80 FR 55668 - Securities Exchange Act of 1934; In the Matter of the Options Clearing Corporation; Order Discontinuing the Automatic Stay

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 179 (September 16, 2015)

[Federal Register Volume 80, Number 179 (Wednesday, September 16, 2015)]
[Notices]
[Pages 55668-55669]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-23241]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 75886]


Securities Exchange Act of 1934; In the Matter of the Options 
Clearing Corporation; Order Discontinuing the Automatic Stay

September 10, 2015.
    This matter comes before the Commission on the Options Clearing 
Corporation's (``OCC'') motion to lift the

[[Page 55669]]

automatic stay of the approval, through delegated authority, of OCC's 
plan for raising additional capital (``Capital Plan'') to support its 
function as a systemically important financial market utility. On 
January 26, 2015, the Commission issued a notice of filing of the 
proposed rule change regarding the Capital Plan.\1\ After consideration 
of the record in the proposed rule change, the Division of Trading and 
Markets, for the Commission pursuant to delegated authority, issued an 
order approving (``Approval Order'') the Capital Plan on March 6, 
2015.\2\
---------------------------------------------------------------------------

    \1\ Securities Exchange Act Release No. 74136 (January 26, 
2015), 80 FR 5171 (January 30, 2015) (SR-OCC-2015-02).
    \2\ Order Approving Proposed Rule Change Concerning a Proposed 
Capital Plan for Raising Additional Capital That Would Support the 
Options Clearing Corporation's Function as a Systemically Important 
Financial Market Utility, Securities Exchange Act Release No. 74452 
(March 6, 2015), 80 FR 13058 (March 12, 2015) (SR-OCC-2015-02). The 
Capital Plan was previously filed as an advance notice pursuant to 
Section 806(e)(1) of the Payment, Clearing, and Settlement 
Supervision Act of 2010. See 12 U.S.C. 5465(e)(1). The Commission 
issued a notice of no objection to the advance notice on February 
26, 2015. See Securities Exchange Act Release No. 74387 (February 
26, 2015), 80 FR 12215 (March 6, 2015) (SR-OCC-2014-813).
---------------------------------------------------------------------------

    BATS Global Markets, Inc. (``BATS''), BOX Options Exchange LLC 
(``BOX''), KCG Holdings, Inc. (``KCG''), Miami International Securities 
Exchange, LLC (``MIAX''), and Susquehanna International Group, LLP 
(``SIG'') (collectively ``Petitioners'') each filed petitions for 
review of the Approval Order, challenging the action taken by delegated 
authority. The filing of the petitions automatically stayed the 
Approval Order pursuant to Commission Rule of Practice 431(e).\3\ The 
Commission has entered a separate Order Granting the Petitions for 
Review and Scheduling Filing of Statements.\4\
---------------------------------------------------------------------------

    \3\ 17 CFR 201.431(e).
    \4\ See Order Granting Petitions for Review and Scheduling 
Filing of Statements, Securities Exchange Act Release No. 75885 
(September 10, 2015).
---------------------------------------------------------------------------

    In response to the automatic stay imposed by the filing of the 
petitions to review the Approval Order, OCC filed a Motion to Lift the 
Stay on April 2, 2015, citing the public policy reasons for 
implementing the Capital Plan. The Petitioners responded, arguing that 
continuing the automatic stay is appropriate in light of the important 
policy and competition issues raised by the Approval Order.
    The Commission finds that it is in the public interest to lift the 
stay during the pendency of the Commission's review. Under the 
circumstances of this case, the Commission believes, on balance, that 
strengthening the capitalization of a systemically important clearing 
agency, such as OCC, is a compelling public interest. The Commission 
also believes that the concerns raised by the Petitioners regarding 
potential monetary and competitive harm do not currently justify 
maintaining the stay during the pendency of the Commission's review. 
Nor does the Commission believe that lifting the stay precludes 
meaningful review of the Approval Order.
    For the reasons stated above, it is hereby:
    Ordered that the automatic stay of delegated action pursuant to 
Commission Rule of Practice 431(e) \5\ is hereby discontinued, and that 
OCC's Motion to Lift Stay of the staff's action in approving by 
delegated authority File No. SR-OCC-2015-02 \6\ is granted.
---------------------------------------------------------------------------

    \5\ See supra note 4.
    \6\ See supra note 2.
---------------------------------------------------------------------------

    The order approving such proposed rule change shall remain in 
effect.

    By the Commission.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-23241 Filed 9-15-15; 8:45 am]
 BILLING CODE 8011-01-P