[Federal Register Volume 60, Number 135 (Friday, July 14, 1995)]
[Notices]
[Pages 36320-36321]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17265]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35937; International Series Release No. 825; File No. 
SR-OCC-95-05]


Self-Regulatory Organizations; the Options Clearing Corp.; Filing 
of Proposed Rule Change Seeking Approval to Issue, Clear, and Settle 
Customized Foreign Currency Options on the Italian Lira and Spanish 
Peseta

July 5, 1995.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on May 4, 1995, 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 from 
interested persons.

    \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 will enable OCC to issue, clear, and 
settle option transactions where the Italian lira or the Spanish peseta 
is either the trading currency or the underlying currency.

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. The self-regulatory organization has prepared summaries, 
set forth in sections (A), (B), and (C) below, of the most significant 
aspects of such statements.\2\

    \2\ The Commission has modified the language in these sections.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    Under the proposed rule change, OCC will issue, clear, and settle 
option transactions where the Italian lira or the Spanish paseta is 
either the trading currency or the underlying currency. The 
Philadelphia Stock Exchange (``PHLX'') has proposed to list and trade 
such foreign currency options through its customized options 
facility.\3\

    \3\ For a discussion of the PHLX proposals, refer to Securities 
Exchange Act Release Nos. 35678 (May 4, 1995), 60 FR 24945 (File No. 
SR-PHLX-95-20) (notice of proposed rule change to list and trade 
options on the Italian lira) and 35677 (May 4, 1995), 60 FR 24941 
(File No. SR-PHLX-95-21) (notice of proposed rule change to list and 
trade options on the Spanish peseta).
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    The PHLX rule filings propose to enable its members to trade 
customized contracts between the lira or the peseta and any other 
approved currency. Currently, OCC has approval to list and clear 
flexibly structured option contracts on any combination of the 
following currencies: (1) Australian dollars, (2) British pounds, (3) 
Canadian dollars, (4) German marks, (5) European Economic Community 
currency units, (6) French francs, (7) Japanese yen, (8) Swiss francs, 
and (9) United States dollars. OCC is now proposing to add the Italian 
lira and the Spanish peseta to that list of approved currencies.
    Options on the lira or the peseta will be cleared and settled in 
accordance with the clearance and settlement mechanisms already in 
place for flexibly structured foreign currency options and for cross-
rate foreign currency options. In addition, options on the lira or the 
peseta will be margined like OCC's existing foreign currency and cross-
rate foreign currency option contracts. Accordingly, OCC has determined 
that no changes to its by-laws or rules are necessary to accommodate 
these new contracts.
    OCC believes the proposed rule change is consistent with the 
requirements of section 17A of the Act \4\ and the rules and 
regulations thereunder because the proposal will provide for the prompt 
and accurate clearance and settlement of transactions in options on the 
Italian lira and the Spanish peseta and will provide for the 
safeguarding of related securities and funds. The proposed rule change 
meets such requirements by establishing a framework in which existing 
and reliable OCC systems, rules, and procedures are extended to the 
processing of these new currency contracts.

    \4\ 15 U.S.C. 78q-1 (1988).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    OCC believes that no burden will be placed on competition as a 
result of the proposed rule change.
(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received from Members, Participants or Others

    No written comments have 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 OCC consents, the Commission will:
    (a) By order approve such 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. Persons making written submission 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549. 
Copies of the submissions, 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, 450 Fifth Street, NW., Washington, 
DC 20549. Copies of such filings will also be available for inspection 
and copying at the principal office of OCC. All submissions should 
refer to the file number SR-OCC-95-05 and should be submitted by August 
4, 1995.


[[Page 36321]]

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\

    \5\ 17CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-17265 Filed 7-13-95; 8:45 am]
BILLING CODE 8010-01-M