[Federal Register Volume 69, Number 10 (Thursday, January 15, 2004)]
[Notices]
[Pages 2376-2377]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-854]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49043; File No. SR-OCC-2003-02]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to the Confidential Treatment of Certain Information

January 8, 2004.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on June 3, 2003, 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 amends as set forth in a policy statement 
OCC's obligation with regard to the confidential treatment of certain 
information provided to OCC by markets to which OCC provides clearing 
and settlement services.

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 has recently entered into clearing agreements with Nasdaq LIFFE 
Markets, LLC (``NqLX'')\3\ and with Island Futures Exchange, LLC 
(``IFX'')\4\ in connection with security futures and in the case of 
NqLX, with futures and futures options on broad-based indexes traded on 
these participant markets. These agreements include confidentiality 
provisions protecting confidential information provided by one party 
from unauthorized use or disclosure by the other party. OCC has also 
entered into a clearing agreement with OneChicago, LLC (``OCX'')\5\ 
which does not contain confidentiality provisions. Similarly, there are 
no confidentiality provisions in the restated participant exchange 
agreement among OCC and the various options markets. OCC is currently 
discussing a clearing agreement with CBOE Futures Exchange, LLC, and 
CBOE has requested that confidentiality provisions be included.
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    \3\ Securities Exchange Act Release No. 46722 (October 25, 
2002), 67 FR 67230 (November 4, 2002) [File No. SR-OCC-2002-13].
    \4\ Securities Exchange Act Release No. 46058 (June 10, 2002), 
67 FR 41287 (June 17, 2002) [File No. SR-OCC-2002-08].
    \5\ 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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    In order to assure that all participant markets have the same 
rights protecting confidential information disclosed to OCC and to 
avoid the need to negotiate the terms of confidentiality agreements 
with current and future participant markets on a case by case basis, 
OCC proposes to publish a policy statement with regard to confidential 
information disclosed to it by participant markets (``Policy 
Statement''). The Policy Statement will not be incorporated into the 
by-laws. OCC intends that the Policy Statement be enforceable against 
OCC by the participant markets.
    The Policy Statement reflects OCC's longstanding practice and 
express understanding with the various markets using its clearing 
services. OCC has always protected the confidentiality of new product 
information and other information provided to it by the markets, and 
the Policy Statement merely provides a uniform statement of that policy 
for the benefit of all markets. OCC's confidentiality obligations under 
the Policy Statement are substantially

[[Page 2377]]

the same as its confidentiality obligations under its clearing 
agreements with NqLX and IFX.
    OCC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act and the rules and regulations 
thereunder because it will foster cooperation and coordination with 
persons engaged in the clearance and settlement of securities 
transactions and will remove impediments to and perfect the mechanism 
of a national system for the 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 
material 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 \6\ and Rule 19b-4(f)(4)\7\ promulgated 
thereunder because the proposal effects a change in an existing service 
of OCC that (A) does not adversely affect the safeguarding of 
securities or funds in the custody or control of OCC or for which it is 
responsible and (B) 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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    \6\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \7\ 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. 
Comments may also be submitted electronically at the following e-mail 
address: [email protected]. All comment letters should refer to 
File No. SR-OCC-2003-02. This file number should be included on the 
subject line if e-mail is used. To help the Commission process and 
review your 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 will also be available for inspection and copying 
at the principal office of OCC and OCC's Web site at http://www.theocc.com. All submissions should refer to the File No. SR-OCC-
2003-02 and should be submitted by February 5, 2004.

    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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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 04-854 Filed 1-14-04; 8:45 am]
BILLING CODE 8010-01-P