[Federal Register Volume 59, Number 100 (Wednesday, May 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12745]


[[Page Unknown]]

[Federal Register: May 25, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34085; File No. SR-ICC-94-04]

 

Self-Regulatory Organizations; The Intermarket Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Amending its Margin Resolution

May 18, 1994.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on May 9, 1993, The 
Intermarket Clearing Corporation (``ICC'') filed with the Securities 
and Exchange Commission (``Commission'') the proposed rule change (File 
No. SR-ICC-94-03) as described in Items I, II, and III below, which 
Items have been prepared primarily by ICC, a self-regulatory 
organization. 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) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change amends the definition of ``premium 
margin'' in ICC's Margin Resolution.

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

    In its filing with the Commission, ICC has 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. ICC 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 rule change amends the definition of the term ``premium 
margin'' to incorporate terminology that is more consistent with the 
pricing practices of the commodities markets. With respect to certain 
unexercised or unassigned positions in option contracts, ICC previously 
defined premium margin in pertinent part to be ``the current highest 
per-unit asked premium quotation for options'' at the close of trading 
on the preceding trading day. For purposes of ICC's Margin Resolution, 
the term ``option contracts'' includes both commodity and securities 
options.
    While the reference to the ``per-unit asked premium quotation'' is 
appropriate terminology with respect to securities options, it is less 
appropriate with respect to commodity options. In the commodity 
markets, a single commodity option price (i.e., a ``settlement price'') 
for each contract is disseminated at the close of trading rather than 
two prices (i.e., bid and ask quotes) as in the equity markets. 
Accordingly, ICC's Margin Resolution is being amended to incorporate 
the term ``settlement prices'' in the definition of premium margin 
where it is appropriate. The Margin Resolution now defines premium 
margin in pertinent part to be ``the current highest per-unit asked 
premium quotation with respect to an OCC Option, or the settlement 
price with respect to a commodity option for options.''
    ICC believes that the proposed rule change is consistent with 
section 17A of the Act\2\ in that it conforms the terminology used in 
ICC's Margin Resolution with the practices used in the commodities 
markets.
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    \2\15 U.S.C. 78q-1 (1988).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    ICC believes that the proposed rule change will not impose any 
burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    ICC has not solicited or received any comments on the proposed rule 
change.

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)(i) of the Act\3\ and subparagraph (e)(1) of Securities 
Exchange Act Rule 19b-4 because it constitutes a stated policy, 
practice, or interpretation of an SRO with respect to the meaning, 
administration, or enforcement of an existing rule.\4\ At any time 
within sixty days of the filing of such 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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    \3\15 U.S.C. 78s(b)(3)(A)(i) (1988).
    \4\17 CFR 240.19b-4(e)(1) (1991).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549. 
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, 450 Fifth Street, NW., 
Washington, DC 20549. Copies of such filing will also be available for 
inspection and copying at the principal office of the above-referenced 
self-regulatory organization. All submissions should refer to File No. 
SR-ICC-94-04 and should be submitted by June 15, 1994.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-12745 Filed 5-24-94; 8:45 am]
BILLING CODE 8010-01-M