[Federal Register Volume 74, Number 246 (Thursday, December 24, 2009)]
[Notices]
[Pages 68432-68433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-30541]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61170; File No. SR-OCC-2009-19]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to Treasury Futures Traded by ELX Futures LP

December 15, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on November 20, 2009, 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. OCC filed the proposed rule change pursuant to 
Section 19(b)(3)(A)(iii) of the Act \2\ and Rule 19b-4(f)(4) \3\ 
thereunder 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 persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78s 1(b)(3)(A)(iii).
    \3\ 17 CFR 240.19b 4(f)(4).
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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 revise OCC's By-Laws and Rules to 
accommodate a proposed alternate settlement procedure for physically-
settled Treasury Futures traded by ELX Futures L.P., an electronic 
futures market that is designated as a contract market by the Commodity 
Futures Trading Commission (``CFTC'').

[[Page 68433]]

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.\4\
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    \4\ 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 purpose of this proposed rule change is to revise OCC's By-Laws 
and Rules to accommodate a proposed alternate settlement procedure for 
physically-settled Treasury Futures traded by ELX Futures L.P., an 
electronic futures market that is designated as a contract market by 
the CFTC. Under the proposed alternate settlement procedure, Clearing 
Members that have been matched for delivery purposes would be allowed 
to agree between themselves on alternate procedures for completing 
settlement. Among other changes, OCC is proposing amendments to Chapter 
13 of its Rules to specify the manner in which Clearing Members can 
elect to use such alternate settlement procedures for physically-
settled Treasury Futures and to provide for the Clearing Members' 
indemnification of OCC against any losses resulting from the Clearing 
Members' use of the alternate settlement procedures. OCC is also 
proposing to amend its margin rules to provide that once OCC accepts 
notification from the Clearing Members of the use of alternate 
settlement procedures for physically-settled Treasury Futures pursuant 
to proposed Rule 1302B(k), the contracts to be settled under the 
alternate procedures would no longer be included in the margin 
calculations for the relevant accounts of these Clearing Members.
    The proposed changes to OCC's By-Laws and Rules are consistent with 
the purposes and requirements of Section 17A of the Act of 1934 because 
they are designed to promote the prompt and accurate clearance and 
settlement of transactions in options and other derivatives cleared by 
OCC, to remove impediments to and perfect the mechanism of a national 
system for the prompt and accurate clearance and settlement of such 
transactions, and, in general, to protect investors and the public 
interest. They accomplish this purpose by providing Clearing Members 
with an alternate method by which to fulfill their settlement 
obligations for Treasury Futures. The proposed rule change is not 
inconsistent with any rules of OCC, including any rules proposed to be 
amended.

(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 pursuant to Section 
19(b)(3)(A)(iii) of the Act \5\ and Rule 19b-4(f)(4) \6\ promulgated 
thereunder because the proposal changes effects a change in an existing 
service of a registered clearing agency that (i) does not adversely 
affect the safeguarding of securities or funds in the custody or 
control of the clearing agency or for which it is responsible and (ii) 
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)(iii).
    \6\ 17 CFR 240.19-4(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-2009-19 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-OCC-2009-19. 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. Copies of such filing also will be available for 
inspection and copying at the principal office of OCC. 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-2009-19 and should be 
submitted on or before January 14, 2010.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-30541 Filed 12-23-09; 8:45 am]
BILLING CODE 8011-01-P