[Federal Register Volume 77, Number 248 (Thursday, December 27, 2012)]
[Notices]
[Pages 76314-76315]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-31122]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68490; File No. SR-CME-2012-46]
Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Fee Schedule Applicable to its OTC Credit Default Swap
Clearing Offering
December 20, 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 December 18, 2012, the Chicago Mercantile Exchange Inc. (``CME'' or
``Exchange'') 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 CME. CME
filed the proposed rule change pursuant to Section 19(b)(3)(A)(ii) \3\
of the Act and Rule 19b-4(f)(2) \4\ thereunder so that the proposal was
effective upon filing with the Commission. 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. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
CME is proposing to amend the fee schedule that currently applies
to its OTC Credit Default Swap clearing offering. The text of the
proposed rule change is available at the Exchange's Web site at http://www.cmegroup.com, at the principal office of the Exchange, and at the
Commission's Public Reference Room.
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, the clearing agency 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. The clearing agency has prepared summaries,
set forth in sections (A), (B) and (C) below, of the most significant
aspects of such statements.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
This filing proposes to make minor amendments to the current fee
schedule that applies to CDX North American Index Credit Default Swaps
cleared at CME. The only modification that is proposed is to extend the
current twenty five percent (25%) discount of base clearing fees for
all market participants that clear OTC North American Index CDS
products at CME for another year. This discount was scheduled to expire
as of December 31, 2012.
The proposed changes are related to fees and therefore will become
effective immediately. However, the proposed fee changes will become
operative as of January 2, 2013. CME has also certified the proposed
rule changes that are the subject of this filing to the Commodity
Futures Trading Commission (``CFTC''), in CFTC Submission 12-464.
The proposed CME rule amendments establish or change a member due,
fee, or other charge imposed by CME under Section 19(b)(3)(A)(ii) of
the Securities Exchange Act of 1934 and Rule 19b-4(f)(2) thereunder.
CME believes that the proposed rule change is consistent with the
requirements of the Securities Exchange Act of 1934 and the rules and
regulations thereunder and, in particular, to 17A(b)(3)(D), in that it
provides for the equitable allocation of reasonable dues, fees, and
other charges among participants. The proposed changes apply to all
market participants clearing trades at CME. CME believes the
modifications should encourage firms to submit additional volume into
the system which should help ensure readiness and also help build open
interest ahead of a regulatory mandate. CME notes that it operates in a
highly competitive market in which market participants can readily
direct business to competing venues.
[[Page 76315]]
(B) Clearing Agency's Statement on Burden on Competition
The proposed rule change does not impose any burden on competition.
(C) Clearing Agency'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 has been filed pursuant to Section
19(b)(3)(A)(ii) \5\ of the Act and paragraph (f)(2) of Rule 19b-4 \6\
thereunder and became effective on filing. At any time within 60 days
of the filing of the proposed 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.
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\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 17 CFR 240.19b-4(f)(2).
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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
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml) or
Send an email to [email protected]. Please include
File Number SR-CME-2012-46 on the subject line.
Paper Comments
Send paper comments 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-2012-46. 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
10:00 a.m. and 3:00 p.m. Copies of such filings will also be available
for inspection and copying at the principal office of CME and on CME's
Web site (http://www.cmegroup.com).
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-2012-46
and should be submitted on or before January 17, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-31122 Filed 12-26-12; 8:45 am]
BILLING CODE 8011-01-P