[Federal Register Volume 75, Number 186 (Monday, September 27, 2010)]
[Notices]
[Pages 59303-59304]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-24174]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62956; File No. SR-OCC-2010-09]
Self-Regulatory Organizations; The Options Clearing Corporation;
Order Granting Approval of Proposed Rule Change Relating to Sprott
Physical Gold Shares
September 20, 2010.
I. Introduction
On June 7, 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 clarify that OCC will clear and treat
as options on securities any option contract on Sprott Physical Gold
Shares that are traded on a securities exchange and will clear and
treat as security futures any futures contracts on Sprott Physical Gold
Shares. The proposed rule change was published for comment in the
Federal Register on June 28, 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. 62329 (June 21, 2010),
75 FR 36724.
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II. Description of the Proposal
The proposed rule change will add an interpretation following the
definition of ``fund share'' in Article I, Section 1(F)(8), of OCC's
By-Laws to clarify that OCC will clear and treat as options on
securities any option contract on Sprott Physical Gold Shares that is
traded on a securities exchange and will clear and treat as security
futures any futures contracts on Sprott Physical Gold Shares.\4\ This
treatment is essentially the same as that extended to other options
that OCC currently clears clears pursuant to rule changes approved by
the Commission.\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 and Exchange Commission Release Nos. 57895 (May
30, 2008), 73 FR 32066 (June 5, 2008) (SPDR Gold Trust); 59054 (Dec.
4, 2008), 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 Gold Shares and ETFS Physical Silver Shares);
61958 (Apr. 22, 2010), 75 FR 22673 (Apr. 29, 2010) (ETFS Palladium
Shares And ETFS Platinum Shares).
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In its capacity as a ``derivatives clearing organization''
registered as such with the CFTC, OCC also 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 options on securities any option contract
on Sprott Physical Gold Shares that is traded on a securities exchange
and will clear and treat as security futures any futures contracts on
Sprott Physical Gold Shares, OCC's rule change should help clarify
OCC's treatment 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
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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[[Page 59304]]
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-2010-09) 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. 2010-24174 Filed 9-24-10; 8:45 am]
BILLING CODE 8010-01-P