Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Notice of Filing of Proposed Rule Change to Adopt Rule 980.F, 15380-15381 [2014-05985]

Download as PDF 15380 Federal Register / Vol. 79, No. 53 / Wednesday, March 19, 2014 / Notices III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) 27 of the Act and subparagraph (f)(2) of Rule 19b–4 28 thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) 29 of the Act to determine whether the proposed rule change 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: sroberts on DSK5TPTVN1PROD with NOTICES Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml ); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– NYSEARCA–2014–22 on the subject line. Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NYSEARCA–2014–22. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (http://www.sec.gov/ rules/sro.shtml ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). 29 15 U.S.C. 78s(b)(2)(B). 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 NYSE’s principal office and on its Internet Web site at www.nyse.com. 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– NYSEARCA–2014–22 and should be submitted on or before April 9, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.30 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–05988 Filed 3–18–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–71719; File No. SR–CME– 2014–07] Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Notice of Filing of Proposed Rule Change to Adopt Rule 980.F March 13, 2014. 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 March 4, 2014, Chicago Mercantile Exchange Inc. (‘‘CME’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change described in Items I and II, below, which Items have been prepared primarily by CME. 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 proposes to make amendments to CME Rule 980 by adding a new paragraph F. The new provision would 27 15 30 17 28 17 1 15 VerDate Mar<15>2010 18:28 Mar 18, 2014 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. Jkt 232001 PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 provide for administrative fees to be imposed for late submissions of reports and other financial information to CME’s Financial and Regulatory Surveillance Department (‘‘FRSD’’). Under the proposed changes, CME’s FRSD would be able to assess clearing members a $1,000 administrative fee for each required submission that is not received by the due date and time. The proposed rule language would also allow the FRSD to, in its discretion, waive assessment of the administrative fee for good cause shown. 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 derivatives clearing organization with the Commodity Futures Trading Commission (‘‘CFTC’’) and operates a substantial business clearing futures and swaps contracts subject to the jurisdiction of the CFTC. CME proposes to make rule changes to CME Rule 980. Current CME Rule 980 sets out required records and reports for clearing members of CME. The proposed changes would add a new paragraph F. CME has also made filings with the CFTC, Submission No. 13–581 and Submission No. 14–023, regarding the proposed changes to new paragraph F to existing Rule 980. The new provision would provide for administrative fees to be imposed for late submissions of reports and other financial information to CME’s Financial and Regulatory Surveillance Department (‘‘FRSD’’). Under the proposed changes, CME’s FRSD would be able to assess clearing members a $1,000 administrative fee for each required submission that is not received by the due date and time. The proposed rule language would also allow the FRSD to, in its discretion, waive assessment of the administrative fee for good cause shown. E:\FR\FM\19MRN1.SGM 19MRN1 sroberts on DSK5TPTVN1PROD with NOTICES Federal Register / Vol. 79, No. 53 / Wednesday, March 19, 2014 / Notices The new language is intended to address timely reporting of required financial information. To the extent a firm shows a pattern or practice of late submissions that could potentially indicate insufficient internal accounting controls or procedures, CME notes that there are separate existing processes available via the Clearing House Risk Committee which can result in additional disciplinary sanctions in appropriate circumstances. The imposing of an administrative fee that is the subject of this provision is not intended to replace these existing Clearing House Risk Committee processes. Rather, the new language is intended to supplement these processes by giving CME the ability to impose a $1,000 administrative fee on clearing members for each late submission of required reports. CME plans to operationalize the proposed changes on April 15, 2014, pending applicable regulatory reviews and approvals. CME has also made filings with the CFTC, Submission No. 13–581 and Submission No. 14–023, regarding the proposed changes. CME, a derivatives clearing organization, notes that it is implementing the proposed changes as part of an effort to discharge its regulatory obligations under the Commodity Exchange Act (‘‘CEA’’) more effectively.3 CME believes the proposed rule changes are also entirely consistent with the requirements of the Exchange Act and the rules and regulations thereunder, including Section 17A of the Exchange Act. The proposed changes enhance CME’s self-regulatory organization function by providing the ability to assess a $1,000 administrative fee on clearing members for late submissions of financial information to CME’s FRSD. These changes will strengthen CME’s self-regulatory organization function and will encourage more accurate financial reporting by clearing members, which are goals that are clearly 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 CME or for which it is responsible, and, in general, to protect investors and the public interest in a way that is 3 CME notes that the CEA contains a number of provisions that are comparable to the policies underlying the Exchange Act, including, for example, promoting market transparency for derivatives markets, promoting the prompt and accurate clearance of transactions and protecting investors and the public interest. VerDate Mar<15>2010 18:28 Mar 18, 2014 Jkt 232001 consistent with Section 17A(b)(3)(F) of the Exchange Act.4 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 changes will give CME the ability to impose a $1,000 administrative fee on clearing members for the late submission of required reports and financial information. 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 Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) by order approve or disapprove the proposed rule change or (B) institute proceedings to determine whether the proposed rule change should be 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: 15381 subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street NE., Washington DC 20549, on official business days between the hours 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 http://www.cmegroup.com/marketregulation/rule-filings.html. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–CME–2014–07 and should be submitted on or before April 9, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.5 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–05985 Filed 3–18–14; 8:45 am] BILLING CODE 8011–01–P DEPARTMENT OF STATE [Public Notice: 8661] Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml), or • Send an email to rule-comment@ sec.gov. Please include File No. SR– CME–2014–07 on the subject line. Notification of the Eighth Meeting of the Environmental Affairs Council of the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA–DR) Paper Comments ACTION: • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–CME–2014–07. This file number should be included on the 4 15 PO 00000 U.S.C. 78q–1(b)(3)(F). Frm 00079 Fmt 4703 Sfmt 4703 Department of State. Notice of the CAFTA–DR Environmental Affairs Council Meeting and request for comments. AGENCY: The Department of State and the Office of the United States Trade Representative are providing notice that the parties to the Dominican RepublicCentral America-United States Free SUMMARY: 5 17 E:\FR\FM\19MRN1.SGM CFR 200.30–3(a)(12). 19MRN1

Agencies

[Federal Register Volume 79, Number 53 (Wednesday, March 19, 2014)]
[Notices]
[Pages 15380-15381]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-05985]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71719; File No. SR-CME-2014-07]


Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; 
Notice of Filing of Proposed Rule Change to Adopt Rule 980.F

March 13, 2014.
    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 March 4, 2014, Chicago Mercantile Exchange Inc. 
(``CME'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change described in Items I and II, 
below, which Items have been prepared primarily by CME. 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.
---------------------------------------------------------------------------

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

    CME proposes to make amendments to CME Rule 980 by adding a new 
paragraph F. The new provision would provide for administrative fees to 
be imposed for late submissions of reports and other financial 
information to CME's Financial and Regulatory Surveillance Department 
(``FRSD''). Under the proposed changes, CME's FRSD would be able to 
assess clearing members a $1,000 administrative fee for each required 
submission that is not received by the due date and time. The proposed 
rule language would also allow the FRSD to, in its discretion, waive 
assessment of the administrative fee for good cause shown.

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 derivatives clearing organization with the 
Commodity Futures Trading Commission (``CFTC'') and operates a 
substantial business clearing futures and swaps contracts subject to 
the jurisdiction of the CFTC. CME proposes to make rule changes to CME 
Rule 980. Current CME Rule 980 sets out required records and reports 
for clearing members of CME. The proposed changes would add a new 
paragraph F. CME has also made filings with the CFTC, Submission No. 
13-581 and Submission No. 14-023, regarding the proposed changes to new 
paragraph F to existing Rule 980.
    The new provision would provide for administrative fees to be 
imposed for late submissions of reports and other financial information 
to CME's Financial and Regulatory Surveillance Department (``FRSD''). 
Under the proposed changes, CME's FRSD would be able to assess clearing 
members a $1,000 administrative fee for each required submission that 
is not received by the due date and time. The proposed rule language 
would also allow the FRSD to, in its discretion, waive assessment of 
the administrative fee for good cause shown.

[[Page 15381]]

    The new language is intended to address timely reporting of 
required financial information. To the extent a firm shows a pattern or 
practice of late submissions that could potentially indicate 
insufficient internal accounting controls or procedures, CME notes that 
there are separate existing processes available via the Clearing House 
Risk Committee which can result in additional disciplinary sanctions in 
appropriate circumstances. The imposing of an administrative fee that 
is the subject of this provision is not intended to replace these 
existing Clearing House Risk Committee processes. Rather, the new 
language is intended to supplement these processes by giving CME the 
ability to impose a $1,000 administrative fee on clearing members for 
each late submission of required reports.
    CME plans to operationalize the proposed changes on April 15, 2014, 
pending applicable regulatory reviews and approvals. CME has also made 
filings with the CFTC, Submission No. 13-581 and Submission No. 14-023, 
regarding the proposed changes.
    CME, a derivatives clearing organization, notes that it is 
implementing the proposed changes as part of an effort to discharge its 
regulatory obligations under the Commodity Exchange Act (``CEA'') more 
effectively.\3\ CME believes the proposed rule changes are also 
entirely consistent with the requirements of the Exchange Act and the 
rules and regulations thereunder, including Section 17A of the Exchange 
Act. The proposed changes enhance CME's self-regulatory organization 
function by providing the ability to assess a $1,000 administrative fee 
on clearing members for late submissions of financial information to 
CME's FRSD. These changes will strengthen CME's self-regulatory 
organization function and will encourage more accurate financial 
reporting by clearing members, which are goals that are clearly 
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 CME or for 
which it is responsible, and, in general, to protect investors and the 
public interest in a way that is consistent with Section 17A(b)(3)(F) 
of the Exchange Act.\4\
---------------------------------------------------------------------------

    \3\ CME notes that the CEA contains a number of provisions that 
are comparable to the policies underlying the Exchange Act, 
including, for example, promoting market transparency for 
derivatives markets, promoting the prompt and accurate clearance of 
transactions and protecting investors and the public interest.
    \4\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

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 changes will 
give CME the ability to impose a $1,000 administrative fee on clearing 
members for the late submission of required reports and financial 
information.

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

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) as the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) by order approve or disapprove the proposed rule change or
    (B) institute proceedings to determine whether the proposed rule 
change should be 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 (http://www.sec.gov/rules/sro.shtml), or
     Send an email to rule-comment@sec.gov. Please include File 
No. SR-CME-2014-07 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-CME-2014-07. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington DC 20549, on official business days between the hours 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 http://www.cmegroup.com/market-regulation/rule-filings.html.
    All comments received will be posted without change; the Commission 
does not edit personal identifying information from submissions. You 
should submit only information that you wish to make available 
publicly. All submissions should refer to File Number SR-CME-2014-07 
and should be submitted on or before April 9, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-05985 Filed 3-18-14; 8:45 am]
BILLING CODE 8011-01-P