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]
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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 https://
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
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16:51 Aug 30, 2011
3 In its submission, CME incorrectly labeled the
file number as CMECH–2011–04.
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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 (https://
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 (https://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]
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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 (https://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 (https://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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(2).
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-22258 Filed 8-30-11; 8:45 am]
BILLING CODE 8011-01-P