
[Federal Register Volume 76, Number 121 (Thursday, June 23, 2011)]
[Notices]
[Pages 36943-36945]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-15659]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64697; File No. SR-OCC-2011-07]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Provide an Interpretation to Rule 401 To Allow Clearing Members To Use 
OCC Systems To Update Certain Non-critical Trade Data With Respect to 
Exchange Transactions Involving Securities Options

June 17, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on June 7, 2011, The Options 
Clearing Corporation (``OCC'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change described in Items 
I, II, and III below, which Items have been prepared primarily by OCC. 
OCC filed the proposal 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 rule change from interested 
parties.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \3\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change will provide an interpretation to Rule 401 
to allow clearing members to use OCC systems to update certain non-
critical trade data with respect to exchange transactions involving 
securities options provided such updates do not contravene any rule of 
the exchange on which such transactions were effected.

[[Page 36944]]

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 these 
statements.\4\
---------------------------------------------------------------------------

    \4\ The Commission has modified the text of the summaries 
prepared by OCC.
---------------------------------------------------------------------------

(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 provide an 
interpretation to Rule 401 to allow clearing members to use OCC systems 
to update certain non-critical trade data with respect to exchange 
transactions involving securities options provided such updates do not 
contravene any rule of the exchange on which such transactions were 
effected. Examples of non-critical option trade data that would 
eligible for updating by clearing members include: open/close 
indicators, account type, account numbers, Clearing Member Trade 
Assignment clearing member numbers, and optional data field remarks.
    Rule 401 concerns the reporting of matching trade information by 
exchanges to OCC. An interpretation to Rule 401 allows clearing members 
to use OCC systems to update certain non-critical trade data with 
respect to exchange transactions involving futures provided such 
updates do not contravene any rule of the exchange on which such 
transaction was effected. Clearing members recently have asked that OCC 
expand this to cover options transactions. The request was processed 
through the OCC Roundtable, an advisory group comprised of clearing 
members, options exchanges, and service bureaus, which assesses 
operational improvements that may be implemented at OCC to increase 
efficiencies and lower costs to industry participants.
    As in exchange transactions involving futures, OCC's systems would 
be configured to ``bust'' the submitted trade and to add a new trade 
that includes the change. This provides an audit trail for OCC and the 
affected exchange. OCC also would provide functionality to allow an 
exchange to prevent such updates from happening at OCC for trades 
executed on its market.
    To accommodate this request, a minor change will be made to 
Interpretation and Policy .02 to Rule 401. The change will allow 
clearing members to use OCC's systems to update non-critical trade 
information with respect to all exchange transactions involving 
securities options with the restriction that such updates may not be in 
contravention of any rule of the exchange on which the transaction was 
effected. 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 will have any 
impact or 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 relating to the proposed rule change have not been 
solicited or received. OCC will notify the Commission of any written 
comments received by OCC.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing proposed rule change has become effective upon filing 
pursuant to Section 19(b)(3)(A)(iii) of the Act \5\ and Rule 19b-
4(f)(4) \6\ thereunder because the proposed rule change affects a 
change in an existing service of OCC that: (i) does not adversely 
affect the safeguarding of securities or funds within the custody or 
control of OCC or for which OCC is responsible; and (ii) does not 
significantly affect the respective rights or obligations of clearing 
members which would use the service or of OCC. At any time within 60 
days of the filing of the proposed rule change, the Commission 
summarily may temporarily suspend 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\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \6\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------

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 rule-comments@sec.gov. Please include 
File Number SR-OCC-2011-07 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-2011-07. 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 website 
viewing and printing 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 filings also will be 
available for inspection and copying at the principal office of OCC and 
on OCC's Web site at http://www.optionsclearing.com/components/docs/legal/rules_and_bylaws/sr_occ_11_07.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-2011-07 
and should be submitted on or before July 14, 2011.


[[Page 36945]]


    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Cathy H. Ahn,
Deputy Secretary .
[FR Doc. 2011-15659 Filed 6-22-11; 8:45 am]
BILLING CODE 8011-01-P


