[Federal Register Volume 68, Number 17 (Monday, January 27, 2003)]
[Notices]
[Pages 3922-3923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-1710]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47196; File No. SR-OCC-2002-20]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to an Alternative Schedule of Fees for Clearing Transactions 
in Security Futures

January 15, 2003.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on August 28, 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 parties.
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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 provide for an alternative schedule 
of fees for clearing transactions in security futures. Markets for 
which OCC provides clearance and settlement services for security 
futures are permitted to elect either OCC's standard or alternative 
schedule of fees.

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 these 
statements.\2\
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    \2\ The Commission has modified the text of the summaries 
prepared by OCC.
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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 proposed rule change is to amend OCC's schedule 
of fees to provide for an alternative, discounted fee schedule for 
clearing transactions in security futures. This proposed alternative 
fee schedule is based on the fees for clearing services contained in 
the Security Futures Agreement for Clearing and Settlement Services 
between OCC and OneChicago, LLC.\3\ The alternative fee schedule is as 
follows:
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    \3\ Securities Exchange Act Release No. 46653 (October 11, 
2002), 67 FR 64689 (October 21, 2002) [File No. SR-OCC-2002-07].
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    (1) Trades with contracts of: (i) 1 to 500 contracts: $0.07; (ii) 
501 to 1,000 contracts: $0.06; (iii) 1,001 to 2,000 contracts: $0.05; 
and (iv) $85.00 for transactions larger than 2,000 contracts.
    (2) Associate clearinghouse cleared trades with contracts of: (i) 1 
to 500 contracts: $0.05; (ii) 501 to 1,000 contracts: $0.0425; and 
(iii) 1,001 to 2,000 contracts: $0.035; and (iv) $61.00 for 
transactions larger than 2,000 contracts.
    (3) Trades in new security futures product fee schedule:\4\ (i) 
First calendar month traded: $0.00; (ii) second calendar month traded: 
$0.025, regardless of size; (iii) third calendar month traded: the 
lesser of the total at $0.05/contract or $85.00; and (iv) fourth 
calendar month reverts to applicable fee schedule as set forth above.
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    \4\ For purposes of this alternative security futures fee 
schedule, ``new security futures product'' does not include security 
futures products overlying additional underlying interests of the 
same general description as interests on which security futures 
products are then traded (e.g., additional stocks or additional 
narrow-based indexes) unless there are material differences, other 
than as to variable terms such as expiration months, in the terms of 
the security futures product itself.
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    (4) Associate clearinghouse cleared trades in new security futures 
product fee schedule: (i) First calendar month traded: $0.00; (ii) 
second calendar month traded: $0.02, regardless of size; (iii) third 
calendar month traded: the lesser of the total at $0.035/contract or 
$61.00; and (iv) fourth calendar month reverts to applicable fee 
schedule as set forth above.
    (5) Minimum monthly fee: $200.
    Markets trading security futures products can elect OCC's standard 
or alternative fee schedule. Fees are charged on a per-side basis. The 
minimum monthly clearing fee is $200. Because clearing fees are 
discounted under the alternative schedule, fees collected under it are 
excluded from any other rebates or discounts offered by OCC and from 
any year-end refund of clearing fees.
    OCC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \5\ and the rules and 
regulations thereunder applicable to OCC because it establishes a 
reasonable alternative fee schedule to be charged for clearing 
transactions in security futures.
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    \5\ 15 U.S.C. 78q-1.
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(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. 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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii)\6\ of the Act and Rule 19b-4(f)(2) \7\ promulgated 
thereunder because the proposal establishes or changes a due, fee, or 
other charge imposed by OCC. At any time within sixty days of the 
filing of such 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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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 17 CFR 240.19b-4(f)(2).
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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. 
Comments may also be submitted electronically at the following e-mail 
address: [email protected]. All comment letters should refer to 
File No. SR-OCC-2002-20. This file number should be included on the 
subject line if e-mail is used. To help us process and

[[Page 3923]]

review comments more efficiently, comments should be sent in hardcopy 
or by e-mail but not by both methods. 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 also will be available for inspection and copying at the 
principal office of OCC. All submissions should refer to File No. SR-
OCC-2002-20 and should be submitted by February 18, 2003.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-1710 Filed 1-24-03; 8:45 am]
BILLING CODE 8010-01-P