[Federal Register Volume 67, Number 160 (Monday, August 19, 2002)]
[Notices]
[Pages 53828-53829]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-20979]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46339; File No. SR-OCC-2002-17]


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

August 12, 2002.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on July 23, 2002, 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.
---------------------------------------------------------------------------

    \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 amends OCC's schedule of fees to reflect 
the restructuring of OCC's ancillary services program.

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 parts of these statements.
---------------------------------------------------------------------------

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

    In addition to its clearing and settlement services, OCC provides a 
number of ancillary services to its membership. These services range 
from on-line systems to report and data files. Hardware and 
communications lines support these ancillary service offerings. 
However, the current fee structure for these services and their 
supporting communications lines does not cover OCC's monthly expenses. 
Accordingly, OCC has decided to restructure its ancillary services 
program.
    OCC is implementing a four-tiered structure with a different bundle 
of ancillary services being offered at each tier. The tiers, the 
associated ancillary services, and the proposed cost for each are set 
forth in Exhibit A of the proposed rule change filing (OCC's schedule 
of fees). OCC has also determined to revise its communication line 
charges. A T1 leased line provides the optimal point-to-point secure 
communications to OCC's systems. OCC is revising its schedule of fees 
to charge for T1 leased lines and to increase the current 56.0kb line 
speed charge. These charges also are reflected in Exhibit A. The 
ancillary service charges and line offerings that have been eliminated 
as a result of restructuring the ancillary services program are set 
forth in Exhibit A.

[[Page 53829]]

    OCC believes the proposed rule change is consistent with section 
17A of the Act because it provides for the reasonable allocation of 
costs to provide ancillary services to clearing members.

(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 changes fees charged clearing 
members by OCC, it has become effective pursuant to section 
19(b)(3)(A)(ii) of the Act \3\ and rule 19b-4(f)(2) \4\ thereunder. 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.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(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 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-2002-17 and should be submitted by 
September 9, 2002.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-20979 Filed 8-16-02; 8:45 am]
BILLING CODE 8010-01-P