[Federal Register Volume 66, Number 220 (Wednesday, November 14, 2001)]
[Notices]
[Pages 57141-57142]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-28487]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45028; File No. SR-OCC-2001-13]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Establishing a Clearing Fee

November 6, 2001.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on September 26, 2001, The 
Options Clearing Corporation (``OCC'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change from 
interested persons.
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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 proposed rule change establishes a license fee and other fees 
that OCC will charge clearing members for the use of a new risk 
management software package called OCC-TIMS.

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

[[Page 57142]]

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 parts of these statements.
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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 this rule change is to establish a license fee and 
other fees that OCC will charge clearing members for OCC-TIMS, a risk 
management software package developed by OCC.
    OCC-TIMS is a client server software package developed by OCC for 
use by clearing members to enhance their internal risk management 
practices. This application will provide clearing members with access 
to provide risk management tools as it contains TIMS \3\ calculations 
as well as analytical tools to facilitate ``what if'' scenarios and 
portfolio stress testing. OCC anticipates that OCC-TIMS will be 
available for licensing to clearing members in the fourth quarter of 
2001.\4\
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    \3\ OCC's margin system is called the Theoretical Intermarket 
Margin System (TIMS).
    \4\ OCC intends to offer OCC-TIMS to non-clearing member users 
in 2002.
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    To promote the wide spread use of OCC-TIMS, OCC is proposing to 
charge clearing members a nominal fee of $500.00 to license the 
application and $250.00 for each product upgrade made after the initial 
license. Data feeds for theoretical prices will be charged as follows: 
$.10/contract with a minimum monthly charge of $200.00 and a maximum 
monthly charge of $2,000.00. These fees are comparable to those charged 
to clearing members accessing risk based haircut (``RBH'') data. For 
users receiving both OCC-TIMS and RBH data feeds, OCC is proposing to 
charge a maximum combined fee of $3,000.00 per month.
    The proposed rule change is consistent with the requirements of 
Section 17A of the Act inasmuch as it establishes nominal and 
reasonable fees to be charged to clearing members for access to a risk 
management software package.

(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

    Because the foregoing rule change establishes fees to be imposed by 
OCC upon clearing members, it has become effective pursuant to section 
19(b)(3)(A)(ii) of the Act \5\ and Rule 19b-4(f)(2).\6\ At any time 
within sixty days of the filing of the 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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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 240.19b-4(f)(2).
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VI. 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 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 will also be available for 
inspection and copying at the principal office of OCC. All submissions 
should refer to the file No. SR-OCC-2001-13 and should be submitted by 
December 5, 2001.

    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).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-28487 Filed 11-13-01; 8:45 am]
BILLING CODE 8010-01-M