[Federal Register Volume 77, Number 100 (Wednesday, May 23, 2012)]
[Notices]
[Page 30562]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-12445]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67013; File No. SR-OCC-2012-04]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Order Approving Proposed Rule Change Relating to Stock Loan Buy-In and 
Sell-Out Rules

May 17, 2012.

I. Introduction

    On March 22, 2012, The Options Clearing Corporation (``OCC'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change SR-OCC-2012-04 pursuant to Section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 
thereunder.\2\ The proposed rule change was published for comment in 
the Federal Register on April 6, 2012.\3\ The Commission received no 
comment letters regarding the proposal. For the reasons discussed 
below, the Commission is granting approval of the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 34-66715 (April 2, 
2012), 77 FR 20861 (April 6, 2012).
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II. Description

    As detailed in the Commission's notice, the proposed rule change 
would make three procedural changes to certain OCC rules relating to 
the Market Loan Program \4\ and the Stock Loan/Hedge Program.\5\ The 
changes include: (i) Amending the buy-in and sell-out processes under 
the Market Loan Program, (ii) amending the rules governing the Stock 
Loan/Hedge Program to add a sell-out process, and (iii) amending OCC's 
rules governing the Stock Loan/Hedge Program to add a cash settlement 
process.
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    \4\ The Market Loan Program, governed by Article XXIA of OCC's 
By-Laws and Chapter XXIIA of OCC's Rules, provides a framework that 
accommodates securities lending transactions executed through 
electronic trading systems (``Loan Markets'').
    \5\ The Stock Loan/Hedge Program, governed by Article XXI of 
OCC's By-Laws and Chapter XXII of OCC's Rules, allows approved 
clearing members to register their privately negotiated securities 
lending transactions with OCC.
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III. Discussion

    Section 19(b)(2)(B) of the Act directs the Commission to approve a 
proposed rule change of a self-regulatory organization if it finds that 
such proposed rule change is consistent with the requirements of the 
Act and the rules and regulations thereunder applicable to such 
organization.\6\ Section 17A(b)(3)(F) of the Act requires that the 
rules of a clearing agency, among other things, be designed to remove 
impediments to and perfect the mechanism of a national system for the 
clearance and settlement of securities transactions.\7\
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    \6\ 15 U.S.C. 78s(b)(2)(B).
    \7\ 15 U.S.C. 78q-1(b)(3)(F).
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    The Commission finds that the proposed rule change as described is 
consistent with OCC's obligation under Section 17A(b)(3)(F) of the 
Act's requirement that the rules of OCC be designed to remove 
impediments and perfect the mechanism of a national system for the 
clearance and settlement of securities transactions.

IV. Conclusion

    On the basis of the foregoing, the Commission finds that the 
proposal is consistent with the requirements of the Act and in 
particular with the requirements of Section 17A of the Act and the 
rules and regulations thereunder.
    It is therefore ordered, pursuant to Section 19(b)(2) \8\ of the 
Act, that the proposed rule change (File No. SR-OCC-2012-04) be, and 
hereby is, approved.\9\
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    \8\ 15 U.S.C. 78s(b)(2).
    \9\ In approving the proposed rule change, the Commission 
considered the proposal's impact on efficiency, competition and 
capital formation. 15 U.S.C. 78c(f).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-12445 Filed 5-22-12; 8:45 am]
BILLING CODE 8011-01-P