[Federal Register Volume 75, Number 120 (Wednesday, June 23, 2010)]
[Notices]
[Pages 35861-35862]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-15128]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62290; File No. SR-OCC-2010-07]
Self-Regulatory Organizations; The Options Clearing Corporation;
Order Granting Approval of a Proposed Rule Change Relating to Clearing
Options on the CBOE Gold ETF Volatility Index
June 14, 2010.
I. Introduction
On April 26, 2010, The Options Clearing Corporation (``OCC'') filed
with the Securities and Exchange Commission the proposed rule change
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 \1\
and Rule 19b-4 thereunder \2\ to 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. The proposed rule
change was published for comment in the Federal Register on May 19,
2010.\3\ No comment letters were received on the proposal. This order
approves the proposal.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 62094 (May 13, 2010), 75
FR 28085.
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II. Description of the Proposal
The proposed rule change will add an interpretation following the
introduction in Article XVII of OCC's By-Laws to make clear that OCC
will clear and treat as securities options any option contracts on the
CBOE Gold ETF Volatility Index.\4\ This treatment is essentially the
same as that extended to other similar options that OCC currently
clears.\5\
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\4\ The specific language of the new interpretation can be found
on OCC's Web site at http://www.theocc.com/about/publications/bylaws.jsp.
\5\ Securities Exchange Act Release Nos. 59054, 73 FR 75159
(Dec. 10, 2008) (iShares COMEX Gold Shares and iShares Silver
Shares); 61591 (Feb. 25, 2010), 75 FR 9979 (Mar. 4, 2010) (ETFS
Physical Swiss Gold Shares and ETFS Physical Silver Shares); 57895
(May 30, 2008), 73 FR 32066 (June 5, 2008) (SPDR Gold Trust); 61958
(Apr. 22, 2010), 75 FR 22673 (Apr. 29, 2010) (ETFS Palladium Shares
And ETFS Platinum Shares). These filings also provided that futures
on the exchange-traded funds in question would be cleared and
treated as security futures.
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In its capacity as a ``derivatives clearing organization''
registered as such with the CFTC, OCC filed this proposed rule change
for prior approval by the CFTC pursuant to provisions of the Commodity
Exchange Act (``CEA'') in order to foreclose potential liability based
on an argument that the clearing by OCC of such options as securities
options constitutes a violation of the CEA.
III. Discussion
Section 17A(b)(3)(F) of the Act requires, among other things, that
the rules of a clearing agency be designed to promote the prompt and
accurate clearance and settlement of securities transactions and
derivative transactions.\6\ By amending its By-Laws to make clear that
OCC will clear and treat as securities options any option contracts on
the CBOE Gold ETF Volatility Index, OCC's rule change should help
clarify the jurisdictional status of such contracts and accordingly
should help to promote the prompt and accurate clearance and settlement
of securities transactions and of derivative transactions. In
accordance with the Memorandum of Understanding entered into between
the CFTC and the
[[Page 35862]]
Commission on March 11, 2008, and in particular the addendum thereto
concerning Principles Governing the Review of Novel Derivative
Products, the Commission believes that novel derivative products that
implicate areas of overlapping regulatory concern should be permitted
to trade in either a CFTC or Commission-regulated environment or both
in a manner consistent with laws and regulations (including the
appropriate use of all available exemptive and interpretive authority).
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\6\ 15 U.S.C. 78q-1(b)(3)(F).
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IV. Conclusion
On the basis of the foregoing, the Commission finds that the
proposed rule change is consistent with the requirements of the Act and
in particular Section 17A of the Act \7\ and the rules and regulations
thereunder.
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\7\ 15 U.S.C. 78q-1.
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It Is Therefore Ordered, pursuant to Section 19(b)(2) of the
Act,\8\ that the proposed rule change (File No. SR-OCC-2010-07) 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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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-15128 Filed 6-22-10; 8:45 am]
BILLING CODE 8010-01-P