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Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to a Change in Ancillary Service Fees

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Start Preamble August 12, 2002.

Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),[1] notice is hereby given that on July 23, 2002, 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 primarily by OCC. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.

I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

The proposed rule change amends OCC's schedule of fees to reflect the restructuring of OCC's ancillary services program.

II. Self-Regulatory Organization'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 such statements.[2]

(A) Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change

In addition to its clearing and settlement services, OCC provides a number of ancillary services to its membership. These services range from on-line systems to report and data files. Hardware and communications lines support these ancillary service offerings. However, the current fee structure for these services and their supporting communications lines does not cover OCC's monthly expenses. Accordingly, OCC has decided to restructure its ancillary services program.

OCC is implementing a four-tiered structure with a different bundle of ancillary services being offered at each tier. The tiers, the associated ancillary services, and the proposed cost for each are set forth in Exhibit A of the proposed rule change filing (OCC's schedule of fees). OCC has also determined to revise its communication line charges. A T1 leased line provides the optimal point-to-point secure communications to OCC's systems. OCC is revising its schedule of fees to charge for T1 leased lines and to increase the current 56.0kb line speed charge. These charges also are reflected in Exhibit A. The ancillary service charges and line offerings that have been eliminated as a result of restructuring the ancillary services program are set forth in Exhibit A. Start Printed Page 53829

OCC believes the proposed rule change is consistent with section 17A of the Act because it provides for the reasonable allocation of costs to provide ancillary services to clearing members.

(B) Self-Regulatory Organization's Statement on Burden on Competition

OCC does not believe that the proposed rule change would impose any burden on competition.

(C) Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others

Written comments 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

Because the foregoing rule change changes fees charged clearing members by OCC, it has become effective pursuant to section 19(b)(3)(A)(ii) of the Act [3] and rule 19b-4(f)(2) [4] thereunder. At any time within sixty days of the filing of the proposed rule change, the Commission may summarily abrogate 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. Persons making written submissions should file six copies thereof with the Secretary, Securities and Exchange Commission, 450 Fifth Street NW., Washington, DC 20549-0609. 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 inspection and copying in the Commission's Public Reference Section, 450 Fifth Street NW., Washington, DC 20549. Copies of such filing will also be available for inspection and copying at the principal office of OCC. All submissions should refer to the File No. SR-OCC-2002-17 and should be submitted by September 9, 2002.

Start Signature

For the Commission by the Division of Market Regulation, pursuant to delegated authority.[5]

Margaret H. McFarland,

Deputy Secretary.

End Signature End Preamble


2.  The Commission has modified parts of these statements.

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3.  15 U.S.C. 78s(b)(3)(A)(ii).

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[FR Doc. 02-20979 Filed 8-16-02; 8:45 am]