Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Existing CDS Credit Limits, 42992-42994 [2013-17195]
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42992
Federal Register / Vol. 78, No. 138 / Thursday, July 18, 2013 / Notices
through the issuance of a DTC Important
Notice.
SECURITIES AND EXCHANGE
COMMISSION
III. Discussion
Section 19(b)(2)(C) of the Act 9 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 rules
and regulations thereunder applicable to
such organization. Section 17A(b)(3)(F)
of the Act 10 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.
The Commission finds that the rule
change is consistent with these
requirements because it will enhance
settlement certainty by increasing the
number of deliveries which will be
required to be approved by a receiving
Participant prior to DTC processing,
thereby reducing the intraday
uncertainty that may arise from reclaim
transactions and any potential credit
and liquidity risk from such reclaims
and facilitating the prompt and accurate
clearance and settlement of securities
transactions.
[Release No. 34–69981; File No. SR–CME–
2013–08]
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal is
consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the
Act 11 and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,12 that the
proposed rule change (File No. SR–
DTC–2013–04) be, and hereby is,
approved.13
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The text of the proposed change is
below. Italicized text indicates
additions; bracketed text indicates
deletions.
*
*
*
*
*
TO: Clearing Member Firms; Back Office
Managers
FROM: CME Clearing
DATE: June ll, 2013
ADVISORY #: 13–XXX
SUBJECT: CDS Clearing Member Risk
Limits
Effective July 15, 2013, CME Clearing
will use technology automation to
impose risk limits on Clearing Members
for Credit Default Swap (CDS) Products.
Pre-trade credit limits for CDS trade
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.14
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013–17209 Filed 7–17–13; 8:45 am]
BILLING CODE 8011–01–P
Self-Regulatory Organizations;
Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Regarding Existing CDS Credit
Limits
July 12, 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 June 28,
2013, 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) of the
Act 3 and Rule 19b–4(f)(1) 4 thereunder,
so that the proposal was effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
submission at the Clearing Member Firm
level will now be automated. As you
know, Clearing Member Firms currently
have the ability to set CME-hosted credit
limits for CDS on a customer account by
customer account basis. With this
change, CME Group will automate CDS
credit limits on a Clearing Member Firm
level, in addition to continuing to allow
clearing member firms to maintain
customer account by customer account
credit limits. This is similar to the
process that CME Clearing has in place
for its interest rate swap offering, except
this limit is based on margin.
CME Clearing will determine one
maintenance margin limit for each
Clearing Member Firm’s customer and
house origins. The utilization of this
limit will be based on the same margin
methodology that CME Clearing
currently uses on a daily basis to
calculate margin for each clearing
member firm.
Please note that this limit will be a
daily limit and will be based on trades
executed for the current trade date only.
In other words, the calculation is reset
daily, and it does not reflect the
exposure of any open trades prior to the
current trade date.
Three hypothetical examples of the
calculation of the utilization are
outlined below:
Trade 1: Customer A executes a buyprotection $100M notional CDXHY20
5yr trade with Clearing Member Firm B
equivalent to $5M in margin for the
current trade date.
Trade 2: Customer C then executes a
sell-protection $100M notional
CDXHY20 5yr trade with Clearing
Member Firm B for the current trade
date.
Example 1: Credit Utilization—Same
Trade Dates
After trade 1
Clearing Member Firm B House Origin .......................................................................................
Clearing Member Firm B Customer Origin ..................................................................................
TKELLEY on DSK3SPTVN1PROD with NOTICES
Now, if the 2nd trade was executed on
the following trade date:
9 15
U.S.C. 78s(b)(2)(C).
U.S.C. 78q–1(b)(3)(F).
11 15 U.S.C. 78q–1.
12 15 U.S.C. 78s(b)(2).
VerDate Mar<15>2010
17:20 Jul 17, 2013
Jkt 229001
$5M
5M
Example 2: Credit Utilization—
Different Trade Dates
13 In approving the proposed rule change, the
Commission considered the proposed rule’s impact
on efficiency, competition, and capital formation.
See 15 U.S.C. 78c(f).
14 17 CFR 200.30–3(a)(12).
10 15
After trade 2
PO 00000
Frm 00065
Fmt 4703
Sfmt 4703
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(1).
2 17
E:\FR\FM\18JYN1.SGM
18JYN1
$0M (offsetting).
0M (offsetting).
Federal Register / Vol. 78, No. 138 / Thursday, July 18, 2013 / Notices
After trade 1
Clearing Member Firm B House Origin .......................................................................................
Clearing Member Firm B Customer Origin ..................................................................................
42993
After trade 2 *
$5M
5M
$5M (not offsetting).
5M (not offsetting).
* Assuming the margin on the buy-protection trade and sell-protection trade are equivalent.
Further, using the original 2 trades
above as the base case, if the 2nd trade
was now buy-protection (instead of sellprotection):
Example 3: Credit Utilization—Same
Trade Dates—Directional
After trade 1
Clearing Member Firm B House Origin ...................................................................................
Clearing Member Firm B Customer Origin ..............................................................................
After trade 2 **
$5M
5M
$10M
10M
** Assuming the portfolio margin of trades 1 and 2 combined is 10M.
A consequence of pre-trade credit
limit automation is that CDS
transactions that exceed the daily limit
will be rejected for clearing. We will
continue to communicate via email and
telephone to work with your firm if your
utilizations are approaching their limits.
In the future, we will provide firms with
access to a separate view in RAV
Manager with the ability to view your
Clearing Member Firm and Origin level
limits and utilizations.
If you have questions about the
calculation or the specific limit in place
for your Clearing Member Firm, please
contact the CME Clearing Risk at
clearing.riskmanagement@cmegroup.
com or 312–648–3888.
For all other questions, please contact
the CME Client Services Team at
onboarding@cmegroup.com or 312–338–
7112.
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
TKELLEY on DSK3SPTVN1PROD with NOTICES
In its filing with the Commission, the
self-regulatory organization 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.
The self-regulatory organization 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
On May 7, 2012, CME implemented
risk limits that apply to clearing
members clearing credit default swaps
in compliance with CFTC Regulation
VerDate Mar<15>2010
17:20 Jul 17, 2013
Jkt 229001
39(h)(1).5 CME has been enforcing those
limits manually since that date.
CME now proposes to issue a notice
announcing CME’s intention to begin
enforcing these same limits through
automated means. More specifically, the
CME Clearing Advisory Notice would
inform clearing members and market
participants that CME Clearing will,
beginning on July 15, 2013, automate
the manner in which it imposes clearing
member risk limits for credit default
swap transactions, a process that is
intended to result in a more effective
and efficient imposition of clearing
member risk limits for credit default
swap transactions. Thus, CDS
transactions that exceed the limits will
now be automatically rejected for
clearing based on the new pre-trade
credit limit automation.
The proposed rule changes that are
the subject of this filing will become
immediately effective. CME notes that it
has also certified the proposed rule
changes that are the subject of this filing
to its primary regulator, the Commodity
Futures Trading Commission (‘‘CFTC’’).
CME believes the proposed rule
changes are consistent with the
requirements of the Exchange Act
including Section 17A of the Exchange
Act. The proposed rule changes are
designed to result in a more effective
and efficient imposition of clearing
member risk limits for credit default
swap transactions, and as such are
designed to promote the prompt and
accurate clearance and settlement of
securities transactions and derivatives
agreements, contracts and transactions,
and 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 change does not announce
new credit limits but rather new
5 The Commission believes, and CME has
confirmed, that CME intended to reference CFTC
Regulation 39.13(h)(1).
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
automated means of enforcing existing
credit limits. As such, the proposed
amendments constitute a stated policy,
practice, or interpretation with respect
to the meaning, administration, or
enforcement of an existing CME rule.
Therefore, the proposed rule change is
therefore properly filed under Section
19(b)(3)(A) and Rule 19b–4(f)(1)
thereunder.
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. The proposed change
informs market participants that CDS
transactions that exceed the currently
applicable credit limits will now be
automatically rejected for clearing.
Imposing automated means of enforcing
an existing rule should not be seen to
have any competitive impact.
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 has been
filed pursuant to Section 19(b)(3)(A) 6 of
the Act and paragraph (f)(1) of Rule
19b–4 7 thereunder and will become
effective on filing. 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
6 Supra
7 Supra
E:\FR\FM\18JYN1.SGM
note 3.
note 4.
18JYN1
42994
Federal Register / Vol. 78, No. 138 / Thursday, July 18, 2013 / Notices
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:
TKELLEY on DSK3SPTVN1PROD with NOTICES
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–CME–2013–08 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–2013–08. 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 and on CME’s Web site
(https://www.cmegroup.com/marketregulation/files/sec_19b-4_13-08.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–CME–2013–08 and should
be submitted on or before August 8,
2013.
VerDate Mar<15>2010
17:20 Jul 17, 2013
Jkt 229001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013–17195 Filed 7–17–13; 8:45 am]
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Office of Commercial Space
Transportation
Waiver of 14 CFR 437.29 and 437.55(a)
for Scaled Composites, LLC
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of waiver.
[Disaster Declaration #13579 and #13580]
SUMMARY:
AGENCY:
Illinois Disaster Number IL–00041
U.S. Small Business
Administration.
AGENCY:
ACTION:
Amendment 4.
This is an amendment of the
Presidential declaration of a major
disaster for the State of Illinois (FEMA–
4116–DR), dated 05/10/2013.
Incident: Severe storms, straight-line
winds and flooding.
Incident Period: 04/16/2013 through
05/05/2013.
Effective Date: 07/02/2013.
Physical Loan Application Deadline
Date: 07/24/2013.
EIDL Loan Application Deadline Date:
02/10/2014.
SUMMARY:
Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
ADDRESSES:
A
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW., Suite 6050,
Washington, DC 20416.
FOR FURTHER INFORMATION CONTACT:
The notice
of the President’s major disaster
declaration for the State of Illinois,
dated 05/10/2013 is hereby amended to
extend the deadline for filing
applications for physical damages as a
result of this disaster to 07/24/2013.
All other information in the original
declaration remains unchanged.
SUPPLEMENTARY INFORMATION:
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
James E. Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2013–17250 Filed 7–17–13; 8:45 am]
BILLING CODE 8025–01–P
PO 00000
8 17
CFR 200.30–3(a)(12).
Frm 00067
Fmt 4703
Sfmt 4703
This notice concerns a waiver
to Scaled Composites, LLC (Scaled)
from the requirements of 14 CFR 437.29
and 437.55(a) to provide the FAA a
hazard analysis that identifies,
mitigates, and verifies and validates
mitigation measures for hazards created
by software and human error. The FAA
finds that a waiver is in the public
interest and will not jeopardize public
health and safety, safety of property,
and national security and foreign policy
interests of the United States.
FOR FURTHER INFORMATION CONTACT: For
technical questions concerning this
waiver, contact Michael Kelly, Chief
Engineer, Commercial Space
Transportation, AST–004, 800
Independence Avenue SW.,
Washington, DC 20591; telephone: (202)
267–7588; email:
Michael.S.Kelly@faa.gov. For legal
questions concerning this waiver,
contact Sabrina Jawed, Attorneyadvisor, Space Law Branch, AGC–250,
Office of the Chief Counsel, Regulations
Division, Federal Aviation
Administration, 800 Independence
Avenue SW., Washington, DC 20591;
telephone: (202) 267–8839; email:
Sabrina.Jawed@faa.gov.
SUPPLEMENTARY INFORMATION:
Background
On May 23, 2012, the FAA’s Office of
Commercial Space Transportation (AST)
issued Scaled Experimental Permit No.
12–007. On March 6, 2013, Scaled
submitted an application to renew its
experimental permit, which was to
expire on May 22, 2013. In its
application for renewal, Scaled
included modifications to its permit to
reflect changes made to SpaceShipTwo
(SS2). In March of 2013, Scaled
provided updates to the original hazard
analysis for FAA assessment. Upon
reviewing Scaled’s application to renew
its permit, the FAA determined that
Scaled did not fully meet the
requirements of 14 CFR 437.29 and
437.55(a).
Scaled did not meet these
requirements because it did not identify
human or software error as causing
E:\FR\FM\18JYN1.SGM
18JYN1
]]>Agencies
[Federal Register Volume 78, Number 138 (Thursday, July 18, 2013)]
[Notices]
[Pages 42992-42994]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-17195]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69981; File No. SR-CME-2013-08]
Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Regarding Existing CDS Credit Limits
July 12, 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 June 28, 2013, 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) of the Act \3\ and Rule 19b-4(f)(1) \4\
thereunder, so that the proposal was effective upon filing with the
Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\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)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The text of the proposed change is below. Italicized text indicates
additions; bracketed text indicates deletions.
* * * * *
TO: Clearing Member Firms; Back Office Managers
FROM: CME Clearing
DATE: June ----, 2013
ADVISORY : 13-XXX
SUBJECT: CDS Clearing Member Risk Limits
Effective July 15, 2013, CME Clearing will use technology
automation to impose risk limits on Clearing Members for Credit Default
Swap (CDS) Products. Pre-trade credit limits for CDS trade submission
at the Clearing Member Firm level will now be automated. As you know,
Clearing Member Firms currently have the ability to set CME-hosted
credit limits for CDS on a customer account by customer account basis.
With this change, CME Group will automate CDS credit limits on a
Clearing Member Firm level, in addition to continuing to allow clearing
member firms to maintain customer account by customer account credit
limits. This is similar to the process that CME Clearing has in place
for its interest rate swap offering, except this limit is based on
margin.
CME Clearing will determine one maintenance margin limit for each
Clearing Member Firm's customer and house origins. The utilization of
this limit will be based on the same margin methodology that CME
Clearing currently uses on a daily basis to calculate margin for each
clearing member firm.
Please note that this limit will be a daily limit and will be based
on trades executed for the current trade date only. In other words, the
calculation is reset daily, and it does not reflect the exposure of any
open trades prior to the current trade date.
Three hypothetical examples of the calculation of the utilization
are outlined below:
Trade 1: Customer A executes a buy-protection $100M notional
CDXHY20 5yr trade with Clearing Member Firm B equivalent to $5M in
margin for the current trade date.
Trade 2: Customer C then executes a sell-protection $100M notional
CDXHY20 5yr trade with Clearing Member Firm B for the current trade
date.
Example 1: Credit Utilization--Same Trade Dates
----------------------------------------------------------------------------------------------------------------
After trade 1 After trade 2
----------------------------------------------------------------------------------------------------------------
Clearing Member Firm B House Origin......... $5M $0M (offsetting).
Clearing Member Firm B Customer Origin...... 5M 0M (offsetting).
----------------------------------------------------------------------------------------------------------------
Now, if the 2nd trade was executed on the following trade date:
Example 2: Credit Utilization--Different Trade Dates
[[Page 42993]]
----------------------------------------------------------------------------------------------------------------
After trade 1 After trade 2 *
----------------------------------------------------------------------------------------------------------------
Clearing Member Firm B House Origin......... $5M $5M (not offsetting).
Clearing Member Firm B Customer Origin...... 5M 5M (not offsetting).
----------------------------------------------------------------------------------------------------------------
* Assuming the margin on the buy-protection trade and sell-protection trade are equivalent.
Further, using the original 2 trades above as the base case, if the
2nd trade was now buy-protection (instead of sell-protection):
Example 3: Credit Utilization--Same Trade Dates--Directional
----------------------------------------------------------------------------------------------------------------
After trade 1 After trade 2 **
----------------------------------------------------------------------------------------------------------------
Clearing Member Firm B House Origin........................... $5M $10M
Clearing Member Firm B Customer Origin........................ 5M 10M
----------------------------------------------------------------------------------------------------------------
** Assuming the portfolio margin of trades 1 and 2 combined is 10M.
A consequence of pre-trade credit limit automation is that CDS
transactions that exceed the daily limit will be rejected for clearing.
We will continue to communicate via email and telephone to work with
your firm if your utilizations are approaching their limits. In the
future, we will provide firms with access to a separate view in RAV
Manager with the ability to view your Clearing Member Firm and Origin
level limits and utilizations.
If you have questions about the calculation or the specific limit
in place for your Clearing Member Firm, please contact the CME Clearing
Risk at clearing.riskmanagement@cmegroup.com or 312-648-3888.
For all other questions, please contact the CME Client Services
Team at onboarding@cmegroup.com or 312-338-7112.
* * * * *
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 self-regulatory organization
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. The self-regulatory organization 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
On May 7, 2012, CME implemented risk limits that apply to clearing
members clearing credit default swaps in compliance with CFTC
Regulation 39(h)(1).\5\ CME has been enforcing those limits manually
since that date.
---------------------------------------------------------------------------
\5\ The Commission believes, and CME has confirmed, that CME
intended to reference CFTC Regulation 39.13(h)(1).
---------------------------------------------------------------------------
CME now proposes to issue a notice announcing CME's intention to
begin enforcing these same limits through automated means. More
specifically, the CME Clearing Advisory Notice would inform clearing
members and market participants that CME Clearing will, beginning on
July 15, 2013, automate the manner in which it imposes clearing member
risk limits for credit default swap transactions, a process that is
intended to result in a more effective and efficient imposition of
clearing member risk limits for credit default swap transactions. Thus,
CDS transactions that exceed the limits will now be automatically
rejected for clearing based on the new pre-trade credit limit
automation.
The proposed rule changes that are the subject of this filing will
become immediately effective. CME notes that it has also certified the
proposed rule changes that are the subject of this filing to its
primary regulator, the Commodity Futures Trading Commission (``CFTC'').
CME believes the proposed rule changes are consistent with the
requirements of the Exchange Act including Section 17A of the Exchange
Act. The proposed rule changes are designed to result in a more
effective and efficient imposition of clearing member risk limits for
credit default swap transactions, and as such are designed to promote
the prompt and accurate clearance and settlement of securities
transactions and derivatives agreements, contracts and transactions,
and 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
change does not announce new credit limits but rather new automated
means of enforcing existing credit limits. As such, the proposed
amendments constitute a stated policy, practice, or interpretation with
respect to the meaning, administration, or enforcement of an existing
CME rule. Therefore, the proposed rule change is therefore properly
filed under Section 19(b)(3)(A) and Rule 19b-4(f)(1) thereunder.
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. The proposed change
informs market participants that CDS transactions that exceed the
currently applicable credit limits will now be automatically rejected
for clearing. Imposing automated means of enforcing an existing rule
should not be seen to have any competitive impact.
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 has been filed pursuant to Section
19(b)(3)(A) \6\ of the Act and paragraph (f)(1) of Rule 19b-4 \7\
thereunder and will become effective on filing. 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
[[Page 42994]]
investors, or otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------
\6\ Supra note 3.
\7\ Supra note 4.
---------------------------------------------------------------------------
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 rule-comments@sec.gov. Please include
File Number SR-CME-2013-08 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-2013-08. 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 and on CME's
Web site (https://www.cmegroup.com/market-regulation/files/sec_19b-4_13-08.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-CME-2013-08
and should be submitted on or before August 8, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013-17195 Filed 7-17-13; 8:45 am]
BILLING CODE 8011-01-P
