[Federal Register Volume 77, Number 82 (Friday, April 27, 2012)]
[Notices]
[Pages 25215-25216]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-10159]
[[Page 25215]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66847; File No. SR-CME-2012-12]
Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Rules Regarding Clearing Member Anti-Money Laundering Programs
April 23, 2012.
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 April 9, 2012, Chicago Mercantile Exchange Inc. (``CME'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change described in Items I, II and III below, which items have
been prepared primarily by CME. CME filed the proposed rule change
pursuant to Section 19(b)(3)(A) \3\ of the Act and Rule 19b-4(f)(1) \4\
thereunder so that the proposed rule change was effective upon filing
with the Commission.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(1).
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I. Self-Regulatory Organization's Statement of Terms of Substance of
the Proposed Rule Change
The text of the proposed rule change is below. Italicized text
indicates additions; bracketed text indicates deletions.
* * * * *
CHICAGO MERCANTILE EXCHANGE INC. RULEBOOK
Rule 100-980--No Change.
* * * * *
Chapter 9. Clearing Members
Rule 981. ANTI-MONEY LAUNDERING AND ECONOMIC SANCTIONS COMPLIANCE
Each clearing member shall develop and implement a written [anti-
money laundering] compliance program approved in writing by senior
management reasonably designed to achieve and monitor the clearing
member's compliance with [the] all applicable requirements of the Bank
Secrecy Act (31 U.S.C. Sec. 5311 et[.] seq.), the International
Emergency Economic Powers Act (50 U.S.C. Sec. 1701 et seq.)
(``IEEPA''), the Trading with the Enemy Act (50 U.S.C. App. Sec. 1 et
seq.) (``TWEA''), and the Executive Orders and [the implementing]
regulations issued pursuant thereto, including the regulations issued
[promulgated thereunder] by the U.S. Department of the Treasury and, as
applicable, the Commodity Futures Trading Commission. That [anti-money
laundering] compliance program shall, at a minimum,
1. Establish and implement policies, procedures and internal
controls reasonably designed to assure compliance with [the] all
applicable provisions of the Bank Secrecy Act, IEEPA, TWEA, and all
applicable Executive Orders and regulations issued pursuant thereto
[the implementing regulations thereunder];
2. Provide for independent testing for compliance to be conducted
by clearing member personnel or by a qualified outside party;
3. Designate an individual or individuals responsible for
implementing and monitoring the day-to-day operations and internal
controls of the program; and
4. Provide ongoing training for appropriate personnel.
Clearing members must also supervise and ensure that their
guaranteed introducing brokers are in compliance with the [anti-money
laundering] provisions contained in this Rule.
* * * * *
Rule 981-End--No change
* * * * *
II. Self-Regulatory Organization's Statement of Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, CME included statements
concerning the purpose 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. CME 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 Purpose of, and
Statutory Basis for, the Proposed Rule Change
CME proposes to adopt certain rule changes to CME Rule 981, which
deals with CME clearing member anti-money laundering (``AML'')
compliance programs. At present, CME Rule 981 requires clearing members
to develop and implement a written AML program reasonably designed to
achieve compliance with applicable requirements of the Bank Secrecy Act
(31 U.S.C. 5311, et seq.). CME proposes to revise Rule 981 to further
require clearing members to have a written AML compliance program
reasonably designed to achieve compliance with the International
Emergency Economic Powers Act (50 U.S.C. 1701, et seq.), the Trading
with the Enemy Act (50 U.S.C. App. 1, et seq.), and Executive Orders
and regulations issued thereunder.
These amendments would therefore expand Rule 981 to encompass all
applicable Office of Foreign Asset Control (OFAC) sanctions programs.
OFAC administers and enforces economic and trade sanctions based on
U.S. foreign policy and national security goals against targeted
foreign countries and regimes, terrorists, international narcotics
traffickers, those engaged in activities related to the proliferation
of weapons of mass destruction, and other threats to the national
security, foreign policy, or economy of the United States. OFAC acts
under Presidential national emergency powers, as well as authority
granted by specific legislation, to impose controls on transactions and
freeze assets under U.S. jurisdiction. OFAC sanctions are broad and
extraterritorial in scope and all investments and transactions in the
U.S., or involving U.S. persons or corporations, must comply.
The proposed rule change that is the subject of this filing will
become immediately effective upon filing. CME notes that it has also
certified the proposed rule change that is the subject of this filing
to its primary regulator, the Commodity Futures Trading Commission. The
text of the CME proposed rule amendment is listed above with additions
italicized and deletions in brackets.
The proposed CME rule amendment is designed to ensure that CME has
in place appropriate eligibility standards by ensuring that clearing
members have AML compliance programs that address all applicable
requirements. The amendment simply expands existing CME Rule 981 to
encompass all applicable OFAC sanctions programs. As such, the proposed
amendments constitute a stated policy, practice, or interpretation with
respect to the meaning, administration, or enforcement of an existing
CME rule. Therefore, the proposed rule change is therefore properly
filed under Section 19(b)(3)(A) and Rule 19b-4(f)(1) thereunder of the
Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
CME does not believe that the proposed rule change will have any
impact or impose any burden on competition.
[[Page 25216]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
CME has not solicited and does not intend to solicit comments
regarding this proposed rule change. CME has not received any
unsolicited written comments from interested parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change was filed pursuant to Section 19(b)(3)(A)
of the Act and paragraph (f)(1) of Rule 19b-4 thereunder and therefore
became effective on filing. At any time within sixty days of the filing
of such 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, 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. Comments may be submitted by any of
the following methods:
Electronic comments may be submitted by using the
Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml), or send an email to [email protected]. Please include
File No. SR-CME-2012-12 on the subject line.
Paper comments should be sent in triplicate to Elizabeth
M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street
NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-CME-2012-12. 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 Web site (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 Web site 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
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of CME and on CME's Web
site at http://www.cmegroup.com/market-regulation/files/SEC_19b-4_12-12.pdf. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly.
All submissions should refer to File Number SR-CME-2012-12 and
should be submitted on or before May 18, 2012.
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\5\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\5\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-10159 Filed 4-26-12; 8:45 am]
BILLING CODE 8011-01-P