[Federal Register Volume 64, Number 160 (Thursday, August 19, 1999)]
[Notices]
[Pages 45295-45296]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-21538]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41736; File No. SR-OCC-99-8]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Fees and Charges
August 12, 1999.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), \1\ notice is hereby given that on July 27, 1999, 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 from interested persons on the proposed rule change.
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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 reduces OCC clearing fees for established
products in the second half of 1999.
[[Page 45296]]
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.\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
The purpose of the proposed rule change is to reduce the clearing
fees charged for established products in the second half of 1999. OCC
experienced a record volume of options cleared during the first two
quarters of 1999. As a result, OCC proposes to reduce its level of
clearing fees, effective July 1, 1999, as follows:
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Current
Contract trade level clearing Proposed
fee clearing fee
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1-500........................................ $0.09 $0.075
501-1000..................................... 0.07 0.06
1001-2000.................................... 0.06 0.0525
>2000........................................ *110.00 *100.00
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*Flat fee.
OCC believes that the foregoing fee change will assure each
clearing member a discount on clearing fees. The proposed fee schedule
change will also allow clearing members to immediately realize the
benefits of reduced fees (rather than waiting for OCC's rebate of
clearing fees) without adversely affecting OCC's ability to maintain an
acceptable level of retained earnings. The clearing fees will revert to
their current levels on the first trading day of year 2000.
OCC believes that the proposed rule change is consistent with
Section 17A of the Act \3\ and the rules and regulations thereunder
because it benefits OCC's clearing members by reducing fees and
allocating fees among clearing members in an equitable manner.
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\3\ 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 pursuant to Section
19(b)(3)(A)(iii) \4\ of the Act and pursuant to Rule 19b-4(f)(2) \5\
promulgated thereunder because the proposal establishes or changes a
due, fee, or other charge imposed by OCC. At any time within sixty days
of the filing of such 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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\4\ 15 U.S.C. 78s(b)(3)(A)(iii).
\5\ 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. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549-
0609. 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, 450 Fifth Street, N.W.,
Washington, D.C. 20549-0609. Copies of such filing also will be
available for inspection and copying at the principal office of OCC.
All submissions should refer to File No. SR-OCC-99-8 and should be
submitted by September 9, 1999.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-21538 Filed 8-18-99; 8:45 am]
BILLING CODE 8010-01-M