[Federal Register Volume 70, Number 106 (Friday, June 3, 2005)]
[Notices]
[Pages 32685-32686]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-2833]


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SECURITIES AND EXCHANGE COMMISISON

[Release No. 34-51732; File No. SR-OC-2005-01]


Self-Regulatory Organization; OneChicago, LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change Relating to EFP 
Transaction Reporting Procedures

May 24, 2005.
    Pursuant to section 19(b)(7) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-7 under the Act,\2\ notice is hereby given 
that on May 9, 2005, OneChicago, LLC (``OneChicago'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change described in Items I, II, and III below, which 
Items have been prepared by the Exchange. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons. On May 6, 2005, OneChicago filed the proposed rule 
change with the Commodity Futures Trading Commission (``CFTC''), 
together with a written certification under section 5c(c) of the 
Commodity Exchange Act \3\ in which OneChicago indicated that the 
effective date of the proposed rule change would be May 9, 2005.
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    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 17 CFR 240.19b-7.
    \3\ 7 U.S.C. 7a-2(c).
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I. Self-Regulatory Organization's Description of the Proposed Rule 
Change

    OneChicago proposes to amend its policy regarding the reporting of 
exchange of futures for physical (``EFP'') transactions. The text of 
the proposed rule change is available at the principal office of the 
Exchange and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange 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. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

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

1. Purpose
    OneChicago proposes to amend its current EFP Transactions: 
Guidelines and Reporting Procedures (``Procedures'') to permit Exchange 
members to report their proprietary EFP transactions, to permit 
authorized parties to report EFP transactions on a form and in a manner 
approved by OneChicago, and to make other non-substantive changes. The 
proposed rule change would permit OneChicago members with a reporting 
ID to report proprietary EFP transactions to OneChicago. In order to 
facilitate this amendment, the proposed rule change would also permit 
OneChicago members to directly contact OneChicago to request a 
reporting ID. The granting of a reporting ID would be at the discretion 
of OneChicago. Currently, only persons authorized by a clearing member 
firm may report EFP transactions. OneChicago believes that it would be 
more efficient to permit Exchange members that enter into EFP 
transactions for their proprietary account(s) to report those 
transactions to the Exchange.
    The proposed rule change would also permit authorized parties to 
submit an EFP Transaction Report in a form and manner approved by 
OneChicago. Under the current Procedures, the parties to an EFP 
transaction must deliver OneChicago's EFP Transaction Report. 
OneChicago believes that the proposed rule change would permit 
flexibility to accommodate new types and forms for reporting EFP 
transactions. Finally, the proposed rule change would also make other 
conforming and non-substantive changes.\4\
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    \4\ Since the proposed rule change would permit reporting 
parties to submit an EFP Transaction Report in a manner approved by 
the Exchange, the Exchange proposes to delete the language requiring 
reporting parties to e-mail or fax the EFP Transaction Report. 
Furthermore, the Exchange proposes to make other non-substantive 
changes by adding the word ``of'' in the first sentence of the 
Procedures and adding to ``OneChicago'' to Procedure No. 2.
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2. Statutory Basis
    OneChicago believes that the proposed rule change is consistent 
with section 6(b) of the Act \5\ in general, and section 6(b)(5) of the 
Act \6\ in particular, because it is designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, and to protect investors and the public interest 
by amending the reporting requirements. OneChicago believes that 
expanding persons who are eligible to report EFP transactions to those 
members who are conducting EFP transactions for their proprietary 
account(s) promotes just and equitable principles of trade and prevents 
fraudulent and manipulative acts. Furthermore, OneChicago believes that 
the proposed rule change also promotes just and equitable principles of 
trade by permitting flexibility for the changing trading environment by 
permitting reporting parties to submit an Exchange approved EFP 
Transaction Report in a manner authorized by the Exchange.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    OneChicago does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act, because the proposed rule 
change only clarifies reporting requirements for EFP transactions.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received with respect 
to the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change became effective on May 9, 2005. Within 60 
days of the date of effectiveness of the proposed rule change, the 
Commission, after consultation with the CFTC, may summarily abrogate 
the proposed rule change and require that the proposed rule change be 
refiled in accordance

[[Page 32686]]

with the provisions of Section 19(b)(1) of the Act.\7\
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    \7\ 15 U.S.C. 78s(b)(1).
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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. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File Number SR-OC-2005-01 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-OC-2005-01. 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, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 20549-0609. Copies of such filing also will 
be available for inspection and copying at the principal office of 
OneChicago. All comments received will be posted without change; the 
Commission does not edit personal identifying information from 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-OC-
2005-01 and should be submitted on or before June 24, 2005.

    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)(75).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-2833 Filed 6-2-05; 8:45 am]
BILLING CODE 8010-01-P