-action relief or interpretive guidance 
from the Commission or interpretive guidance from an SRO.
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    \7\ As required by OCC of its member.
    \8\ New York Stock Exchange, New York Stock Exchange Rule 
Interpretations Handbook 505 (2004)(Interpretation 020 of Securities 
Exchange Act Rule 15c3-3(c).
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    OCC believes the proposed rule change is consistent with the 
requirements of Section 17A of the Act \9\ and the rules and 
regulations thereunder because the proposed change will safeguard 
securities and funds related to the clearance and settlement of 
securities transactions for the protection of investors.
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    \9\ 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

    Written comments relating to the proposed rule change have not been 
solicited or received. OCC will notify the Commission of any written 
comments received by OCC.

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 Number SR-OCC-2009-18 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-OCC-2009-18. 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 Section, 100 F Street, 
NE., Washington, DC 20549-1090, on official business days between the 
hours of 10 a.m. and 3 p.m. Copies of such filings will also be 
available for inspection and copying at the principal office of the OCC 
and on OCC's Web site at http://www.optionsclearing.com/components/
docs/legal/rules_and_bylaws/sr_occ_09_18.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-2009-18 
and should be submitted on or before December 28, 2009.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-29042 Filed 12-4-09; 8:45 am]

BILLING CODE 8011-01-P