[Federal Register Volume 69, Number 20 (Friday, January 30, 2004)]
[Notices]
[Pages 4554-4555]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-1954]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49124; File No. SR-OCC-2003-06]


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

January 26, 2004.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on July 22, 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 consists of the Agreement for Clearing and 
Settling Security Futures and Futures and Futures Options on Broad-
Based Indexes between OCC and the Chicago Board Options Exchange 
(``CBOE'').

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

    The CBOE intends to open a futures exchange, to be known as CBOE 
Futures Exchange, LLC (``CFE''). CFE has applied to the Commodity 
Futures Trading Commission (``CFTC'') for designation as a contract 
market and intends to notice register to be a limited purpose national 
securities exchange for the trading of futures before such trading 
commences. CFE and OCC have entered into a clearing agreement (``CFE 
Agreement'') pursuant to which OCC will provide clearing and settlement 
services with respect to the security futures and futures and options 
on futures on broad-based security indexes that may be traded on 
CFE.\3\ The CFE Agreement is substantially similar to OCC's amended and 
restated clearing agreement with Nasdaq Liffe Markets, LLC (``NQLX'') 
but includes some terms taken from OCC's security futures clearing 
agreements with the Island Futures Exchange, LLC (``IFX'') and 
OneChicago, LLC (``ONE''), which were previously filed with the 
Commission.\4\ To the extent that terms of the CFE Agreement are not 
traceable to one of these sources, those terms are immaterial.
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    \3\ OCC is 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 (May 22, 2002), File No. [SR-OCC-2001-
16].
    \4\ Securities Exchange Act Release Nos. 46722 (October 25, 
2002), 67 FR 67230 (November 4, 2002) File No. [SR-OCC-2002-13] 
(amended and restated clearing agreement with NQLX), 46058 (June 10, 
2002), 67 FR 41287 (June 17, 2002) File No. [SR-OCC-2002-08] 
(security futures clearing agreement with IFX), and 46653 (October 
11, 2002), 67 FR 64689 (October 21, 2002) File No. [SR-OCC-2002-07] 
(security futures clearing agreement with ONE).
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    OCC believes that the proposed rule change is consistent with the 
purposes and requirements of section 17A of the Act 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 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 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 could have summarily 
abrogated such rule change if it appeared to the Commission that such 
action was 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. 
Comments may also be submitted electronically at the following e-mail 
address: [email protected]. All comment letters should refer to 
File No. SR-OCC-2003-06. 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

[[Page 4555]]

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 on OCC's Web site at http://www.optionsclearing.com. All submissions should refer to the File No. 
SR-OCC-2003-06 and should be submitted by February 20, 2004.

    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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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 04-1954 Filed 1-29-04; 8:45 am]
BILLING CODE 8010-01-P