Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Notice of Filing and Immediate Effectiveness of Proposed Change to CME Rule 814 To Clarify Certain Operational Details Regarding Current CME Settlement Cycles, 7054-7056 [2015-02499]

Download as PDF 7054 Federal Register / Vol. 80, No. 26 / Monday, February 9, 2015 / Notices • Send an email to rule-comments@ sec.gov. Please include File Number SR– NASDAQ–2015–006 on the subject line. SECURITIES AND EXCHANGE COMMISSION Paper Comments [Release No. 34–74191; File No. SR–CME– 2015–003] • Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NASDAQ–2015–006. 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–2015–006, and should be submitted on or before March 2, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Jill M. Peterson, Assistant Secretary. [FR Doc. 2015–02498 Filed 2–6–15; 8:45 am] mstockstill on DSK4VPTVN1PROD with NOTICES BILLING CODE 8011–01–P Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Notice of Filing and Immediate Effectiveness of Proposed Change to CME Rule 814 To Clarify Certain Operational Details Regarding Current CME Settlement Cycles February 3, 2015. 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 January 21, 2015, 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 Rule 19b–4(f)(4)(ii) 4 thereunder, so that the proposal was effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change CME is filing a proposed rule change that is limited to its business as a derivatives clearing organization (‘‘DCO’’). More specifically, the proposed change would amend the text of current CME Rule 814 to clarify certain operational details regarding current CME settlement cycles. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, CME included statements concerning the purpose and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. CME has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(4)(ii). 2 17 11 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 17:39 Feb 06, 2015 Jkt 235001 PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 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 currently offers clearing services for many different futures and swaps products. With this filing, CME proposes to make rulebook changes that are limited to its business clearing futures and swaps under the exclusive jurisdiction of the CFTC. More specifically, the proposed changes would amend the text of current CME Rule 814 to clarify certain operational details regarding current CME settlement cycles. The first proposed change to CME Rule 814 would add further detail regarding the settlement cycle for commodity contracts that are options. The current version of Rule 814 is silent on the settlement cycle for commodity contracts that are options, and so additional language is proposed to ensure that the market is aware that settlement of option value operates differently than settlement for nonoption commodity contracts. The proposed rule change is consistent with the current settlement process so no operational changes are needed to implement the proposed rules. The second proposed change is to amend Rule 814 so that it explicitly reflects the fact that the current CME settlement process results in outstanding exposures being settled to zero fair value during each settlement cycle. The third proposed change is to add further clarity regarding settlement finality at the CME clearing house. Lastly, certain terms in the Rule 814 text are being modified in order to provide additional clarity to the marketplace and regulators. As described above, none of these revisions would change any aspect of current operations but, rather, would merely clarify certain operational details of the clearing cycle currently in place in the text of Rule 814. The proposed rule change that is described in this filing is limited to CME’s business as a derivatives clearing organization clearing products under the exclusive jurisdiction of the CFTC. CME has not cleared security based swaps and does not plan to and therefore the proposed rule change does not impact CME’s security-based swap clearing business in any way. The proposed rule change will become effective immediately. CME notes that it has also submitted the proposed rule change that is the subject of this filing E:\FR\FM\09FEN1.SGM 09FEN1 mstockstill on DSK4VPTVN1PROD with NOTICES Federal Register / Vol. 80, No. 26 / Monday, February 9, 2015 / Notices to its primary regulator, the CFTC, in CME Submission 14–585. CME believes the proposed rule change is consistent with the requirements of the Act including Section 17A of the Act.5 The proposed rule change would amend the text of current CME Rule 814 to clarify certain operational details regarding current CME settlement cycles. The additional clarity in CME’s rulebook regarding its settlement cycles 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 Act.6 Furthermore, the proposed change is limited to CME’s futures and swaps clearing businesses, which means it is limited in its effect to products that are under the exclusive jurisdiction of the CFTC. As such, the proposed change is limited to CME’s activities as a DCO clearing futures that are not security futures and swaps that are not securitybased swaps. CME notes that the policies of the CFTC with respect to administering the Commodity Exchange Act are comparable to a number of the policies underlying the 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 change is limited in its effect to CME’s futures and swaps clearing businesses, the proposed change is 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 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. CME believes that the proposal does not significantly affect any securities clearing operations of CME because CME recently filed a proposed rule 5 15 6 15 U.S.C. 78q–1. U.S.C. 78q–1(b)(3)(F). VerDate Sep<11>2014 17:39 Feb 06, 2015 Jkt 235001 7055 change that clarified that CME has decided not to clear security-based swaps, except in a very limited set of circumstances.7 The rule filing reflecting CME’s decision not to clear security-based swaps removed any ambiguity concerning CME’s ability or intent to perform the functions of a clearing agency with respect to securitybased swaps. Therefore, this proposal will not have an effect on any securities clearing operations of CME. As such, the changes are therefore consistent with the requirements of Section 17A of the Act 8 and are properly filed under Section 19(b)(3)(A) 9 and Rule 19b– 4(f)(4)(ii) 10 thereunder. 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. 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. CME is making the aforementioned changes simply to clarify current settlement processes; there are no operational changes. Further, the changes are limited to CME’s futures and swaps clearing businesses 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. • 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–2015–003 on the subject line. 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 pursuant to Section 19(b)(3)(A) 11 of the Act and paragraph (f)(4)(ii) of Rule 19b–4 12 thereunder. At any time within 60 days of the filing of the proposed rule change, the 7 See Securities Exchange Act Release No. 34– 73615 (Nov. 17, 2014), 79 FR 69545 (Nov. 21, 2014) (SR–CME–2014–49). The only exception is with regards to Restructuring European Single Name CDS Contracts created following the occurrence of a Restructuring Credit Event in respect of an iTraxx Component Transaction. The clearing of Restructuring European Single Name CDS Contracts will be a necessary byproduct after such time that CME begins clearing iTraxx Contracts. 8 15 U.S.C. 78q–1. 9 15 U.S.C. 78s(b)(3)(A). 10 17 CFR 240.19b–4(f)(4)(ii). 11 15 U.S.C. 78s(b)(3)(A). 12 17 CFR 240.19b–4(f)(4)(ii). PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 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 Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC, 21049–1090. All submissions should refer to File Number SR–CME–2015–003. 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. E:\FR\FM\09FEN1.SGM 09FEN1 7056 Federal Register / Vol. 80, No. 26 / Monday, February 9, 2015 / Notices All submissions should refer to File Number SR–CME–2015–003 and should be submitted on or before March 2, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Jill Peterson, Assistant Secretary. [FR Doc. 2015–02499 Filed 2–6–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–74202; File No. SR–OCC– 2014–813] Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing of an Advance Notice, as Modified by Amendment No. 1, Concerning a Proposed Capital Plan for Raising Additional Capital That Would Support The Options Clearing Corporation’s Function as a Systemically Important Financial Market Utility February 4, 2015. Pursuant to Section 806(e)(1) of Title VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act entitled the Payment, Clearing, and Settlement Supervision Act of 2010 (‘‘Payment, Clearing and Settlement Supervision Act’’ or ‘‘Clearing Supervision Act’’) 1 and Rule 19b– 4(n)(1)(i) 2 under the Securities Exchange Act of 1934 (‘‘Act’’) notice is hereby given that on December 29, 2014, The Options Clearing Corporation (‘‘OCC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the advance notice as described in Items I and II below, which Items have been prepared by OCC.3 On January 14, 2015, OCC filed Amendment No. 1 to the advance notice.4 The Commission is 13 17 CFR 200.30–3(a)(12). U.S.C. 5465(e)(1). 2 17 CFR 240.19b–4(n)(1)(i). 3 In Items I and II below, OCC states that the purpose of this proposal is in part to facilitate compliance with the SEC Proposed Rules (as defined below) and address Principle 15 of the Principles for Financial Market Infrastructures (‘‘PMFIs’’). The Commission notes that the SEC Proposed Rules are pending. The Commission will evaluate the advance notice under the Clearing Supervision Act and the rules currently in force thereunder. 4 According to OCC, Amendment No. 1 to the SR– OCC–2014–813 (‘‘Filing’’): (i) Updates OCC’s plan for raising additional capital (‘‘Capital Plan’’) in connection with negotiations between OCC and the options exchanges that own equity in OCC (‘‘Stockholder Exchanges’’ or ‘‘stockholders’’) and that would contribute additional capital under the Capital Plan, (ii) corrects typographical errors in the Filing, and (iii) updates the Term Sheet included as mstockstill on DSK4VPTVN1PROD with NOTICES 1 12 VerDate Sep<11>2014 17:39 Feb 06, 2015 Jkt 235001 publishing this notice to solicit comments on the advance notice from interested persons. I. Clearing Agency’s Statement of the Terms of Substance of the Advance Notice This advance notice is filed by OCC in order to set forth a proposed Capital Plan for raising additional capital that would support OCC’s function as a systemically important financial market utility and facilitate OCC’s compliance with new regulatory requirements applicable to systemically important financial market utilities that have been proposed by the Commission but have not yet been adopted. II. Clearing Agency’s Statement of the Purpose of, and Statutory Basis for, the Advance Notice In its filing with the Commission, OCC included statements concerning the purpose of and basis for the advance notice and discussed any comments it received on the advance notice. The text of these statements may be examined at the places specified in Item IV below. OCC has prepared summaries, set forth in sections (A) and (B) below, of the most significant aspects of these statements. (A) Clearing Agency’s Statement on Comments on the Advance Notice Received From Members, Participants or Others Written comments on the advance notice were not and are not intended to be solicited with respect to the advance notice and none have been received. (B) Advance Notices Filed Pursuant to Section 806(e) of the Payment, Clearing and Settlement Supervision Act The proposed change sets forth the Capital Plan under which the Stockholder Exchanges would make an additional capital contribution and commit to replenishment capital (‘‘Replenishment Capital’’) in circumstances discussed below, and would receive, among other things, the right to receive dividends from OCC. In addition to the additional capital contribution and Replenishment Capital, the main features of the Capital Plan are: (i) A policy establishing OCC’s fees at a level that would be sufficient to cover OCC’s estimated operating expenses plus a ‘‘Business Risk Buffer’’ as described below (‘‘Fee Policy’’), (ii) the Refund Policy [sic], and (iii) a policy for calculating the amount of dividends to be paid to the options exchanges an exhibit to the Filing, which summarizes material features of the Capital Plan. PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 owning equity in OCC (‘‘Dividend Policy’’). The Capital Plan is proposed to be implemented on or about February 27, 2015, subject to all necessary regulatory approvals.5 Purpose of the Proposed Change The purpose of this proposed change is to implement the Capital Plan, which would significantly increase OCC’s capital in connection with its increased responsibilities as a systemically important financial market utility, and which OCC believes would facilitate OCC’s compliance with new regulatory requirements applicable to such systemically important financial market utilities that have been proposed by the Commission but have not yet been adopted.6 For purposes of this filing, OCC has used the working assumption that the new requirements contained in the Commission’s proposed amendments to Rule 17Ad–22 of the SEC Proposed Rules will be adopted substantially as proposed. The proposed change is intended to ensure OCC’s ability to comply with Rule 17Ad–22, specifically paragraph (e)(15) thereof, when the SEC Proposed Rules become effective. In addition, it is intended to address Principle 15 of the Principles for Financial Market Infrastructures published by the Bank for International Settlements and the International Organization of Securities Commissions, which provides, among other things, that a financial market utility should identify, monitor and manage its general business risk and hold sufficient liquid net assets funded by equity to cover potential general business losses so that it can continue to operate as a going concern. The proposal includes an infusion of substantial additional equity capital by the Stockholder Exchanges to be made prior to February 27, 2015, subject to regulatory approval, that when added to retained earnings accumulated by OCC in 2014 will significantly increase OCC’s capital levels as compared to historical levels. Additionally, the proposed change includes the Replenishment Capital commitment, which would provide OCC access to additional equity 5 The material features of the Capital Plan are summarized in the Term Sheet that is included as Exhibit 3. Certain details of the Term Sheet may change as a result of further negotiations or changes in financial figures, but OCC does not anticipate any material changes to the Capital Plan. OCC intends to separately file a proposed rule change seeking approval of changes to its By-Laws, Certificate of Incorporation and relevant agreements, including its Stockholders Agreement, necessary to implement the Capital Plan. 6 See Securities Exchange Act Release No. 71699 (March 12, 2014), 79 FR 29507 (May 22, 2014) (‘‘SEC Proposed Rules’’). E:\FR\FM\09FEN1.SGM 09FEN1

Agencies

[Federal Register Volume 80, Number 26 (Monday, February 9, 2015)]
[Notices]
[Pages 7054-7056]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-02499]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74191; File No. SR-CME-2015-003]


Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Change to CME 
Rule 814 To Clarify Certain Operational Details Regarding Current CME 
Settlement Cycles

February 3, 2015.
    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 January 21, 2015, 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 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 a proposed rule change that is limited to its 
business as a derivatives clearing organization (``DCO''). More 
specifically, the proposed change would amend the text of current CME 
Rule 814 to clarify certain operational details regarding current CME 
settlement cycles.

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 (``CFTC'') and currently offers 
clearing services for many different futures and swaps products. With 
this filing, CME proposes to make rulebook changes that are limited to 
its business clearing futures and swaps under the exclusive 
jurisdiction of the CFTC. More specifically, the proposed changes would 
amend the text of current CME Rule 814 to clarify certain operational 
details regarding current CME settlement cycles.
    The first proposed change to CME Rule 814 would add further detail 
regarding the settlement cycle for commodity contracts that are 
options. The current version of Rule 814 is silent on the settlement 
cycle for commodity contracts that are options, and so additional 
language is proposed to ensure that the market is aware that settlement 
of option value operates differently than settlement for non-option 
commodity contracts. The proposed rule change is consistent with the 
current settlement process so no operational changes are needed to 
implement the proposed rules. The second proposed change is to amend 
Rule 814 so that it explicitly reflects the fact that the current CME 
settlement process results in outstanding exposures being settled to 
zero fair value during each settlement cycle. The third proposed change 
is to add further clarity regarding settlement finality at the CME 
clearing house. Lastly, certain terms in the Rule 814 text are being 
modified in order to provide additional clarity to the marketplace and 
regulators. As described above, none of these revisions would change 
any aspect of current operations but, rather, would merely clarify 
certain operational details of the clearing cycle currently in place in 
the text of Rule 814.
    The proposed rule change that is described in this filing is 
limited to CME's business as a derivatives clearing organization 
clearing products under the exclusive jurisdiction of the CFTC. CME has 
not cleared security based swaps and does not plan to and therefore the 
proposed rule change does not impact CME's security-based swap clearing 
business in any way. The proposed rule change will become effective 
immediately. CME notes that it has also submitted the proposed rule 
change that is the subject of this filing

[[Page 7055]]

to its primary regulator, the CFTC, in CME Submission 14-585.
    CME believes the proposed rule change is consistent with the 
requirements of the Act including Section 17A of the Act.\5\ The 
proposed rule change would amend the text of current CME Rule 814 to 
clarify certain operational details regarding current CME settlement 
cycles. The additional clarity in CME's rulebook regarding its 
settlement cycles 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 Act.\6\
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78q-1.
    \6\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    Furthermore, the proposed change is limited to CME's futures and 
swaps clearing businesses, which means it is limited in its effect to 
products that are under the exclusive jurisdiction of the CFTC. As 
such, the proposed change is limited to CME's activities as a DCO 
clearing futures that are not security futures and swaps that are not 
security-based swaps. CME notes that the policies of the CFTC with 
respect to administering the Commodity Exchange Act are comparable to a 
number of the policies underlying the 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 change is limited in its effect to CME's 
futures and swaps clearing businesses, the proposed change is 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.

CME believes that the proposal does not significantly affect any 
securities clearing operations of CME because CME recently filed a 
proposed rule change that clarified that CME has decided not to clear 
security-based swaps, except in a very limited set of circumstances.\7\ 
The rule filing reflecting CME's decision not to clear security-based 
swaps removed any ambiguity concerning CME's ability or intent to 
perform the functions of a clearing agency with respect to security-
based swaps. Therefore, this proposal will not have an effect on any 
securities clearing operations of CME. As such, the changes are 
therefore consistent with the requirements of Section 17A of the Act 
\8\ and are properly filed under Section 19(b)(3)(A) \9\ and Rule 19b-
4(f)(4)(ii) \10\ thereunder.
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 34-73615 (Nov. 17, 
2014), 79 FR 69545 (Nov. 21, 2014) (SR-CME-2014-49). The only 
exception is with regards to Restructuring European Single Name CDS 
Contracts created following the occurrence of a Restructuring Credit 
Event in respect of an iTraxx Component Transaction. The clearing of 
Restructuring European Single Name CDS Contracts will be a necessary 
byproduct after such time that CME begins clearing iTraxx Contracts.
    \8\ 15 U.S.C. 78q-1.
    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    CME does not believe that the proposed rule change will have any 
impact, or impose any burden, on competition. CME is making the 
aforementioned changes simply to clarify current settlement processes; 
there are no operational changes. Further, the changes are limited to 
CME's futures and swaps clearing businesses 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 pursuant to Section 
19(b)(3)(A) \11\ of the Act and paragraph (f)(4)(ii) of Rule 19b-4 \12\ 
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.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml), or
     Send an email to rule-comments@sec.gov. Please include 
File No. SR-CME-2015-003 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC, 21049-1090.

All submissions should refer to File Number SR-CME-2015-003. 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.

[[Page 7056]]

    All submissions should refer to File Number SR-CME-2015-003 and 
should be submitted on or before March 2, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill Peterson,
Assistant Secretary.
[FR Doc. 2015-02499 Filed 2-6-15; 8:45 am]
BILLING CODE 8011-01-P
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