Self-Regulatory Organizations; Chicago Mercantile Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Fees for Its Cleared-only OTC FX Clearing Offering, 5283-5284 [2012-2231]
Download as PDF
Federal Register / Vol. 77, No. 22 / Thursday, February 2, 2012 / Notices
SECURITIES AND EXCHANGE
COMMISSION
USDDKK, USDJPY, USDNOK, USDSEK CashSettled Forwards.
[Release No. 34–66261; File No. SR–CME–
2012–02]
Eligible Participants
The temporary reduction in fees will be
open to all market participants and will
automatically be applied to any transaction
in the Products submitted to the Clearing
House for clearing.
Self-Regulatory Organizations;
Chicago Mercantile Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Regarding Fees for Its
Cleared-only OTC FX Clearing Offering
January 26, 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 January
24, 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)(2) 4 thereunder.
I. Self-Regulatory Organization’s
Statement of Terms of Substance of the
Proposed Rule Change
CME is proposing to make certain feerelated changes that would apply to its
cleared-only OTC foreign exchange
(‘‘FX’’) swap clearing offering. The text
of the proposed changes 5 is as follows:
CME OTC FX Fee Waiver Program
Program Purpose
The purpose of this Program is to
incentivize market participants to submit
transaction in the OTC FX products listed
below to the Clearing House for clearing. The
resulting increase in volume benefits all
participant segments in the market.
Product Scope
The following cleared only OTC FX
products (‘‘Products’’):
1. CME Cleared OTC FX—Emerging Markets
a. USDBRL, USDCLP, USDCNY, USDCOP,
USDIDR, USDINR, USDKRW, USDMYR,
USDPEN, USDPHP, USDRUB, USDTWD
Non-Deliverable Forwards
b. USDCZK, USDHUF, USDHKD, USDILS,
USDMXN, USDPLN, USDSGD, USDTHB,
USDTRY, USDZAR Cash-Settled Forwards
srobinson on DSK4SPTVN1PROD with NOTICES
2. CME Cleared OTC FX—Majors
a. AUDJPY, AUDUSD, CADJPY, EURAUD,
EURCHF, EURGBP, EURJPY, EURUSD,
GBPUSD, NZDUSD, USDCAD, USDCHF,
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)(2).
5 The text of the proposed changes does not
appear in CME’s rulebook but is available on CME’s
Web site at https://www.cmegroup.com/marketregulation/rule-filings.html.
VerDate Mar<15>2010
17:04 Feb 01, 2012
Jkt 226001
Program Term
Start date is February 1, 2012. End date is
June 30, 2012.
Hours
The Program will be applicable regardless
of the transaction time.
Program Incentives
Fee Waivers. All market participants that
clear the Products will have their clearing
fees waived.
*
*
*
*
*
The text of the proposed changes is
also available at the Exchange’s Web site
at https://www.cmegroup.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
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 currently offers clearing for
certain cleared-only OTC FX swap
products. The filing proposes to
implement a fee waiver program that
will apply to the following cleared-only
OTC FX products (‘‘Products’’):
1. CME Cleared OTC FX—Emerging Markets
a. USDBRL, USDCLP, USDCNY, USDCOP,
USDIDR, USDINR, USDKRW, USDMYR,
USDPEN, USDPHP, USDRUB, USDTWD
Non-Deliverable Forwards
b. USDCZK, USDHUF, USDHKD, USDILS,
USDMXN, USDPLN, USDSGD, USDTHB,
USDTRY, USDZAR Cash-Settled Forwards
2. CME Cleared OTC FX—Majors
a. AUDJPY, AUDUSD, CADJPY, EURAUD,
EURCHF, EURGBP, EURJPY, EURUSD,
GBPUSD, NZDUSD, USDCAD, USDCHF,
USDDKK, USDJPY, USDNOK, USDSEK CashSettled Forwards.
The fee waiver will be open to all
market participants and will
PO 00000
Frm 00057
Fmt 4703
Sfmt 4703
5283
automatically be applied to any
transaction in the Products submitted to
CME’s clearinghouse for clearing. The
proposed changes that are the subject of
this filing are related to the fees CME
charges for clearing and therefore will
become effective upon filing. However,
the changes will become operative on
February 1, 2012.
Pursuant to Commodity Futures
Trading Commission (‘‘CFTC’’)
regulations, the proposed changes are
subject to CFTC Regulation 40.6(d),
requiring a self-certification filing to the
CFTC, although no change to text of the
CME rulebook is required. CME notes
that it has already certified the proposed
changes that are the subject of this filing
to its primary regulator, the CFTC. The
text of the CME proposed changes is set
out in Section I above.
The proposed changes 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 changes are consistent with
the requirements of the Securities
Exchange Act of 1934 and the rules and
regulations thereunder and, in
particular, to 17A(b)(3)(iv), in that it
provides for the equitable allocation of
reasonable dues, fees and other charges
among participants. CME notes that it
operates in a highly competitive market
in which market participants can
readily direct business to competing
venues.
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.
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)(2) of Rule 19b–4
and 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
E:\FR\FM\02FEN1.SGM
02FEN1
5284
Federal Register / Vol. 77, No. 22 / Thursday, February 2, 2012 / Notices
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.6
Kevin M. O’Neill,
Deputy Secretary.
IV. Solicitation of Comments
[FR Doc. 2012–2231 Filed 2–1–12; 8:45 am]
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 email to rule-comments@sec.gov.
Please include File No. SR–CME–2012–
02 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.
srobinson on DSK4SPTVN1PROD with NOTICES
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
BILLING CODE 8011–01–P
All submissions should refer to File
Number SR–CME–2012–02. 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 (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 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.
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–2012–02 and should
be submitted on or before February 23,
2012.
VerDate Mar<15>2010
17:04 Feb 01, 2012
Jkt 226001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66266; File No. SR–OCC–
2012–01]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing of Proposed Rule Change
Relating to Public Directors
January 27, 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 January
20, 2012, The Options Clearing
Corporation (‘‘OCC’’) 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 OCC. The Commission is
publishing this Notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of Terms of Substance of the
Proposed Rule Change
The proposed rule change would
modify the corporate governance
structure of OCC by (i) increasing the
number of public directors on the Board
from one to three and (ii) adding a
public director to the Nominating
Committee.
II. Self-Regulatory Organization’s
Statement of Purpose of, and Statutory
Basis for, the Proposed Rule Change
In its filing with the Commission,
OCC 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. OCC 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
The purpose of this proposed rule
change is to modify the corporate
6 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00058
Fmt 4703
Sfmt 4703
governance structure of OCC by
(i) increasing the number of public
directors on the Board from one to three
and (ii) adding a public director to the
Nominating Committee. OCC believes
that the proposed changes will be
beneficial as a matter of good corporate
governance. In addition, OCC is
proposing a nonsubstantive amendment
to both the By-Laws and the Certificate
of Incorporation to remove obsolete
provisions relating to Directors elected
prior to 1999 that no longer have any
effect.
I. Background
The OCC Board currently has 16
members consisting of nine Clearing
Member directors (‘‘Member Directors’’),
five directors nominated by the
stockholder exchanges (‘‘Exchange
Directors’’), one director who is not
affiliated with any national securities
exchange, national securities association
or broker or dealer in securities (‘‘Public
Director’’), and the Chairman of the
Board, who is the Management Director.
See Article II, Section 7 of OCC’s ByLaws. Member Directors are divided
into three equal classes elected for
staggered three-year terms and are
nominated by the Nominating
Committee. Each Exchange Director
serves a one-year term and is nominated
by one of the five stockholder exchanges
although a single Exchange Director
may represent more than one exchange.
The Public Director serves a three-year
term and is nominated by the Chairman
with the approval of the Board. The
Management Director serves a one-year
term. Section 1 and Section 3 of Article
III of the By-Laws generally provide that
if the combined number of Exchange
Directors and the Public Director
exceeds eight, the number of Member
Directors will be increased to exceed the
combined number of Exchange Directors
and the Public Director by at least two
Member Directors.
The Nominating Committee is
composed of six members who are
divided into two equal classes elected
for staggered two-year terms. Prior to
each annual meeting of stockholders,
the Nominating Committee nominates a
slate of nominees for election to the
class of Member Directors and to the
class of Nominating Committee
members whose terms expire at that
meeting. In selecting such nominees, the
Nominating Committee seeks to achieve
balanced representation among Clearing
Members, giving due consideration to
the various business activities of
different categories of Clearing Members
and their geographical distribution.
This governance structure was
carefully designed to meet the statutory
E:\FR\FM\02FEN1.SGM
02FEN1
Agencies
[Federal Register Volume 77, Number 22 (Thursday, February 2, 2012)]
[Notices]
[Pages 5283-5284]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-2231]
[[Page 5283]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66261; File No. SR-CME-2012-02]
Self-Regulatory Organizations; Chicago Mercantile Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Regarding Fees for Its Cleared-only OTC FX Clearing Offering
January 26, 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 January 24, 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)(2) \4\ thereunder.
---------------------------------------------------------------------------
\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)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of Terms of Substance of
the Proposed Rule Change
CME is proposing to make certain fee-related changes that would
apply to its cleared-only OTC foreign exchange (``FX'') swap clearing
offering. The text of the proposed changes \5\ is as follows:
---------------------------------------------------------------------------
\5\ The text of the proposed changes does not appear in CME's
rulebook but is available on CME's Web site at https://www.cmegroup.com/market-regulation/rule-filings.html.
---------------------------------------------------------------------------
CME OTC FX Fee Waiver Program
Program Purpose
The purpose of this Program is to incentivize market
participants to submit transaction in the OTC FX products listed
below to the Clearing House for clearing. The resulting increase in
volume benefits all participant segments in the market.
Product Scope
The following cleared only OTC FX products (``Products''):
1. CME Cleared OTC FX--Emerging Markets
a. USDBRL, USDCLP, USDCNY, USDCOP, USDIDR, USDINR, USDKRW,
USDMYR, USDPEN, USDPHP, USDRUB, USDTWD Non-Deliverable Forwards
b. USDCZK, USDHUF, USDHKD, USDILS, USDMXN, USDPLN, USDSGD,
USDTHB, USDTRY, USDZAR Cash-Settled Forwards
2. CME Cleared OTC FX--Majors
a. AUDJPY, AUDUSD, CADJPY, EURAUD, EURCHF, EURGBP, EURJPY,
EURUSD, GBPUSD, NZDUSD, USDCAD, USDCHF, USDDKK, USDJPY, USDNOK,
USDSEK Cash-Settled Forwards.
Eligible Participants
The temporary reduction in fees will be open to all market
participants and will automatically be applied to any transaction in
the Products submitted to the Clearing House for clearing.
Program Term
Start date is February 1, 2012. End date is June 30, 2012.
Hours
The Program will be applicable regardless of the transaction
time.
Program Incentives
Fee Waivers. All market participants that clear the Products
will have their clearing fees waived.
* * * * *
The text of the proposed changes is also available at the
Exchange's Web site at https://www.cmegroup.com, at the principal office
of the Exchange, and at the Commission's Public Reference Room.
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 currently offers clearing for certain cleared-only OTC FX swap
products. The filing proposes to implement a fee waiver program that
will apply to the following cleared-only OTC FX products
(``Products''):
1. CME Cleared OTC FX--Emerging Markets
a. USDBRL, USDCLP, USDCNY, USDCOP, USDIDR, USDINR, USDKRW,
USDMYR, USDPEN, USDPHP, USDRUB, USDTWD Non-Deliverable Forwards
b. USDCZK, USDHUF, USDHKD, USDILS, USDMXN, USDPLN, USDSGD,
USDTHB, USDTRY, USDZAR Cash-Settled Forwards
2. CME Cleared OTC FX--Majors
a. AUDJPY, AUDUSD, CADJPY, EURAUD, EURCHF, EURGBP, EURJPY,
EURUSD, GBPUSD, NZDUSD, USDCAD, USDCHF, USDDKK, USDJPY, USDNOK,
USDSEK Cash-Settled Forwards.
The fee waiver will be open to all market participants and will
automatically be applied to any transaction in the Products submitted
to CME's clearinghouse for clearing. The proposed changes that are the
subject of this filing are related to the fees CME charges for clearing
and therefore will become effective upon filing. However, the changes
will become operative on February 1, 2012.
Pursuant to Commodity Futures Trading Commission (``CFTC'')
regulations, the proposed changes are subject to CFTC Regulation
40.6(d), requiring a self-certification filing to the CFTC, although no
change to text of the CME rulebook is required. CME notes that it has
already certified the proposed changes that are the subject of this
filing to its primary regulator, the CFTC. The text of the CME proposed
changes is set out in Section I above.
The proposed changes 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 changes are consistent with the requirements of the
Securities Exchange Act of 1934 and the rules and regulations
thereunder and, in particular, to 17A(b)(3)(iv), in that it provides
for the equitable allocation of reasonable dues, fees and other charges
among participants. CME notes that it operates in a highly competitive
market in which market participants can readily direct business to
competing venues.
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.
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)(2) of Rule 19b-4 and 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
[[Page 5284]]
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 (https://www.sec.gov/rules/sro.shtml), or send an email to rule-comments@sec.gov. Please include
File No. SR-CME-2012-02 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-2012-02. 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 (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 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. 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-2012-02 and should be
submitted on or before February 23, 2012.
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\6\
---------------------------------------------------------------------------
\6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-2231 Filed 2-1-12; 8:45 am]
BILLING CODE 8011-01-P