[Federal Register Volume 60, Number 135 (Friday, July 14, 1995)]
[Notices]
[Pages 36320-36321]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17265]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35937; International Series Release No. 825; File No.
SR-OCC-95-05]
Self-Regulatory Organizations; the Options Clearing Corp.; Filing
of Proposed Rule Change Seeking Approval to Issue, Clear, and Settle
Customized Foreign Currency Options on the Italian Lira and Spanish
Peseta
July 5, 1995.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on May 4, 1995, 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.
\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 will enable OCC to issue, clear, and
settle option transactions where the Italian lira or the Spanish peseta
is either the trading currency or the underlying currency.
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. The self-regulatory organization has prepared summaries,
set forth in sections (A), (B), and (C) below, of the most significant
aspects of such statements.\2\
\2\ The Commission has modified the language in these sections.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
Under the proposed rule change, OCC will issue, clear, and settle
option transactions where the Italian lira or the Spanish paseta is
either the trading currency or the underlying currency. The
Philadelphia Stock Exchange (``PHLX'') has proposed to list and trade
such foreign currency options through its customized options
facility.\3\
\3\ For a discussion of the PHLX proposals, refer to Securities
Exchange Act Release Nos. 35678 (May 4, 1995), 60 FR 24945 (File No.
SR-PHLX-95-20) (notice of proposed rule change to list and trade
options on the Italian lira) and 35677 (May 4, 1995), 60 FR 24941
(File No. SR-PHLX-95-21) (notice of proposed rule change to list and
trade options on the Spanish peseta).
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The PHLX rule filings propose to enable its members to trade
customized contracts between the lira or the peseta and any other
approved currency. Currently, OCC has approval to list and clear
flexibly structured option contracts on any combination of the
following currencies: (1) Australian dollars, (2) British pounds, (3)
Canadian dollars, (4) German marks, (5) European Economic Community
currency units, (6) French francs, (7) Japanese yen, (8) Swiss francs,
and (9) United States dollars. OCC is now proposing to add the Italian
lira and the Spanish peseta to that list of approved currencies.
Options on the lira or the peseta will be cleared and settled in
accordance with the clearance and settlement mechanisms already in
place for flexibly structured foreign currency options and for cross-
rate foreign currency options. In addition, options on the lira or the
peseta will be margined like OCC's existing foreign currency and cross-
rate foreign currency option contracts. Accordingly, OCC has determined
that no changes to its by-laws or rules are necessary to accommodate
these new contracts.
OCC believes the proposed rule change is consistent with the
requirements of section 17A of the Act \4\ and the rules and
regulations thereunder because the proposal will provide for the prompt
and accurate clearance and settlement of transactions in options on the
Italian lira and the Spanish peseta and will provide for the
safeguarding of related securities and funds. The proposed rule change
meets such requirements by establishing a framework in which existing
and reliable OCC systems, rules, and procedures are extended to the
processing of these new currency contracts.
\4\ 15 U.S.C. 78q-1 (1988).
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(B) Self-Regulatory Organization's Statement on Burden on Competition
OCC believes that no burden will be placed on competition as a
result of the proposed rule change.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received from Members, Participants or Others
No written comments have been solicited or received. OCC will
notify the Commission of any written comments received by OCC.
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 OCC consents, the Commission will:
(a) By order approve such 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. Persons making written submission
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549.
Copies of the submissions, 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 Room, 450 Fifth Street, NW., Washington,
DC 20549. Copies of such filings will also be available for inspection
and copying at the principal office of OCC. All submissions should
refer to the file number SR-OCC-95-05 and should be submitted by August
4, 1995.
[[Page 36321]]
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\5\
\5\ 17CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-17265 Filed 7-13-95; 8:45 am]
BILLING CODE 8010-01-M
