83 FR 4944 - Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Revise The Options Clearing Corporation's Schedule of Fees
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 23 (February 2, 2018)
Federal Register Volume 83, Issue 23 (February 2, 2018)
| Page Range | 4944-4946 | |
| FR Document | 2018-02124 |
[Federal Register Volume 83, Number 23 (Friday, February 2, 2018)] [Notices] [Pages 4944-4946] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-02124] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82596; File No. SR-OCC-2018-004] Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Revise The Options Clearing Corporation's Schedule of Fees January 30, 2018. 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 January 19, 2018, 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. OCC filed the proposed rule change pursuant to Section 19(b)(3)(A)(ii) \3\ of the Act and Rule 19b-4(f)(2) \4\ thereunder so that the proposal was effective upon filing with the Commission. 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. \3\ 15 U.S.C. 78s(b)(3)(A)(ii). \4\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change by OCC would revise OCC's Schedule of Fees effective March 1, 2018, to implement an increase in clearing fees in accordance with OCC's Fee Policy.\5\ The proposed changes to the Schedule of Fees can be found in Exhibit 5 to the proposed rule change. All capitalized terms not defined herein have the same meaning as set forth in the OCC By-Laws and Rules.\6\ --------------------------------------------------------------------------- \5\ OCC's Fee Policy was adopted as part of OCC's plan for raising additional capital (``Capital Plan''), which was put in place in light of proposed regulatory capital requirements applicable to systemically important financial market utilities, such as OCC. See Exchange Act Release No. 34-74452 (March 6, 2015), 80 FR 13058 (March 12, 2015) (SR-OCC-2015-02); Exchange Act Release No. 34-74387 (February 26, 2015), 80 FR 12215 (March 6, 2015) (SR- OCC-2014-813) (``Approval Orders''). BATS Global Markets, Inc., BOX Options Exchange LLC, KCG Holdings, Inc., Miami International Securities Exchange, LLC, and Susquehanna International Group, LLP each filed petitions for review of the Approval Order, challenging the action taken by delegated authority. Following review of these petitions, on August 8, 2017, the U.S. Court of Appeals for the D.C. Circuit remanded the Approval Orders to the Commission to further analyze whether the Capital Plan is consistent with the Securities Exchange Act of 1934. Susquehanna Int'l Grp., LLP v. SEC, 866 F.3d 442 (D.C. Cir. 2017). While the Commission further analyzes the Capital Plan, it remains in effect as originally approved by the Commission. See id. \6\ OCC's By-Laws and Rules can be found on OCC's public website: http://optionsclearing.com/about/publications/bylaws.jsp. --------------------------------------------------------------------------- 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 revise OCC's Schedule of Fees in accordance with its Fee Policy to set OCC's fees at a level designed to cover OCC's operating expenses and maintain a Business Risk Buffer of 25%.\7\ The revised fee schedule would become effective on March 1, 2018.\8\ --------------------------------------------------------------------------- \7\ The Business Risk Buffer is equal to net income before refunds, dividends, and taxes divided by total revenue. \8\ OCC recently filed a proposed rule change with the Commission to revise its Fee Policy to provide that proposed fee changes are required to be implemented no sooner than thirty (30) days from the date of filing of the proposed rule change concerning such fee change (as opposed to sixty (60) days). See SR-OCC-2018- 001. OCC also has submitted the proposed changes to its Fee Policy to the Commodity Futures Trading Commission (``CFTC'') under CFTC Regulation 40.6 and expects the proposed changes to be certified on January 24, 2018. OCC notes that implementation of the proposed fee change on March 1, 2018, requires either (i) Commission approval of SR-OCC-2018-001 and certification of the Fee Policy changes in SR- OCC-2018-001 under CFTC Regulation 40.6 or (ii) an exception to the 60-day notice period provision in the Fee Policy authorized by OCC's Board of Directors and the holders of all of the outstanding Class B Common Stock of OCC. OCC's Board of Directors unanimously approved, and the holders of all of the outstanding Class B Common Stock of OCC unanimously consented to, the reduction of the 60-day notice period to 30 days on December 15, 2016. --------------------------------------------------------------------------- By way of background, OCC implemented its Capital Plan in 2015,\9\ which was put in place in light of proposed regulatory capital requirements applicable to systemically important financial market utilities, such as OCC. As part of OCC's Capital Plan, OCC adopted a Fee Policy whereby OCC would set clearing fees at a level that covers OCC's operating [[Page 4945]] expenses plus a Business Risk Buffer of 25%.\10\ The purpose of the Business Risk Buffer is to ensure that OCC accumulates sufficient capital to cover unexpected fluctuations in operating expenses, business capital needs, and regulatory capital requirements. --------------------------------------------------------------------------- \9\ See supra note 5. \10\ OCC's Schedule of Fees must also meet the requirements set forth in Article IX, Section 9 of OCC's By-Laws. In general, Article IX, Section 9 of OCC's By-Laws requires that OCC's fee structure be designed to: 1) cover OCC's operating expenses plus a business risk buffer; 2) maintain reserves deemed reasonably necessary by OCC's Board of Directors; and 3) accumulate an additional surplus deemed advisable by the Board of Directors to permit OCC to meet its obligations to its clearing members and the public. Clauses 2 and 3 above will only be invoked at the discretion of OCC's Board of Directors and in extraordinary circumstances. --------------------------------------------------------------------------- OCC recently reviewed its current Schedule of Fees \11\ against projected revenues and expenses for 2018 in accordance with its Fee Policy, to determine whether the Schedule of Fees was sufficient to cover OCC's anticipated operating expenses and achieve a Business Risk Buffer of 25%. In reviewing the Schedule of Fees, OCC analyzed: (i) Expenses budgeted for 2018, (ii) projected other revenue streams for 2018, (iii) projected volume ``mix,'' and (iv) projected volume growth for 2018. Based on the foregoing analysis, OCC determined that the current fee schedule is set at a level that would be insufficient to ensure that OCC achieves its Business Risk Buffer of 25% as required under the Fee Policy.\12\ OCC arrived at the proposed fee schedule presented herein by determining the figures that provide the best opportunity for OCC to achieve coverage of its anticipated operating expenses plus a Business Risk Buffer of 25%. --------------------------------------------------------------------------- \11\ OCC previously revised its Schedule of Fees effective December 1, 2016, to implement a fee increase in accordance with the Fee Policy. See Securities Exchange Act Release No. 79028 (October 3, 2016), 81 FR 69885 (October 7, 2016) (SR-OCC-2016-012). \12\ OCC has provided a summary of its analysis in confidential Exhibit 3 of the filing. --------------------------------------------------------------------------- As a result of the aforementioned analysis, OCC proposes to revise its Schedule of Fees as set forth below.\13\ --------------------------------------------------------------------------- \13\ These changes are also reflected in Exhibit 5. ---------------------------------------------------------------------------------------------------------------- Current fee schedule Proposed fee schedule ---------------------------------------------------------------------------------------------------------------- Trades with Trades with contracts of: Current fee contracts of: Proposed fee ---------------------------------------------------------------------------------------------------------------- 1-1100.............................. $0.050/contract........ 1-1018 $0.054/contract. >1100............................... $55/trade.............. >1018 $55/trade. ---------------------------------------------------------------------------------------------------------------- OCC proposes to modify its fee schedule to: (i) Increase its per contract clearing fee from $0.050 to $0.054 per contract and (ii) adjust the quantity of contracts at which the fixed, per trade clearing fee begins from greater than 1100 contracts per trade to greater than 1018 contracts per trade. The proposed changes are designed to target a level of revenues sufficient to cover OCC's operating expenses plus a Business Risk Buffer of 25% while continuing to maintain OCC's existing fixed, per trade fee at a level of $55 per trade. In accordance with its Fee Policy, OCC will continue to monitor cleared contract volume and operating expenses in order to determine if further revisions to OCC's Schedule of Fees are required so that monies received from clearing fees cover OCC's operating expenses plus a Business Risk Buffer of 25%.\14\ --------------------------------------------------------------------------- \14\ Any subsequent changes to OCC's Schedule of Fees would be the subject of a subsequent proposed rule change filed with the Commission. --------------------------------------------------------------------------- (2) Statutory Basis Section 17A(b)(3)(D) of the Act, requires that the rules of a clearing agency provide for the equitable allocation of reasonable dues, fees, and other charges among its participants.\15\ The proposed fee schedule was set in accordance with the criteria set forth in OCC's Capital Plan, which requires that OCC's fees be set at a level designed to cover OCC's operating expenses and maintain a Business Risk Buffer of 25%.\16\ OCC believes the proposed fee change is reasonable because the fee increase would be set at a level intended only to facilitate the maintenance of OCC's Business Risk Buffer of 25%, which is designed to ensure that OCC accumulates sufficient capital to cover unexpected fluctuations in operating expenses, business capital needs, and regulatory capital requirements. Moreover, OCC believes that the proposed fee change would result in an equitable allocation of fees among its participants because it would be equally applicable to all market participants. As a result, OCC believes that the proposed fee schedule provides for the equitable allocation of reasonable fees in accordance with Section 17A(b)(3)(D) of the Act.\17\ The proposed rule change is not inconsistent with the existing rules of OCC, including any other rules proposed to be amended. --------------------------------------------------------------------------- \15\ 17 U.S.C. 78q-1(b)(3)(D). \16\ See supra note 5. \17\ 17 U.S.C. 78q-1(b)(3)(D). --------------------------------------------------------------------------- (B) Clearing Agency's Statement on Burden on Competition Section 17A(b)(3)(I) of the Act\18\ requires that the rules of a clearing agency not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. OCC does not believe that the proposed rule change would have any impact or impose a burden on competition. 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 the proposed clearing fees apply equally to all users of OCC. Accordingly, OCC does not believe that the proposed rule change would have any impact or impose a burden on competition. --------------------------------------------------------------------------- \18\ 15 U.S.C. 78q-1(b)(3)(I). --------------------------------------------------------------------------- (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 Pursuant to Section 19(b)(3)(A)(ii) \19\ of the Act, and Rule 19b- 4(f)(2) thereunder,\20\ the proposed rule change is filed for immediate effectiveness as it constitutes a change in fees charged to OCC Clearing Members. 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, [[Page 4946]] or otherwise in furtherance of the purposes of the Act.\21\ --------------------------------------------------------------------------- \19\ 15 U.S.C. 78s(b)(3)(A)(ii). \20\ 17 CFR 240.19b-4(f)(2). \21\ Notwithstanding its immediate effectiveness, implementation of this rule change will be delayed until this change is deemed certified under CFTC Rule 40.6. --------------------------------------------------------------------------- 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 Number SR-OCC-2018-004 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-OCC-2018-004. 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 website (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 website 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 inspection and copying at the principal office of OCC and on OCC's website at https://www.theocc.com/about/publications/bylaws.jsp. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-OCC-2018-004 and should be submitted on or before February 23, 2018. --------------------------------------------------------------------------- \22\ 17 CFR 200.30-3(a)(12). OCC filed this proposed rule change for immediate effectiveness pursuant to Exchange Act Section 19(b)(3)(A)(ii) and Rule 19b-4(f)(2). As stated above in note 8, OCC may not implement the proposed change unless either (i) the Commission issues an Order approving the proposed rule change SR- OCC-2018-001 or (ii) an exception to the 60-day notice period provision in the Fee Policy is authorized by OCC's Board of Directors and the holders of all of the outstanding Class B Common Stock of OCC. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\22\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-02124 Filed 2-1-18; 8:45 am] BILLING CODE 8011-01-P
![4944 Federal Register / Vol. 83, No. 23 / Friday, February 2, 2018 / Notices
registration statements (see the separate SECURITIES AND EXCHANGE terms not defined herein have the same
PRA submissions for Form N–3 (17 CFR COMMISSION meaning as set forth in the OCC By-
274.11b), Form N–4 (17 CFR 274.11c) Laws and Rules.6
[Release No. 34–82596; File No. SR–OCC–
and Form N–6 (17 CFR 274.11d). The 2018–004] II. Clearing Agency’s Statement of the
Commission is requesting a burden of Purpose of, and Statutory Basis for, the
one hour for Rule 11a–2 for Self-Regulatory Organizations; The Proposed Rule Change
administrative purposes. Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness In its filing with the Commission,
The estimate of average burden hours OCC included statements concerning
is made solely for the purposes of the of Proposed Rule Change To Revise
The Options Clearing Corporation’s the purpose of and basis for the
PRA, and is not derived from a proposed rule change and discussed any
Schedule of Fees
comprehensive or even a representative comments it received on the proposed
survey or study of the costs of January 30, 2018. rule change. The text of these statements
Commission rules or forms. With regard Pursuant to Section 19(b)(1) of the may be examined at the places specified
to Rule 11a–2, the Commission includes Securities Exchange Act of 1934 in Item IV below. OCC has prepared
the estimate of burden hours in the total (‘‘Act’’),1 and Rule 19b–4 thereunder,2 summaries, set forth in sections (A), (B),
number of burden hours estimated for notice is hereby given that on January and (C) below, of the most significant
completing the relevant registration 19, 2018, The Options Clearing aspects of these statements.
statements and reported on the separate Corporation (‘‘OCC’’) filed with the
Securities and Exchange Commission (A) Clearing Agency’s Statement of the
PRA submissions for those statements Purpose of, and Statutory Basis for, the
(see the separate PRA submissions for (‘‘Commission’’) the proposed rule
change as described in Items I, II, and Proposed Rule Change
Form N–3, Form N–4 and Form N–6).
III below, which Items have been (1) Purpose
The information collection requirements
prepared by OCC. OCC filed the
imposed by Rule 11a–2 are mandatory. The purpose of this proposed rule
proposed rule change pursuant to
Responses to the collection of change is to revise OCC’s Schedule of
Section 19(b)(3)(A)(ii) 3 of the Act and
information will not be kept Fees in accordance with its Fee Policy
Rule 19b–4(f)(2) 4 thereunder so that the
confidential. to set OCC’s fees at a level designed to
proposal was effective upon filing with
Written comments are invited on: (a) cover OCC’s operating expenses and
the Commission. The Commission is
maintain a Business Risk Buffer of
Whether the collection of information is publishing this notice to solicit
25%.7 The revised fee schedule would
necessary for the proper performance of comments on the proposed rule change
from interested persons. become effective on March 1, 2018.8
the functions of the Commission, By way of background, OCC
including whether the information has I. Clearing Agency’s Statement of the implemented its Capital Plan in 2015,9
practical utility; (b) the accuracy of the Terms of Substance of the Proposed which was put in place in light of
Commission’s estimate of the burden of Rule Change proposed regulatory capital
the collection of information; (c) ways to requirements applicable to systemically
The proposed rule change by OCC
enhance the quality, utility, and clarity important financial market utilities,
would revise OCC’s Schedule of Fees
of the information collected; and (d) such as OCC. As part of OCC’s Capital
effective March 1, 2018, to implement
ways to minimize the burden of the an increase in clearing fees in Plan, OCC adopted a Fee Policy
collection of information on accordance with OCC’s Fee Policy.5 The whereby OCC would set clearing fees at
respondents, including through the use proposed changes to the Schedule of a level that covers OCC’s operating
of automated collection techniques or Fees can be found in Exhibit 5 to the
other forms of information technology. proposed rule change. All capitalized
6 OCC’s By-Laws and Rules can be found on
Consideration will be given to OCC’s public website: http://optionsclearing.com/
about/publications/bylaws.jsp.
comments and suggestions submitted in 1 15 U.S.C. 78s(b)(1). 7 The Business Risk Buffer is equal to net income
writing within 60 days of this 2 17 CFR 240.19b–4. before refunds, dividends, and taxes divided by
publication. 3 15 U.S.C. 78s(b)(3)(A)(ii). total revenue.
4 17 CFR 240.19b–4(f)(2). 8 OCC recently filed a proposed rule change with
Please direct your written comments 5 OCC’s Fee Policy was adopted as part of OCC’s the Commission to revise its Fee Policy to provide
to Pamela Dyson, Director/Chief plan for raising additional capital (‘‘Capital Plan’’), that proposed fee changes are required to be
Information Officer, Securities and which was put in place in light of proposed implemented no sooner than thirty (30) days from
regulatory capital requirements applicable to the date of filing of the proposed rule change
Exchange Commission, C/O Remi systemically important financial market utilities, concerning such fee change (as opposed to sixty
Pavlik-Simon, 100 F Street NE, such as OCC. See Exchange Act Release No. 34– (60) days). See SR–OCC–2018–001. OCC also has
Washington, DC 20549; or send an email 74452 (March 6, 2015), 80 FR 13058 (March 12, submitted the proposed changes to its Fee Policy to
2015) (SR–OCC–2015–02); Exchange Act Release the Commodity Futures Trading Commission
to: PRA_Mailbox@sec.gov. (‘‘CFTC’’) under CFTC Regulation 40.6 and expects
No. 34–74387 (February 26, 2015), 80 FR 12215
Dated: January 30, 2018. (March 6, 2015) (SR–OCC–2014–813) (‘‘Approval the proposed changes to be certified on January 24,
Orders’’). BATS Global Markets, Inc., BOX Options 2018. OCC notes that implementation of the
Eduardo A. Aleman, Exchange LLC, KCG Holdings, Inc., Miami proposed fee change on March 1, 2018, requires
Assistant Secretary. International Securities Exchange, LLC, and either (i) Commission approval of SR–OCC–2018–
Susquehanna International Group, LLP each filed 001 and certification of the Fee Policy changes in
[FR Doc. 2018–02117 Filed 2–1–18; 8:45 am]
petitions for review of the Approval Order, SR–OCC–2018–001 under CFTC Regulation 40.6 or
BILLING CODE 8011–01–P challenging the action taken by delegated authority. (ii) an exception to the 60-day notice period
sradovich on DSK3GMQ082PROD with NOTICES
Following review of these petitions, on August 8, provision in the Fee Policy authorized by OCC’s
2017, the U.S. Court of Appeals for the D.C. Circuit Board of Directors and the holders of all of the
remanded the Approval Orders to the Commission outstanding Class B Common Stock of OCC. OCC’s
to further analyze whether the Capital Plan is Board of Directors unanimously approved, and the
consistent with the Securities Exchange Act of holders of all of the outstanding Class B Common
1934. Susquehanna Int’l Grp., LLP v. SEC, 866 F.3d Stock of OCC unanimously consented to, the
442 (D.C. Cir. 2017). While the Commission further reduction of the 60-day notice period to 30 days on
analyzes the Capital Plan, it remains in effect as December 15, 2016.
originally approved by the Commission. See id. 9 See supra note 5.
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![4946 Federal Register / Vol. 83, No. 23 / Friday, February 2, 2018 / Notices
or otherwise in furtherance of the All submissions should refer to File the rules of an exchange must file the
purposes of the Act.21 Number SR–OCC–2018–004 and should adopted version of Form 25 with the
be submitted on orbefore February 23, Commission. The Commission also
IV. Solicitation of Comments
2018. adopted amendments to Rule 19d–1
Interested persons are invited to under the Act to require exchanges to
For the Commission, by the Division of
submit written data, views and Trading and Markets, pursuant to delegated file the adopted version of Form 25 as
arguments concerning the foregoing, authority.22 notice to the Commission under Section
including whether the proposed rule Eduardo A. Aleman, 19(d) of the Act. Finally, the
change is consistent with the Act. Commission adopted amendments to
Assistant Secretary.
Comments may be submitted by any of exempt standardized options and
the following methods: [FR Doc. 2018–02124 Filed 2–1–18; 8:45 am]
security futures products from Section
BILLING CODE 8011–01–P
Electronic Comments 12(d) of the Act. These amendments are
intended to simplify the paperwork and
• Use the Commission’s internet procedure associated with a delisting
comment form (http://www.sec.gov/ SECURITIES AND EXCHANGE
and to unify general rules and
rules/sro.shtml); or COMMISSION
procedures relating to the delisting
• Send an email to rule-comments@ process.
sec.gov. Please include File Number SR– Submission for OMB Review;
Comment Request The Form 25 is useful because it
OCC–2018–004 on the subject line. informs the Commission that a security
Paper Comments Upon Written Request, Copies Available previously traded on an exchange is no
From: Securities and Exchange longer traded. In addition, the Form 25
• Send paper comments in triplicate
Commission, Office of FOIA Services, enables the Commission to verify that
to Brent J. Fields, Secretary, Securities
100 F Street NE, Washington, DC the delisting and/or deregistration has
and Exchange Commission, 100 F Street
20549–2736 occurred in accordance with the rules of
NE, Washington, DC 20549–1090.
Extension: the exchange. Further, the Form 25
All submissions should refer to File helps to focus the attention of delisting
Number SR–OCC–2018–004. This file Rule 12d2–2 and Form 25, SEC File No.
270–86, OMB Control No. 3235–0080 issuers to make sure that they abide by
number should be included on the the proper procedural and notice
subject line if email is used. To help the Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995 requirements associated with a delisting
Commission process and review your
(44 U.S.C. 3501 et seq.), the Securities and/or deregistration. Without Rule
comments more efficiently, please use
and Exchange Commission 12d2–2 and the Form 25, as applicable,
only one method. The Commission will
(‘‘Commission’’) has submitted to the the Commission would be unable to
post all comments on the Commission’s
Office of Management and Budget a fulfill its statutory responsibilities.
internet website (http://www.sec.gov/ There are 21 national securities
rules/sro.shtml). Copies of the request for approval of extension of the
exchanges that could possibly be
submission, all subsequent previously approved collection of
respondents complying with the
amendments, all written statements information provided for the following
requirements of the Rule and Form 25.4
with respect to the proposed rule rule: Rule 12d2–2 (17 CFR 240.12d2–2)
The burden of complying with Rule
change that are filed with the and Form 25 (17 CFR 249.25).
12d2–2 and Form 25 is not evenly
Commission, and all written On February 12, 1935, the
distributed among the exchanges,
communications relating to the Commission adopted Rule 12d2–2,1 and
however, since there are many more
proposed rule change between the Form 25 under the Securities Exchange
securities listed on the New York Stock
Commission and any person, other than Act of 1934 (15 U.S.C. 78a et seq.)
Exchange, the NASDAQ Stock Market,
those that may be withheld from the (‘‘Act’’), which sets forth the conditions
and NYSE American than on the other
public in accordance with the and procedures under which a security
provisions of 5 U.S.C. 552, will be exchanges. However, for purposes of
may be delisted from an exchange and
available for website viewing and this filing, the Commission staff has
withdrawn from registration under
printing in the Commission’s Public assumed that the number of responses is
Section 12(b) of the Act.2 The
Reference Room, 100 F Street NE, evenly divided among the exchanges.
Commission adopted amendments to
Washington, DC 20549, on official Since approximately 800 responses
Rule 12d2–2 and Form 25 in 2005.3
business days between the hours of under Rule 12d2–2 and Form 25 for the
Under the adopted Rule 12d2–2, all
10:00 a.m. and 3:00 p.m. Copies of such purpose of delisting and/or
issuers and national securities
filing also will be available for deregistration of equity securities are
exchanges seeking to delist and
inspection and copying at the principal received annually by the Commission
deregister a security in accordance with
office of OCC and on OCC’s website at 4 The staff notes that a few of these 21 registered
https://www.theocc.com/about/ 22 17 CFR 200.30–3(a)(12). OCC filed this
national securities exchanges only have rules to
publications/bylaws.jsp. proposed rule change for immediate effectiveness permit the listing of standardized options, which
All comments received will be posted pursuant to Exchange Act Section 19(b)(3)(A)(ii) are exempt from Rule 12d2–2 under the Act.
and Rule 19b–4(f)(2). As stated above in note 8,
without change. Persons submitting OCC may not implement the proposed change
Nevertheless, the staff counted national securities
comments are cautioned that we do not exchanges that can only list options as potential
unless either (i) the Commission issues an Order respondents because these exchanges could
redact or edit personal identifying approving the proposed rule change SR–OCC– potentially adopt new rules, subject to Commission
information from comment submissions. 2018–001 or (ii) an exception to the 60-day notice approval under Section 19(b) of the Act, to list and
sradovich on DSK3GMQ082PROD with NOTICES
period provision in the Fee Policy is authorized by
You should submit only information OCC’s Board of Directors and the holders of all of
trade equity and other securities that have to
that you wish to make available comply with Rule 12d2–2 under the Act. Notice
the outstanding Class B Common Stock of OCC. registrants that are registered as national securities
publicly. 1 See Securities Exchange Act Release No. 98
exchanges solely for the purposes of trading
(February 12, 1935). securities futures products have not been counted
21 Notwithstanding its immediate effectiveness, 2 See Securities Exchange Act Release No. 7011
since, as noted above, securities futures products
implementation of this rule change will be delayed (February 5, 1963), 28 FR 1506 (February 16, 1963). are exempt from complying with Rule 12d–2–2
until this change is deemed certified under CFTC 3 See Securities Exchange Act Release No. 52029 under the Act and therefore do not have to file
Rule 40.6. (July 14, 2005), 70 FR 42456 (July 22, 2005). Form 25.
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Document Created: 2018-02-03 14:27:28
Document Modified: 2018-02-03 14:27:28
| Category | Regulatory Information | |
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| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| FR Citation | 83 FR 4944 |
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