Federal Register #4-930

SEC Notice: Application by Cboe Clear U.S., LLC for Exemption on Customer Margin Treatment for Binary Options Clearing

This SEC notice concerns a regulatory exemption application by Cboe Clear U.S., LLC (CCUS) for customer margin treatment in binary options clearing. - Government buyer: - Securities and Exchange Commission (SEC) - OEMs and vendors mentioned: - Cboe Clear U.S., LLC (CCUS) - Options Clearing Corporation (OCC) - Products/services requested: - No products or services are being procured; the notice relates to regulatory treatment for margin held at CCUS - Unique or notable requirements: - CCUS requests an exemption under Section 36 of the Securities Exchange Act of 1934 - The exemption would allow broker-dealers to treat margin held at CCUS for binary options as a debit under Item 13 and Note F of Exhibit A to Rule 15c3-3 - This would align margin treatment at CCUS with that currently provided for OCC - The SEC is soliciting public comments on the application - No purchase quantities, part numbers, or procurement-specific requirements are included; the focus is on regulatory equivalence for margin treatment in cleared binary options

Description

Cboe Clear U.S., LLC (CCUS) has filed an application with the Securities and Exchange Commission (SEC) seeking an exemption under section 36(a)(1) of the Securities Exchange Act of 1934. The exemption would allow CCUS Clearing Members to include margin required and on deposit at CCUS for binary options cleared on behalf of customers as a debit under Item 13 and Note F of Exhibit A to Rule 15c3-3, similar to the treatment currently provided for margin on deposit with the Options Clearing Corporation (OCC). The application aims to provide equivalent treatment for margin held at CCUS as is afforded to OCC, supporting the development of a cleared securities environment for binary options. The SEC is soliciting public comments on the application.

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