[Federal Register Volume 73, Number 20 (Wednesday, January 30, 2008)]
[Notices]
[Pages 5618-5619]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-1614]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57192; File No. SR-OCC-2007-17]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Its Clearing Fee Schedule
January 24, 2008.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 7, 2007, 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. OCC filed the proposed rule change pursuant to section
19(b)(3)(A)(ii) of the Act \2\ and Rule 19b-4(f)(2) thereunder \3\ so
that the proposal was effective upon filing with the Commission. 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).
\2\ 15 U.S.C. 78s(b)(3)(A)(ii).
\3\ 17 CFR 240.19b-4(f)(2).
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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 implement a new discounted fee
schedule and continue the market maker scratch fee discount with all
changes being effective January 1, 2008.
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.\4\
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\4\ 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
Effective May 1, 2007, OCC adopted a new permanent reduced clearing
fee schedule for (i) securities options and
[[Page 5619]]
(ii) security futures where at least one side of the trade is cleared
by an OCC clearing member.\5\ Simultaneous with the adoption of the new
standard clearing fee schedule, OCC additionally discounted clearing
fees. Effective September 1 through December 31, 2007, OCC further
reduced its discounted clearing fees and halved the market-maker
scratch fee.\6\ Effective January 1, 2008, OCC will implement a new
discounted clearing fee schedule that will replace the May 1 discounted
fees and will continue the discounted market-maker scratch fee of $0.01
per side. The following chart sets forth the new discounted clearing
fee schedule.
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\5\ Securities Exchange Act Release No. 55709 (May 4, 2007), 72
FR 26669 (May 10, 2007) [File No. SR-OCC-2007-05].
\6\ Securities Exchange Act Release No. 56386 (September 11,
2007), 72 FR 53273 (September 18, 2007) [File No. SR-OCC-2007-09].
In addition, OCC permanently adopted the standard fee schedule for
commodity futures and eliminated the alternative fee schedule
previously offered to futures markets.
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Current permanent Discounted
standard fee standard fee
Contracts/trade schedule, schedule,
effective May 1, effective January
2007 1, 2008
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1-500........................... $0.05/contract.... $0.03/contract.
501-1,000....................... $0.04/contract.... $0.024/contract.
1,001-2,000..................... $0.03/contract.... $18.00 (capped).
>2,000.......................... $55.00 (capped)... $18.00 (capped).
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The discounted clearing fee schedule and market maker scratch fee
will remain in effect until further action by OCC's Board of Directors.
The adoption of the new discounted fee schedule reflects the strong
contract volume experienced by OCC in 2007. OCC believes that these
discounted fees will financially benefit clearing members and other
market participants without adversely affecting OCC's ability to meet
its expenses and maintain an acceptable level of retained earnings.
The proposed rule change is consistent with the requirements of
section 17A of the Act \7\ and the rules and regulations thereunder
applicable to OCC because it benefits clearing members and other market
participants by discounting fees and allocating them in a fair and
equitable manner. The proposed rule change is not inconsistent with the
existing rules of OCC, including any other rules proposed to be
amended.
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\7\ 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 rule change has become effective upon filing pursuant
to section 19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-4(f)(2) \9\
thereunder because the proposed rule establishes or changes a due, fee,
or other charge. At any time within sixty days of the filing of such
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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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 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. 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-2007-17 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-OCC-2007-17. 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 Room, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. The text of the proposed rule change is available
at OCC, the Commission's Public Reference Room, and http://www.theocc.com/publications/rules/proposed_changes/sr_occ_ 07_
17.pdf. 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-
2007-17 and should be submitted on or before February 20, 2008.
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
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\10\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E8-1614 Filed 1-29-08; 8:45 am]
BILLING CODE 8011-01-P