# Self-Regulatory Organizations; Delta Government Options Corp.; Notice of Filing of Proposed Rule Change Relating to the Over-the- Counter Options Trading System Procedures for Emergency Contingencies and Disaster Recovery

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URL: https://www.frixlaw.com/law-library/documents/fr%3A94-27810

## Record

- **Collection:** Federal Register
- **Document type:** Uncategorized Document
- **Published:** November 10, 1994

## Text

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-34939; File No. SR-DGOC-94-05]

Self-Regulatory Organizations; Delta Government Options Corp.;
Notice of Filing of Proposed Rule Change Relating to the Over-the-
Counter Options Trading System Procedures for Emergency Contingencies
and Disaster Recovery

November 3, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on September 9, 1994, the
Delta Government Options Corp. (``Delta'') 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
primarily prepared by the self-regulatory organization. On September
23, 1994, Delta filed an amendment to the proposed rule change.\2\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\15 U.S.C. Sec. 78s(b)(1) (1988).
\2\The amendment modified certain sections of the proposed rule
change to correct typographical errors and to specify which members
of Delta's senior management will have authority under the proposed
rule change. Letter from Barry E. Silverman, President, Delta, to
Jerry W. Carpenter, Assistant Director, Securities Processing
Regulation, Division of Market Regulation, Commission (September 22,
1994).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The proposed rule change will modify Delta's Over-The-Counter
Options Trading System Procedures (``Procedures'') relating to
emergency contingencies and disaster recovery. In particular, Delta is
adopting provisions governing (1) the waiver or suspension of Delta's
procedures; (2) action by Delta's management on behalf of Delta; and
(3) interpretation of Delta's rules.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

In its filing with the Commission, Delta 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. Delta 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

(a) The proposed rule change will add a new Article XIX to Delta's
Procedures. Article XIX contains Section 1901, ``Waiver or Suspension
of Procedures,'' Section 1902, ``Action by Delta,'' and Section 1903,
``Interpretation of Rules.'' These new provisions codify Delta's
existing policies regarding emergency contingencies and disaster
recovery.
Section 1901 will permit Delta's Board of Directors, Chairman of
the Board, President, Vice President, Chief Financial Officer,
Secretary, or Controller (1) to extend the time fixed by any provision
of Delta's Procedures or any regulations issued by Delta for the doing
of any act or acts or (2) to waive or to suspend any provision of
Delta's Procedures or any regulations issued by Delta if they judge
such extension, waiver, or suspension to be necessary or expedient. The
extension, waiver, or suspension may remain in effect only for sixty
days unless approved by Delta's Board of Directors.
Section 1901 will require that a written report of the extension,
waiver, or suspension be filed with Delta and shall be available for
inspection by any participant. The written report will set forth the
pertinent facts, the identity of the person who authorized the
extension, waiver, or suspension, and the reason the extension, waiver,
or suspension was deemed necessary or expedient. No written report will
be required for extensions of time of less than eight hours.
Section 1902 will permit Delta's Board of Directors, Chairman of
the Board, President, Vice President, Chief Financial Officer,
Secretary, Controller, or other persons designated by Delta's Board of
Directors to act on behalf of Delta except where Delta's Procedures
require action by the Board of Directors. Section 1903 will authorize
Delta's Board of Directors, Chairman of the Board, President, any
committee of the Board of Directors, or any designee of the Board of
Directors to interpret Delta's Procedures.
(b) The proposed rule change will enable Delta to establish
contingency planning and disaster recovery procedures that can be used
in the event of an emergency, market disruption, or other unanticipated
event and will permit Delta to maintain continuous operations while
safeguarding the assets under its custodianship. Delta believes that
the proposed rule change is consistent with the requirements of Section
17A of the Act and the rules and regulations thereunder and in
particular with Section 17A(b)(3)(F) of the Act which requires that a
clearing agency be organized and its rules be designed to promote the
prompt and accurate clearance and settlement of securities transactions
and to remove impediments to and perfect the mechanism of a national
system for the prompt and accurate clearance and settlement of
securities transactions. Delta believes the proposed rule change will
greatly reduce the possibility of market disruption and insure the
prompt and accurate clearance and settlement of transactions in Delta's
system in the event of an emergency or other unanticipated event.

B. Self-Regulatory Organization's Statement on Burden on Competition

Delta does not believe that the proposed rule change will have an
impact or impose a burden on competition.

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

Comments have neither been solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action

Within thirty-five days of the date of publication of this notice
in the Federal Register or within such longer period (i) as the
Commission may designate up to ninety days of such date if it finds
such longer period to be appropriate and publishes its reasons for so
finding or (ii) as to which the self-regulatory organization consents,
the Commission will:
(A) by order approve such proposed rule change or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549.
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 provisions of 5
U.S.C. Sec. 552, will be available for inspection and copying in the
Commission's Public Reference Section, 450 Fifth Street, Washington,
D.C. 20549. Copies of such filing will also be available for inspection
and copying at the principal office of the above-mentioned self-
regulatory organization. All submissions should refer to File No. SR-
DGOC-94-5 and should be submitted by December 1, 1994.

For the Commission by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-27810 Filed 11-9-94; 8:45 am]
BILLING CODE 8010-01-M

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-27810. Public record. Not legal advice.