Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish a Default Management Committee and Address OTC Products That Are Subject to CME's Base Financial Safeguards, 17516-17518 [2015-07361]
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Federal Register / Vol. 80, No. 62 / Wednesday, April 1, 2015 / Notices
from the Web site cited above or by
contacting the identified DFO.
Moreover, in view of the possibility that
the schedule for ACRS meetings may be
adjusted by the Chairman as necessary
to facilitate the conduct of the meeting,
persons planning to attend should check
with these references if such
rescheduling would result in a major
inconvenience.
If attending this meeting, please enter
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building, 11555 Rockville Pike,
Rockville, MD. After registering with
security, please contact Mr. Theron
Brown (Telephone 240–888–9835) to be
escorted to the meeting room.
POSTAL REGULATORY COMMISSION
CFR 3020.90 and 3020.91.1 The Postal
Service seeks to add non-denominated,
non-expiring (‘‘Forever’’) status to
stamps in five different First-Class Mail
stamp categories: (1) A postcard stamp,
(2) the two-ounce letter stamp, (3) the
three-ounce letter stamp, (4) the
additional ounce stamp, and (5) the first
ounce nonmachinable surcharge stamp,
as well as modify the definition of
Forever stamps. Notice at 1. The Postal
Service presents these proposed changes
to the Mail Classification Schedule
(MCS) in Attachment 1 to the Notice.
See Notice, Attachment 1.
The Postal Service states that the
proposed changes reflect its objective to
simplify the transactions associated
with price changes. Notice at 2. It also
seeks to eliminate the need for
customers and the Postal Service to
acquire and distribute new denominated
stamps when a prices change occurs. Id.
The Postal Service states that the
proposed changes are minor in nature
and are consistent with 39 U.S.C. 3642.
Id. at 1, n.1, and 3.
[Docket No. MC2015–42; Order No. 2414]
II. Notice of Commission Action
New Postal Product
Pursuant to 39 CFR 3020.92, the
Commission has posted the Notice on
its Web site and invites comments on
whether the Postal Service’s filings in
Docket No. MC2015–42 are consistent
with the policies of 39 U.S.C. 3642 and
39 CFR 3020 subpart E. Comments are
due no later than April 2, 2015. The
public portions of these filings can be
accessed via the Commission’s Web site
(https://www.prc.gov).
The Commission appoints Kenneth E.
Richardson to represent the interests of
the general public (Public
Representative) in this docket.
Dated: March 25, 2015.
Mark L. Banks,
Chief, Technical Support Branch, Advisory
Committee on Reactor Safeguards.
[FR Doc. 2015–07485 Filed 3–31–15; 8:45 am]
BILLING CODE 7590–01–P
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
The Commission is noticing a
recent Postal Service filing concerning
the Postal Service’s notice of a minor
classification change regarding the
issuance of new Forever stamps. This
notice informs the public of the filing,
invites public comment, and takes other
administrative steps.
DATES: Comments are due: April 2,
2015.
SUMMARY:
Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Those who cannot submit
comments electronically should contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section by
telephone for advice on filing
alternatives.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
mstockstill on DSK4VPTVN1PROD with NOTICES
Table of Contents
I. Introduction
II. Notice of Commission Action
III. Ordering Paragraphs
I. Introduction
On March 25, 2015, the Postal Service
filed a notice of minor classification
changes under Commission rules 39
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III. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket
No. MC2015–42 to consider matters
raised by the notice.
2. Pursuant to 39 U.S.C. 505, Kenneth
E. Richardson is appointed to serve as
an officer of the Commission (Public
Representative) to represent the
interests of the general public in this
proceeding.
3. Comments by interested persons
are due by April 2, 2015.
4. The Secretary shall arrange for
publication of this Order in the Federal
Register.
1 Notice of the United States Postal Service of
Minor Classification Changes Related to the
Issuance of Forever Stamp Status to the Postcard,
Two-Ounce, Three-Ounce, Additional Ounce, and
Nonmachinable Surcharge Stamps, March 25, 2015
(Notice).
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By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2015–07355 Filed 3–31–15; 8:45 am]
BILLING CODE 7710–FW–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74587; File No. SR–CME–
2015–005]
Self-Regulatory Organizations;
Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Establish a Default
Management Committee and Address
OTC Products That Are Subject to
CME’s Base Financial Safeguards
March 26, 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 March 23,
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 primarily prepared by CME.
CME filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act,3 and Rule 19b–4(f)(4)(ii) 4
thereunder, so that the proposed rule
change was effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CME is filing a proposed rule change
that is limited to its business as a
derivatives clearing organization. More
specifically, the proposed rule change
would make amendments to existing
rules to establish a default management
committee (‘‘Active Base OTC Default
Management Committee’’ or
‘‘Committee’’) and address over-thecounter (‘‘OTC’’) products that are
subject to CME’s base financial
safeguards, including OTC FX.
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
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
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Federal Register / Vol. 80, No. 62 / Wednesday, April 1, 2015 / Notices
the purpose and basis for the proposed
rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. CME has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
mstockstill on DSK4VPTVN1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
CME is registered as a derivatives
clearing organization with the
Commodity Futures Trading
Commission (‘‘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
rule change would make amendments to
existing rules to establish a default
management committee and address
OTC products that are subject to CME’s
base financial safeguards, including
OTC FX.
CME currently has an IRS Default
Management Committee to assist with
the management of a defaulting IRS
Clearing Member’s positions and a CDS
Default Management Committee to
assist with the management of a
defaulting CDS Clearing Member’s
positions. The proposed rule change
establishes the Committee as a similar
construct to assist with the management
of portfolio of its OTC Clearing
Member’s positions. The Committee
will be comprised of traders in OTC
products that are employees or directors
of Base OTC Clearing Members (or their
affiliates) and will serve on the
Committee on a rotating basis. The
Committee will assist CME in
structuring hedges and portfolios for
auction. Members of the Committee will
also participate in default management
drills for Base OTC products.
The proposed rule amendments are
summarized further as follows:
• New CME Rule 8F025. (Active Base
OTC Default Management Committee)
will establish the Committee and
specify its composition of traders in the
relevant OTC products who will serve
on a rotational basis;
• CME Rule 8F004 (OTC Clearing
Member Obligations and Qualifications)
amendments will add requirements for
OTC Clearing Members to (i) avail
traders with proper experience to the
Committee and (ii) participate in OTC
Derivative default drill exercises;
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• CME Rule 8F014 (Mitigation of
Losses) amendments will harmonize
with the related OTC IRS and OTC CDS
rules, including the deletion of
allocations of OTC positions;
• CME Rule 8F002 (Definitions)
amendments will add the terms ‘‘Base
OTC Clearing Member’’ and ‘‘OTC
Derivative Product Category.’’
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
to its primary regulator, the CFTC, in
CME Submission 14–080.
CME believes the proposed rule
change is consistent with the
requirements of the Act including
Section 17A of the Act.5 The
establishment of the Committee and
OTC Clearing Member requirements to
provide traders and participate in
auction as set forth in the proposed rule
change forms part of CME’s default
procedures for OTC products to permit
CME to take timely action to contain
losses resulting from OTC positions in
the event of a default of a CME OTC
Clearing Member. The proposed rule
change should therefore be seen to be
designed to promote the prompt and
accurate clearance and settlement of
securities transactions and, to the extent
applicable, derivatives agreements,
contracts, and transactions, to assure the
safeguarding of securities and funds
which are in the custody or control of
the clearing agency or for which it is
responsible, and, in general, to protect
investors and the public interest
consistent with Section 17A(b)(3)(F) of
the Act.6
Furthermore, the proposed rule
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 rule
change is limited to CME’s activities as
a derivatives clearing organization
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 rule change is
limited in its effect to CME’s futures and
swaps clearing businesses, the proposed
rule 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.
As such, the proposed rule change is
therefore consistent with the
requirements of Section 17A of the Act 7
and is 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 proposed rule change
would make amendments to existing
rules to establish a default management
committee to further strengthen CME’s
ability to take timely action to contain
losses resulting from OTC positions in
the event of a default of a CME OTC
Clearing Member. Further, the proposed
rule change is limited to CME’s futures
and swaps clearing businesses and, as
such, does not affect the security-based
swap clearing activities of CME in any
way and therefore does 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.
7 15
5 15
U.S.C. 78q–1.
6 15 U.S.C. 78q–1(b)(3)(F).
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17517
U.S.C. 78q–1.
U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(4)(ii).
8 15
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Federal Register / Vol. 80, No. 62 / Wednesday, April 1, 2015 / Notices
filing also will be available for
inspection and copying at the principal
office of CME and on CME’s Web site at
https://www.cmegroup.com/marketregulation/rule-filings.html.
All comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly.
All submissions should refer to File
Number SR–CME–2015–005 and should
be submitted on or before April 22,
2015.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend the fee schedule applicable to
Members 5 and non-members of the
Exchange pursuant to BATS Rules
15.1(a) and (c). Changes to the fee
schedule pursuant to this proposal are
effective upon filing.
The text of the proposed rule change
is available at the Exchange’s Web site
at www.batstrading.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Brent J. Fields,
Secretary.
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–2015–005 on the subject line.
mstockstill on DSK4VPTVN1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A) 10 of the Act and paragraph
(f)(4)(ii) of Rule 19b–4 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.
SECURITIES AND EXCHANGE
COMMISSION
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
Exchange 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. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
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–2015–005. 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
10 15
11 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(4)(ii).
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[FR Doc. 2015–07361 Filed 3–31–15; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–74589; File No. SR–BATS–
2015–23]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Related to Fees for Use
of BATS Exchange, Inc.
March 26, 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 March 17,
2015, BATS Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BATS’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III below, which Items have been
prepared by the Exchange. The
Exchange has designated the proposed
rule change as one establishing or
changing a member due, fee, or other
charge imposed by the Exchange under
Section 19(b)(3)(A)(ii) of the Act 3 and
Rule 19b-4(f)(2) thereunder,4 which
renders the proposed rule change
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to modify its
fee schedule in order to: (1) Modify the
requirements for meeting Add Volume
Tiers 5 and 6; (2) delete Tier 3 of the
Cross-Asset Step-Up Tiers; (3) adjust
rebates for orders that yield fee code A;
(4) add new fee code RN; (5) add a
clarifying statement regarding fee codes
applicable to certain orders routed to
NYSE Arca, Inc. (‘‘NYSE Arca’’); and (6)
to make a non-substantive change to
remove a typographical error.
Modifying Add Volume Tiers 5 and 6
The Exchange proposes to amend its
fee schedule to raise the ADAV 6 as a
percentage of TCV 7 required to meet
Tiers 5 and 6 of the Add Volume Tiers
5 The term ‘‘Member’’ is defined as ‘‘any
registered broker or dealer that has been admitted
to membership in the Exchange.’’ See Exchange
Rule 1.5(n).
6 ‘‘ADAV’’ means average daily volume calculated
as the number of shares added per day on a
monthly basis.
7 ‘‘TCV’’ means total consolidated volume
calculated as the volume reported by all exchanges
and trade reporting facilities to a consolidated
transaction reporting plan for the month for which
the fees apply.
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]]>Agencies
[Federal Register Volume 80, Number 62 (Wednesday, April 1, 2015)]
[Notices]
[Pages 17516-17518]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-07361]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74587; File No. SR-CME-2015-005]
Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Establish a Default Management Committee and Address OTC Products That
Are Subject to CME's Base Financial Safeguards
March 26, 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 March 23, 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 primarily prepared by CME. CME filed the proposed rule
change pursuant to Section 19(b)(3)(A) of the Act,\3\ and Rule 19b-
4(f)(4)(ii) \4\ thereunder, so that the proposed rule change was
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\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. More specifically, the
proposed rule change would make amendments to existing rules to
establish a default management committee (``Active Base OTC Default
Management Committee'' or ``Committee'') and address over-the-counter
(``OTC'') products that are subject to CME's base financial safeguards,
including OTC FX.
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
[[Page 17517]]
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 rule change
would make amendments to existing rules to establish a default
management committee and address OTC products that are subject to CME's
base financial safeguards, including OTC FX.
CME currently has an IRS Default Management Committee to assist
with the management of a defaulting IRS Clearing Member's positions and
a CDS Default Management Committee to assist with the management of a
defaulting CDS Clearing Member's positions. The proposed rule change
establishes the Committee as a similar construct to assist with the
management of portfolio of its OTC Clearing Member's positions. The
Committee will be comprised of traders in OTC products that are
employees or directors of Base OTC Clearing Members (or their
affiliates) and will serve on the Committee on a rotating basis. The
Committee will assist CME in structuring hedges and portfolios for
auction. Members of the Committee will also participate in default
management drills for Base OTC products.
The proposed rule amendments are summarized further as follows:
New CME Rule 8F025. (Active Base OTC Default Management
Committee) will establish the Committee and specify its composition of
traders in the relevant OTC products who will serve on a rotational
basis;
CME Rule 8F004 (OTC Clearing Member Obligations and
Qualifications) amendments will add requirements for OTC Clearing
Members to (i) avail traders with proper experience to the Committee
and (ii) participate in OTC Derivative default drill exercises;
CME Rule 8F014 (Mitigation of Losses) amendments will
harmonize with the related OTC IRS and OTC CDS rules, including the
deletion of allocations of OTC positions;
CME Rule 8F002 (Definitions) amendments will add the terms
``Base OTC Clearing Member'' and ``OTC Derivative Product Category.''
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 to its primary
regulator, the CFTC, in CME Submission 14-080.
CME believes the proposed rule change is consistent with the
requirements of the Act including Section 17A of the Act.\5\ The
establishment of the Committee and OTC Clearing Member requirements to
provide traders and participate in auction as set forth in the proposed
rule change forms part of CME's default procedures for OTC products to
permit CME to take timely action to contain losses resulting from OTC
positions in the event of a default of a CME OTC Clearing Member. The
proposed rule change should therefore be seen to be designed to promote
the prompt and accurate clearance and settlement of securities
transactions and, to the extent applicable, derivatives agreements,
contracts, and transactions, to assure the safeguarding of securities
and funds which are in the custody or control of the clearing agency or
for which it is responsible, and, in general, to protect investors and
the public interest consistent with Section 17A(b)(3)(F) of the Act.\6\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78q-1.
\6\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
Furthermore, the proposed rule 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 rule change is limited to CME's activities as a
derivatives clearing organization 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 rule change is limited in its effect to CME's
futures and swaps clearing businesses, the proposed rule 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.
As such, the proposed rule change is therefore consistent with the
requirements of Section 17A of the Act \7\ and is properly filed under
Section 19(b)(3)(A) \8\ and Rule 19b-4(f)(4)(ii) \9\ thereunder.
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\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 proposed rule change
would make amendments to existing rules to establish a default
management committee to further strengthen CME's ability to take timely
action to contain losses resulting from OTC positions in the event of a
default of a CME OTC Clearing Member. Further, the proposed rule change
is limited to CME's futures and swaps clearing businesses and, as such,
does not affect the security-based swap clearing activities of CME in
any way and therefore does 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.
[[Page 17518]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \10\ of the Act and paragraph (f)(4)(ii) of Rule 19b-4 \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 No. SR-CME-2015-005 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-2015-005. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours or
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of CME and on CME's
Web site at https://www.cmegroup.com/market-regulation/rule-filings.html.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly.
All submissions should refer to File Number SR-CME-2015-005 and
should be submitted on or before April 22, 2015.
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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Brent J. Fields,
Secretary.
[FR Doc. 2015-07361 Filed 3-31-15; 8:45 am]
BILLING CODE 8011-01-P
