[Federal Register Volume 75, Number 96 (Wednesday, May 19, 2010)]
[Notices]
[Pages 28085-28086]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-11940]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62094; File No. SR-OCC-2010-07]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of Proposed Rule Change Relating to Clearing Options
on the CBOE Gold ETF Volatility Index
May 13, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934,\1\ notice is hereby given that on April 26, 2010, The Options
Clearing Corporation (``OCC'') filed with the Securities and Exchange
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).
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I. Self-Regulatory Organization's Statement of the Terms of the
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 to clarify
that OCC will clear and treat as securities options any option
contracts on the CBOE Gold 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, 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.
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 make clear that
options on the CBOE Gold ETF Volatility Index, which is an index that
measures the implied volatility of options on the SPDR Gold Trust,
which is an exchange-traded fund designed to reflect the performance of
gold bullion. To accomplish this purpose, OCC is proposing 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 Gold ETF Volatility Index.\2\ On May
30, 2008, the Commission approved rule filing SR-OCC-2008-07, which
added a similar interpretation with respect to the treatment and
clearing of options on shares of the SPDR Gold Trust.\3\ On December 4,
2008, the Commission approved rule filings SR-OCC-2008-13 and SR-OCC-
2008-14, which extended similar treatment to options on iShares[supreg]
COMEX Gold Shares and iShares[supreg] Silver Shares.\4\ On February 25,
2010, the Commission approved rule filing SR-OCC-2009-20, which
extended similar treatment to options and security futures on ETFS
Physical Swiss
[[Page 28086]]
Gold Shares and ETFS Physical Silver Shares.\5\
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\2\ The specific language of the proposed interpretation can be
found on OCC's Web site at http://www.theocc.com/publications/rules/proposed_changes/proposed_changes.jspU.
\3\ Securities Exchange Act Release No. 57895, 73 FR 32066 (June
5, 2008).
\4\ Securities Exchange Act Release No. 59054, 73 FR 75159 (Dec.
10, 2008). These filings also provided that futures on the exchange-
traded funds in question would be cleared and treated as security
futures.
\5\ Securities Exchange Act Release No. 61591, 75 FR 9979 (Mar.
4, 2010).
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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 (``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 states that the proposed interpretation of OCC's By-Laws is
consistent with the purposes and requirements of Section 17A of the Act
\6\ 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 does so by reducing the
likelihood of a dispute as to OCC's treatment of options based on the
CBOE Gold ETF Volatility Index. The proposed rule change is not
inconsistent with the By-Laws and Rules of OCC.
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\6\ 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
OCC has not solicited or received written comments relating to the
proposed rule change. OCC will notify the Commission of any written
comments it receives.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within thirty-five days of the date of publication of this notice
in the Federal Register or within such longer period (i) as the
Commission may designate up to ninety days of such date 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 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 Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an e-mail to [email protected]. Please include
File No. SR-OCC-2010-07 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File No. SR-OCC-2010-07. 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 Web site 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 filing also will be available for
inspection and copying at OCC's principal office and on OCC's Web site
at http://www.theocc.com/publications/rules/proposed_changes/proposed_changes.jspU. 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 submission should refer to File No. SR-
OCC-2010-07 and should be submitted on or before June 9, 2010.
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-11940 Filed 5-18-10; 8:45 am]
BILLING CODE 8010-01-P