[Federal Register Volume 65, Number 114 (Tuesday, June 13, 2000)]
[Notices]
[Pages 37196-37197]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-14819]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-42900; File No. SR-OCC-00-03]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of Proposed Rule Change To Amend OCC's By-Laws
Relating to Clearing Member Representatives
June 5, 2000.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act''), notice is hereby given that on April 6, 2000, 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 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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[[Page 37197]]
I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The proposed rule change eliminates a requirement in OCC's By-Laws
that requires clearing members to designate a specific individual (a
``designee'') as eligible for service as a member director or a member
of the nominating committee. Instead, the amended By-Laws will provide
that a member director or a member of the nominating committee must be
a ``representative'' of a clearing member.
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 eliminate an OCC By-
Law requirement that clearing members must designate a specific
individual (a ``designee'') to be eligible for service as a member
director or a member of the nominating committee. Instead, OCC believes
that it would be more administratively efficient to require that a
member director or a member of the nominating committee must be a
``representative'' of a clearing member. A ``representative'' is
defined as a director, senior officer, principal or general partner of
a clearing member. The term ``designee'' is being deleted from Article
I, Section 1 of OCC's by-laws and conforming changes are being made to
Section 2, 4, and 5 of Article II of OCC's By-Laws.
In addition, the term ``elected members'' as used with respect to
the nominating committee is being deleted since all nominating
committee members are elected. The term ``members'' is being used
instead. This change is being made to Section 4, 5, and 12 of Article
III and Section 3 of Article VII and to Sections 1, 2, and 3 of the
Stockholders Agreement.
OCC also proposed to make other additional technical and non-
substantive changes. Section 4 of Article III is being amended to
provide that the terms of Class I of the nominating committee expire in
odd numbered years and that the terms of Class II expire in even number
years. Section 5 of Article III is also being amended to provide that
OCC may transmit rather than mail the list of nominees to clearing
members to accommodate other means of distribution.
OCC believes that the proposed rule change is consistent with
Section 17a of the Act because the rule change eliminates
administrative inefficiencies with no adverse impact to clearing member
representation on OCC's Board of Directors.
(B) Self-Regulatory Organization's Statement on Burden on Competition
OCC does not believe that the proposed rule change will impact or
impose a 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)(iv) \3\ of the Act and pursuant to Rule 19b-4(f)(4) \4\
promulgated thereunder because the proposal effects a change in an
existing service of an OCC service that does not adversely affect the
safeguarding of securities or funds in OCC's custody or control and
does not significantly affect the respective rights or obligations of
OCC or persons using the service. 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.\5\
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\3\ 15 U.S.C. 78s(b)(3)(A)(iv).
\4\ 17 CFR 240.19b-4(f)(4).
\5\ 15 U.S.C. 78s(b)(3)(C).
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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, NW, Washington, DC 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, NW,
Washington, DC 20549. 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-00-03 and should be submitted by July
5, 2000.
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. 00-14819 Filed 6-12-00; 8:45 am]
BILLING CODE 8010-01-M