Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Modifications to Its OTC FX Fee Schedule, 688-690 [2013-31518]
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688
Federal Register / Vol. 79, No. 3 / Monday, January 6, 2014 / Notices
with NASDAQ to offer access
connectivity to market data feeds. For
these reasons, any burden arising from
the fees is necessary in the interest of
promoting the equitable allocation of a
reasonable fee. Additionally, firms make
decisions on how much and what types
of data to consume on the basis of the
total cost of interacting with NASDAQ
or other exchanges and, of course, the
extranet access fee is but one factor in
a total platform analysis.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor 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.9 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:
mstockstill on DSK4VPTVN1PROD with 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 Number SR–
NASDAQ–2013–159 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–NASDAQ–2013–159. 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
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–
NASDAQ–2013–159, and should be
submitted on or before January 27, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013–31516 Filed 1–3–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71201; File No. SR–CME–
2013–35]
U.S.C. 78s(b)(3)(a)(ii).
VerDate Mar<15>2010
17:08 Jan 03, 2014
Jkt 232001
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CME proposes to extend the terms of
a current OTC FX fee waiver program.
The text of the proposed rule change is
below. Italicized text indicates
additions; bracketed text indicates
deletions.
*
*
*
*
*
CME OTC FX Fee Waiver Program
Program Purpose
The purpose of this Program is to
incentivize market participants to submit
transaction in the OTC FX products listed
below to the Clearing House for clearing. The
resulting increase in volume benefits all
participant segments in the market.
Product Scope
The following cleared only OTC FX
products (‘‘Products’’):
1. CME Cleared OTC FX—Emerging
Markets
a. USDBRL, USDCLP, USDCNY, USDCOP,
USDIDR, USDINR, USDKRW, USDMYR,
USDPEN, USDPHP, USDRUB, USDTWD
Non-Deliverable Forwards.
b. USDCZK, USDHUF, USDHKD, USDILS,
USDMXN, USDPLN, USDSGD, USDTHB,
USDTRY, USDZAR Cash-Settled Forwards.
2. CME Cleared OTC FX—Majors
a. AUDJPY, AUDUSD, CADJPY, EURAUD,
EURCHF, EURGBP, EURJPY, EURUSD,
GBPUSD, NZDUSD, USDCAD, USDCHF,
USDDKK, USDJPY, USDNOK, USDSEK CashSettled Forwards.
Self-Regulatory Organizations;
Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Regarding Modifications to Its
OTC FX Fee Schedule
Eligible Participants
December 30, 2013.
Start date is February 1, 2012. End date is
[December 31, 2013] June 30, 2014.
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 December 23, 2013, Chicago
Mercantile Exchange Inc. (‘‘CME’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
9 15
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) of the Act,3 and Rules 19b–
4(f)(2) and 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.
PO 00000
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The temporary reduction in fees will be
open to all market participants and will
automatically be applied to any transaction
in the Products submitted to the Clearing
House for clearing.
Program Term
Hours
The Program will be applicable regardless
of the transaction time.
Program Incentives
Fee Waivers. All market participants that
submit transactions in the Products to the
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2) and 17 CFR 240.19b–
4(f)(4)(ii).
4 17
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06JAN1
Federal Register / Vol. 79, No. 3 / Monday, January 6, 2014 / Notices
Clearing House will have their clearing fees
waived.
*
*
*
*
*
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.
mstockstill on DSK4VPTVN1PROD 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 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 modify the fees
that apply to certain OTC FX clearedonly products cleared at CME. More
specifically, the proposed changes
would extend the existing CME fee
waiver program supporting OTC FX
products through June 30, 2014. The fee
waiver program applies to all market
participants and the fee waivers
automatically apply to any transaction
in the covered products submitted to
CME for clearing. The current program
by its terms is set to expire on December
31, 2013. All other terms of the fee
waiver program would remain
unchanged. Although the changes
would become effective on filing, CME
plans to operationalize the proposed fee
changes on January 2, 2014.
The changes that are described in this
filing impact fees for OTC FX products;
these proposed fee changes are therefore
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 changes
that are the subject of this filing to its
primary regulator, the CFTC, in CME
Submission 13–455R.
CME believes the proposed rule
changes are consistent with the
requirements of the Exchange Act
including Section 17A of the Exchange
VerDate Mar<15>2010
17:08 Jan 03, 2014
Jkt 232001
Act.5 More specifically, the proposed
rule changes establish or change a
member due, fee or other charge
imposed by CME under Section
19(b)(3)(A)(ii) 6 of the Securities
Exchange Act of 1934 and Rule 19b–
4(f)(2) 7 thereunder. CME believes that
the proposed fee change is consistent
with the requirements of the Securities
Exchange Act of 1934 and the rules and
regulations thereunder and, in
particular, to 17A(b)(3)(D),8 because the
proposed fee changes apply equally to
all market participants clearing covered
products and therefore the proposed
changes provide for the equitable
allocation of reasonable dues, fees and
other charges among participants. CME
also notes that it operates in a highly
competitive market in which market
participants can readily direct business
to competing venues.
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.9
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 believes the
proposed changes will promote
increased centralized clearing of swaps
products and should therefore be seen
to be 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.10
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 also properly
classified as effecting a change in an
existing service of CME that:
(a) Primarily affects the clearing
operations of CME with respect to
5 15
U.S.C. 78q–1.
U.S.C. 78s(b)(3)(A)(ii).
7 17 CFR 240.19b–4(f)(2).
8 15 U.S.C. 78q–1(b)(3)(D).
9 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.
10 15 U.S.C. 78q–1(b)(3)(F).
6 15
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Fmt 4703
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689
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 also
consistent with the requirements of
Section 17A of the Exchange Act 11 and
are properly filed under Section
19(b)(3)(A) 12 and Rule 19b–4(f)(4)(ii) 13
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
extend a current CME OTC FX fee
waiver and as such do not affect the
security-based swap clearing activities
of CME in any way and therefore do not
impose any burden on competition that
is inappropriate in furtherance of the
purposes of the Act.
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) 14 of the Act and paragraphs
(f)(2) and (f)(4)(ii) of Rule 19b–4 15
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.16
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
11 15
U.S.C. 78q–1.
U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(4)(ii).
14 15 U.S.C. 78s(b)(3)(A).
15 17 CFR 240.19b–4(f)(2) and 17 CFR 240.19b–
4(f)(4)(ii).
16 15 U.S.C. 78s(b)(3)(C).
12 15
E:\FR\FM\06JAN1.SGM
06JAN1
690
Federal Register / Vol. 79, No. 3 / Monday, January 6, 2014 / Notices
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml), or
• Send an email to rulecomments@sec.gov. Please include File
No. SR–CME–2013–35 on the subject
line.
Paper Comments
mstockstill on DSK4VPTVN1PROD with NOTICES
• 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–2013–35. 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–2013–35 and should
be submitted on or before January 27,
2014.
VerDate Mar<15>2010
17:08 Jan 03, 2014
Jkt 232001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Elizabeth M. Murphy,
Secretary.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2013–31518 Filed 1–3–14; 8:45 am]
(i) Purpose
BILLING CODE 8011–01–P
Pursuant to the proposed rule change
DTC will revise certain Underwriting
service fees as more fully described
below. Under the proposal, in order to
align costs of processing to the
associated revenue, DTC will replace
Underwriting service fees which are
currently applied with respect to
eligibility processing for equity,
corporate bond and municipal bond
transactions (in tiered amounts
depending upon the complexity of an
issue) with new fees specific to the
respective asset classes. Pursuant to the
proposal DTC will charge Participants a
fixed Underwriting fee for eligibility
processing for municipal issues with
one CUSIP, and a separate greater fixed
fee for issues with more than one
CUSIP. Underwriting fees for equities
and corporate issues will migrate to a
fee per CUSIP structure with an initial
fixed fee for the first CUSIP and an
incremental fee for each additional
CUSIP. Also in order to align processing
costs with associated revenues, the
current fixed Underwriting fee for
processing of eligibility requests by
Participants for certificates of deposit
will be lowered. In addition, DTC
proposes to implement a separate fee to
be charged to Participants for processing
of book-entry only (BEO) certificates
deposited at DTC. This will allow DTC
to recover costs associated with
processing BEO certificates (as opposed
to ‘‘FAST’’ issues where the security
remains on the books of the transfer
agent and DTC does not incur the cost
of processing certificates issued in the
name of DTC’s nominee, Cede & Co.).
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71206; File No. SR–DTC–
2013–12]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Revise the
Fee Schedule of the Depository Trust
Company With Respect to Its
Underwriting Service
December 30, 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 December
23, 2013, the Depository Trust Company
(‘‘DTC’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I, II and III below, which Items
have been prepared by DTC. DTC filed
the proposed rule change pursuant to
Section 19(b)(3)(A)(ii) 3 of the Act and
Rule 19b–4(f)(2) 4 thereunder; the
proposed rule change was effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change is to
modify DTC’s Rules and Procedures, as
described below.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
DTC 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. DTC has prepared
summaries, set forth in sections A, B
and C below, of the most significant
aspects of such statements.
Proposed Rule Changes
The revised fees are set forth in the
tables below:
DELETED FEES
Fee description
Basic (Single CUSIP)
Eligibility Fee.
Basic (Multi CUSIP)
Eligibility Fee.
Complex Eligibility
Fee.
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
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06JAN1
Fee amount
$350 per Issue.
$500 per Issue.
$750 per Issue.
]]>Agencies
[Federal Register Volume 79, Number 3 (Monday, January 6, 2014)]
[Notices]
[Pages 688-690]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-31518]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71201; File No. SR-CME-2013-35]
Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Regarding Modifications to Its OTC FX Fee Schedule
December 30, 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 December 23, 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) of the Act,\3\ and Rules
19b-4(f)(2) and 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).
\4\ 17 CFR 240.19b-4(f)(2) and 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 proposes to extend the terms of a current OTC FX fee waiver
program. The text of the proposed rule change is below. Italicized text
indicates additions; bracketed text indicates deletions.
* * * * *
CME OTC FX Fee Waiver Program
Program Purpose
The purpose of this Program is to incentivize market
participants to submit transaction in the OTC FX products listed
below to the Clearing House for clearing. The resulting increase in
volume benefits all participant segments in the market.
Product Scope
The following cleared only OTC FX products (``Products''):
1. CME Cleared OTC FX--Emerging Markets
a. USDBRL, USDCLP, USDCNY, USDCOP, USDIDR, USDINR, USDKRW,
USDMYR, USDPEN, USDPHP, USDRUB, USDTWD Non-Deliverable Forwards.
b. USDCZK, USDHUF, USDHKD, USDILS, USDMXN, USDPLN, USDSGD,
USDTHB, USDTRY, USDZAR Cash-Settled Forwards.
2. CME Cleared OTC FX--Majors
a. AUDJPY, AUDUSD, CADJPY, EURAUD, EURCHF, EURGBP, EURJPY,
EURUSD, GBPUSD, NZDUSD, USDCAD, USDCHF, USDDKK, USDJPY, USDNOK,
USDSEK Cash-Settled Forwards.
Eligible Participants
The temporary reduction in fees will be open to all market
participants and will automatically be applied to any transaction in
the Products submitted to the Clearing House for clearing.
Program Term
Start date is February 1, 2012. End date is [December 31, 2013]
June 30, 2014.
Hours
The Program will be applicable regardless of the transaction
time.
Program Incentives
Fee Waivers. All market participants that submit transactions in
the Products to the
[[Page 689]]
Clearing House will have their clearing fees waived.
* * * * *
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 modify the fees that apply to certain OTC FX
cleared-only products cleared at CME. More specifically, the proposed
changes would extend the existing CME fee waiver program supporting OTC
FX products through June 30, 2014. The fee waiver program applies to
all market participants and the fee waivers automatically apply to any
transaction in the covered products submitted to CME for clearing. The
current program by its terms is set to expire on December 31, 2013. All
other terms of the fee waiver program would remain unchanged. Although
the changes would become effective on filing, CME plans to
operationalize the proposed fee changes on January 2, 2014.
The changes that are described in this filing impact fees for OTC
FX products; these proposed fee changes are therefore 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 changes that are the subject of this filing to its
primary regulator, the CFTC, in CME Submission 13-455R.
CME believes the proposed rule changes are consistent with the
requirements of the Exchange Act including Section 17A of the Exchange
Act.\5\ More specifically, the proposed rule changes establish or
change a member due, fee or other charge imposed by CME under Section
19(b)(3)(A)(ii) \6\ of the Securities Exchange Act of 1934 and Rule
19b-4(f)(2) \7\ thereunder. CME believes that the proposed fee change
is consistent with the requirements of the Securities Exchange Act of
1934 and the rules and regulations thereunder and, in particular, to
17A(b)(3)(D),\8\ because the proposed fee changes apply equally to all
market participants clearing covered products and therefore the
proposed changes provide for the equitable allocation of reasonable
dues, fees and other charges among participants. CME also notes that it
operates in a highly competitive market in which market participants
can readily direct business to competing venues.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78q-1.
\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
\7\ 17 CFR 240.19b-4(f)(2).
\8\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------
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.\9\ 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 believes the
proposed changes will promote increased centralized clearing of swaps
products and should therefore be seen to be 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.\10\
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\9\ 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.
\10\ 15 U.S.C. 78q-1(b)(3)(F).
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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 also 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 also consistent with the requirements of
Section 17A of the Exchange Act \11\ and are properly filed under
Section 19(b)(3)(A) \12\ and Rule 19b-4(f)(4)(ii) \13\ thereunder.
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\11\ 15 U.S.C. 78q-1.
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(4)(ii).
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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
extend a current CME OTC FX fee waiver and as such do not affect the
security-based swap clearing activities of CME in any way and therefore
do not impose any burden on competition that is inappropriate in
furtherance of the purposes of the Act.
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) \14\ of the Act and paragraphs (f)(2) and
(f)(4)(ii) of Rule 19b-4 \15\ 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.\16\
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(2) and 17 CFR 240.19b-4(f)(4)(ii).
\16\ 15 U.S.C. 78s(b)(3)(C).
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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
[[Page 690]]
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-2013-35 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-2013-35. 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-2013-35
and should be submitted on or before January 27, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013-31518 Filed 1-3-14; 8:45 am]
BILLING CODE 8011-01-P
