Self-Regulatory Organizations; Chicago Mercantile Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change To Amend Certain Rules To Facilitate Clearing of Additional Interest Rate Swap Products, 54270-54271 [2011-22258]

Download as PDF 54270 Federal Register / Vol. 76, No. 169 / Wednesday, August 31, 2011 / Notices 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 Section, 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 filings will also be available for inspection and copying at the principal office of FICC and on FICC’s Web site at http:// www.dtcc.com/downloads/legal/ rule_filings/2011/ficc/2011–06.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–FICC–2011–06 and should be submitted on or before September 21, 2011. For the Commission by the Division of Trading and Markets, pursuant to delegated authority.6 Elizabeth M. Murphy, Secretary. [FR Doc. 2011–22222 Filed 8–30–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–65202; File No. SR–CME– 2011–05] Self-Regulatory Organizations; Chicago Mercantile Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change To Amend Certain Rules To Facilitate Clearing of Additional Interest Rate Swap Products jlentini on DSK4TPTVN1PROD with NOTICES August 25, 2011. 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 August 24, 2011, the Chicago Mercantile Exchange Inc. (‘‘CME’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change described in Items I and II below, which items have been prepared CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. primarily by CME.3 The Commission is publishing this Notice and Order to solicit comments on the proposed rule change from interested persons and to approve the proposed rule change on an accelerated basis. 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. * * * * * Rule 100—90002.E—No Change. CME Rule 90002.F. Contract Elections. With respect to an IRS Contract, each of the following elections made by an IRS Participant for such IRS Contract: the: Effective Date, Notional Amount and currency, Termination Date and any Business Day Convention adjustment, Fixed Rate Payer Payment Dates, Fixed Rate, Floating Rate Payer Payment Dates, Floating Rate Option, Designated Maturity, Spread, Floating Rate for Initial Floating Rate Payer Calculation Period, initial payment amount (if any), initial amount payer (if any) and whether the IRS Clearing Participant is acting as a Floating Rate Payer or a Fixed Rate Payer and whether the Clearing House is acting as a Floating Rate Payer or a Fixed Rate Payer. [CME Rule 90102.D. Calculation Period]. [For any USD IRS Contract submitted to the Clearing House for clearing, if the elections made by the relevant IRS Clearing Members for such USD IRS Contract include ‘‘Compounding’’, then the Floating Rate Calculation Period of such USD IRS Contract shall be 6 months and shall entail a Compounding Period equal to 3 months.]. [If such elections do not include ‘‘Compounding’’, then the Floating Rate Calculation Period of such USD IRS Contract shall equal 3 months.]. [The Fixed Rate Calculation Period of such USD IRS Contract shall equal 6 months.]. [CME Rule 90102.G. Designated Maturity]. [With respect to an USD IRS Contract, Designated Maturity shall be 3 months.] 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 6 17 VerDate Mar<15>2010 16:51 Aug 30, 2011 3 In its submission, CME incorrectly labeled the file number as CMECH–2011–04. Jkt 223001 PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item III 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 currently offers clearing services for certain interest rate swap products. These proposed rule changes are intended to expand CME’s existing US dollar interest rate swap product offerings by adding the following additional contract elections: One month and six month designated maturities; +/¥ Spreads; and matching on the Floating Amount for the initial Floating Rate Payer Calculation Period. CME notes that it has also submitted the proposed rule changes that are the subject of this filing to its primary regulator, the Commodity Futures Trading Commission (‘‘CFTC’’). The text of the CME rule proposed amendments is in Section I of this notice, with additions underlined and deletions in brackets. CME believes the proposed rule changes are consistent with the requirements of the Exchange Act including Section 17A of the Exchange Act because they involve clearing of swaps and thus relate solely to CME’s swaps clearing activities pursuant to its registration as a derivatives clearing organization under the Commodity Exchange Act (‘‘CEA’’) and do not significantly affect any securities clearing operations of the clearing agency or any related rights or obligations of the clearing agency or persons using such service. CME further notes that the policies of the CEA with respect to clearing are comparable to a number of the policies underlying the Exchange Act, such as promoting market transparency for over-thecounter derivatives markets, promoting the prompt and accurate clearance of transactions and protecting investors and the public interest. The proposed rule changes accomplish those objectives by offering investors clearing for an expanded range of interest rate swap products. 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. E:\FR\FM\31AUN1.SGM 31AUN1 Federal Register / Vol. 76, No. 169 / Wednesday, August 31, 2011 / Notices IV. Commission’s Findings and Order Granting Accelerated Approval of Proposed Rule Change C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Section 19(b) of the Act 4 directs the Commission to approve a proposed rule change of a self-regulatory organization if it finds that such proposed rule change is consistent with the requirements of the Act and the rules III. Solicitation of Comments and regulations thereunder applicable to such organization. The Commission Interested persons are invited to finds that the proposed rule change is submit written data, views and consistent with the requirements of the arguments concerning the foregoing, Act, in particular the requirements of including whether the proposed rule Section 17A of the Act,5 and the rules change is consistent with the Act. and regulations thereunder applicable to Comments may be submitted by any of CME. Specifically, the Commission the following methods: finds that the proposed rule change is • Electronic comments may be consistent with Section 17A(b)(3)(F) of submitted by using the Commission’s the Act which requires, among other Internet comment form (http:// things, that the rules of a clearing www.sec.gov/rules/sro.shtml), or send agency be designed to promote the an e-mail to rule-comments@sec.gov Please include File No. SR–CME–2011– prompt and accurate clearance and 05 on the subject line. settlement of derivative agreements, contracts, and transactions because it • Paper comments should be sent in should allow CME to enhance its triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange services in clearing interest rate swaps, Commission, 100 F Street, NE., thereby promoting the prompt and Washington, DC 20549–1090. accurate clearance and settlement of derivative agreements, contracts, and All submissions should refer to File transactions.6 Number SR–CME–2011–05. This file number should be included on the The Commission finds good cause for subject line if e-mail is used. To help the accelerating approval because: (i) The Commission process and review your proposed rule change does not comments more efficiently, please use significantly affect any securities only one method. The Commission will clearing operations of the clearing post all comments on the Commission’s agency (whether in existence or Internet Web site (http://www.sec.gov/ contemplated by its rules) or any related rules/sro.shtml). Copies of the rights or obligations of the clearing submission, all subsequent agency or persons using such service; amendments, all written statements (ii) CME has indicated that not with respect to the proposed rule providing accelerated approval would change that are filed with the have a significant impact on the swap Commission, and all written clearing business of CME as a communications relating to the designated clearing organization; and proposed rule change between the Commission and any person, other than (iii) the activity relating to the nonsecurity clearing operations of the those that may be withheld from the clearing agency for which the clearing public in accordance with the agency is seeking approval is subject to provisions of 5 U.S.C. 552, will be regulation by another regulator. available for Web site viewing and printing in the Commission’s Public V. Conclusion Reference Room, 100 F Street, NE., Washington, DC 20549. Copies of such It Is Therefore Ordered, pursuant to filing also will be available for Section 19(b)(2) 7 of the Act, that the inspection and copying at the principal proposed rule change (SR–CME–2011– office of CME. All comments received 05) is approved on an accelerated basis. will be posted without change; the Commission does not edit personal identifying information from 4 15 U.S.C. 78s(b). submissions. You should submit only 5 15 U.S.C. 78q–1. In approving this proposed information that you wish to make rule change, the Commission has considered the available publicly. All submissions proposed rule’s impact on efficiency, competition, should refer to File Number SR–CME– and capital formation. 15 U.S.C. 78c(f). 2011–05 and should be submitted on or 6 15 U.S.C. 78q–1(b)(3)(F). before September 21, 2011. 7 15 U.S.C. 78s(b)(2). jlentini on DSK4TPTVN1PROD with NOTICES 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. VerDate Mar<15>2010 16:51 Aug 30, 2011 Jkt 223001 PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 54271 For the Commission by the Division of Trading and Markets, pursuant to delegated authority.8 Elizabeth M. Murphy, Secretary. [FR Doc. 2011–22258 Filed 8–30–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–65201; File No. SR–Phlx– 2011–90] Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order Approving Proposed Rule Change Relating to Board of Director Qualifications August 25, 2011. I. Introduction On June 30, 2011, NASDAQ OMX PHLX LLC (‘‘Phlx’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 a proposed rule change relating to the qualifications of its Board of Directors (‘‘Board’’). The proposed rule change was published for comment in the Federal Register on July 14, 2011.3 The Commission received no comment letters regarding the proposal. This order approves the proposed rule change. II. Description of the Proposal The Exchange proposes to amend its By-Laws to revise the qualifications for any position on the Board required to be representative of issuers. Currently, Section 3–2 of the Exchange By-Laws provides: ‘‘[T]he number of NonIndustry Directors, including at least one Public Director 4 and at least one issuer representative (or if the Board consists of ten or more Directors, at least two issuer representatives), shall equal or exceed the sum of the number of Industry Directors 5 and Member 8 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 64845 (July 8, 2011), 76 FR 41549 (July 14, 2011) (‘‘Notice’’). 4 A Public Director is ‘‘a Director who has no material business relationship with a broker or dealer, the Exchange or its affiliates, or FINRA.’’ See Exchange By-Law Article I(gg). 5 An Industry Director is ‘‘a Director (excluding any two officers of the Exchange, selected at the sole discretion of the Board, amongst those officers who may be serving as Directors (the ‘Staff Directors’)), who (i) is or has served in the prior three years as an officer, director, or employee of a broker or dealer, excluding an outside director or 1 15 E:\FR\FM\31AUN1.SGM Continued 31AUN1

Agencies

[Federal Register Volume 76, Number 169 (Wednesday, August 31, 2011)]
[Notices]
[Pages 54270-54271]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-22258]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65202; File No. SR-CME-2011-05]


Self-Regulatory Organizations; Chicago Mercantile Exchange, Inc.; 
Notice of Filing and Order Granting Accelerated Approval of Proposed 
Rule Change To Amend Certain Rules To Facilitate Clearing of Additional 
Interest Rate Swap Products

August 25, 2011.
    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 August 24, 2011, the Chicago Mercantile Exchange Inc. (``CME'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change described in Items I and II below, which items 
have been prepared primarily by CME.\3\ The Commission is publishing 
this Notice and Order to solicit comments on the proposed rule change 
from interested persons and to approve the proposed rule change on an 
accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In its submission, CME incorrectly labeled the file number 
as CMECH-2011-04.
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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.
* * * * *
    Rule 100--90002.E--No Change.
    CME Rule 90002.F. Contract Elections.
    With respect to an IRS Contract, each of the following elections 
made by an IRS Participant for such IRS Contract: the: Effective Date, 
Notional Amount and currency, Termination Date and any Business Day 
Convention adjustment, Fixed Rate Payer Payment Dates, Fixed Rate, 
Floating Rate Payer Payment Dates, Floating Rate Option, Designated 
Maturity, Spread, Floating Rate for Initial Floating Rate Payer 
Calculation Period, initial payment amount (if any), initial amount 
payer (if any) and whether the IRS Clearing Participant is acting as a 
Floating Rate Payer or a Fixed Rate Payer and whether the Clearing 
House is acting as a Floating Rate Payer or a Fixed Rate Payer.
    [CME Rule 90102.D. Calculation Period].
    [For any USD IRS Contract submitted to the Clearing House for 
clearing, if the elections made by the relevant IRS Clearing Members 
for such USD IRS Contract include ``Compounding'', then the Floating 
Rate Calculation Period of such USD IRS Contract shall be 6 months and 
shall entail a Compounding Period equal to 3 months.].
    [If such elections do not include ``Compounding'', then the 
Floating Rate Calculation Period of such USD IRS Contract shall equal 3 
months.].
    [The Fixed Rate Calculation Period of such USD IRS Contract shall 
equal 6 months.].
    [CME Rule 90102.G. Designated Maturity].
    [With respect to an USD IRS Contract, Designated Maturity shall be 
3 months.]

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 III 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 currently offers clearing services for certain interest rate 
swap products. These proposed rule changes are intended to expand CME's 
existing US dollar interest rate swap product offerings by adding the 
following additional contract elections: One month and six month 
designated maturities; +/- Spreads; and matching on the Floating Amount 
for the initial Floating Rate Payer Calculation Period.
    CME notes that it has also submitted the proposed rule changes that 
are the subject of this filing to its primary regulator, the Commodity 
Futures Trading Commission (``CFTC''). The text of the CME rule 
proposed amendments is in Section I of this notice, with additions 
underlined and deletions in brackets.
    CME believes the proposed rule changes are consistent with the 
requirements of the Exchange Act including Section 17A of the Exchange 
Act because they involve clearing of swaps and thus relate solely to 
CME's swaps clearing activities pursuant to its registration as a 
derivatives clearing organization under the Commodity Exchange Act 
(``CEA'') and do not significantly affect any securities clearing 
operations of the clearing agency or any related rights or obligations 
of the clearing agency or persons using such service. CME further notes 
that the policies of the CEA with respect to clearing 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. The proposed rule changes accomplish 
those objectives by offering investors clearing for an expanded range 
of interest rate swap products.

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 54271]]

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. 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 e-mail to rule-comments@sec.gov Please include 
File No. SR-CME-2011-05 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-2011-05. This file 
number should be included on the subject line if e-mail 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. Copies of such filing also will be available for 
inspection and copying at the principal office of CME. 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-2011-05 and should be 
submitted on or before September 21, 2011.

IV. Commission's Findings and Order Granting Accelerated Approval of 
Proposed Rule Change

    Section 19(b) of the Act \4\ directs the Commission to approve a 
proposed rule change of a self-regulatory organization if it finds that 
such proposed rule change is consistent with the requirements of the 
Act and the rules and regulations thereunder applicable to such 
organization. The Commission finds that the proposed rule change is 
consistent with the requirements of the Act, in particular the 
requirements of Section 17A of the Act,\5\ and the rules and 
regulations thereunder applicable to CME. Specifically, the Commission 
finds that the proposed rule change is consistent with Section 
17A(b)(3)(F) of the Act which requires, among other things, that the 
rules of a clearing agency be designed to promote the prompt and 
accurate clearance and settlement of derivative agreements, contracts, 
and transactions because it should allow CME to enhance its services in 
clearing interest rate swaps, thereby promoting the prompt and accurate 
clearance and settlement of derivative agreements, contracts, and 
transactions.\6\
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    \4\ 15 U.S.C. 78s(b).
    \5\ 15 U.S.C. 78q-1. In approving this proposed rule change, the 
Commission has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78q-1(b)(3)(F).
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    The Commission finds good cause for accelerating approval because: 
(i) The proposed rule change does not significantly affect any 
securities clearing operations of the clearing agency (whether in 
existence or contemplated by its rules) or any related rights or 
obligations of the clearing agency or persons using such service; (ii) 
CME has indicated that not providing accelerated approval would have a 
significant impact on the swap clearing business of CME as a designated 
clearing organization; and (iii) the activity relating to the non-
security clearing operations of the clearing agency for which the 
clearing agency is seeking approval is subject to regulation by another 
regulator.

V. Conclusion

    It Is Therefore Ordered, pursuant to Section 19(b)(2) \7\ of the 
Act, that the proposed rule change (SR-CME-2011-05) is approved on an 
accelerated basis.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-22258 Filed 8-30-11; 8:45 am]
BILLING CODE 8011-01-P