[Federal Register Volume 64, Number 116 (Thursday, June 17, 1999)]
[Notices]
[Pages 32599-32600]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15356]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41506; File No. SR-OCC-99-7]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Amending OCC's By-Laws Concerning End-of-Month Foreign Currency Options
June 10, 1999.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on March 10, 1999, 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.
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\1\ 15 U.S.C. 78s(b)(1)
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The purpose of the proposed rule change is to reconcile a
difference between OCC's By-Laws and the Rules of the Philadelphia
Stock Exchange (``PHLX'').
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 proposed rule change will reconcile a difference between OCC's
By-Laws and PHLX's Rules concerning the expiration date of end-of-month
foreign currency options. OCC's By-Laws and PHLX's Rules both provide
that end-of-month foreign currency options expire on the last Friday of
the expiration month. However, PHLX's Rules provide that if the last
Friday of the expiration month is December 31st, the options expire on
``the Friday immediately preceding December 24th.'' \3\ OCC's By-Laws
provide that if the last Friday of the expiration month is December
31st, the options expire on ``the Friday immediately preceding December
25th.'' \4\ OCC's By-Laws also provide that if a foreign currency
option expires on a holiday, the expiration date is the business day
immediately preceding the holiday.\5\
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\3\ PHLX Options Rule 1000(b)21.(ii).
\4\ Article XV, Section 1.E.2(iv) of OCC's By-Laws.
\5\ Article XV, Section 1.E.2(v) of OCC's By-Laws.
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The respective rules of OCC and PHLX provide for conflicting
expiration dates for end-of-month options in 1999. December 31, 1999,
is a Friday, so under PHLX's Rules the expiration date would be
December 17, 1999, which is the Friday immediately preceding December
24th. Under OCC's By-Laws, the expiration date would ordinarily be
December 24th, but this is a holiday, so the date would change to
December 23rd. After consultation with PHLX, OCC has agreed that the
expiration date for the end-of-month foreign currency options should be
December 17, 1999. To implement this change, OCC is amending the
definition of ``expiration date'' in Article XV, Section 1 of its By-
Laws to provide that the expiration date for end-of-month foreign
currency options be the Friday immediately preceding December 24th,
rather than December 25th, if December 31st falls on a Friday. This
change will ensure that OCC's By-Laws and PHLX's Rules establish the
same December expiration date for these options in 1999 and in future
years.
OCC believes that the proposed rule change is consistent with
Section 17A of the Act \6\ and the rules and regulations thereunder
because it promotes the prompt and accurate clearance and settlement of
transactions in foreign currency options by ensuring that the
expiration date for such options is the same under OCC's By-Laws and
PHLX's Rules.
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\6\ 15 U.S.C. 78q-1.
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(B) Self-Regulatory Organization's Statement on Burden on Competition
OCC does not believe that the proposed rule change would 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 pursuant to Section
19(b)(3)(A)(iii) \7\ of the Act and pursuant to Rule 19b-4(f)(4) \8\
promulgated thereunder because the proposal effects a change in an
existing service of a registered clearing agency that does not
adversely affect the safeguarding of securities or funds in the custody
or control of the clearing agency or for which it is responsible and
does not significantly affect the respective rights or obligations of
the clearing agency or persons using the service. 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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\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(4).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
[[Page 32600]]
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, NW, Washington, DC 20549-0609.
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, NW,
Washington, DC 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-99-7 and should be submitted by July 8,
1999.
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)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-15356 Filed 6-16-99; 8:45 am]
BILLING CODE 8010-01-M