[Federal Register Volume 76, Number 196 (Tuesday, October 11, 2011)]
[Notices]
[Pages 62883-62884]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-26140]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65484 File No. SR-OCC-2011-14]


Self-Regulatory Organizations; Options Clearing Corporation; 
Notice of Filing of Proposed Rule Relating to Clearing Options on the 
CBOE Silver Volatility Index

October 4, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder \2\ notice is hereby given that 
on September 27, 2011, 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).
    \2\ 17 CFR 240.19b-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 allow OCC to add an interpretation 
following the introduction in Article XVII of OCC's By-Laws, clarifying 
that OCC will clear and treat as securities options any option 
contracts on the CBOE Silver ETF Volatility Index.

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 self-regulatory organization 
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 self-regulatory organization 
has

[[Page 62884]]

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

    The purpose of the proposed rule change is to remove any potential 
cloud on the jurisdictional status of options on the CBOE Silver ETF 
Volatility Index, which is an index that measures the implied 
volatility of options on the iShares Silver Trust, an exchange-traded 
fund designed to reflect the performance of the price of silver.\3\ To 
accomplish this purpose, OCC is proposing to amend the interpretation 
and policy following the introduction in Article XVII of OCC's By-Laws 
to clarify that OCC will clear and treat as securities options any 
option contracts on the CBOE Silver ETF Volatility Index. On December 
29, 2010, the Commission approved rule filing SR-OCC-2010-07, which 
added the existing interpretation, which relates to the treatment and 
clearing of options on the CBOE Gold ETF Volatility Index.
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    \3\ The staff notes that on August 11, 2011, the Commission 
issued an Order granting approval of a proposed rule change to trade 
options on the CBOE Silver ETF Volatility Index. See Securities 
Exchange Act Release No. 34-65116, 76 FR 51099 (August 17, 2011).
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    In its capacity as a ``derivatives clearing organization'' 
registered as such with the CFTC, OCC is filing this proposed rule 
change for prior approval by the CFTC pursuant to provisions of the 
Commodity Exchange Act (the ``CEA'') in order to foreclose any 
potential liability under the CEA based on an argument that the 
clearing by OCC of such options as securities options constitutes a 
violation of the CEA.
    OCC believes that the proposed interpretation of OCC's By-Laws is 
consistent with the purposes and requirements of Section 17A of the 
Exchange Act because it is designed to promote the prompt and accurate 
clearance and settlement of transactions in securities options, to 
foster cooperation and coordination with persons engaged in the 
clearance and settlement of such transactions, 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. It accomplishes 
this purpose by reducing the likelihood of a dispute as to the 
Commission's jurisdiction over options based on the CBOE Silver ETF 
Volatility Index. The proposed rule change is not inconsistent with the 
By-Laws and Rules of OCC.

(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

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) As the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) by order approve or disapprove the proposed rule change or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

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 Commissions Internet comment form (http://www.sec.gov/rules/sro.shtml) or send an e-mail to [email protected]. Please include File Number SR-OCC-2011-14 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-2011-14. 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 Web site viewing and 
printing in the Commission's Public Reference Section, 100 F Street, 
NE., Washington, DC 20549, on official business days between the hours 
of 10 a.m. and 3 pm. Copies of such filings will also be available for 
inspection and copying at the principal office of OCC and on OCC's Web 
site athttp://www.optionsclearing.com/components/docs/legal/rules_and_bylaws/sr_occ_11_14.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-2011-14 
and should be submitted on or before November 1, 2011.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\4\
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    \4\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-26140 Filed 10-7-11; 8:45 am]
BILLING CODE 8011-01-P