[Federal Register Volume 80, Number 62 (Wednesday, April 1, 2015)]
[Notices]
[Pages 17525-17526]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-07365]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74591; File No. SR-CME-2015-010]
Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rules Change
To Amend Listing Rules for New CDX Indexes Available for Clearing
March 26, 2015.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on March 23, 2015, Chicago Mercantile Exchange
Inc. (``CME'') 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 proposal 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. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CME is filing a proposed rule change that is limited to its
business as a derivatives clearing organization. More specifically, the
proposed rule change would make amendments to its rules regarding the
listing of new CDS indexes available for clearing.
II. Self-Regulatory Organization's Statement of the 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 the Purpose of, and
Statutory Basis for, the Proposed Rule Change
CME is registered as a derivatives clearing organization with the
Commodity Futures Trading Commission (``CFTC'') and currently offers
clearing services for many different futures and swaps products. With
this filing, CME proposes to make rulebook changes that are limited to
its business clearing futures and swaps under the exclusive
jurisdiction of the CFTC. More specifically, the proposed changes would
make amendments to its rules regarding the listing of new CDS indexes
available for clearing.
CME offers clearing for CDX North American Investment Grade (Series
8-24) and CDX North American High Yield (14-24) Index Contracts.
Further, CME plans to clear all future on-the-run series of the
respective indices on a going forward basis. The proposed amendments
would permit CME to maintain a list on its Web site of each index that
a cleared CDX Index Untranched CDS Contract may reference, in lieu of
maintaining such list in Appendix 1 to Rule 802, as it currently does.
CME currently maintains on its Web site a similar list for iTraxx
Europe Index Untranched CDS Contracts; the amendments proposed hereby
would simply conform CME's practice for maintaining the list of indices
for CDX Index Untranched CDS Contracts to CME's existing practice for
maintaining the list of indices for iTraxx Europe Index Untranched CDS
Contracts. The proposed amendments would affect CME Rules 80202.A.B.
and 80202.B. and Appendix 1 of Rule 802.
The proposed rule change that is described in this filing is
limited to its business as a derivatives clearing organization clearing
products under the exclusive jurisdiction of the Commodity Futures
Trading Commission (``CFTC''). CME has not cleared security based swaps
and does not plan to and therefore the proposed rule change does not
impact CME's security-based swap clearing business in any way. The
proposed rule change would become effective immediately. CME notes that
it has also submitted the proposed rule change that is the subject of
this filing to its primary regulator, the CFTC, in CME Submission 14-
095.
CME believes the proposed rule change is consistent with the
requirements of the Exchange Act including Section 17A of the Exchange
[[Page 17526]]
Act.\5\ The revisions to Rules 80202.A.B. and 80202.B.B. and to
Appendix 1 to Rule 802 will conform CME's practice for listing indices
for cleared CDX Index Untranched CDS Contracts to its existing practice
for listing indices for cleared iTraxx Europe Index Untranched CDS
Contracts. These amendments would provide market participants with a
consistent format for identifying product eligibility requirements and
should therefore be seen to be designed to promote the prompt and
accurate clearance and settlement of securities transactions and, to
the extent applicable, derivatives agreements, contracts, and
transactions, to assure the safeguarding of securities and funds which
are in the custody or control of the clearing agency or for which it is
responsible, and, in general, to protect investors and the public
interest consistent with Section 17A(b)(3)(F) of the Exchange Act.\6\
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\5\ 15 U.S.C. 78q-1.
\6\ 15 U.S.C. 78q-1(b)(3)(F).
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Furthermore, the proposed rule change is limited to CME's futures
and swaps clearing businesses, which mean they are limited in their
effect to products that are under the exclusive jurisdiction of the
CFTC. As such, the changes are limited to CME's activities as a DCO
clearing futures that are not security futures and swaps that are not
security-based swaps. CME notes that the policies of the CFTC with
respect to administering the Commodity Exchange Act are comparable to a
number of the policies underlying the Exchange Act, such as promoting
market transparency for over-the-counter derivatives markets, promoting
the prompt and accurate clearance of transactions and protecting
investors and the public interest.
Because the proposed rule change is limited in their effect to
CME's futures and swaps clearing businesses, the proposed rule change
is properly classified as effecting a change in an existing service of
CME that:
(a) Primarily affects the clearing operations of CME with respect
to products that are not securities, including futures that are not
security futures, swaps that are not security-based swaps or mixed
swaps; and forwards that are not security forwards; and
(b) does not significantly affect any securities clearing
operations of CME or any rights or obligations of CME with respect to
securities clearing or persons using such securities-clearing service.
As such, the changes are therefore consistent with the requirements of
Section 17A of the Exchange Act \7\ and are properly filed under
Section 19(b)(3)(A) \8\ and Rule 19b-4(f)(4)(ii) \9\ thereunder.
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\7\ 15 U.S.C. 78q-1.
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(4)(ii).
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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. The proposed amendments
would simply provide market participants with a consistent format for
identifying product eligibility requirements. Further, the changes are
limited to CME's futures and swaps clearing businesses and, as such, do
not affect the security-based swap clearing activities of CME in any
way and therefore do not impose any burden on competition that is
inappropriate in furtherance of the purposes of the Act.
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 has become effective upon filing pursuant
to Section 19(b)(3)(A) \10\ of the Act and Rule 19b-4(f)(4)(ii) \11\
thereunder. 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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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(4)(ii).
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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 No. SR-CME-2015-010 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-CME-2015-010. 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/rule-filings.html.
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-2015-010 and
should be submitted on or before April 22, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-07365 Filed 3-31-15; 8:45 am]
BILLING CODE 8011-01-P