[Federal Register Volume 67, Number 213 (Monday, November 4, 2002)]
[Notices]
[Pages 67230-67231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27918]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46722; File No. SR-OCC-2002-13]


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

October 25, 2002.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on June 24, 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.
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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 consists of the ``Amended and Restated 
Agreement for Clearing and Settling Security Futures and Futures and 
Futures Options on Broad-Based Indexes' between OCC and Nasdaq Liffe 
Markets, LLC (``NqLX'').

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 preparing to clear security futures for a number of markets. 
One such market is NqLX. Amendment No. 2 to SR-OCC-2001-07 included the 
``Agreement for Clearing and Settlement Services'' dated August 29, 
2001, (``Original Agreement'') between OCC and NqLX (under its former 
name, Nasdaq LIFFE, LLC). The Commission approved that rule filing, as 
amended, on August 20, 2001.\3\
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    \3\ Securities Exchange Act Release No. 44727 (August 20, 2001), 
66 FR 45351.
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    As generally noted in Amendment No. 2 to SR-OCC-2001-07, OCC 
anticipated that it would file with the Commission the agreements it 
enters into with markets for the clearance of security futures when 
negotiated. OCC has recently executed an amendment and restatement of 
the Original Agreement with NqLX, which is the subject of this filing. 
The primary motivation for amending and restating the Original 
Agreement was to expand the range of contracts to be cleared and 
settled by OCC under that agreement to include futures on broad-based 
stock indexes and options on such futures.\4\ Thus, the parties have 
added sections on the selection of underlying interests for broad-based 
stock index futures and options on such futures and have changed 
numerous occurrences of ``security futures'' to ``Cleared Contracts,'' 
a term that encompasses security futures and also futures on broad-
based stock indexes and options on such futures. Certain minor

[[Page 67231]]

adjustments in other terms have been made to bring the agreement into 
line with clearing and settlement agreements that OCC has entered into 
with other exchanges after it entered into the Original Agreement.
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    \4\ OCC was registered as a ``derivatives clearing 
organization'' under the Commodity Exchange Act by order of the 
Commodity Futures Trading Commission (December 10, 2001). The 
Commission previously approved OCC's rule filing to clear futures 
and futures options on broad-based stock indexes. Securities 
Exchange Act Release No. 45946 (May 16, 2002), 67 FR 36056 (SR-OCC-
2001-16).
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    OCC believes that the proposed rule change is consistent with the 
purposes and requirements of section 17A of the Securities Exchange Act 
of 1934, as amended, because it will foster cooperation and 
coordination with persons engaged in the clearance and settlement of 
securities transactions and remove impediments to and perfect the 
mechanism of a national system for the prompt and accurate clearance 
and settlement of securities transactions.

(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) of the Act \5\ and Rule 19b-4(f)(4)\6\ thereunder 
because it effects a change in an existing service of OCC that (i) does 
not adversely affect the safeguarding of securities or funds in the 
custody or control of OCC or for which it is responsible and (ii) does 
not significantly affect the respective rights or obligations of OCC or 
persons using the service. 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)(iii).
    \6\ 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 
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-2002-13 and should be submitted by 
November 25, 2002.

    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. 02-27918 Filed 11-1-02; 8:45 am]
BILLING CODE 8010-01-P