Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Its Acceptance of a New Series of Credit Default Swap Index Products, 61420-61422 [2013-24243]
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61420
Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Notices
Fee to Add Liquidity in Specified Penny
Pilot Options to all Non-Customers.12
tkelley on DSK3SPTVN1PROD with NOTICES
B. Self-Regulatory Organization’s
Statement on Burden on Competition
BX does not believe that the proposed
rule change will impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. To the contrary, BX
has designed its fees and rebates to
compete effectively for the execution
and routing of options contracts.
The Exchange believes that the
proposed amended fees and rebates to
add liquidity for the Specified Penny
Pilot Options will attract BX Options
Market Makers to engage in market
making activities at the Exchange which
results in tighter markets and order
interaction and benefits all market
participants. As described herein, BX
Options Market Makers have obligations
to the market and regulatory
requirements,13 which normally do not
apply to other market participants.
While BX Options Market Makers will
not be paying a Fee to Add Liquidity in
the Specified Penny Pilot Options,
Customers will pay a fee which is lower
than that assessed to Non-Customers.
The Exchange believes that this does not
present an undue burden on
competition because the pricing seeks to
reward liquidity providers, which in
turn benefits all market participants.
The proposed differentiation between
BX Options Market Makers and other
market participants recognizes the
differing contributions made to the
liquidity and trading environment on
the Exchange by these market
participants.
Additionally, since the fees and
rebates are comparable to those present
at other options venues,14 the Exchange
believes the proposals discussed herein
do not pose an undue burden on
intermarket competition. The Exchange
operates in a highly competitive market
comprised of twelve U.S. options
exchanges in which sophisticated and
knowledgeable market participants can
12 No market participant is entitled to a Rebate to
Remove Liquidity in the Specified Penny Pilot
Options.
13 Pursuant to Chapter VII (Market Participants),
Section 5 (Obligations of Market Makers), in
registering as a Market Maker, an Options
Participant commits himself to various obligations.
Transactions of a Market Maker in its market
making capacity must constitute a course of
dealings reasonably calculated to contribute to the
maintenance of a fair and orderly market, and
Market Makers should not make bids or offers or
enter into transactions that are inconsistent with
such course of dealings. Further, all Market Makers
are designated as specialists on BX for all purposes
under the Act or rules thereunder. See Chapter VII,
Section 5.
14 See PHLX’s Pricing Schedule.
VerDate Mar<15>2010
18:29 Oct 02, 2013
Jkt 232001
and do send order flow to competing
exchanges if they deem fee levels at a
particular exchange to be excessive. The
Exchange believes that the proposed fee
and rebate scheme discussed herein is
competitive. The Exchange believes that
this competitive marketplace materially
impacts the fees and rebates present on
the Exchange today and substantially
influences the proposal set forth above.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act.15 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 to determine
whether the proposed rule should be
approved or disapproved.
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–
BX–2013–052 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–BX–2013–052. 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 Section, 100 F Street NE.,
Washington, DC 20549–1090 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing will also 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–BX–
2013–052 and should be submitted on
or before October 24, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24157 Filed 10–2–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70559; File No. SR–CME–
2013–20]
Self-Regulatory Organizations;
Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Regarding Its Acceptance of a
New Series of Credit Default Swap
Index Products
September 30, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’ or ‘‘Act’’),1 and Rule
19b–4 thereunder,2 notice is hereby
given that on September 18, 2013,
Chicago Mercantile Exchange Inc.
(‘‘CME’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change described in
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
15 15
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
Frm 00100
Fmt 4703
Sfmt 4703
E:\FR\FM\03OCN1.SGM
03OCN1
Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Notices
Items I, II and III below, which Items
have been prepared primarily by CME.
CME filed the proposal pursuant to
Section 19(b)(3)(A) of the Act,3 and Rule
19b–4(f)(4)(ii) thereunder,4 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CME is filing proposed rules changes
that are limited to its business as a
derivatives clearing organization
(‘‘DCO’’). More specifically, the
proposed rule changes involve CME’s
acceptance of a new credit default swap
index product series.
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.
tkelley on DSK3SPTVN1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
CME is registered as a DCO with the
Commodity Futures Trading
Commission (‘‘CFTC’’) and currently
offers clearing services for many
different futures and swaps products.
CME currently offers clearing services
for certain credit default swap index
products. Currently, CME offers clearing
of the Markit CDX North American
Investment Grade Index Series 9, 10, 11,
12, 13, 14, 15, 16, 17, 18, 19 and 20 and
also offers clearing of the Markit CDX
North American High Yield Index Series
11, 12, 13, 14, 15, 16, 17, 18, 19 and 20.
The proposed rule changes would
expand CME’s Markit CDX North
American Investment Grade (‘‘CDX IG’’)
Index and Markit CDX North American
High Yield (‘‘CDX HY’’) Index product
offerings by incorporating the upcoming
Series 21 for both sets of index
products.
3 15
4 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(4)(ii).
VerDate Mar<15>2010
18:29 Oct 02, 2013
Although these changes will be
effective on filing, CME plans to
operationalize the proposed changes as
follows: CDX IG 21will become
available for clearing on September 20,
2013 and CDX HY 21 will become
available for clearing on September 27,
2013.
The changes that are described in this
filing are limited to CME’s business as
a DCO clearing products under the
exclusive jurisdiction of the CFTC and
do not materially impact CME’s
security-based swap clearing business in
any way. 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, in a
separate filing.
CME believes the proposed rule
changes are consistent with the
requirements of the Exchange Act
including Section 17A of the Exchange
Act.5 The proposed rule changes would
expand CME’s CDX IG and CDX HY
product offerings by incorporating the
upcoming Series 21 for both sets of
index products and would therefore
provide investors with an expanded
range of derivatives products for
clearing. As such, the proposed changes
are designed to promote the prompt and
accurate clearance and settlement of
securities transactions and, to the extent
applicable, derivatives agreements,
contracts, and transactions, to assure the
safeguarding of securities and funds
which are in the custody or control of
the clearing agency or for which it is
responsible, and, in general, to protect
investors and the public interest
consistent with Section 17A(b)(3)(F) of
the Exchange Act.6
Furthermore, the proposed changes
are limited in their effect to swaps
products offered under CME’s authority
to act as a DCO. These products are
under the exclusive jurisdiction of the
CFTC. As such, the proposed CME
changes are limited to CME’s activities
as a DCO clearing swaps that are not
security-based swaps; CME notes that
the policies of the CFTC with respect to
administering the Commodity Exchange
Act 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.
Because the proposed changes are
limited in their effect to swaps products
offered under CME’s authority to act as
a DCO, the proposed changes are
5 15
6 15
Jkt 232001
PO 00000
U.S.C. 78q–1.
U.S.C. 78q–1(b)(3)(F).
Frm 00101
Fmt 4703
Sfmt 4703
61421
properly classified as effecting a change
in an existing service of CME that:
(a) Primarily affects the clearing
operations of CME with respect to
products that are not securities,
including futures that are not security
futures, and swaps that are not securitybased swaps or mixed swaps; and
(b) Does not significantly affect any
securities clearing operations of CME or
any rights or obligations of CME with
respect to securities clearing or persons
using such securities-clearing service.
As such, the changes are therefore
consistent with the requirements of
Section 17A of the Exchange Act 7 and
are properly filed under Section
19(b)(3)(A) 8 and Rule 19b–4(f)(4)(ii) 9
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 rule changes simply
facilitate the offering of two new series
of credit default swap index products.
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 become
effective upon filing pursuant to Section
19(b)(3)(A) 10 of the Act and paragraph
(f)(4)(ii) of Rule 19b–4 11 thereunder. 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:
7 15
U.S.C. 78q–1.
U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(4)(ii).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(4)(ii).
8 15
E:\FR\FM\03OCN1.SGM
03OCN1
61422
Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Notices
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 No. SR–
CME–2013–20 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.
tkelley on DSK3SPTVN1PROD with NOTICES
All submissions should refer to File
Number SR–CME–2013–20. 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 or
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
https://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–2013–20 and should
be submitted on or before October 24,
2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24243 Filed 10–2–13; 8:45 am]
BILLING CODE 8011–01–P
12 17
18:29 Oct 02, 2013
[Release No. 34–70548; File No. SR–BATS–
2013–052]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Modify the Trading
Halt Rule of BATS Options
September 27, 2013.
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
September 20, 2013, BATS Exchange,
Inc. (the ‘‘Exchange’’ or ‘‘BATS’’) 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 the Exchange. The
Exchange has designated this proposal
as a ‘‘non-controversial’’ proposed rule
change pursuant to Section 19(b)(3)(A)
of the Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. 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
The Exchange filed a proposal to
amend Rule 20.3, entitled ‘‘Trading
Halts,’’ to authorize the Exchange to
nullify a transaction that occurs after a
halt has been issued.
The text of the proposed rule change
is available at the Exchange’s Web site
at https://www.batstrading.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 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
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
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)(6)(iii).
2 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
SECURITIES AND EXCHANGE
COMMISSION
Jkt 232001
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to amend
Rule 20.3, which is applicable to the
Exchange’s equity options platform
(‘‘BATS Options’’), to authorize the
Exchange to nullify transactions that
occur during a trading halt. Specifically,
the Exchange proposes to adopt
Interpretation and Policy .01, which
will state that the Exchange may nullify
any transaction that occurs: (a) During a
trading halt in the affected option on the
Exchange; or (b) with respect to equity
options (including options overlying
exchange traded funds (‘‘ETFs’’)),
during a trading halt on the primary
listing market for the underlying
security. The Exchange believes the
proposed rule change will allow the
Exchange to avoid any unnecessary
harm from allowing erroneous trades to
stand if such trades occur after a trading
halt has been issued, as explained
below.
With respect to a trading halt in the
affected option on the Exchange, if any
trades occur notwithstanding such halt
then the Exchange believes it
appropriate to nullify such transactions.
While the Exchange may halt options
trading for various reasons, such a
scenario almost certainly is due to
extraordinary circumstances and is
potentially the result of market-wide
coordination to halt options trading or
trading generally. Accordingly, the
Exchange does not believe it is
appropriate to allow trades to stand if
such trades should not have occurred in
the first place. Similarly, the Exchange
believes that trades occurring during a
trading halt on the primary listing
market for a security that underlies an
equity option should be nullified.
Executions in options overlying a halted
security do not have proper reference
prices and could diverge significantly
from the price at which such options
will trade when the underlying security
is re-opened. Thus, nullification of such
trades will protect investors from
potential harm. Further, the halt in the
underlying security is often issued to
prevent harm to investors and the
Exchange believes that this same
protection should be afforded to
investors in the overlying option. The
Exchange notes that primary listing
markets for equity securities have
various authority to halt trading in their
listed securities, including for
regulatory reasons or based upon certain
notifications provided by an issuer. The
Exchange also notes that the proposed
E:\FR\FM\03OCN1.SGM
03OCN1
Agencies
[Federal Register Volume 78, Number 192 (Thursday, October 3, 2013)]
[Notices]
[Pages 61420-61422]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-24243]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70559; File No. SR-CME-2013-20]
Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Regarding Its Acceptance of a New Series of Credit Default Swap Index
Products
September 30, 2013.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act'' or ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on September 18, 2013, Chicago Mercantile Exchange
Inc. (``CME'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change described in
[[Page 61421]]
Items I, II and III below, which Items have been prepared primarily by
CME. CME filed the proposal pursuant to Section 19(b)(3)(A) of the
Act,\3\ and Rule 19b-4(f)(4)(ii) thereunder,\4\ 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)(4)(ii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CME is filing proposed rules changes that are limited to its
business as a derivatives clearing organization (``DCO''). More
specifically, the proposed rule changes involve CME's acceptance of a
new credit default swap index product series.
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
CME is registered as a DCO with the Commodity Futures Trading
Commission (``CFTC'') and currently offers clearing services for many
different futures and swaps products. CME currently offers clearing
services for certain credit default swap index products. Currently, CME
offers clearing of the Markit CDX North American Investment Grade Index
Series 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19 and 20 and also offers
clearing of the Markit CDX North American High Yield Index Series 11,
12, 13, 14, 15, 16, 17, 18, 19 and 20.
The proposed rule changes would expand CME's Markit CDX North
American Investment Grade (``CDX IG'') Index and Markit CDX North
American High Yield (``CDX HY'') Index product offerings by
incorporating the upcoming Series 21 for both sets of index products.
Although these changes will be effective on filing, CME plans to
operationalize the proposed changes as follows: CDX IG 21will become
available for clearing on September 20, 2013 and CDX HY 21 will become
available for clearing on September 27, 2013.
The changes that are described in this filing are limited to CME's
business as a DCO clearing products under the exclusive jurisdiction of
the CFTC and do not materially impact CME's security-based swap
clearing business in any way. 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, in a
separate filing.
CME believes the proposed rule changes are consistent with the
requirements of the Exchange Act including Section 17A of the Exchange
Act.\5\ The proposed rule changes would expand CME's CDX IG and CDX HY
product offerings by incorporating the upcoming Series 21 for both sets
of index products and would therefore provide investors with an
expanded range of derivatives products for clearing. As such, the
proposed changes are designed to promote the prompt and accurate
clearance and settlement of securities transactions and, to the extent
applicable, derivatives agreements, contracts, and transactions, to
assure the safeguarding of securities and funds which are in the
custody or control of the clearing agency or for which it is
responsible, and, in general, to protect investors and the public
interest consistent with Section 17A(b)(3)(F) of the Exchange Act.\6\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78q-1.
\6\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
Furthermore, the proposed changes are limited in their effect to
swaps products offered under CME's authority to act as a DCO. These
products are under the exclusive jurisdiction of the CFTC. As such, the
proposed CME changes are limited to CME's activities as a DCO clearing
swaps that are not security-based swaps; CME notes that the policies of
the CFTC with respect to administering the Commodity Exchange Act 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.
Because the proposed changes are limited in their effect to swaps
products offered under CME's authority to act as a DCO, the proposed
changes are properly classified as effecting a change in an existing
service of CME that:
(a) Primarily affects the clearing operations of CME with respect
to products that are not securities, including futures that are not
security futures, and swaps that are not security-based swaps or mixed
swaps; and
(b) Does not significantly affect any securities clearing
operations of CME or any rights or obligations of CME with respect to
securities clearing or persons using such securities-clearing service.
As such, the changes are therefore consistent with the requirements of
Section 17A of the Exchange Act \7\ and are properly filed under
Section 19(b)(3)(A) \8\ and Rule 19b-4(f)(4)(ii) \9\ thereunder.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78q-1.
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------
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 rule changes simply
facilitate the offering of two new series of credit default swap index
products.
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 become effective upon filing pursuant
to Section 19(b)(3)(A) \10\ of the Act and paragraph (f)(4)(ii) of Rule
19b-4 \11\ thereunder. 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.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(4)(ii).
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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:
[[Page 61422]]
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 No. SR-CME-2013-20 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-2013-20. 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 or
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 https://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-2013-20
and should be submitted on or before October 24, 2013.
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\12\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24243 Filed 10-2-13; 8:45 am]
BILLING CODE 8011-01-P