[Federal Register Volume 61, Number 163 (Wednesday, August 21, 1996)]
[Notices]
[Page 43281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21319]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37569; International Series Release No. 1014; File No.
SR-ODD-96-1]
Self-Regulatory Organizations; Canadian Derivatives Clearing
Corporation; Order Approving Proposed Amendments to Options Disclosure
Document
August 14, 1996.
On August 9, 1996, the Canadian Derivatives Clearing Corporation
(``CDCC'') \1\ submitted to the Securities and Exchange Commission
(``SEC'' or ``Commission''), pursuant to Rule 9b-1 under the Securities
Exchange Act of 1934 (``Act''),\2\ five copies of an amended options
disclosure document (``ODD''), which describes the risks and
characteristics of Canadian exchange-traded put and call options
available to American investors.
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\1\ The Canadian Derivatives Clearing Corporation was formerly
known as Trans Canada Options Inc. (``TCO''). The name of the
corporation was changed in January 1996.
\2\ 17 CFR 240.9b-1.
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Previously, on October 2, 1994, the Commission approved the use and
distribution of a TCO ODD which discussed the risks and uses of options
on equity securities.\3\ Subsequently, on August 21, 1985, the
Commission approved an amended TCO ODD that incorporated discussion of
the risks and uses of Canadian exchange-traded options on stock indexes
and bonds.\4\ Later, on May 19, 1987, the Commission approved an
amended TCO ODD that, among other things, expanded the document to
include a discussion of the characteristics and risks of options on the
Government of Canada Treasury Bill Price Index.\5\ On April 1, 1991,
the Commission approved an amended TCO ODD that, among other things,
added reference to an option based on the Toronto Stock Exchange 35
Composite Index, added new terms to its glossary, and deleted reference
to several options which are no longer listed on a Canadian
exchange.\6\ CDCC has now further amended the ODD to, among other
things, reflect the name change of the corporation from Trans Canada
Options Inc. to Canadian Derivatives Clearing Corporation, add new
terms to its glossary, and make other minor additions and deletions to
reflect changes in the Canadian options market since the disclosure
document was last amended in 1991.
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\3\ See Securities Exchange Act Release No. 21365 (October 2,
1984), 49 FR 39400 (October 5, 1984).
\4\ See Securities Exchange Act Release No. 22349 (August 21,
1985), 50 FR 34956 (August 28, 1985).
\5\ See Securities Exchange Act Release No. 24480 (May 19,
1987), 52 FR 20179 (May 29, 1987).
\6\ See Securities Exchange Act Release No. 29033 (April 1,
1991), 56 FR 14407 (April 9, 1991).
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Rule 9b-1 provides that an options market must file five
preliminary copies of an amended ODD with the Commission at least 30
days prior to the date definitive copies of the ODD are furnished to
customers, unless the Commission determines otherwise, having due
regard to the adequacy of information disclosed and the protection of
investors. The Commission has reviewed the CDCC ODD, and finds that it
is consistent with the protection of investors and in the public
interest to allow the distribution of the disclosure document as of the
date of this order.\7\
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\7\ Rule 9b-1 provides that the use of an ODD shall not be
permitted unless the options class to which the document relates is
the subject of an effective registration statement on Form S-20
under the Securities Act of 1933. On August 14, 1996, the
Commission, pursuant to delegated authority, declared effective,
Post-Effective Amendment No. 17 to CDCC's Form S-20 registration
statement. See File No. 2-69458.
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It is therefore ordered, pursuant to Rule 9b-1 under the Act,\8\
that the proposed amendment to the CDCC ODD is approved, on an
accelerated basis.
\8\ 17 CFR 240.9b-1.
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(39).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-21319 Filed 8-20-96; 8:45 am]
BILLING CODE 8010-01-M
