82 FR 23118 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 96 (May 19, 2017)
Federal Register Volume 82, Issue 96 (May 19, 2017)
| Page Range | 23118-23121 | |
| FR Document | 2017-10126 |
[Federal Register Volume 82, Number 96 (Friday, May 19, 2017)] [Notices] [Pages 23118-23121] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-10126] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80671; File No. SR-CBOE-2017-039] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule May 15, 2017. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on May 1, 2017, Chicago Board Options Exchange, Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- [[Page 23119]] I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to amend its Fees Schedule. The text of the proposed rule change is available on the Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange 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 Exchange 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 1. Purpose The Exchange proposes to amend its Fees Schedule to adopt a new Supplemental CBOE Volatility Index (``VIX'') Total Firm Volume Discount for Clearing Trading Permit Holders' (``TPHs'') proprietary orders (``Supplemental VIX Discount''). The Supplemental VIX Discount allows VIX options transaction fees for Clearing TPHs' (including its Non-TPH affiliates) proprietary orders to be discounted provided a Clearing TPH (including its Non-TPH affiliates) reaches certain VIX firm volume percentage thresholds during a calendar month. The proposed transaction fee discounts for the different volume percentage tiers for the Supplemental VIX Discount are as follows: ------------------------------------------------------------------------ Transaction VIX firm volume percentage fee discount % ------------------------------------------------------------------------ 11.00-12.99............................................... 20 13.00-14.99............................................... 30 Above 14.99............................................... 40 ------------------------------------------------------------------------ The VIX Discount applies to orders bearing the origin codes ``F'' and ``L.'' The purpose of the VIX Discount is to encourage greater Clearing TPH proprietary trading of VIX options while maintaining an incremental incentive for Clearing TPHs to strive for the highest discount level. To determine a Clearing TPH's applicable discount, the Exchange will calculate a Clearing TPH's total proprietary order volume in VIX as a percentage of all Clearing TPHs' total proprietary order volume in VIX during a calendar month. Total proprietary order volume is calculated by accounting for all volume in VIX with an ``F'' or ``L'' Origin Code, with volume in the Extended Trading Hours (ETH) aggregated with Regular Trading Hours (RTH) volume for the same calendar month included for purposes of calculating the VIX firm volume threshold and applicable transaction fee discount. The transaction fee discount percentage will apply to all of a Clearing TPH's transaction fees assessed for proprietary order volume in VIX during the calendar month. In conjunction with the adoption of the Supplemental VIX Discount, the Exchange proposes to amend Footnote 11 of its Fees Schedule to reference the Supplemental VIX Discount. Like the Clearing TPH Fee Cap, CBOE Proprietary Products Sliding Scale, and the Proprietary VIX Sliding Scale, the VIX Discount will apply to (i) Clearing TPH proprietary orders (``F'' origin code), and (ii) orders of Non-TPH Affiliates of a Clearing TPH.\3\ A ``Non-TPH Affiliate'' would be defined for the purposes of the VIX Discount the same way it is defined for the Clearing TPH Fee Cap, CBOE Proprietary Products Sliding Scale, and the Proprietary VIX Sliding Scale: A 100% wholly-owned affiliate or subsidiary of a Clearing TPH that is registered as a United States or foreign broker-dealer and that is not a CBOE TPH. As with the Clearing TPH Fee Cap, CBOE Proprietary Products Sliding Scale, and the Proprietary VIX Sliding Scale, only proprietary orders of the Non-TPH Affiliate (``L'' origin code) effected for purposes of hedging the proprietary over-the-counter trading of the Clearing TPH or its affiliates will be included in calculating the VIX Discount, and such orders must be marked with a code approved by the Exchange identifying the orders as eligible for the VIX Discount. As with the Clearing TPH Fee Cap, CBOE Proprietary Products Sliding Scale, and the Proprietary VIX Sliding Scale, each Clearing TPH is responsible for notifying the TPH Department of all of its affiliations so that fees and contracts of the Clearing TPH and its affiliates may be aggregated for purposes of the VIX Discount and is required to certify the affiliate status of any Non-TPH Affiliate whose trading activity it seeks to aggregate. In addition, each Clearing TPH is required to inform the Exchange immediately of any event that causes an entity to cease to be an affiliate. --------------------------------------------------------------------------- \3\ See CBOE Fees Schedule, Footnote 11. --------------------------------------------------------------------------- As with the Clearing TPH Fee Cap, the CBOE Proprietary Products Sliding Scale, and the Proprietary VIX Sliding Scale, the Exchange will aggregate the fees and trading activity of separate Clearing TPHs for the purposes of the VIX Discount if there is at least 75% common ownership between the Clearing TPHs as reflected on each Clearing TPH's Form BD, Schedule A. A Clearing TPH's fees and contracts executed pursuant to a CMTA agreement (i.e., executed by another clearing firm and then transferred to the Clearing TPH's account at the OCC) are aggregated with the Clearing TPH's non-CMTA fees and contracts for purposes of the VIX Discount. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\4\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \5\ requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \6\ requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. The Exchange also believes the proposed rule change is consistent with Section 6(b)(4) of the Act,\7\ which requires that Exchange rules provide for the equitable allocation of reasonable dues, fees, and other charges among its Trading Permit Holders and other persons using its facilities. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(5). \6\ Id. \7\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The adoption of the Supplemental VIX Discount is reasonable because it [[Page 23120]] will allow Clearing TPHs who engage in VIX options trading the opportunity to obtain a discount on its transaction fees. Similarly, aggregating the fees and trading activity of separate Clearing TPHs for the purposes of the Supplemental VIX Discount if there is at least 75% common ownership between the Clearing TPHs and aggregating a Clearing TPH's fees and contracts executed pursuant to a CMTA agreement with the Clearing TPH's non-CMTA fees and contracts for the purpose of the Supplemental VIX Discount is reasonable because this will allow more Clearing TPHs to qualify for the discount at the higher rates in the Supplemental VIX Discount table. Applying the Supplemental VIX Discount to Clearing TPH (and their affiliates, in the manner described above) proprietary orders only is equitable and not unfairly discriminatory because, as noted above, Clearing TPHs take on a number of obligations and responsibilities (such as membership with the Options Clearing Corporation), significant regulatory burdens, and financial obligations that other market participants are not required to undertake. Further, the Supplemental VIX Discount is designed to encourage increased Clearing TPH proprietary VIX options volume, which provides increased VIX options volume and greater trading opportunities for all market participants. Similarly, applying higher discount rates for Clearing TPHs who hit the higher percentage of total VIX options contract proprietary volume of all Clearing TPHs on the VIX Discount is equitable and not unfairly discriminatory because this is designed to encourage increased TPH proprietary VIX options volume, which provides increased VIX options volume and greater trading opportunities for all Clearing TPHs, including those who are not able to reach the higher volume percentages. Moreover, the Exchange already offers other fee-lowering programs (such as the Fee Cap, CBOE Proprietary Products Sliding Scale, and Proprietary VIX Sliding Scale) which entail lower fees for Clearing TPHs (and their affiliates, in the manner described above) and are limited to Clearing TPHs (and their affiliates, in the manner described above). Applying the Supplemental VIX Discount to VIX options and not to other products is equitable and not unfairly discriminatory because the Exchange would like to encourage more trading in VIX. The Exchange believes adding references to the Supplemental VIX Discount in Footnote 11 of the Fees Schedule alleviates potential confusion by investors reading the Fees Schedule in light of the proposed change. This avoidance of confusion removes impediments to and perfects the mechanism of a free and open market and a national market system, and, in general, protects investors and the public interest. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule changes will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that the proposed rule change will impose any burden on intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because, while the Supplemental VIX Discount applies only to Clearing TPH proprietary orders, Clearing TPHs take on a number of obligations and responsibilities (such as membership with the Options Clearing Corporation), significant regulatory burdens, and financial obligations that other market participants are not required to undertake. Further, the Supplemental VIX Discount is designed to encourage increased Clearing TPH proprietary VIX options volume, which provides increased VIX options volume and greater trading opportunities for all market participants. Therefore, the Exchange believes that any potential effects on intramarket competition that the proposed adoption of the Supplemental VIX Discount may cause are therefore justifiable. The Exchange does not believe that the proposed rule changes will impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because the proposed rule change applies only to CBOE. To the extent that the proposed changes make CBOE a more attractive marketplace for market participants at other exchanges, such market participants are welcome to become CBOE market participants. B. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received 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) of the Act \8\ and paragraph (f) of Rule 19b-4 \9\ 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. If the Commission takes such action, the Commission will institute proceedings to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File No. SR-CBOE-2017-039 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File No. SR-CBOE-2017-039. 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 Room, 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 [[Page 23121]] inspection and copying at the principal office of the Exchange. 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 No. SR-CBOE-2017-039, and should be submitted on or before June 9, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-10126 Filed 5-18-17; 8:45 am] BILLING CODE 8011-01-P
![23118 Federal Register / Vol. 82, No. 96 / Friday, May 19, 2017 / Notices
is not necessary or appropriate in C. Self-Regulatory Organization’s communications relating to the
furtherance of the purposes of the Act. Statement on Comments on the proposed rule change between the
The Exchange notes that the proposed Proposed Rule Change Received From Commission and any person, other than
rule change implements provisions of Members, Participants, or Others those that may be withheld from the
the CAT NMS Plan approved by the Written comments were neither public in accordance with the
Commission, and is designed to assist solicited nor received. provisions of 5 U.S.C. 552, will be
the Exchange in meeting its regulatory available for Web site viewing and
III. Date of Effectiveness of the printing in the Commission’s Public
obligations pursuant to the Plan.
Proposed Rule Change and Timing for Reference Room, 100 F Street NE.,
Similarly, all national securities Commission Action
exchanges and FINRA are proposing Washington, DC 20549, on official
this proposed fee schedule to The foregoing rule change has become business days between the hours of
implement the requirements of the CAT effective pursuant to Section 10:00 a.m. and 3:00 p.m. Copies of the
NMS Plan. Therefore, this is not a 19(b)(3)(A)(ii) of the Act,57 and Rule filing also will be available for
19b–4(f)(2) 58 thereunder. At any time inspection and copying at the principal
competitive fee filing and, therefore, it
within 60 days of the filing of the office of the Exchange. All comments
does not raise competition issues proposed rule change, the Commission received will be posted without change;
between and among the exchanges and summarily may temporarily suspend the Commission does not edit personal
FINRA. such rule change if it appears to the identifying information from
Moreover, as previously described, Commission that such action is submissions. You should submit only
the Exchange believes that the proposed necessary or appropriate in the public information that you wish to make
rule change fairly and equitably interest, for the protection of investors, available publicly. All submissions
allocates costs among CAT Reporters. In or otherwise in furtherance of the should refer to File Number SR–MIAX–
particular, the proposed fee schedule is purposes of the Act. If the Commission 2017–18, and should be submitted on or
structured to impose comparable fees on takes such action, the Commission shall before June 9, 2017.
similarly situated CAT Reporters, and institute proceedings to determine
whether the proposed rule should be For the Commission, by the Division of
lessen the impact on smaller CAT Trading and Markets, pursuant to delegated
Reporters. CAT Reporters with similar approved or disapproved.
authority.59
levels of CAT activity will pay similar IV. Solicitation of Comments
fees. For example, Industry Members Interested persons are invited to Eduardo A. Aleman,
(other than Execution Venue ATSs) with submit written data, views, and Assistant Secretary.
higher levels of message traffic will pay arguments concerning the foregoing, [FR Doc. 2017–10130 Filed 5–18–17; 8:45 am]
higher fees, and those with lower levels including whether the proposed rule
BILLING CODE 8011–01–P
of message traffic will pay lower fees. change is consistent with the Act.
Similarly, Execution Venue ATSs and Comments may be submitted by any of
other Execution Venues with larger the following methods: SECURITIES AND EXCHANGE
market share will pay higher fees, and COMMISSION
Electronic Comments
those with lower levels of market share
will pay lower fees. Therefore, given • Use the Commission’s Internet
comment form (http://www.sec.gov/ [Release No. 34–80671; File No. SR–CBOE–
that there is generally a relationship
rules/sro.shtml); or 2017–039]
between message traffic and market
share to the CAT Reporter’s size, smaller • Send an email to rule-
comments@sec.gov. Please include File Self-Regulatory Organizations;
CAT Reporters generally pay less than Chicago Board Options Exchange,
Number SR–MIAX–2017–18 on the
larger CAT Reporters. Accordingly, the Incorporated; Notice of Filing and
subject line.
Exchange does not believe that the CAT Immediate Effectiveness of a Proposed
Fees would have a disproportionate Paper Comments Rule Change To Amend the Fees
effect on smaller or larger CAT • Send paper comments in triplicate Schedule
Reporters. In addition, ATSs and to Secretary, Securities and Exchange
exchanges will pay the same fees based Commission, 100 F Street NE., May 15, 2017.
on market share. Therefore, the Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the
Exchange does not believe that the fees All submissions should refer to File Securities Exchange Act of 1934 (the
will impose any burden on the Number SR–MIAX–2017–18. This file ‘‘Act’’),1 and Rule 19b–4 thereunder,2
competition between ATSs and number should be included on the notice is hereby given that on May 1,
exchanges. Accordingly, the Exchange subject line if email is used. To help the 2017, Chicago Board Options Exchange,
believes that the proposed fees will Commission process and review your Incorporated (the ‘‘Exchange’’ or
minimize the potential for adverse comments more efficiently, please use ‘‘CBOE’’) filed with the Securities and
effects on competition between CAT only one method. The Commission will Exchange Commission (the
Reporters in the market. post all comments on the Commission’s ‘‘Commission’’) the proposed rule
Internet Web site (http://www.sec.gov/ change as described in Items I, II, and
Furthermore, the tiered, fixed fee
asabaliauskas on DSK3SPTVN1PROD with NOTICES
rules/sro.shtml). Copies of the III below, which Items have been
funding model limits the disincentives prepared by the Exchange. The
submission, all subsequent
to providing liquidity to the market. amendments, all written statements Commission is publishing this notice to
Therefore, the proposed fees are with respect to the proposed rule solicit comments on the proposed rule
structured to limit burdens on change that are filed with the change from interested persons.
competitive quoting and other liquidity Commission, and all written
provision in the market. 59 17 CFR 200.30–3(a)(12).
57 15 U.S.C. 78s(b)(3)(A)(ii). 1 15 U.S.C. 78s(b)(1).
58 17 CFR 240.19b–4(f)(2). 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 82, No. 96 / Friday, May 19, 2017 / Notices 23121
inspection and copying at the principal II. Clearing Agency’s Statement of the Office of the Executive Chairman
office of the Exchange. All comments Purpose of, and Statutory Basis for, the comprised of the Executive Chairman
received will be posted without change; Proposed Rule Change and Chief Executive Officer, the COO
the Commission does not edit personal In its filing with the Commission, and the CAO. Pursuant to Article IV,
identifying information from OCC included statements concerning Section 8 of the By-Laws, the COO and
submissions. You should submit only the purpose of and basis for the CAO are responsible for the aspects of
information that you wish to make proposed rule change and discussed any OCC’s business that do not report
available publicly. All submissions comments it received on the proposed directly to the Executive Chairman, with
should refer to File No. SR–CBOE– rule change. The text of these statements such responsibilities being determined
2017–039, and should be submitted on may be examined at the places specified by the Board to promote the efficient
or before June 9, 2017. in Item IV below. OCC has prepared and effective management and operation
For the Commission, by the Division of summaries, set forth in sections (A), (B), of OCC. The By-Laws and Rules also
Trading and Markets, pursuant to delegated and (C) below, of the most significant address various other authorities and
authority.10 aspects of these statements. All terms responsibilities of the COO and CAO.9
Eduardo A. Aleman, with initial capitalization that are not The proposed rule change would
Assistant Secretary. otherwise defined herein have the same provide that the Board may, in its
meaning as set forth in the OCC By- discretion, designate that the COO also
[FR Doc. 2017–10126 Filed 5–18–17; 8:45 am]
Laws and Rules.5 serve as President. The two roles would
BILLING CODE 8011–01–P
not, however, be tied together by
(A) Clearing Agency’s Statement of the operation of the By-Laws as it was prior
Purpose of, and Statutory Basis for, the to the approval of SR–OCC–2017–002
SECURITIES AND EXCHANGE
Proposed Rule Change and would instead provide the Board
COMMISSION
1. Purpose with the discretionary authority to make
[Release No. 34–80672; File No. SR–OCC– this determination as it deems
2017–012] On April 26, 2017, the Commission appropriate. The proposed rule change
approved a proposed rule change by is not intended to modify OCC’s current
Self-Regulatory Organizations; The OCC that, among other things, amended management structure or the allocation
Options Clearing Corporation; Notice OCC’s By-Laws and Rules to: (1) of duties and responsibilities currently
of Filing and Immediate Effectiveness Remove all references to OCC’s associated with the roles of COO or
of Proposed Rule Change Concerning President to reflect the fact that the CAO as set forth in By-Laws and Rules.
the Options Clearing Corporation’s President would no longer be a If the Board determines to designate that
Management Structure recognized officer within OCC’s the COO also serve as President, the
May 15, 2017.
management and (2) reallocate the authority and responsibilities of the
Pursuant to Section 19(b)(1) of the authority and responsibilities COO and President would continue to
Securities Exchange Act of 1934 previously granted to the President be governed by the allocation of
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 between the COO and a newly authority and responsibilities of the
notice is hereby given that on May 5, appointed Chief Administrative Officer COO as currently set forth in OCC’s By-
2017, The Options Clearing Corporation (‘‘CAO’’).6 OCC is now proposing to Laws and Rules. The proposed rule
(‘‘OCC’’) filed with the Securities and amend Article IV, Section 1 of the By- change would take a similar approach to
Exchange Commission (‘‘Commission’’) Laws to provide that the Board may, in the previous construction of OCC’s By-
the proposed rule change as described its discretion, designate that the COO Laws and Rules regarding the role of
in Items I, II, and III below; Items I and also serve as President of OCC. The COO and President; however, the
II have been prepared primarily by OCC. purpose of the proposed rule change is proposed approach would now describe
OCC filed the proposed rule change to provide further clarity and the authority and responsibilities of the
pursuant to Section 19(b)(3)(A)(iii) of transparency around OCC’s President and COO throughout the By-
the Act 3 and Rule 19b–4(f)(6) 4 management structure and the roles and Laws and Rules in terms of this officer’s
thereunder so that the proposal was titles of its senior management. capacity as COO (as opposed to
Prior to the approval of SR–OCC– President).
effective upon filing with the
2017–002,7 OCC’s By-Laws stipulated OCC notes that, under Article IV,
Commission. The Commission is
that its President would also serve as Section 1 of the By-Laws, the Board
publishing this notice to solicit
COO, with the authority and may, but need not, elect such other
comments on the proposed rule change
responsibilities of the COO and officers (i.e., officers in addition to the
from interested persons.
President primarily being addressed Executive Chairman, Member Vice
I. Clearing Agency’s Statement of the throughout the By-Laws and Rules in Chairman, COO, CAO, Secretary, and
Terms of Substance of the Proposed terms of this officer’s capacity as Treasurer) as it may from time to time
Rule Change President. As a result of SR–OCC–2017–
This proposed rule change by OCC 002,8 OCC’s By-Laws and Rules were 9 For example, OCC’s Rules provide the Executive
amended to eliminate all references to Chairman, COO and CAO with the authority to,
concerns the amendment of OCC’s By- among other things, impose certain restrictions on
Laws to provide that the Board of the President; however, the position of a Clearing Member’s transactions, positions and
Directors (‘‘Board’’) may, in its COO was retained, and OCC’s senior activities based on the financial or operational
asabaliauskas on DSK3SPTVN1PROD with NOTICES
discretion, designate the Chief management was reorganized within an condition of the Clearing Member (Rule 305);
extend settlement times in emergency conditions;
Operating Officer (‘‘COO’’) to act as (Rule 505); waive the required margin deposit of a
5 OCC’s By-Laws and Rules can be found on
President of OCC. OCC’s public Web site: http://optionsclearing.com/
Clearing Member in the interest of maintaining fair
and orderly markets (Rule 609A); and make a
about/publications/bylaws.jsp. determination as to whether the immediate
10 17 CFR 200.30–3(a)(12). 6 See Securities Exchange Act Release No. 80531
1 15
liquidation of some or all of a suspended Clearing
U.S.C. 78s(b)(1). (April 26, 2017), 82 FR 20502 (May 2, 2017) (SR– Member’s margin deposits and/or contributions to
2 17 CFR 240.19b–4. OCC–2017–002). the Clearing Fund would not be in the best interests
3 15 U.S.C. 78s(b)(3)(A)(iii). 7 Id.
of the OCC, other Clearing Members, or the general
4 17 CFR 240.19b–4(f)(6). 8 Id. public (Rule 1104).
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Document Created: 2018-11-08 08:47:29
Document Modified: 2018-11-08 08:47:29
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 82 FR 23118 |
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