Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing of an Advance Notice, and Amendment No. 1 Thereto, To Establish…
Self-Regulatory Organizations;
Pursuant to Section 806(e)(1) of Title VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act entitled the Payment, Clearing, and Settlement Supervision Act of 2010 ("Payment, Clearing and Settlement Supervision Act") /1/ and Rule 19b-4(n)(1)(i) under the Securities Exchange Act of 1934 ("Exchange Act") /2/ notice is hereby given that on
FOOTNOTE 1 12 U.S.C. 5465(e)(1). END FOOTNOTE
FOOTNOTE 2 17 CFR 240.19b-4(n)(1)(i). END FOOTNOTE
FOOTNOTE 3 In Amendment No. 1, OCC amended the advance notice to include the Monthly Clearing Fund Sizing Procedure and the Financial Resource Monitoring and Call Procedure as exhibits to the filing, both defined hereinafter, as Exhibit 5A and Exhibit 5B, respectively. OCC has requested confidential treatment for Exhibit 5A and Exhibit 5B pursuant to the Rule 24b-2 under the Exchange Act. END FOOTNOTE
I. Clearing Agency's Statement of the Terms of Substance of the Advance Notice
This advance notice is filed by OCC in connection with OCC's proposal to establish procedures regarding the monthly resizing of its
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Advance Notice
In its filing with the Commission, OCC included statements concerning the purpose of and basis for the advance notice and discussed any comments it received on the advance notice. 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) and (B) below, of the most significant aspects of these statements.
(A)
Written comments on the advance notice were not and are not intended to be solicited with respect to the advance notice and none have been received.
(B) Advance Notices Filed Pursuant to Section 806(e) of the Payment, Clearing and Settlement Supervision Act
This Amendment No. 1 to SR-OCC-2014-811 ("Filing") amends and replaces in its entirety the Filing as originally submitted on
The proposed change would establish new procedures regarding the monthly resizing of the
Purpose of the Proposed Change
The proposed change is intended to describe the situations in which OCC would exercise authority under its Rules to ensure that it maintains adequate Financial Resources /4/ in the event that stress tests reveal a default of the Clearing Member or
FOOTNOTE 4 "Financial Resources" means, with respect to a projected loss attributable to a particular Clearing Member, the sum of the margin deposits and deposits in lieu of margin in respect of such Clearing Member' accounts, and the value of
FOOTNOTE 5 "
FOOTNOTE 6 This advance notice filing has also been filed as a proposed rule change (SR-OCC-2014-22). END FOOTNOTE
FOOTNOTE 7 The procedures described herein would be in effect until the development of a new standard
Background
OCC monitors the sufficiency of the
FOOTNOTE 8 On
FOOTNOTE 9 See OCC Rule 1001(a). END FOOTNOTE
To permit OCC to increase the size of its
FOOTNOTE 10 OCC also has submitted an advance notice that would provide greater detail concerning conditions under which OCC would increase the size of the
FOOTNOTE 11 12 U.S.C. 5465(e)(2). END FOOTNOTE
FOOTNOTE 12 See supra, note 9. END FOOTNOTE
Clearing Members were informed of the action taken by the Executive Chairman /13/ and the amount of their additional
--This is a summary of a
Citation: "80 FR 4001"
Document Number: "Release No. 34-74091; File No. SR-OCC-2014-811"
Federal Register Page Number: "4001"
"Notices"
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