[Federal Register Volume 61, Number 163 (Wednesday, August 21, 1996)]
[Notices]
[Page 43281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21319]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37569; International Series Release No. 1014; File No. 
SR-ODD-96-1]


Self-Regulatory Organizations; Canadian Derivatives Clearing 
Corporation; Order Approving Proposed Amendments to Options Disclosure 
Document

August 14, 1996.
    On August 9, 1996, the Canadian Derivatives Clearing Corporation 
(``CDCC'') \1\ submitted to the Securities and Exchange Commission 
(``SEC'' or ``Commission''), pursuant to Rule 9b-1 under the Securities 
Exchange Act of 1934 (``Act''),\2\ five copies of an amended options 
disclosure document (``ODD''), which describes the risks and 
characteristics of Canadian exchange-traded put and call options 
available to American investors.
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    \1\ The Canadian Derivatives Clearing Corporation was formerly 
known as Trans Canada Options Inc. (``TCO''). The name of the 
corporation was changed in January 1996.
    \2\ 17 CFR 240.9b-1.
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    Previously, on October 2, 1994, the Commission approved the use and 
distribution of a TCO ODD which discussed the risks and uses of options 
on equity securities.\3\ Subsequently, on August 21, 1985, the 
Commission approved an amended TCO ODD that incorporated discussion of 
the risks and uses of Canadian exchange-traded options on stock indexes 
and bonds.\4\ Later, on May 19, 1987, the Commission approved an 
amended TCO ODD that, among other things, expanded the document to 
include a discussion of the characteristics and risks of options on the 
Government of Canada Treasury Bill Price Index.\5\ On April 1, 1991, 
the Commission approved an amended TCO ODD that, among other things, 
added reference to an option based on the Toronto Stock Exchange 35 
Composite Index, added new terms to its glossary, and deleted reference 
to several options which are no longer listed on a Canadian 
exchange.\6\ CDCC has now further amended the ODD to, among other 
things, reflect the name change of the corporation from Trans Canada 
Options Inc. to Canadian Derivatives Clearing Corporation, add new 
terms to its glossary, and make other minor additions and deletions to 
reflect changes in the Canadian options market since the disclosure 
document was last amended in 1991.
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    \3\ See Securities Exchange Act Release No. 21365 (October 2, 
1984), 49 FR 39400 (October 5, 1984).
    \4\ See Securities Exchange Act Release No. 22349 (August 21, 
1985), 50 FR 34956 (August 28, 1985).
    \5\ See Securities Exchange Act Release No. 24480 (May 19, 
1987), 52 FR 20179 (May 29, 1987).
    \6\ See Securities Exchange Act Release No. 29033 (April 1, 
1991), 56 FR 14407 (April 9, 1991).
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    Rule 9b-1 provides that an options market must file five 
preliminary copies of an amended ODD with the Commission at least 30 
days prior to the date definitive copies of the ODD are furnished to 
customers, unless the Commission determines otherwise, having due 
regard to the adequacy of information disclosed and the protection of 
investors. The Commission has reviewed the CDCC ODD, and finds that it 
is consistent with the protection of investors and in the public 
interest to allow the distribution of the disclosure document as of the 
date of this order.\7\
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    \7\ Rule 9b-1 provides that the use of an ODD shall not be 
permitted unless the options class to which the document relates is 
the subject of an effective registration statement on Form S-20 
under the Securities Act of 1933. On August 14, 1996, the 
Commission, pursuant to delegated authority, declared effective, 
Post-Effective Amendment No. 17 to CDCC's Form S-20 registration 
statement. See File No. 2-69458.
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    It is therefore ordered, pursuant to Rule 9b-1 under the Act,\8\ 
that the proposed amendment to the CDCC ODD is approved, on an 
accelerated basis.

    \8\ 17 CFR 240.9b-1.
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    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(39).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-21319 Filed 8-20-96; 8:45 am]
BILLING CODE 8010-01-M