Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding the Addition of a New Rate Option for Interest Rate Swaps Denominated in Mexican Peso, 71694-71695 [2013-28574]
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71694
Federal Register / Vol. 78, No. 230 / Friday, November 29, 2013 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70928; File No. SR–CME–
2013–31]
Self-Regulatory Organizations;
Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Regarding the Addition of a
New Rate Option for Interest Rate
Swaps Denominated in Mexican Peso
November 22, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘Exchange Act’’),1 and Rule 19b–4
thereunder,2 notice is hereby given that
on November 12, 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 proposal pursuant to Section
19(b)(3)(A)(iii) of the Act,3 and Rule
19b–4(f)(4)(ii) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CME is filing a proposed rule change
that is limited to its business as a
derivatives clearing organization. More
specifically, the proposed rule change
would update the CME Rulebook to
reflect the addition of MXN–TIIE–
BANXICO Rate Option for interest rate
swaps denominated in Mexican Peso
(‘‘MXN’’).
sroberts on DSK5SPTVN1PROD 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 and basis for the proposed
rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. CME has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(4)(ii).
2 17
VerDate Mar<15>2010
17:56 Nov 27, 2013
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 and currently offers
clearing services for many different
futures and swaps products. With this
filing, CME proposes to make
amendments to its rules to reflect the
addition of the MXN–TIIE–BANXICO
Rate Option for interest rate swaps
denominated in MXN. Although these
changes will be effective on filing, CME
plans to operationalize the proposed
changes on November 18, 2013.
Section 90102.E of the Rulebook is
being updated to reflect the addition of
MXN–TIIE–BANXICO Rate Option for
interest rate swaps denominated in
MXN. CME will also be making certain
conforming changes to its IRS Manual of
Operations for CME Cleared Interest
Rate Swaps to address the addition of
MXN as an eligible currency and MXN–
TIIE–BANXICO as an eligible floating
rate for fixed-floating interest rate
swaps.
The changes that are described in this
filing are limited to CME’s business as
a derivatives clearing organization
clearing products under the exclusive
jurisdiction of the Commodity Futures
Trading Commission (‘‘CFTC’’) and do
not materially impact CME’s securitybased swap clearing business in any
way. CME notes that it has already
submitted the proposed rule change that
is the subject of this filing to its primary
regulator, the CFTC, in CME
Submissions 13–520 and 13–522 (and
will also be making an additional filing
with CFTC in the near future, CME
Submission No. 13–523, to provide
additional information required for the
new product to the CFTC separately
under CFTC Regulation 39.5).
CME believes the proposed rule
change is consistent with the
requirements of the Exchange Act
including Section 17A of the Exchange
Act.5 The proposed rule change reflects
the addition of new derivatives
products, namely, the MXN–TIIE–
BANXICO Rate Option for interest rate
swaps denominated in MXN, and as
such is 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
5 15
Jkt 232001
PO 00000
U.S.C. 78q–1.
Frm 00134
Fmt 4703
Sfmt 4703
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 derivatives clearing
organization. These products are under
the exclusive jurisdiction of the CFTC.
As such, the proposed CME changes are
limited to CME’s activities as a
derivatives clearing organization
clearing swaps that are not securitybased 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 derivatives clearing organization, 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 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 change merely
adds new products for clearing.
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
6 15
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78q–1.
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(4)(ii).
7 15
E:\FR\FM\29NON1.SGM
29NON1
Federal Register / Vol. 78, No. 230 / Friday, November 29, 2013 / Notices
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) 10 of the Act and Rule 19b–
4(f)(4)(ii) 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.12
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:
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–2013–31 and should
be submitted on or before December 20,
2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
received any unsolicited written
comments from interested parties.
sroberts on DSK5SPTVN1PROD 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
No. SR–CME–2013–31 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–2013–31. 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
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(4)(ii).
12 15 U.S.C. 78s(b)(3)(C).
[FR Doc. 2013–28574 Filed 11–27–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70924; File No. SR–FINRA–
2013–050]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of a
Proposed Rule Change Relating to
Over-the-Counter Equity Trade
Reporting and OATS Reporting
November 22, 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 November
12, 2013, the Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’)
filed with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II and III below, which items
have been prepared by the selfregulatory organization. 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 the Substance
of the Proposed Rule Change
FINRA is proposing to amend FINRA
rules governing the reporting of (i) overthe-counter (‘‘OTC’’) transactions in
10 15
13 17
11 17
1 15
VerDate Mar<15>2010
17:56 Nov 27, 2013
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
Jkt 232001
PO 00000
Frm 00135
Fmt 4703
Sfmt 4703
71695
equity securities to the FINRA
Facilities; 3 and (ii) orders in NMS
stocks and OTC Equity Securities to the
Order Audit Trail System (‘‘OATS’’).
The text of the proposed rule change
is available on FINRA’s Web site at
https://www.finra.org, at the principal
office of FINRA and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA 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. FINRA 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
FINRA is proposing amendments to
the equity trade reporting rules relating
to reporting (i) an additional time field
for specified trades, (ii) execution time
in milliseconds, (iii) reversals, (iv)
trades executed on non-business days
and trades that are more than one year
old, and (v) ‘‘step-outs.’’ The proposed
amendments also reflect changes in the
processing of trades that are submitted
to a FINRA Facility for clearing as well
as technical changes to the rules relating
to the OTC Reporting Facility (‘‘ORF’’).
The proposed amendments also codify
existing OATS guidance regarding
reporting order event times to OATS in
milliseconds.
Reporting an Additional Time Field
FINRA rules require that trade reports
submitted to the FINRA Facilities
include the time of trade execution,
except where another time is expressly
required by rule. For some transactions,
there may be more than one critical time
associated with a trade report (for
example, the actual time of execution
3 Specifically, the FINRA Facilities are the
Alternative Display Facility (‘‘ADF’’) and the Trade
Reporting Facilities (‘‘TRF’’), to which members
report OTC transactions in NMS stocks, as defined
in SEC Rule 600(b) of Regulation NMS; and the
OTC Reporting Facility (‘‘ORF’’), to which members
report transactions in ‘‘OTC Equity Securities,’’ as
defined in FINRA Rule 6420 (i.e., non-NMS stocks
such as OTC Bulletin Board and OTC Market
securities), as well as transactions in Restricted
Equity Securities, as defined in FINRA Rule 6420,
effected pursuant to Securities Act Rule 144A.
E:\FR\FM\29NON1.SGM
29NON1
Agencies
[Federal Register Volume 78, Number 230 (Friday, November 29, 2013)]
[Notices]
[Pages 71694-71695]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-28574]
[[Page 71694]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70928; File No. SR-CME-2013-31]
Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Regarding the Addition of a New Rate Option for Interest Rate Swaps
Denominated in Mexican Peso
November 22, 2013.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on November 12, 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 proposal pursuant to Section 19(b)(3)(A)(iii) of the Act,\3\ and
Rule 19b-4(f)(4)(ii) \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)(iii).
\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 a proposed rule change that is limited to its
business as a derivatives clearing organization. More specifically, the
proposed rule change would update the CME Rulebook to reflect the
addition of MXN-TIIE-BANXICO Rate Option for interest rate swaps
denominated in Mexican Peso (``MXN'').
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 and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. CME has prepared summaries, set forth in sections A, B,
and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of 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 and currently offers clearing
services for many different futures and swaps products. With this
filing, CME proposes to make amendments to its rules to reflect the
addition of the MXN-TIIE-BANXICO Rate Option for interest rate swaps
denominated in MXN. Although these changes will be effective on filing,
CME plans to operationalize the proposed changes on November 18, 2013.
Section 90102.E of the Rulebook is being updated to reflect the
addition of MXN-TIIE-BANXICO Rate Option for interest rate swaps
denominated in MXN. CME will also be making certain conforming changes
to its IRS Manual of Operations for CME Cleared Interest Rate Swaps to
address the addition of MXN as an eligible currency and MXN-TIIE-
BANXICO as an eligible floating rate for fixed-floating interest rate
swaps.
The changes that are described in this filing are limited to CME's
business as a derivatives clearing organization clearing products under
the exclusive jurisdiction of the Commodity Futures Trading Commission
(``CFTC'') and do not materially impact CME's security-based swap
clearing business in any way. CME notes that it has already submitted
the proposed rule change that is the subject of this filing to its
primary regulator, the CFTC, in CME Submissions 13-520 and 13-522 (and
will also be making an additional filing with CFTC in the near future,
CME Submission No. 13-523, to provide additional information required
for the new product to the CFTC separately under CFTC Regulation 39.5).
CME believes the proposed rule change is consistent with the
requirements of the Exchange Act including Section 17A of the Exchange
Act.\5\ The proposed rule change reflects the addition of new
derivatives products, namely, the MXN-TIIE-BANXICO Rate Option for
interest rate swaps denominated in MXN, and as such is 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 derivatives
clearing organization. These products are under the exclusive
jurisdiction of the CFTC. As such, the proposed CME changes are limited
to CME's activities as a derivatives clearing organization 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 derivatives clearing
organization, 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 change merely
adds new products for clearing.
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
[[Page 71695]]
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 pursuant to Section
19(b)(3)(A) \10\ of the Act and Rule 19b-4(f)(4)(ii) \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.\12\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(4)(ii).
\12\ 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------
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 No. SR-CME-2013-31 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-2013-31. 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-2013-31
and should be submitted on or before December 20, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-28574 Filed 11-27-13; 8:45 am]
BILLING CODE 8011-01-P