[Federal Register Volume 66, Number 220 (Wednesday, November 14, 2001)]
[Notices]
[Pages 57142-57143]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-28488]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45027; File No. SR-OCC-2001-12]


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

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 25, 2001, 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).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The proposed rule change discounts clearing fees charged for 
established products for the last quarter of 2001.

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 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

    OCC is proposing to discount clearing fees charged for established 
products for

[[Page 57143]]

the last quarter of 2001. This discount underscores OCC's continuing 
commitment to the options market and market participants. Discounted 
clearing fees will be as follows:

------------------------------------------------------------------------
                                                           Proposed
      Contract trade level         Current clearing       discounted
                                          fee            clearing fee
------------------------------------------------------------------------
1-500...........................  $0.09/contract....  $0.065/contract.
501-1000........................  $0.07/contract....  $0.055/contract.
1001-2000.......................  $0.06/contract....  $0.045/contract.
>2000...........................  $110.00 flat fee..  $85.00 flat fee.
------------------------------------------------------------------------

    The discounted fee schedule will enable clearing members to benefit 
from reduced fees without adversely affecting OCC's ability to maintain 
an acceptable level of retained earnings. Commencing on January 1, 
2002, the discounted clearing fees will revert to their current levels.
    The proposed rule change is consistent with the requirements of 
section 17A of the Act because it benefits clearing members by 
discounting fees and allocates fees among clearing members in an 
equitable manner.

(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 \3\ and Rule 19b-4(f)(2).\4\ 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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    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 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-2001-12 and should be submitted by 
December 5, 2001.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-28488 Filed 11-13-01; 8:45 am]
BILLING CODE 8010-01-M