[Federal Register Volume 75, Number 52 (Thursday, March 18, 2010)]
[Notices]
[Pages 13169-13170]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-5914]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61692; File No. SR-OCC-2010-0]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of Proposed Rule Change Relating to ETFS Palladium
Shares And ETFS Platinum Shares
March 11, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934,\1\ notice is hereby given that on March 1, 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 add ETFS Palladium Shares and ETFS
Platinum Shares to the interpretation following the definition of
``fund share'' in Article I, Section 1 of OCC's By-Laws.
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 remove any potential
cloud on the jurisdictional status of options or security futures on
ETFS Palladium Shares or ETFS Platinum Shares. To accomplish this
purpose, OCC is proposing to amend the interpretation following the
definition of ``fund share'' in Article I, Section 1 of OCC's By-Laws.
On May 30, 2008, the Commission approved rule filing SR-OCC-2008-07,
which added the interpretation with respect to the treatment and
clearing of options and security futures on SPDR Gold Shares.\2\ On
December 4, 2008, the Commission approved rule filings SR-OCC-2008-13
and SR-OCC-2008-14, which amended the interpretation to extend similar
treatment to options and security futures on iShares[supreg] COMEX Gold
Shares and iShares[supreg] Silver Shares.\3\ 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 Gold
Shares and ETFS Physical Silver Shares.\4\ Under the current proposed
rule change, OCC would also (i) clear and treat as securities options
any option contracts on ETFS Palladium Shares and ETFS Platinum Shares
that are traded on securities exchanges and (ii) clear and treat as
security futures any futures contracts on ETFS Palladium Shares and
ETFS Platinum Shares.
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\2\ Securities Exchange Act Release No. 57895, 73 FR 32066 (June
5, 2008).
\3\ Securities Exchange Act Release No. 59054, 73 FR 75159 (Dec.
10, 2008).
\4\ 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 with the Commodity Futures Trading Commission (``CFTC''),
OCC is filing this proposal 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 or the
clearing of such futures as security futures constitutes a violation of
the CEA. The products for which approval is requested are essentially
the same as the options and security futures on SPDR Gold Shares,
iShares[reg] COMEX Gold Shares, and iShares[reg] Silver Shares that OCC
currently clears pursuant to the rule changes referred to above and
exemptions issued by the CFTC.\5\ OCC believes that this filing raises
no new regulatory or policy issues.
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\5\ CFTC Order Exempting the Trading and Clearing of Certain
Products Related to SPDR Gold Trust Shares, 73 FR 31981 (June 5,
2008). CFTC Order Exempting the Trading and Clearing of Certain
Products Related to iShares[reg] COMEX Gold Trust Shares and
iShares[reg] Silver Trust Shares, 73 FR 79830 (Dec. 3, 2008).
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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 and security
futures, 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. OCC states
that the proposed rule change accomplishes these purposes by reducing
the likelihood of a dispute as to the Commission's jurisdiction or
shared jurisdiction in the case of security futures over derivatives
based on ETFS Palladium Shares or ETFS Platinum Shares. OCC also states
that the
[[Page 13170]]
proposed rule change is not inconsistent with OCC's By-Laws and Rules.
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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-2010-03 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-2010-03. 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-2010-03 and should be submitted on or before April 8, 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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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-5914 Filed 3-17-10; 8:45 am]
BILLING CODE 8011-01-P