[Federal Register Volume 75, Number 42 (Thursday, March 4, 2010)]
[Notices]
[Pages 9981-9982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-4517]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61591; File No. SR-OCC-2009-20]
Self-Regulatory Organizations; The Options Clearing Corporation;
Order Approving Proposed Rule Change Relating to ETFS Physical Swiss
Gold Shares and ETFS Physical Silver Shares
February 25, 2010.
I. Introduction
On December 14, 2009, 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\ On January 8, 2010, the Commission published notice of the
proposed rule change in the Federal Register to solicit comments from
interested persons.\2\ For the reasons discussed below, the Commission
is approving the proposed rule change.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ Securities Exchange Act Release No. 61254 (Dec. 29, 2009),
75 FR 1093.
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II. Description
The proposed rule change will amend the interpretation following
the definition of ``fund share'' in Article I, Section 1, of OCC's By-
Laws. This amendment will enable OCC to (i) clear and treat as
securities options any option contracts on ETFS Physical Swiss Gold
Shares or on ETFS Physical Silver Shares that are traded on securities
exchanges and (ii) clear and treat as security futures any futures
contracts on ETFS Physical Swiss Gold Shares and ETFS Physical Silver
Shares.\3\ In addition, in its capacity as a
[[Page 9982]]
``derivatives clearing organization'' registered with the Commodities
Futures Trading Commission (``CFTC''), OCC also filed this proposed
rule change with the CFTC 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 OCC's clearing of such options as securities options or the
clearing of such futures as security futures constitutes a violation of
the CEA.
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\3\ The Commission recently approved rule changes permitting
NYSE Amex, NYSE Arca, International Securities Exchange, and the
Chicago Board Options Exchange to each list and trade options based
on the EFTS Gold Trust and EFTS Silver Trust shares. Securities
Exchange Act Release No. 61483 (Feb. 3, 2010), 75 FR 6753 (Feb. 10,
2010).
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The products that are affected by this approval order are
essentially the same as the options and security futures on SPDR Gold
Shares, iShares COMEX Gold Shares, and iShares Silver Shares that OCC
currently clears pursuant to rule changes approved by the Commission
last year.\4\
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\4\ Securities Exchange Act Release Nos. 57895 (May 30, 2008),
73 FR 32066 (June 5, 2008) and 59054 (Dec. 4, 2008), 73 FR 75159
(Dec. 10, 2008).
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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.\5\ By amending its By-Laws to help clarify
that options and security futures on ETFS Physical Swiss Gold Shares
and ETFS Physical Silver Shares will be treated and cleared as
securities options or security futures, OCC's proposed 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 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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\5\ 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 \6\ and the rules and regulations
thereunder.
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\6\ 15 U.S.C. 78q-1.
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It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\7\ that the proposed rule change (File No. SR-OCC-2009-20) be and
hereby is approved.\8\
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\7\ 15 U.S.C. 78s(b)(2).
\8\ 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.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-4517 Filed 3-3-10; 8:45 am]
BILLING CODE 8011-01-P