[Federal Register Volume 63, Number 76 (Tuesday, April 21, 1998)]
[Notices]
[Pages 19782-19783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10418]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39862; File No. SR-OCC-98-01]


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

April 14, 1998.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on February 2, 1998, 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 on the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The proposed rule change will amend OCC's fee schedule relating to 
fees for established products and to introductory clearing fees for new 
products.

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\
---------------------------------------------------------------------------

    \2\ The Commission has modified the text of the summaries 
prepared by OCC.
---------------------------------------------------------------------------

(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    OCC's current clearing fee for established products is $.10 per 
contract, per side. Under the proposed rule change this single clearing 
fee will be replaced with the following fee structure:

------------------------------------------------------------------------
            Cleared trades of--               Clearing fee (per side)-- 
------------------------------------------------------------------------
1-500 contracts...........................  $0.09 per contract.         
501-1,000 contracts.......................  .07 per contract.           
1,001-2,000 contracts.....................  .06 per contract.           
Greater than 2,000 contracts..............  110.00 per trade.           
------------------------------------------------------------------------

    In addition, OCC's introductory clearing fees for new products 
currently are (i) $.00 per contract per side for the first month the 
new product is traded; (ii) $.025 per contract per side for the second 
month the new product is traded; (iii) $.050 per contract per side for 
the third month the new product is traded; and (iv) $.10 for the fourth 
month the new product is traded and thereafter. Under the proposed rule 
change, OCC's current introductory fees will be replaced with the 
following fee structure:

------------------------------------------------------------------------
                                                            Clearing fee
                       New products                          (per side) 
------------------------------------------------------------------------
First Calendar Month Traded...............................         $0.00
Second Calendar Month Traded:                                           
    Cleared trades of:                                                  
        1-4,400 contracts.................................        a .025
        Greater than 4,400 contracts......................      b 110.00
Third Calendar Month Traded:                                            
    Cleared trades of:                                                  
        1-2,200 contracts.................................        a .050
        Greater than 2,200 contracts......................   b, 3 110.00
------------------------------------------------------------------------
a Per contract.    b Per trade.                                         
\3\ OCC has informed the Commission that it is modifying the            
  introductory fees for cleared trades of more than 4,400 contracts     
  during the second calendar month and of more than 2,200 trades during 
  the third calendar month so that introductory fees for new products do
  not exceed the volume discounts under the regular fee schedule.       

    In the fourth calendar month that the new product is traded and 
thereafter, OCC will begin charging its clearing fees for established 
products. Cleared trades will be determined with reference to the 
matched trades reported to OCC by its participant exchanges.
    OCC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \4\ and the rules and 
regulations thereunder because it provides for the equitable allocation 
of dues, fees, and other charges among OCC's participants and other 
parties who use OCC's services.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

(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.

[[Page 19783]]

(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 pursuant to Section 
19(b)(3)(A)(ii) \5\ of the Act and pursuant to Rule 19b-4(e)(2) \6\ 
promulgated thereunder because the proposal establishes or 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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 240.19b-4(e)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. 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-98-01 and should be 
submitted by May 12, 1998.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-10418 Filed 4-20-98; 8:45 am]
BILLING CODE 8010-01-M