[Federal Register Volume 61, Number 234 (Wednesday, December 4, 1996)]
[Notices]
[Pages 64407-64408]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30879]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37993; File No. SR-OCC-96-14]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to Revision of Fees

November 27, 1996.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on

[[Page 64408]]

October 29, 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 amends OCC's schedule of fees to reflect 
the replacement of microfiche with CD-ROM as the media for providing 
subscribing clearing members with copies of OCC generated reports.

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 such 
statements.\2\
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    \2\ The Commission has modified the text of the summaries 
prepared by OCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The purpose of the proposed rule change is to amend OCC's schedule 
of fees to reflect the replacement of microfiche with CD-ROM as the 
media for providing subscribing clearing members with copies of OCC 
generated reports.\3\ OCC currently provides subscribing clearing 
members with microfiche copies of OCC generated reports on a fee per 
fiche basis. OCC now is proposing to change the media on which the 
clearing reports are stored from microfiche to CD-ROM. OCC will create 
the CD-ROMs containing reports for subscribing clearing members on a 
monthly basis. A reader for the CD-ROMs has been added to the enhanced 
clearing member interface equipment (``ECMI Equipment'') used by 
clearing members, which will allow subscribing clearing members to 
access reports on their ECMI Equipment. OCC also will offer to convert 
the most immediate thirty-six months' worth of historical reports to 
the CD-ROM format for those clearing members desiring to subscribe to 
that portion of the service.
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    \3\ These reports contain information regarding clearing 
members' daily clearance and settlement activity.
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    The conversion to CD-ROM requires a change in OCC's schedule of 
fees. OCC proposes to charge subscribing clearing members $75 per month 
per CD-ROM. OCC estimates that one month's worth of reports for each 
subscribing clearing member will currently fit into one CD-ROM. The 
same fee structure (i.e., $75 per month per CD-ROM) will be applied to 
any clearing member desiring to obtain historical reports. During the 
conversion period, OCC will waive the first month fee for a CD-ROM if a 
clearing member also receives microfiche. While OCC intends to complete 
the conversion by December 1996, it has not finalized a conversion 
schedule. Accordingly, the fee applicable to reports on microfiche has 
not been deleted from OCC's schedule of fees. OCC anticipates that the 
conversion to CD-ROM will generate savings of nearly $7,000 per month 
to its overall membership although certain individual clearing members 
might experience a small increase in their current monthly costs.
    OCC believes that the proposed rule change is consistent with 
Section 17A(b)(3)(D) of the Act \4\ and the rules and regulations 
thereunder because it provides for the equitable allocation of 
reasonable dues, fees, and other charges among OCC's participants.
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    \4\ 15 U.S.C. 78q-1(b)(3)(D) (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 not necessary or appropriate in furtherance of 
the purposes of the Act.

(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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \5\ and pursuant to Rule 19b-4(e)(2) \6\ 
promulgated thereunder because the proposal changes a due, fee, or 
other charge imposed by OCC. At any time within sixty days of the 
filing of such 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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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii) (1988).
    \6\ 17 CFR 240.19b-4(e)(2) (1996).
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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, N.W., Washington, D.C. 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, N.W., 
Washington, D.C. 20549. Copies of such filing also will be available 
for inspection and copying at the principal office of OCC. All 
submissions should refer to File No. SR-OCC-96-14 and should be 
submitted by December 26, 1996.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority. \7\
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    \7\ 17 CFR 200.30-3(a)(12) (1996).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-30879 Filed 12-3-96; 8:45 am]
BILLING CODE 8010-01-M