[Federal Register Volume 59, Number 100 (Wednesday, May 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12745]
[[Page Unknown]]
[Federal Register: May 25, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34085; File No. SR-ICC-94-04]
Self-Regulatory Organizations; The Intermarket Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Amending its Margin Resolution
May 18, 1994.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on May 9, 1993, The
Intermarket Clearing Corporation (``ICC'') filed with the Securities
and Exchange Commission (``Commission'') the proposed rule change (File
No. SR-ICC-94-03) as described in Items I, II, and III below, which
Items have been prepared primarily by ICC, a self-regulatory
organization. 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) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change amends the definition of ``premium
margin'' in ICC's Margin Resolution.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, ICC has 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. ICC 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 rule change amends the definition of the term ``premium
margin'' to incorporate terminology that is more consistent with the
pricing practices of the commodities markets. With respect to certain
unexercised or unassigned positions in option contracts, ICC previously
defined premium margin in pertinent part to be ``the current highest
per-unit asked premium quotation for options'' at the close of trading
on the preceding trading day. For purposes of ICC's Margin Resolution,
the term ``option contracts'' includes both commodity and securities
options.
While the reference to the ``per-unit asked premium quotation'' is
appropriate terminology with respect to securities options, it is less
appropriate with respect to commodity options. In the commodity
markets, a single commodity option price (i.e., a ``settlement price'')
for each contract is disseminated at the close of trading rather than
two prices (i.e., bid and ask quotes) as in the equity markets.
Accordingly, ICC's Margin Resolution is being amended to incorporate
the term ``settlement prices'' in the definition of premium margin
where it is appropriate. The Margin Resolution now defines premium
margin in pertinent part to be ``the current highest per-unit asked
premium quotation with respect to an OCC Option, or the settlement
price with respect to a commodity option for options.''
ICC believes that the proposed rule change is consistent with
section 17A of the Act\2\ in that it conforms the terminology used in
ICC's Margin Resolution with the practices used in the commodities
markets.
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\2\15 U.S.C. 78q-1 (1988).
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B. Self-Regulatory Organization's Statement on Burden on Competition
ICC believes that the proposed rule change will not impose any
burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
ICC has not solicited or received any comments on the proposed rule
change.
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)(i) of the Act\3\ and subparagraph (e)(1) of Securities
Exchange Act Rule 19b-4 because it constitutes a stated policy,
practice, or interpretation of an SRO with respect to the meaning,
administration, or enforcement of an existing rule.\4\ At any time
within sixty days of the filing of such proposed 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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\3\15 U.S.C. 78s(b)(3)(A)(i) (1988).
\4\17 CFR 240.19b-4(e)(1) (1991).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 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, NW.,
Washington, DC 20549. Copies of such filing will also be available for
inspection and copying at the principal office of the above-referenced
self-regulatory organization. All submissions should refer to File No.
SR-ICC-94-04 and should be submitted by June 15, 1994.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\5\
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\5\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-12745 Filed 5-24-94; 8:45 am]
BILLING CODE 8010-01-M
