[Federal Register Volume 70, Number 144 (Thursday, July 28, 2005)]
[Notices]
[Pages 43732-43733]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-4017]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52110; No. SR-OCC-2005-11]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Conform Its Year-End Financial Reporting Deadline Applicable to 
Clearing Members Primarily Regulated as Futures Commission Merchants 
With the Commodity Futures Trading Commission's Regulations

July 22, 2005.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on July 14, 2005, the Options 
Clearing Corporation (``OCC'') 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 primarily by OCC. 
The Commission is publishing this notice to solicit comments on the 
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 conform OCC's year-end financial 
reporting deadline applicable to clearing members primarily regulated 
as Futures Commission Merchants (``FCM'') with the Commodity Futures 
Trading Commission's (``CFTC'') Regulation 1.10(b)(ii).

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

    OCC Rule 306, Interpretation .02 currently provides that a clearing 
member that is not fully registered with the SEC as a broker-dealer but 
that is registered with the CFTC as an FCM must file its annual audited 
financial report on Form 1-FR-FCM with OCC within 60 days of the end of 
its fiscal year unless OCC consents to an extension.\3\ However, under 
CFTC Regulation 1.10(b)(ii), an FCM has up to 90 days after the close 
of its fiscal year to file that report with the CFTC. Clearing members 
that comply with CFTC Regulation 1.10(b)(ii) have requested that OCC 
conform its year-end financial reporting deadline to CFTC's to provide 
a consistent filing requirement.
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    \3\ This 60-day deadline mirrors the year-end financial 
reporting deadline applicable to broker-dealers.
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    OCC believes the proposed rule change is consistent with Section 
17A of the Act,\4\ as amended, because the change is designed to 
facilitate the establishment of coordinated facilities for clearance 
and settlement of transactions by conforming OCC's rules to the CFTC 
financial reporting obligation. The proposed rule change is not 
inconsistent with the existing rules of OCC.
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    \4\ 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.

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

    The foregoing proposed rule change has become effective upon filing 
pursuant to Section 19(b)(3)(A) of the Act \5\ and Rule 19b-4(f)(4) \6\ 
thereunder because it does not adversely affect the

[[Page 43733]]

safeguarding of securities or funds in the custody or control of OCC or 
for which it is responsible and does not significantly affect the 
respective rights or obligations of the clearing agency 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).
    \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. 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-OCC-2005-11 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-9303.
    All submissions should refer to File Number SR-OCC-2005-11. 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, 100 F Street, 
NE., Washington, DC 20549. Copies of such filings also will be 
available for inspection and copying at the principal office of OCC and 
on OCC's Web site at http://www.optionsclearing.com. 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-OCC-2005-11 
and should be submitted on or before August 18, 2005.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
Margaret H. McFarland,
Deputy Secretary.
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    \7\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E5-4017 Filed 7-27-05; 8:45 am]
BILLING CODE 8010-01-P