[Federal Register Volume 60, Number 221 (Thursday, November 16, 1995)]
[Notices]
[Page 57611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28317]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36469; International Series Release No. 883; File No.
SR-ODD-95-1]
Self-Regulatory Organizations; The Options Clearing Corporation;
Order Approving Supplement to Options Disclosure Document Regarding
Customized Foreign Currency Options With Customized Expiration Dates
November 8, 1995.
On October 26, 1995, the Options Clearing Corporation (``OCC''), on
behalf of the Philadelphia Stock Exchange, Inc. (``PHLX'' or
``Exchange''), submitted to the Securities and Exchange Commission
(``Commission''), pursuant to Rule 9b-1 under the Securities Exchange
Act of 1934 (``Act''),\1\ preliminary copies of a supplement
(``Supplement'') to the Options Disclosure (``ODD'') which describes
the special exercise and assignment procedures for foreign currency
options with customized expiration dates (``Customized expiration date
FCOs''). Five definitive copies of the Supplement were delivered to the
Commission on November 7, 1995.\2\
\1\ 17 CFR 240.9b-1 (1994).
\2\ See letter from Jean M. Cawley, OCC, to Michael Walinskas,
Branch Chief, Office of Market Supervision, Division of Market
Regulation, Commission, dated November 7, 1995.
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The proposed Supplement to the ODD provides for disclosure of
certain unique aspects of the Exchange's Customized expiration date FCO
proposal, which has been submitted to the Commission separately.\3\
This Supplement, which is to be read in conjunction with the more
general ODD entitled ``Characteristics and Ricks of Standardized
Options,'' describes, among other things, the special exercise and
assignment procedures for Customized expiration date FCOs. Pursuant to
Rule 9b-1, the Supplement will have to be provided to investors in this
product before their accounts are approved for transactions in
Customized expiration date FCOs or their orders for Customized
expiration date FCOs are accepted.
\3\ See Securities Exchange Act Release No. 36131 (August 22,
1995), 60 FR 44927 (August 29, 1995) (notice of File No. SR-PHLX-95-
52).
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The Commission has reviewed the ODD Supplement and finds that it
complies with Rule 9b-1. The Supplement is intended to be read in
conjunction with the ODD, which discloses the characteristics and risks
of flexibly structured foreign currency options generally. The
Supplement provides additional information regarding Customized
expiration date FCOs sufficient to describe the special characteristics
and risks of these products with respect to their exercise and
assignment.
Rule 9b-1 provides that an options market must file five copies of
amendments to a disclosure document with the Commission at least 30
days prior to the date definitive copies are furnished to customers,
unless the Commission determines otherwise having due regard to the
adequacy of the information disclosed and the protection of
investors.\4\ The Commission believes that it is consistent with the
public interest and the protection of investors to allow distribution
of the Supplement as of November 8, 1995, a date which is within 30
days of the date definitive copies of the Supplement were submitted to
the Commission. Specifically, the Commission believes that, because the
Supplement provides adequate disclosure of the special characteristics
and risks of these products with respect to their exercise and
assignment, thereby helping to ensure that customers engaging in
Customized expiration date FCOs are cable of understanding the risks of
such trading activity, it is consistent with the public interest for it
to be distributed to investors before the planned commencement of, or
simultaneously with, trading in Customized expiration date FCOs on the
Exchange.
\4\ This provision is intended to permit the Commission either
to accelerate or to extend the time period in which definitive
copies of a disclosure document may be distributed to the public.
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It is therefore ordered, pursuant to Rule 9b-1 under the Act,\5\
that the proposed Supplement to the ODD (SR-ODD-95-1) to accommodate
the Exchange's proposed trading of Customized expiration date FCOs is
approved.
\5\ 17 CFR 240.9b-1 (1994).
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\6\
\6\ 17 CFR 200.30-3(a)(39) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-28317 Filed 11-15-95; 8:45 am]
BILLING CODE 5010-01-M
