[Federal Register Volume 67, Number 81 (Friday, April 26, 2002)]
[Notices]
[Pages 20859-20860]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-10309]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45787; File No. SR-OCC-2001-11]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing of a Proposed Rule Change Relating to IntraDay Margin 
Deposits

April 19, 2002.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on September 7, 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 would amend OCC Rule 609 to make explicit 
the procedures applicable to deposits of intraday margin.

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 changes 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 the newly added language to Rule 609 is to make 
explicit OCC's policies with respect to required deposits of intraday 
margin.
    OCC can require a deposit of intraday margin for a variety of 
reasons. Most often, deposits of intraday margin are required in 
response to changes in market conditions that affect the value of 
clearing members' positions and/or collateral. Currently, Rule 609 
states that OCC's Chairman, Management Vice Chairman, and President 
each are authorized to require any clearing member to make such 
deposits within such time period as the officer may prescribe.
    Pursuant to a long-standing policy, intraday margin deposits must 
be satisfied in immediately available funds within one hour of OCC's 
issuance of a debit instruction against the applicable bank account of 
a clearing member. This policy will now be explicitly set forth in Rule 
609 although the authority to prescribe a different settlement time, 
including a shorter settlement time, will be preserved. In order to 
expedite processing, the individuals authorized to require intraday 
margin deposits will now include any officer of OCC so authorized by 
the Chairman, Management Vice Chairman, or President.
    The proposed change is consistent with the purposes and 
requirements of section 17A of the Exchange Act because it makes 
explicit OCC's procedures for managing required deposits of intraday 
margin, which should promote the safeguarding of securities and funds.

(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.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received from Members, Participants, or Others

    Written comments relating to the proposed rule change have not yet 
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

    Within thirty-five days of the date of publication of this notice 
in the Federal Register or within such longer period (i)

[[Page 20860]]

as the Commission may designate up to ninety days of such date if it 
finds such longer period to be appropriate and publishes its reasons 
for so finding or (ii) as to which OCC consents, the Commission will:
    (a) by order approve the proposed rule change or
    (b) institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
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-
0609. Copies of such filing will also be available for inspection and 
copying at the principal office of OCC. All submissions should refer to 
File No. SR-OCC-2001-11 and should be submitted by May 17, 2002.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\3\
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    \3\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-10309 Filed 4-25-02; 8:45 am]
BILLING CODE 8010-01-M