Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make Amendments to CME ClearPort Hours for Certain Commodity Index Cleared OTC Swap Contracts, 60879-60881 [2014-23980]

Download as PDF 60879 Federal Register / Vol. 79, No. 195 / Wednesday, October 8, 2014 / Notices above.53 In its review of the proposal, the Commission has carefully considered all of the comments received. The Commission acknowledges the concerns raised by the commenter, as detailed above,54 about the potential impact on competition resulting from the Proposal in the Exchange’s rules governing priority and order allocation for open outcry transactions. At the same time, the Commission also acknowledges the Exchange’s belief that this Proposal will encourage order flow providers to send additional crossing, facilitation, and solicited orders to the Exchange,55 as well as its belief that today, electronic options trading is well-established and no longer requires special rules and incentives to develop further.56 Phlx Rule 1014, Commentary .05(c)(ii), as proposed to be revised, describes priority for crossing, facilitation, and solicited orders in open outcry transactions. The proposed rules governing open outcry during crossing, facilitation, and solicited transactions on the Exchange floor are similar to the rules governing priority in crossing transactions at other exchanges.57 Given that other options exchanges currently have rules that provide lower priority to non-priority customer orders on the electronic book during crossing transactions on those exchanges, the Exchange’s proposed revisions to its priority scheme for floor transactions will allow Phlx to compete with other floor-based exchanges that have substantially similar rules. Accordingly, the Commission believes that it would be appropriate and consistent with the Act to approve the Exchange’s proposed rule change.58 V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act 59 that the proposed rule change, as modified by Amendment No. 1, (SR–Phlx–2014–23) be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.60 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–23984 Filed 10–7–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–73287; File No. SR–CME– 2014–39] Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make Amendments to CME ClearPort Hours for Certain Commodity Index Cleared OTC Swap Contracts (‘‘Act’’) 1 and Rule 19b–4 thereunder 2 notice is hereby given that on September 25, 2014, Chicago Mercantile Exchange Inc. (‘‘CME’’) 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 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) 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 proposed rules changes that are limited to its business as a derivatives clearing organization. CME proposes to amend the current CME ClearPort hours for certain enumerated commodity index cleared swap contracts. The proposed changes are as follows: October 2, 2014. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 Cleared OTC Swap product DCM Rulebook chapter CAW ............................ CCS ............................. CPC ............................. asabaliauskas on DSK5VPTVN1PROD with NOTICES Clearing code AUD Chicago Soft Red Winter Swap (Cleared Only) .......................................................................... Corn Calendar Swap (Clearing Only) .................................................................................................. USD Malaysian Crude Palm Oil Calendar Swap (Cleared Only) ........................................................ CBT CBT CME 14G 10C 204A 53 See ISE Letters I and II. See also notes 29–37 and 44–49 and accompanying text describing the issues and concerns raised by these comments. 54 See supra notes 29–37 and 44–49 and accompanying text. 55 See Notice, 79 FR at 27353. 56 See Amendment No. 1 at 4. 57 See, e.g., CBOE Rule 6.74; NYSE MKT Rule 934NY; NYSE Arca Rule 6.47. CBOE Rule 6.74 provides that for purposes of establishing priority at the same price, bids and offers of In-Crowd Market Participants have first priority, except with respect to public customer orders resting in the electronic book; and all other bids and offers (including bids and offers of broker-dealer orders in the electronic book and electronic quotes of MarketMakers) have second priority. NYSE MKT Rule 934NY(b)(3) provides that, for a non-facilitation cross, if there are bids or offers in the Consolidated Book better than the proposed execution price or Customer Orders in the Consolidated Book priced at the proposed execution price, the Floor Broker must trade against such bids or offers in the Consolidated Book. Once bids or offers in the Book are satisfied, the Floor Broker may cross the balance of the orders, if any, to be crossed. NYSE Arca Rule 6.47 provides that, for crossing orders, the Floor VerDate Sep<11>2014 17:27 Oct 07, 2014 Jkt 235001 Broker must trade against: (i) Customer bids or offers on the Consolidated Book priced equal or better than the proposed execution price; and (ii) better-priced non-Customer bids or offers on the Consolidated book along with any equal-priced non-Customer bids and offers that are ranked ahead of any equal-priced Customer bids and offers. 58 As noted above, the Exchange’s proposal is intended to bring its floor priority rules for crossing, facilitation, and solicited orders in line with the floor priority rules of certain other options exchanges. However, the Commission is aware of the concerns, as expressed by the commenter, that the rules of an options trading floor should allow for sufficient competition for orders. This concern is one that the Commission staff intends to continue to evaluate in the context of its ongoing empirical consideration of market structure. For example, there currently is relatively little information available about the extent and nature of floor crossing transactions. The Commission staff, however, expects that an exchange with a trading floor, as part of its regulatory obligations, will monitor the extent to which competition is maintained in floor crossing transactions. One way an exchange could do so would be to assess periodically the level of participation in such crossing transactions by market makers and other PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 market participants, aside from the firm that initiated the cross, and review whether its rules appropriately allow for such competition. In addition, the Commission reminds broker-dealers that the duty of best execution requires them to assess periodically the quality of competing markets to assure that order flow is directed to the markets providing the most beneficial terms for their customer orders. See, e.g., Order Execution Obligations, Securities Exchange Act Release No. 37619A (September 6, 1996), 61 FR 48290 at 48322– 33 (September 12, 1996). Broker-dealers must examine their procedures for seeking to obtain best execution in light of market and technology changes and modify those practices if necessary to enable their customers to obtain the best reasonably available prices. See id. at 48323. In doing so, broker-dealers must take into account price improvement opportunities, and whether different markets may be more suitable for different types of orders or particular securities. See id. 59 15 U.S.C. 78s(b)(2). 60 17 CFR 200.30–3(a)(12). 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). E:\FR\FM\08OCN1.SGM 08OCN1 60880 Federal Register / Vol. 79, No. 195 / Wednesday, October 8, 2014 / Notices Clearing code Cleared OTC Swap product DCM Rulebook chapter DFL .............................. DFT .............................. DG2 ............................. DG3 ............................. DGS ............................. KAW ............................ KWS ............................ RRE ............................. SE2 .............................. SE3 .............................. SES ............................. SNS ............................. UFG ............................. UFN ............................. UFU ............................. UFZ .............................. WCS ............................ DAP FOB NOLA Swaps (Clearing Only) ............................................................................................. DAP FOB Tampa Swaps (Clearing Only) ............................................................................................ Bloomberg Commodity Index 2-Month Forward Swaps (Cleared OTC) ............................................. Bloomberg Commodity Index 3-Month Forward Swaps (Cleared OTC) ............................................. Bloomberg Commodity Index Swaps (Cleared OTC) .......................................................................... AUD KC Hard Red Winter Wheat Swap (Cleared Only) ..................................................................... KC HRW Wheat Calendar Spread Options ......................................................................................... S&P GSCI Enhanced ER Index Swaps (Cleared OTC) ...................................................................... S&P GSCI ER Index 2 Month Forward Swaps (Cleared OTC) ........................................................... S&P GSCI–ER Index 3 Month Forward Swaps (Cleared OTC) .......................................................... S&P GSCI ER swap ............................................................................................................................. Soybean Calendar Swaps (Clearing Only) .......................................................................................... Urea (Granular) FOB Egypt Swaps (Clearing Only) ............................................................................ Urea (Granular) FOB US Gulf Coast Swaps (Clearing Only) .............................................................. UAN FOB NOLA Swaps (Clearing Only) ............................................................................................. Urea (Prilled) FOB Yuzhny Swaps (Clearing Only) ............................................................................. Wheat Calendar Swaps (Clearing Only) .............................................................................................. CBT CBT CBT CBT CBT CBT CBT CME CME CME CME CBT CBT CBT CBT CBT CBT 48 47 29B 29C 29A 14J 14M 415B 415E 415F 415A 11D 50 45 46 49 14C The current hours for submission to clearing via CME ClearPort for the above-referenced contracts are 5:00 p.m. CT to 4:15 p.m. CT next day, SundayFriday. The new hours for the abovereferenced contracts will be 6:00 p.m. CT to 5:45 p.m. CT next day, SundayFriday. 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 these statements. 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 of and basis for the 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 and offers clearing services for many different futures and swaps products. The proposed rule change that is the subject of this filing is limited to CME’s business as a DCO offering clearing services for CFTC-regulated swaps products. The proposed rule change would amend the CME ClearPort hours for commodity index cleared swap contracts. CME ClearPort provides functionality for the acceptance of contracts for clearing. The affected contracts are listed below: Cleared OTC Swap product DCM Rulebook chapter CAW ............................ CCS ............................. CPC ............................. DFL .............................. DFT .............................. DG2 ............................. DG3 ............................. DGS ............................. KAW ............................ KWS ............................ RRE ............................. SE2 .............................. SE3 .............................. SES ............................. SNS ............................. UFG ............................. UFN ............................. UFU ............................. UFZ .............................. WCS ............................ asabaliauskas on DSK5VPTVN1PROD with NOTICES Clearing code AUD Chicago Soft Red Winter Swap (Cleared Only) .......................................................................... Corn Calendar Swap (Clearing Only) .................................................................................................. USD Malaysian Crude Palm Oil Calendar Swap (Cleared Only) ........................................................ DAP FOB NOLA Swaps (Clearing Only) ............................................................................................. DAP FOB Tampa Swaps (Clearing Only) ............................................................................................ Bloomberg Commodity Index 2-Month Forward Swaps (Cleared OTC) ............................................. Bloomberg Commodity Index 3-Month Forward Swaps (Cleared OTC) ............................................. Bloomberg Commodity Index Swaps (Cleared OTC) .......................................................................... AUD KC Hard Red Winter Wheat Swap (Cleared Only) ..................................................................... KC HRW Wheat Calendar Spread Options ......................................................................................... S&P GSCI Enhanced ER Index Swaps (Cleared OTC) ...................................................................... S&P GSCI ER Index 2 Month Forward Swaps (Cleared OTC) ........................................................... S&P GSCI–ER Index 3 Month Forward Swaps (Cleared OTC) .......................................................... S&P GSCI ER swap ............................................................................................................................. Soybean Calendar Swaps (Clearing Only) .......................................................................................... Urea (Granular) FOB Egypt Swaps (Clearing Only) ............................................................................ Urea (Granular) FOB US Gulf Coast Swaps (Clearing Only) .............................................................. UAN FOB NOLA Swaps (Clearing Only) ............................................................................................. Urea (Prilled) FOB Yuzhny Swaps (Clearing Only) ............................................................................. Wheat Calendar Swaps (Clearing Only) .............................................................................................. CBT CBT CME CBT CBT CBT CBT CBT CBT CBT CME CME CME CME CBT CBT CBT CBT CBT CBT 14G 10C 204A 48 47 29B 29C 29A 14J 14M 415B 415E 415F 415A 11D 50 45 46 49 14C The current hours for submission to clearing via CME ClearPort for these contracts are 5:00 p.m. CT to 4:15 p.m. CT next day, Sunday-Friday. Under the proposed rule change, the new hours for the affected contracts would be 6:00 p.m. CT to 5:45 p.m. CT next day, Sunday-Friday. The proposed change in VerDate Sep<11>2014 17:27 Oct 07, 2014 Jkt 235001 hours will shorten the period in which daily trade submission is halted from 45 minutes to 15 minutes. The proposed new hours will be made known to the trading community in advance of the effective date via a Special Executive Report and will be posted in the trading PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 specifications for the contracts on the CME Web site. 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 E:\FR\FM\08OCN1.SGM 08OCN1 asabaliauskas on DSK5VPTVN1PROD with NOTICES Federal Register / Vol. 79, No. 195 / Wednesday, October 8, 2014 / Notices any way. The proposed changes would become effective immediately but would be operationalized on October 6, 2014. CME notes that it has also certified the proposed rule change that is the subject of this filing to its primary regulator, the Commodity Futures Trading Commission (‘‘CFTC’’), in a separate filing, CME Submission No. 14–382. CME believes the proposed rule change is consistent with the requirements of the Exchange Act including Section 17A of the Exchange Act.5 CME is proposing revised hours for acceptance of cleared swap contracts; the proposed changes would have the effect of shortening the period in which daily trade submission is halted from 45 minutes to 15 minutes and, as such, should 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.6 Furthermore, the proposed changes are limited in their effect to products offered under CME’s authority to act as a DCO. The products that are the subject of this filing 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, futures that are not security futures and forwards that are not security forwards. 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 overthe-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 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, swaps that are not securitybased swaps or mixed swaps; and 5 15 U.S.C. 78q–1. 6 15 U.S.C. 78q–1(b)(3)(F). VerDate Sep<11>2014 17:27 Oct 07, 2014 Jkt 235001 forwards that are not security forwards; 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 amendments would adopt new CME ClearPort hours for twenty commodity index cleared swap contracts. Further, the changes are limited to CME’s derivatives clearing business and, as such, do not affect the security-based swap clearing activities of CME in any way and therefore would 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 Written comments relating to the proposed changes have not been solicited or received. CME will notify the Commission of any written comments received by CME. 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 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. 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. 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 PO 00000 Frm 00078 Fmt 4703 Sfmt 9990 60881 Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– CME–2014–39 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–2014–39. 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 filings will also 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–2014–39 and should be submitted on or before October 29, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–23980 Filed 10–7–14; 8:45 am] BILLING CODE 8011–01–P 12 17 E:\FR\FM\08OCN1.SGM CFR 200.30–3(a)(12). 08OCN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 79, Number 195 (Wednesday, October 8, 2014)]
[Notices]
[Pages 60879-60881]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-23980]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73287; File No. SR-CME-2014-39]

Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Make Amendments to CME ClearPort Hours for Certain Commodity Index
Cleared OTC Swap Contracts

October 2, 2014.
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 September 25, 2014, Chicago Mercantile Exchange Inc. (``CME'') 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 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)
\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)(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. CME proposes to amend
the current CME ClearPort hours for certain enumerated commodity index
cleared swap contracts. The proposed changes are as follows:

[[Page 60880]]

DFL......................... DAP FOB NOLA Swaps CBT 48
(Clearing Only).
DFT......................... DAP FOB Tampa Swaps CBT 47
(Clearing Only).
DG2......................... Bloomberg Commodity CBT 29B
Index 2-Month
Forward Swaps
(Cleared OTC).
DG3......................... Bloomberg Commodity CBT 29C
Index 3-Month
Forward Swaps
(Cleared OTC).
DGS......................... Bloomberg Commodity CBT 29A
Index Swaps
(Cleared OTC).
KAW......................... AUD KC Hard Red CBT 14J
Winter Wheat Swap
(Cleared Only).
KWS......................... KC HRW Wheat CBT 14M
Calendar Spread
Options.
RRE......................... S&P GSCI Enhanced ER CME 415B
Index Swaps
(Cleared OTC).
SE2......................... S&P GSCI ER Index 2 CME 415E
Month Forward Swaps
(Cleared OTC).
SE3......................... S&P GSCI-ER Index 3 CME 415F
Month Forward Swaps
(Cleared OTC).
SES......................... S&P GSCI ER swap.... CME 415A
SNS......................... Soybean Calendar CBT 11D
Swaps (Clearing
Only).
UFG......................... Urea (Granular) FOB CBT 50
Egypt Swaps
(Clearing Only).
UFN......................... Urea (Granular) FOB CBT 45
US Gulf Coast Swaps
(Clearing Only).
UFU......................... UAN FOB NOLA Swaps CBT 46
(Clearing Only).
UFZ......................... Urea (Prilled) FOB CBT 49
Yuzhny Swaps
(Clearing Only).
WCS......................... Wheat Calendar Swaps CBT 14C
(Clearing Only).
------------------------------------------------------------------------

The current hours for submission to clearing via CME ClearPort for
the above-referenced contracts are 5:00 p.m. CT to 4:15 p.m. CT next
day, Sunday-Friday. The new hours for the above-referenced contracts
will be 6:00 p.m. CT to 5:45 p.m. CT next day, Sunday-Friday.

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 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. CME has prepared summaries, set forth in sections A, B,
and C below, of the most significant aspects of these 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 and offers clearing services for many different futures and
swaps products. The proposed rule change that is the subject of this
filing is limited to CME's business as a DCO offering clearing services
for CFTC-regulated swaps products. The proposed rule change would amend
the CME ClearPort hours for commodity index cleared swap contracts. CME
ClearPort provides functionality for the acceptance of contracts for
clearing. The affected contracts are listed below:

------------------------------------------------------------------------
Cleared OTC Swap Rulebook
Clearing code product DCM chapter
------------------------------------------------------------------------
CAW......................... AUD Chicago Soft Red CBT 14G
Winter Swap
(Cleared Only).
CCS......................... Corn Calendar Swap CBT 10C
(Clearing Only).
CPC......................... USD Malaysian Crude CME 204A
Palm Oil Calendar
Swap (Cleared Only).
DFL......................... DAP FOB NOLA Swaps CBT 48
(Clearing Only).
DFT......................... DAP FOB Tampa Swaps CBT 47
(Clearing Only).
DG2......................... Bloomberg Commodity CBT 29B
Index 2-Month
Forward Swaps
(Cleared OTC).
DG3......................... Bloomberg Commodity CBT 29C
Index 3-Month
Forward Swaps
(Cleared OTC).
DGS......................... Bloomberg Commodity CBT 29A
Index Swaps
(Cleared OTC).
KAW......................... AUD KC Hard Red CBT 14J
Winter Wheat Swap
(Cleared Only).
KWS......................... KC HRW Wheat CBT 14M
Calendar Spread
Options.
RRE......................... S&P GSCI Enhanced ER CME 415B
Index Swaps
(Cleared OTC).
SE2......................... S&P GSCI ER Index 2 CME 415E
Month Forward Swaps
(Cleared OTC).
SE3......................... S&P GSCI-ER Index 3 CME 415F
Month Forward Swaps
(Cleared OTC).
SES......................... S&P GSCI ER swap.... CME 415A
SNS......................... Soybean Calendar CBT 11D
Swaps (Clearing
Only).
UFG......................... Urea (Granular) FOB CBT 50
Egypt Swaps
(Clearing Only).
UFN......................... Urea (Granular) FOB CBT 45
US Gulf Coast Swaps
(Clearing Only).
UFU......................... UAN FOB NOLA Swaps CBT 46
(Clearing Only).
UFZ......................... Urea (Prilled) FOB CBT 49
Yuzhny Swaps
(Clearing Only).
WCS......................... Wheat Calendar Swaps CBT 14C
(Clearing Only).
------------------------------------------------------------------------

The current hours for submission to clearing via CME ClearPort for
these contracts are 5:00 p.m. CT to 4:15 p.m. CT next day, Sunday-
Friday. Under the proposed rule change, the new hours for the affected
contracts would be 6:00 p.m. CT to 5:45 p.m. CT next day, Sunday-
Friday. The proposed change in hours will shorten the period in which
daily trade submission is halted from 45 minutes to 15 minutes. The
proposed new hours will be made known to the trading community in
advance of the effective date via a Special Executive Report and will
be posted in the trading specifications for the contracts on the CME
Web site.
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

[[Page 60881]]

any way. The proposed changes would become effective immediately but
would be operationalized on October 6, 2014. CME notes that it has also
certified the proposed rule change that is the subject of this filing
to its primary regulator, the Commodity Futures Trading Commission
(``CFTC''), in a separate filing, CME Submission No. 14-382.
CME believes the proposed rule change is consistent with the
requirements of the Exchange Act including Section 17A of the Exchange
Act.\5\ CME is proposing revised hours for acceptance of cleared swap
contracts; the proposed changes would have the effect of shortening the
period in which daily trade submission is halted from 45 minutes to 15
minutes and, as such, should 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.\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
products offered under CME's authority to act as a DCO. The products
that are the subject of this filing 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, futures that are not security futures and forwards that are not
security forwards. 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
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, swaps that are not security-based swaps or mixed
swaps; and forwards that are not security forwards; 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).
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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 amendments would
adopt new CME ClearPort hours for twenty commodity index cleared swap
contracts. Further, the changes are limited to CME's derivatives
clearing business and, as such, do not affect the security-based swap
clearing activities of CME in any way and therefore would 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

Written comments relating to the proposed changes have not been
solicited or received. CME will notify the Commission of any written
comments received by CME.

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 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.
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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:

Electronic Comments

Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-CME-2014-39 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-2014-39. 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 filings will also 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-2014-39
and should be submitted on or before October 29, 2014.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-23980 Filed 10-7-14; 8:45 am]
BILLING CODE 8011-01-P

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