[Federal Register Volume 63, Number 76 (Tuesday, April 21, 1998)]
[Notices]
[Pages 19782-19783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10418]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39862; File No. SR-OCC-98-01]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Fees and Charges
April 14, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on February 2, 1998, The
Options Clearing Corporation (``OCC'') filed with the Securities and
Exchange Commission (``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 from interested persons on the proposed rule change.
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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
Substance of the Proposed Rule Change
The proposed rule change will amend OCC's fee schedule relating to
fees for established products and to introductory clearing fees for new
products.
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.\2\
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\2\ The Commission has modified the text of the summaries
prepared by OCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
OCC's current clearing fee for established products is $.10 per
contract, per side. Under the proposed rule change this single clearing
fee will be replaced with the following fee structure:
------------------------------------------------------------------------
Cleared trades of-- Clearing fee (per side)--
------------------------------------------------------------------------
1-500 contracts........................... $0.09 per contract.
501-1,000 contracts....................... .07 per contract.
1,001-2,000 contracts..................... .06 per contract.
Greater than 2,000 contracts.............. 110.00 per trade.
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In addition, OCC's introductory clearing fees for new products
currently are (i) $.00 per contract per side for the first month the
new product is traded; (ii) $.025 per contract per side for the second
month the new product is traded; (iii) $.050 per contract per side for
the third month the new product is traded; and (iv) $.10 for the fourth
month the new product is traded and thereafter. Under the proposed rule
change, OCC's current introductory fees will be replaced with the
following fee structure:
------------------------------------------------------------------------
Clearing fee
New products (per side)
------------------------------------------------------------------------
First Calendar Month Traded............................... $0.00
Second Calendar Month Traded:
Cleared trades of:
1-4,400 contracts................................. a .025
Greater than 4,400 contracts...................... b 110.00
Third Calendar Month Traded:
Cleared trades of:
1-2,200 contracts................................. a .050
Greater than 2,200 contracts...................... b, 3 110.00
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a Per contract. b Per trade.
\3\ OCC has informed the Commission that it is modifying the
introductory fees for cleared trades of more than 4,400 contracts
during the second calendar month and of more than 2,200 trades during
the third calendar month so that introductory fees for new products do
not exceed the volume discounts under the regular fee schedule.
In the fourth calendar month that the new product is traded and
thereafter, OCC will begin charging its clearing fees for established
products. Cleared trades will be determined with reference to the
matched trades reported to OCC by its participant exchanges.
OCC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \4\ and the rules and
regulations thereunder because it provides for the equitable allocation
of dues, fees, and other charges among OCC's participants and other
parties who use OCC's services.
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\4\ 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 will impose any
burden on competition.
[[Page 19783]]
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
Written comments were not and are not intended to be solicited with
respect to the proposed rule change, and none have been received.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) \5\ of the Act and pursuant to Rule 19b-4(e)(2) \6\
promulgated thereunder because the proposal establishes or changes a
due, fee, or other charge imposed by OCC. At any time within sixty days
of the filing of such rule change, the Commission may summarily
abrogate such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act.
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\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 17 CFR 240.19b-4(e)(2).
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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. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549.
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 inspection and copying in the
Commission's Public Reference Section, 450 Fifth Street, N.W.,
Washington, D.C. 20549. Copies of such filing also will be available
for inspection and copying at the principal office of OCC. All
submissions should refer to File No. SR-OCC-98-01 and should be
submitted by May 12, 1998.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-10418 Filed 4-20-98; 8:45 am]
BILLING CODE 8010-01-M
