Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change Regarding Acceptance of Additional Interest Rate Swaps for Clearing, 14870-14872 [2013-05282]

Download as PDF 14870 Federal Register / Vol. 78, No. 45 / Thursday, March 7, 2013 / Notices between it and other exchanges that currently offer similar order types by offer investors another option to access liquidity at the Midpoint between the Protected BBO or better. Therefore, 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 Exchange Act. Lastly, the amendments to Exchange Rule 11.3(c) merely clarify for ETP Holder the Exchange’s current rounding methodology. Therefore, the Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or in furtherance of the Exchange Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments on the proposed rule change were neither solicited nor received. emcdonald on DSK67QTVN1PROD with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change does not (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 21 and Rule 19b–4(f)(6)(iii) thereunder.22 The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. Such waiver would allow the Exchange to offer an order type that is similar to other exchanges without delay. The Commission notes that the rule change to adopt the Midpoint-Seeker is based on and similar to CBSX Rule 51.8(g)(13).23 For this reason, the Commission waives the operative delay 21 15 U.S.C. 78s(b)(3)(A). 22 17 CFR 240.19b–4(f)(6)(iii). As required under Rule 19b–4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. 23 See SR–NSX–2013–07, Item 7. VerDate Mar<15>2010 14:43 Mar 06, 2013 Jkt 229001 and designates the proposed rule change to be operative upon filing.24 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. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) 25 of the Act to determine whether the proposed rule change should be approved or disapproved. available for Web site viewing and printing in the Commission’s Public Reference Room 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 offices 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–NSX– 2013–07, and should be submitted on or before March 28, 2013. 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: For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.26 Kevin M. O’Neill, Deputy Secretary. Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rulecomments@sec.gov. Please include File Number SR–NSX–2013–07 on the subject line. SECURITIES AND EXCHANGE COMMISSION 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–NSX–2013–07. 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 website (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 24 For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 25 15 U.S.C. 78s(b)(2)(B). PO 00000 Frm 00108 Fmt 4703 Sfmt 4703 [FR Doc. 2013–05238 Filed 3–6–13; 8:45 am] BILLING CODE 8011–01–P [Release No. 34–69016; File No. SR–CME– 2013–14] Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change Regarding Acceptance of Additional Interest Rate Swaps for Clearing March 1, 2013. 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 March 1, 2013, Chicago Mercantile Exchange Inc. (‘‘CME’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by primarily by CME. The Commission is publishing this notice 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 the Terms of Substance of the Proposed Rule Change CME proposes to amend rules related to its business as a derivatives clearing organization offering interest rate swap (‘‘IRS’’) clearing services. More specifically, CME proposes to accept the 26 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\07MRN1.SGM 07MRN1 Federal Register / Vol. 78, No. 45 / Thursday, March 7, 2013 / Notices following swaps for clearing beginning March 4, 2013: • IRS denominated in Swedish Krona (‘‘SEK’’), Danish Krone (‘‘DKK’’) and Norwegian Krone (‘‘NOK’’) with Termination Dates up to 31 years and referencing the respective rate options set forth in amended Rule 90102.E; • Overnight Index Swaps (‘‘OIS’’) with Termination Dates up to 5 years; and • IRS denominated in EUR, GBP and JPY with a 1-month Designated Maturity. Additionally, CME is proposing to amend Rule 90102.E to add the following rate options: SEK–STIBOR– SIDE; DKK–CIBOR–DKNA13; DKK– CIBOR2–DKNA13; and NOK–NIBOR– NIBR. emcdonald on DSK67QTVN1PROD with NOTICES II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, CME included statements concerning the purpose of, and statutory 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 the Purpose of, and Statutory Basis for, the Proposed Rule Change CME is registered as a derivatives clearing organization with the Commodity Futures Trading Commission (‘‘CFTC’’) and currently offers clearing services for IRS. With this filing, CME proposes to accept the following swaps for clearing beginning March 4, 2013: • IRS denominated in Swedish Krona (‘‘SEK’’), Danish Krone (‘‘DKK’’) and Norwegian Krone (‘‘NOK’’) with Termination Dates up to 31 years and referencing the respective rate options set forth in the amended Rule 90102.E described below; • Overnight Index Swaps (‘‘OIS’’) with Termination Dates up to 5 years; and • IRS denominated in EUR, GBP and JPY with a 1-month Designated Maturity. Additionally, CME is proposing to amend Rule 90102.E to add the following rate options: SEK–STIBOR– SIDE; DKK–CIBOR–DKNA13; DKK– CIBOR2–DKNA13; and NOK–NIBOR– NIBR. The Manual of Operations for CME Cleared Interest Rate Swaps (‘‘IRS VerDate Mar<15>2010 14:43 Mar 06, 2013 Jkt 229001 Manual’’) is also being updated in connection with these proposed changes to reflect the acceptance of the above IRS and to make certain other operational updates. CME notes that it has also submitted the proposed rule changes that are the subject of this filing to its primary regulator, the CFTC, in CME Submission 13–047. CME believes the proposed rule change is consistent with the requirements of the Act, including Section 17A of the Act.3 The proposed rule change involves improvements to CME’s IRS product offering for investors and as such are designed to promote the prompt and accurate clearance and settlement of securities transactions and derivatives agreements, contracts and transactions, to assure the safeguarding of securities and funds which are in the custody or control of the clearing agency and, in general, help to protect investors and the public interest. Furthermore, the proposed rule changes are limited to the clearing of swaps and thus relate solely to the 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 overthe-counter derivatives markets, promoting the prompt and accurate clearance of transactions, and protecting investors and the public interest. 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. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, 3 15 PO 00000 including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml) or • Send an email to rulecomments@sec.gov. Please include File Number SR–CME–2013–14 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–CME–2013–14. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 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 and on CME’s Web site at http://www.cmegroup.com/marketregulation/rule-filings.html. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–CME–2013–14 and should be submitted on or before March 28, 2013. U.S.C. 78q–1. Frm 00109 Fmt 4703 Sfmt 4703 14871 E:\FR\FM\07MRN1.SGM 07MRN1 14872 Federal Register / Vol. 78, No. 45 / Thursday, March 7, 2013 / Notices 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,6 which requires, among other things, that the rules of a clearing agency be designed to promote the prompt and accurate clearance and settlement of securities transactions and, to the extent applicable, derivative agreements, contracts, and transactions, because it will permit CME to promptly and accurately clear additional IRS transactions. In its filing, CME requested that the Commission approve the proposed rule change on an accelerated basis for good cause shown. The Commission finds good cause, pursuant to Section 19(b)(2) of the Act,7 for approving the proposed rule change prior to the 30th day after the date of publication of notice of filing in the Federal Register because (i) The proposed rule change would provide for the clearing of additional IRS products, which are swaps subject to regulation by the CFTC under the CEA; (ii) the proposed rule change relates solely to CME’s IRS clearing activities and do not significantly relate to CME’s functions as a clearing agency for security-based swaps; and (iii) CME has indicated that not providing accelerated approval would have a significant impact on its swaps clearing business as a designated clearing organization. V. Conclusion emcdonald on DSK67QTVN1PROD with NOTICES It is therefore ordered, pursuant to Section 19(b)(2) of the Act,8 that the proposed rule change (SR–CME–2013– 14) be, and hereby is, approved on an accelerated basis. 4 15 U.S.C. 78s(b). 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). 7 15 U.S.C. 78s(b)(2). 8 Id. 5 15 VerDate Mar<15>2010 14:43 Mar 06, 2013 Jkt 229001 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Kevin M. O’Neill, Deputy Secretary. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. BILLING CODE 8011–01–P A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change SECURITIES AND EXCHANGE COMMISSION 1. Purpose [Release No. 34–69006 ; File No. SR– NASDAQ–2013–034] The purpose of this filing is to clarify the manner in which the Exchange assesses certain port fees which are noted in Chapter XV, Section 3 entitled ‘‘NASDAQ Options Market—Access Services.’’ Specifically, the Exchange assesses a fee of $550 per port, per month for the following port fees: Order Entry Ports,3 CTI Ports,4 OTTO Ports,5 ITTO Ports,6 BONO Ports,7 Order Entry [FR Doc. 2013–05282 Filed 3–6–13; 8:45 am] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to a Pricing Clarification February 28, 2013. 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 February 21, 2013, The NASDAQ Stock Market LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by NASDAQ. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change NASDAQ proposes to clarify the billing of port fees in Chapter XV, entitled ‘‘Options Pricing,’’ which governs pricing for NASDAQ members using the NASDAQ Options Market (‘‘NOM’’), NASDAQ’s facility for executing and routing standardized equity and index options. The text of the proposed rule change is available on the Exchange’s Web site at http:// www.nasdaq.cchwallstreet.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. 9 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4 . 1 15 PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 3 The Order Entry Port Fee is a connectivity fee in connection with routing orders to the Exchange via an external order entry port. NOM Participants access the Exchange’s network through order entry ports. A NOM Participant may have more than one order entry port. 4 CTI offers real-time clearing trade updates. A real-time clearing trade update is a message that is sent to a member after an execution has occurred and contains trade details. The message containing the trade details is also simultaneously sent to The Options Clearing Corporation. The trade messages are routed to a member’s connection containing certain information. The administrative and market event messages include, but are not limited to: system event messages to communicate operationalrelated events; options directory messages to relay basic option symbol and contract information for options traded on the Exchange; complex strategy messages to relay information for those strategies traded on the Exchange; trading action messages to inform market participants when a specific option or strategy is halted or released for trading on the Exchange; and an indicator which distinguishes electronic and non-electronically delivered orders. 5 OTTO provides a method for subscribers to send orders and receive status updates on those orders. OTTO accepts limit orders from system subscribers, and if there is a matching order, the orders will execute. Non-matching orders are added to the limit order book, a database of available limit orders, where they are matched in price-time priority. 6 ITTO is a data feed that provides quotation information for individual orders on the NOM book, last sale information for trades executed on NOM, and Order Imbalance Information as set forth in NOM Rules Chapter VI, Section 8. ITTO is the options equivalent of the NASDAQ TotalView/ ITCH data feed that NASDAQ offers under NASDAQ Rule 7023 with respect to equities traded on NASDAQ. As with TotalView, members use ITTO to ‘‘build’’ their view of the NOM book by adding individual orders that appear on the feed, and subtracting individual orders that are executed. See Chapter VI, Section 1 at subsection (a)(3)(A). 7 BONOSM is a data feed that provides the NOM Best Bid and Offer (‘‘NOM NBBO’’) and last sale information for trades executed on NOM. The NOM NBBO and last sale information are identical to the information that NOM sends to the Options Price Regulatory Authority (‘‘OPRA’’) and which OPRA disseminates via the consolidated data feed for options. BONO is the options equivalent of the NASDAQ Basic data feed offered for equities under NASDAQ Rule 7047. See Chapter VI, Section 1 at subsection (a)(3)(B). E:\FR\FM\07MRN1.SGM 07MRN1

Agencies

[Federal Register Volume 78, Number 45 (Thursday, March 7, 2013)]
[Notices]
[Pages 14870-14872]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-05282]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69016; File No. SR-CME-2013-14]


Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; 
Notice of Filing and Order Granting Accelerated Approval of Proposed 
Rule Change Regarding Acceptance of Additional Interest Rate Swaps for 
Clearing

March 1, 2013.
    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 March 1, 2013, Chicago Mercantile Exchange Inc. (``CME'') filed with 
the Securities and Exchange Commission (``Commission'') the proposed 
rule change as described in Items I and II below, which Items have been 
prepared by primarily by CME. The Commission is publishing this notice 
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.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    CME proposes to amend rules related to its business as a 
derivatives clearing organization offering interest rate swap (``IRS'') 
clearing services. More specifically, CME proposes to accept the

[[Page 14871]]

following swaps for clearing beginning March 4, 2013:
     IRS denominated in Swedish Krona (``SEK''), Danish Krone 
(``DKK'') and Norwegian Krone (``NOK'') with Termination Dates up to 31 
years and referencing the respective rate options set forth in amended 
Rule 90102.E;
     Overnight Index Swaps (``OIS'') with Termination Dates up 
to 5 years; and
     IRS denominated in EUR, GBP and JPY with a 1-month 
Designated Maturity.

Additionally, CME is proposing to amend Rule 90102.E to add the 
following rate options: SEK-STIBOR-SIDE; DKK-CIBOR-DKNA13; DKK-CIBOR2-
DKNA13; and NOK-NIBOR-NIBR.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, CME included statements 
concerning the purpose of, and statutory 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 the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    CME is registered as a derivatives clearing organization with the 
Commodity Futures Trading Commission (``CFTC'') and currently offers 
clearing services for IRS. With this filing, CME proposes to accept the 
following swaps for clearing beginning March 4, 2013:
     IRS denominated in Swedish Krona (``SEK''), Danish Krone 
(``DKK'') and Norwegian Krone (``NOK'') with Termination Dates up to 31 
years and referencing the respective rate options set forth in the 
amended Rule 90102.E described below;
     Overnight Index Swaps (``OIS'') with Termination Dates up 
to 5 years; and
     IRS denominated in EUR, GBP and JPY with a 1-month 
Designated Maturity.
    Additionally, CME is proposing to amend Rule 90102.E to add the 
following rate options: SEK-STIBOR-SIDE; DKK-CIBOR-DKNA13; DKK-CIBOR2-
DKNA13; and NOK-NIBOR-NIBR. The Manual of Operations for CME Cleared 
Interest Rate Swaps (``IRS Manual'') is also being updated in 
connection with these proposed changes to reflect the acceptance of the 
above IRS and to make certain other operational updates.
    CME notes that it has also submitted the proposed rule changes that 
are the subject of this filing to its primary regulator, the CFTC, in 
CME Submission 13-047.
    CME believes the proposed rule change is consistent with the 
requirements of the Act, including Section 17A of the Act.\3\ The 
proposed rule change involves improvements to CME's IRS product 
offering for investors and as such are designed to promote the prompt 
and accurate clearance and settlement of securities transactions and 
derivatives agreements, contracts and transactions, to assure the 
safeguarding of securities and funds which are in the custody or 
control of the clearing agency and, in general, help to protect 
investors and the public interest. Furthermore, the proposed rule 
changes are limited to the clearing of swaps and thus relate solely to 
the 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.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

    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.

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. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml) or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-CME-2013-14 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-CME-2013-14. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 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 and on CME's 
Web site at http://www.cmegroup.com/market-regulation/rule-filings.html.
    All comments received will be posted without change; the Commission 
does not edit personal identifying information from submissions. You 
should submit only information that you wish to make available 
publicly. All submissions should refer to File Number SR-CME-2013-14 
and should be submitted on or before March 28, 2013.

[[Page 14872]]

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,\6\ which requires, among other things, that 
the rules of a clearing agency be designed to promote the prompt and 
accurate clearance and settlement of securities transactions and, to 
the extent applicable, derivative agreements, contracts, and 
transactions, because it will permit CME to promptly and accurately 
clear additional IRS transactions.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    In its filing, CME requested that the Commission approve the 
proposed rule change on an accelerated basis for good cause shown. The 
Commission finds good cause, pursuant to Section 19(b)(2) of the 
Act,\7\ for approving the proposed rule change prior to the 30th day 
after the date of publication of notice of filing in the Federal 
Register because (i) The proposed rule change would provide for the 
clearing of additional IRS products, which are swaps subject to 
regulation by the CFTC under the CEA; (ii) the proposed rule change 
relates solely to CME's IRS clearing activities and do not 
significantly relate to CME's functions as a clearing agency for 
security-based swaps; and (iii) CME has indicated that not providing 
accelerated approval would have a significant impact on its swaps 
clearing business as a designated clearing organization.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-CME-2013-14) be, and hereby 
is, approved on an accelerated basis.
---------------------------------------------------------------------------

    \8\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-05282 Filed 3-6-13; 8:45 am]
BILLING CODE 8011-01-P