[Federal Register Volume 61, Number 173 (Thursday, September 5, 1996)]
[Notices]
[Pages 46888-46889]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-22627]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37622; File No. SR-OCC-96-10]
Self-Regulatory Organizations; the Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to a Laptop Version of the Enhanced Clearing Member Interface
Platform
August 29, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on July 18, 1996, 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) (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 would amend OCC's rules and schedule of
fees to provide a laptop version of the Enhanced Clearing Member
Interface (``ECMI'') platform.
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 that it received on the proposed rule change.
The text of these
[[Page 46889]]
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.\2\
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\2\ The Commission has modified such summaries.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
OCC currently leases ECMI equipment \3\ to clearing members which
is configured so that clearing members may interface with OCC via OCC's
Clearing/Management and Control System (``C/MACS'').\4\ That equipment
currently operates on a desktop platform, and OCC's rules require that
the equipment used to enter information to OCC and to receive reports
from OCC be located in a clearing member's office. Clearing members
have now requested that they be permitted to interface with OCC via
laptop computers, and OCC has determined to permit the use of laptop
computers outside of a clearing member's office. Because expirations
require clearing members' personnel to perform C/MACS entry and
approval after normal business hours, the ability to sign on from home
and to complete the entry and approval process would produce both cost
savings and convenience for clearing members. OCC proposes to lease
such equipment to clearing members for a monthly fee of $250 per laptop
and $50 per month for an optional printer. These proposed fees are
based on OCC's costs of obtaining the equipment. Accordingly, OCC would
amend its schedule of fees to reflect these monthly fees.
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\3\ ECMI permits clearing members, among other things, to input
post-trade transactions via OCC's Clearing Management and Control
System, to retrieve clearing reports via OCC's on-line report
inquiry service, and to review information memoranda and other
notices via OCC's Option News Network service. Securities Exchange
Act Release No. 32366 (May 25, 1993), 58 FR 31435 [File No. SR-OCC-
93-11] (notice of filing and immediate effectiveness of proposed
rule change).
\4\ C/MACS is an on-line, menu-driven system that allows OCC
member firms to access or input trade information directly from or
to OCC's clearing systems.
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OCC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \5\ in that it creates the
opportunity for more efficient means of communication between OCC and
its clearing members, and it allocates reasonable fees in an equitable
manner among OCC's clearing members in that the proposed fees reflect
OCC's current costs of providing the ECMI configuration to its clearing
members.
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\5\ 15 U.S.C. 78q-1 (1988).
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(B) Self-Regulatory Organization's Statement on Burden on Competition
OCC does not believe that the proposed rule change will 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 were not and are not intended to be solicited with
respect to the proposed rule change, and none have been received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective on filing pursuant
to Section 19(b)(3)(A)(ii) of the Act \6\ and Rule 19b-4(e)(2) \7\
thereunder in that the proposed rule change establishes or changes a
due, fee, or other charge imposed by OCC. 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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\6\ 15 U.S.C. 78s(b)(3)(A)(ii) (1988).
\7\ 17 CFR 240.19.b-4(e)(2) (1995).
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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 Room, 450 Fifth Street, NW., Washington,
DC 20549. Copies of such filing will also be available for inspection
and copying at the principal office of OCC. All submissions should
refer to File No. SR-OCC-96-10 and should be submitted by September 26,
1996.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-22627 Filed 9-4-96; 8:45 am]
BILLING CODE 8010-01-M