Self-Regulatory Organizations; Chicago Mercantile Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify a Fee Program Related to Its OTC Interest Rate Swap Clearing Offering, 31416-31418 [2012-12723]
Download as PDF
31416
Federal Register / Vol. 77, No. 102 / Friday, May 25, 2012 / Notices
Holder,’’ and ‘‘NYSE Amex Options’’
would not be changed. The Exchange
proposes to update the Exchange’s
address in Sections 332 and 350 of the
Company Guide and Rule 341A. In
addition, the Exchange proposes to
simplify cross-references within the
Exchange’s rules. References to
‘‘Exchange Rule’’ or ‘‘NYSE Amex Rule’’
would be shortened to ‘‘Rule’’ and
references to ‘‘NYSE Amex Equities’’
would be shorted to ‘‘Equities’’ (e.g.,
Rule 0—NYSE Amex Equities would
become Rule 0—Equities).
None of the foregoing changes are
substantive.5
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Securities Exchange
Act of 1934 (the ‘‘Act’’),6 in general, and
Section 6(b)(5) of the Act,7 in particular,
in that it is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in facilitating transactions in securities,
to remove impediments to and perfect
the mechanism of a free and open
market and a national market system
and, in general, to protect investors and
the public interest. The Exchange
proposes to change its name for
marketing purposes, and the proposed
rule change is intended to accurately
reflect the name change in the
Exchange’s rules and governing
documents. In addition, the Exchange is
proposing certain changes that would
make the rule text simpler and more
uniform so that it will be easier for
market participants to use, which is in
the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
mstockstill on DSK4VPTVN1PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
5 The Exchange will submit subsequent rule
filings as necessary to make any technical
corrections to proposed rule changes that are
pending as of the date of submission of this filing
and approved by the Commission thereafter.
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
VerDate Mar<15>2010
17:55 May 24, 2012
Jkt 226001
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change is
concerned solely with the
administration of the Exchange
pursuant to Section 19(b)(3)(A)(iii) 8 of
the Act and Rule 19b-4(f)(3) 9
thereunder. Accordingly, the proposal
will take effect upon filing with the
Commission. 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.
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NYSEAmex-2012–32 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–NYSEAmex-2012–32. 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
8 15
9 17
PO 00000
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b-4(f)(3).
Frm 00127
Fmt 4703
Sfmt 4703
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 the
filing also will be available for
inspection and copying at the principal
office of the Exchange. 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–
NYSEAmex-2012–32 and should be
submitted on or before June 15, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–12794 Filed 5–24–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67036; File No. SR–CME–
2012–18]
Self-Regulatory Organizations;
Chicago Mercantile Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Modify a Fee Program
Related to Its OTC Interest Rate Swap
Clearing Offering
May 21, 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 May 9,
2011, 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)(ii) 3 of
the Act and Rule 19b–4(f)(2) 4
thereunder, so that the proposed rule
change was effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested parties.
10 17
CFR 200.30–3(a)(12).
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).
1 15
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Federal Register / Vol. 77, No. 102 / Friday, May 25, 2012 / Notices
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
OTC Interest Rate Swap clearing
offering.5 The text of the proposed
changes is listed below. Additions are in
italics, deletions in brackets.
*
*
*
*
*
CME Incentive Program for Over-TheCounter Interest Rate Swaps
Program Purpose
The purpose of the Program is to
incentivize participants to increase the
volume in CME over-the-counter
(‘‘OTC’’) interest rate swaps which will
improve market liquidity. The resulting
addition of liquidity for these Products
(as defined below) benefits all
participants in the market.
Product Scope
CME OTC Interest Rate Swaps cleared
by the Clearing House (‘‘Products’’).
Eligible Participants
CME may designate up to [five (5)] six
(6) participants in the Program based on
their level of expertise and experience
with the Products. Participants may be
CME members and/or non-members.
CME will also take potential
participants’ experience in the Products
and historical volume in the Products
with the Clearing House when making
its selections.
Program Term
Non-Asset Managers
Qualification Period: January 6, 2012
through December 31, 2012
Earned Incentive Period: January 1,
2013 through December 31, 2016
Asset Managers
Qualification Period: January 6, 2012
through December 31, 2012
Earned Incentive Period: January 1,
2013 through December 31, 2021
Hours
N/A
Obligations
mstockstill on DSK4VPTVN1PROD with NOTICES
Participants must provide designated
accounts to CME in order for the
account to receive consideration for the
incentives described below.
Incentives
1. Fee Discounts. Once accepted into
the Program, participants will be
eligible to receive predetermined
5 CME previously established the fee program in
another rule filing. See Exchange Act Release No.
34–66102 (January 5, 2012), 77 FR 1775 (January 11,
2012) [CME–2011–22].
VerDate Mar<15>2010
17:55 May 24, 2012
Jkt 226001
discounts for transaction fees and
maintenance fees in the Products during
the Term.
2. Volume Discount Incentives.
Additionally, once accepted into the
Program, participants may qualify for
predetermined fee discounts based on
the overall fees charged for transactions
in the Products submitted to the
Clearing House during the Qualification
Period.
Monitoring and Termination of Status
The Clearing House shall monitor
participants’ activity and performance
and shall retain the right to revoke
Program participant status if they
conclude from review that a Program
participant no longer meets the
eligibility requirements of the Program.
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.6
A. Self-Regulatory Organization’s
Statement of Purpose of, and Statutory
Basis for, the Proposed Rule Change
CME currently offers clearing for
certain OTC Interest Rate Swap
products. CME has certain fee programs
that apply to its OTC Interest Rate Swap
(‘‘IRS’’) clearing offering. The proposed
changes that are the subject of this filing
modify one of its existing fee programs.
The proposed changes are related to the
fees CME charges for clearing and
therefore will become effective upon
filing. However, the Program will
become operative on May 23, 2012.
The proposed changes modify a
current volume incentive program that
is designed to incentivize participants to
increase their volume in CME OTC IRS
through predetermined fee discounts for
transaction fees and maintenance fees
(‘‘Program’’). The Program currently
may include up to five participants
(including CME members and/or nonmembers) designated by CME based on
factors including potential participants’
experience in IRS activities and
historical volumes in IRS with CME.
The change proposed by this filing
would simply increase the number of
eligible participants from five to six.
Pursuant to Commodity Futures
Trading Commission (‘‘CFTC’’)
regulations, the Program has been
interpreted by CME as an incentive
program 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, in CME Submission
No. 12–136. The text of the CME
proposed changes is 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 Act and the
rules and regulations thereunder and, in
particular, to 17A(b)(3)(D),7 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)(ii) 8 of
the Act and Rule 19b–4(f)(2) 9
thereunder and thus became effective
upon filing because it establishes or
changes a due, fee, or other charge
applicable to a member. 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
7 15
6 The
Commission has modified the text of the
summaries prepared by CME.
PO 00000
Frm 00128
Fmt 4703
Sfmt 4703
31417
U.S.C. 78q–1(b)(3)(D).
U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f)(2).
8 15
E:\FR\FM\25MYN1.SGM
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31418
Federal Register / Vol. 77, No. 102 / Friday, May 25, 2012 / Notices
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.
[FR Doc. 2012–12723 Filed 5–24–12; 8:45 am]
IV. Solicitation of Comments
BILLING CODE 8011–01–P
mstockstill on DSK4VPTVN1PROD with NOTICES
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–
18 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–2012–18. 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
10:00 a.m. and 3:00 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–
2012–18 and should be submitted on or
before June 15, 2012.
VerDate Mar<15>2010
17:55 May 24, 2012
Jkt 226001
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67034; File No. SR–
NYSEArca–2012–26]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Designation of a
Longer Period for Commission Action
on Proposed Rule Change To List and
Trade Option Contracts Overlying 10
Shares of a Security (‘‘Mini-Options
Contracts’’) and Implement Rule Text
Necessary To Distinguish Mini-Options
Contracts From Option Contracts
Overlying 100 Shares of a Security
(‘‘Standard Contracts’’)
May 21, 2012.
On March 23, 2012, NYSE Arca, Inc.
(‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 to list and trade option contracts
overlying 10 shares of a security (‘‘minioptions contracts’’) and implement rule
text necessary to distinguish minioptions contracts from option contracts
overlying 100 shares of a security
(‘‘standard contracts’’). The proposed
rule change was published for comment
in the Federal Register on April 9,
2012.3 The Commission received five
comment letters on the proposal.4
Section 19(b)(2) of the Act 5 provides
that, within 45 days of the publication
of notice of the filing of a proposed rule
change, or within such longer period up
10 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. 66725
(April 3, 2012), 77 FR 21120.
4 See email from Danon Robinson, Founding
Partner, Toro Trading, LLC, dated April 5, 2012;
letter from Joan C. Conley, Senior Vice President
and Corporate Secretary, The NASDAQ OMX
Group, Inc., to Elizabeth M. Murphy, Secretary,
Commission, dated April 30, 2012; letter from
Manisha Kimmel, Executive Director, Financial
Information Forum, to Elizabeth M. Murphy,
Secretary, Commission, dated April 30, 2012; letter
from Christopher Nagy, Managing Director Order
Routing and Market Data Strategy, TD Ameritrade,
Inc., to Elizabeth M. Murphy, Secretary,
Commission, dated April 30, 2012; and letter from
Edward T. Tilly, President and Chief Operating
Officer, Chicago Board Options Exchange,
Incorporated, to Elizabeth M. Murphy, Secretary,
Commission, dated April 30, 2012.
5 15 U.S.C. 78s(b)(2).
1 15
PO 00000
Frm 00129
Fmt 4703
Sfmt 4703
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day for this filing
is May 24, 2012. The Commission is
extending this 45-day time period.
The Commission finds that it is
appropriate to designate a longer period
within which to take action on the
proposed rule change so that it has
sufficient time to consider the proposed
rule change, the comment letters
received, and any response to the
comment letters submitted by NYSE
Arca.
Accordingly, the Commission,
pursuant to Section 19(b)(2) of the Act,6
designates July 8, 2012 as the date by
which the Commission should either
approve or disapprove, or institute
proceedings to determine whether to
disapprove, the proposed rule change
(File No. SR–NYSEArca–2012–26).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–12721 Filed 5–24–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67023; File No. SR–C2–
2012–013]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Its Fees Schedule
May 18, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 14,
2012, C2 Options Exchange,
Incorporated (the ‘‘Exchange’’ or ‘‘C2’’)
filed with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II and III below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
6 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(31).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
7 17
E:\FR\FM\25MYN1.SGM
25MYN1
Agencies
[Federal Register Volume 77, Number 102 (Friday, May 25, 2012)]
[Notices]
[Pages 31416-31418]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-12723]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67036; File No. SR-CME-2012-18]
Self-Regulatory Organizations; Chicago Mercantile Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify a Fee Program Related to Its OTC Interest Rate Swap Clearing
Offering
May 21, 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 May 9, 2011, 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)(ii) \3\ of the Act and Rule 19b-4(f)(2)
\4\ thereunder, so that the proposed rule change was effective upon
filing with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested parties.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
[[Page 31417]]
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 OTC Interest Rate Swap clearing offering.\5\ The text of
the proposed changes is listed below. Additions are in italics,
deletions in brackets.
---------------------------------------------------------------------------
\5\ CME previously established the fee program in another rule
filing. See Exchange Act Release No. 34-66102 (January 5, 2012), 77
FR 1775 (January 11, 2012) [CME-2011-22].
---------------------------------------------------------------------------
* * * * *
CME Incentive Program for Over-The-Counter Interest Rate Swaps
Program Purpose
The purpose of the Program is to incentivize participants to
increase the volume in CME over-the-counter (``OTC'') interest rate
swaps which will improve market liquidity. The resulting addition of
liquidity for these Products (as defined below) benefits all
participants in the market.
Product Scope
CME OTC Interest Rate Swaps cleared by the Clearing House
(``Products'').
Eligible Participants
CME may designate up to [five (5)] six (6) participants in the
Program based on their level of expertise and experience with the
Products. Participants may be CME members and/or non-members. CME will
also take potential participants' experience in the Products and
historical volume in the Products with the Clearing House when making
its selections.
Program Term
Non-Asset Managers
Qualification Period: January 6, 2012 through December 31, 2012
Earned Incentive Period: January 1, 2013 through December 31, 2016
Asset Managers
Qualification Period: January 6, 2012 through December 31, 2012
Earned Incentive Period: January 1, 2013 through December 31, 2021
Hours
N/A
Obligations
Participants must provide designated accounts to CME in order for
the account to receive consideration for the incentives described
below.
Incentives
1. Fee Discounts. Once accepted into the Program, participants will
be eligible to receive predetermined discounts for transaction fees and
maintenance fees in the Products during the Term.
2. Volume Discount Incentives. Additionally, once accepted into the
Program, participants may qualify for predetermined fee discounts based
on the overall fees charged for transactions in the Products submitted
to the Clearing House during the Qualification Period.
Monitoring and Termination of Status
The Clearing House shall monitor participants' activity and
performance and shall retain the right to revoke Program participant
status if they conclude from review that a Program participant no
longer meets the eligibility requirements of the Program.
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.\6\
---------------------------------------------------------------------------
\6\ The Commission has modified the text of the summaries
prepared by CME.
---------------------------------------------------------------------------
A. Self-Regulatory Organization's Statement of Purpose of, and
Statutory Basis for, the Proposed Rule Change
CME currently offers clearing for certain OTC Interest Rate Swap
products. CME has certain fee programs that apply to its OTC Interest
Rate Swap (``IRS'') clearing offering. The proposed changes that are
the subject of this filing modify one of its existing fee programs. The
proposed changes are related to the fees CME charges for clearing and
therefore will become effective upon filing. However, the Program will
become operative on May 23, 2012.
The proposed changes modify a current volume incentive program that
is designed to incentivize participants to increase their volume in CME
OTC IRS through predetermined fee discounts for transaction fees and
maintenance fees (``Program''). The Program currently may include up to
five participants (including CME members and/or non-members) designated
by CME based on factors including potential participants' experience in
IRS activities and historical volumes in IRS with CME. The change
proposed by this filing would simply increase the number of eligible
participants from five to six.
Pursuant to Commodity Futures Trading Commission (``CFTC'')
regulations, the Program has been interpreted by CME as an incentive
program 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, in CME Submission No. 12-136. The text of the CME
proposed changes is 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 Act and the rules and
regulations thereunder and, in particular, to 17A(b)(3)(D),\7\ 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------
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)(ii) \8\ of the Act and Rule 19b-4(f)(2) \9\ thereunder and
thus became effective upon filing because it establishes or changes a
due, fee, or other charge applicable to a member. 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
[[Page 31418]]
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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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 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 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-2012-18 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-2012-18. 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
10:00 a.m. and 3:00 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-2012-18 and should be
submitted on or before June 15, 2012.
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-12723 Filed 5-24-12; 8:45 am]
BILLING CODE 8011-01-P