80 FR 54628 - Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing of a Proposed Rule Change To Amend The Options Clearing Corporation's Schedule of Fees To Allow a Clearing Fee Waiver for Exchange New Products

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 175 (September 10, 2015)

[Federal Register Volume 80, Number 175 (Thursday, September 10, 2015)]
[Notices]
[Pages 54628-54629]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-22740]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75825; File No. SR-OCC-2015-014]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Filing of a Proposed Rule Change To Amend The Options 
Clearing Corporation's Schedule of Fees To Allow a Clearing Fee Waiver 
for Exchange New Products

September 3, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder \2\ notice is hereby given that 
on August 31, 2015, 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 by OCC. 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).
    \2\ 17 CFR 240.19b-4.
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The purpose of this proposed rule change is to amend OCC's Schedule 
of Fees, effective September 1, 2015, to allow a clearing fee waiver 
for exchange new products that is longer than the current clearing fee 
waiver for exchange new products.

II. Clearing Agency'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 these 
statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

1. Purpose
    The purpose of this proposed rule change is to amend OCC's Schedule 
of Fees to allow for a longer clearing fee waiver period, for up to 
twelve (12) months, for clearing members trading exchange new products. 
OCC's Schedule of Fees sets forth the clearing fee related to ``New 
Products'' listed by an exchange and cleared through OCC. New products 
are currently subject to a fee waiver, or ``fee holiday,'' in which OCC 
does not charge a clearing fee from the first day of the listing of the 
new product through the end of the following calendar month. After that 
time, the clearing fee reverts to the applicable clearing fee set forth 
in the Schedule of Fees.\3\
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    \3\ For example, the current Schedule of Fees provides that 
trades with contracts of 1-500 are charged $0.05 per trade, trades 
with contracts of 501-1000 are charged $0.04 per trade and trades 
with contracts of 1001-2000 are charged $0.03 per trade.
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    OCC is proposing to revise its Schedule of Fees to allow the 
exchange new product fee waiver period to be longer in duration than 
the current exchange new product fee waiver period in the event that 
OCC and an exchange would agree to a longer fee waiver. The length of 
any proposed extended exchange new product fee waiver would be subject 
to agreement between OCC and the requesting exchange and shall not 
exceed 12 months. Each exchange clearing new products through OCC would 
be able to extend the clearing fee waiver for its new products beyond 
the period in the current Schedule of Fees for up to 12 months, subject 
to OCC's agreement. Further, consistent with the terms of the Restated 
Participant Exchange Agreement for options exchanges and OCC's Clearing 
and Settlement Services Agreements with futures exchanges, OCC may not 
discriminate among exchanges with respect to the nature or quality of 
the services it provides to the exchanges for which it provides 
clearance and settlement services. Accordingly, the service terms 
provided to one exchange, such as an extended clearing fee waiver for 
new products, would also need to be made available to all other 
exchanges.
    In addition, the current clearing fee waiver period for exchange 
new products would not be shortened by this proposed rule change. OCC 
believes that the proposed flexibility in the waiver period for 
exchange new products will enhance innovation for the introduced new 
products.
2. Statutory Basis
    OCC believes the proposed rule change is consistent with Section 
17A(b)(3)(D) \4\ of the Act, because the proposed change would 
equitably allocate reasonable clearing fees among all of its clearing 
members pursuant to the proposed Schedule of Fees. As described above, 
the proposed extended clearing fee waiver would apply equally

[[Page 54629]]

to all clearing members trading applicable exchange new products and 
there is no concurrent increase in clearing fees for any other clearing 
members clearing any other products at OCC. The proposed rule change is 
not inconsistent with the existing rules of the OCC including any other 
rules proposed to be amended.
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    \4\ 15 U.S.C. 78q-1(b)(3)(D).
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(B) Clearing Agency's Statement on Burden on Competition

    OCC does not believe that the proposed rule change would impose a 
burden on competition.\5\ Although this proposed rule change affects 
clearing members, their customers and the markets that OCC serves, OCC 
believes that the proposed rule change would not disadvantage or favor 
any particular user of OCC's services in relationship to another user 
because clearing fees apply equally to all users of OCC as set forth in 
OCC's Schedule of Fees. Additionally, and as described above, OCC 
cannot discriminate among exchanges with respect to the nature or 
quality of the services it provides to the exchanges for which it 
provides clearance and settlement services. For the foregoing reasons, 
OCC does not believe that the proposed rule change would impose a 
burden on competition.
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    \5\ 15 U.S.C. 78q-1(b)(3)(I).
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(C) Clearing Agency's Statement on Comments on the Proposed Rule Change 
Received From Members, Participants or Others

    Written comments on the proposed rule change 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) of the Act and paragraph (f) of Rule 19b-4 thereunder. At 
any time within 60 days of the filing of the proposed rule change, the 
Commission summarily may temporarily suspend 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.

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. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commissions Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-OCC-2015-014 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-OCC-2015-014. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 Web site viewing and 
printing in the Commission's Public Reference Section, 100 F Street 
NE., Washington, DC 20549, on official business days between the hours 
of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be 
available for inspection and copying at the principal office of OCC and 
on OCC's Web site at http://www.theocc.com/components/docs/legal/rules_and_bylaws/sr_occ_15_014.pdf.
    All comments received will be posted without change; the Commission 
does not edit personal identifying information from submissions. You 
should submit only information that you wish to make available 
publicly.
    All submissions should refer to File Number SR-OCC-2015-014 and 
should be submitted on or before October 1, 2015.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated Authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-22740 Filed 9-9-15; 8:45 am]
 BILLING CODE 8011-01-P