Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rulebook Provisions Establishing Decision-Making and Emergency Authority Over Clearing House Matters, 18881-18883 [2015-07962]
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Federal Register / Vol. 80, No. 67 / Wednesday, April 8, 2015 / Notices
asabaliauskas on DSK5VPTVN1PROD with NOTICES
relief from section 22(e) with respect to
Global Funds that do not effect
redemptions of Creation Units in kind.
Sections 17(a)(1) and (2) of the Act
9. Section 17(a)(1) and (2) of the Act
generally prohibit an affiliated person of
a registered investment company, or an
affiliated person of such a person
(‘‘second tier affiliate’’), from selling any
security to or purchasing any security
from the company. Section 2(a)(3) of the
Act defines ‘‘affiliated person’’ to
include any person directly or indirectly
owning, controlling, or holding with
power to vote 5% or more of the
outstanding voting securities of the
other person and any person directly or
indirectly controlling, controlled by, or
under common control with, the other
person. Section 2(a)(9) of the Act
defines ‘‘control’’ of a fund as ‘‘the
power to exercise a controlling
influence over the management or
policies’’ of the fund and provides that
a control relationship will be presumed
where one person owns more than 25%
of another person’s voting securities.
The Funds may be deemed to be
controlled by an Adviser and hence
affiliated persons of each other. In
addition, the Funds may be deemed to
be under common control with any
other registered investment company (or
series thereof) advised by an Adviser (an
‘‘Affiliated Fund’’).
10. Applicants request an exemption
from section 17(a) under sections 6(c)
and 17(b) to permit in-kind purchases
and redemptions of Creation Units from
the Funds by persons that are affiliated
persons or second tier affiliates of the
Funds solely by virtue of one or more
of the following: (a) Holding 5% or
more, or more than 25%, of the
outstanding Shares of one or more
Funds; (b) an affiliation with a person
with an ownership interest described in
(a); or (c) holding 5% or more, or more
than 25%, of the shares of one or more
Affiliated Funds.
11. Applicants assert that no useful
purpose would be served by prohibiting
the affiliated persons described above
from making in-kind purchases or inkind redemptions of Shares of a Fund in
Creation Units. Both the deposit
procedures for in-kind purchases of
Creation Units and the redemption
procedures for in-kind redemptions will
be effected in exactly the same manner
for all purchases and redemptions. The
valuation of the Deposit Instruments
and Redemption Instruments will be
made in the same manner, and in the
same manner as the Fund’s Portfolio
Positions, regardless of the identity of
the purchaser or redeemer. Except with
respect to cash determined in
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18881
accordance with the procedures
described in section I.G.1. of the
application, Deposit Instruments and
Redemption Instruments will be the
same for all purchasers and redeemers.
Therefore, applicants state that the inkind purchases and redemptions will
afford no opportunity for the specified
affiliated persons of a Fund to effect a
transaction detrimental to other holders
of Shares of that Fund. Applicants do
not believe that in-kind purchases and
redemptions will result in abusive selfdealing or overreaching of the Fund.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Brent J. Fields,
Secretary.
Applicant’s Conditions
Self-Regulatory Organizations;
Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Amend Rulebook
Provisions Establishing DecisionMaking and Emergency Authority Over
Clearing House Matters
Applicants agree that any order of the
Commission granting the requested
relief will be subject to the following
conditions:
1. As long as the Funds operate in
reliance on the requested order, the
Shares of the Funds will be listed on a
Listing Exchange.
2. Neither the Trust nor any Fund will
be advertised or marketed as an openend investment company or a mutual
fund. Any advertising material that
describes the purchase or sale of
Creation Units or refers to redeemability
will prominently disclose that the
Shares are not individually redeemable
and that owners of the Shares may
acquire those Shares from the Fund and
tender those Shares for redemption to
the Fund in Creation Units only.
3. The Web site for the Funds, which
is and will be publicly accessible at no
charge, will contain on a per Share
basis, for each Fund, the prior Business
Day’s NAV and the market closing price
or Bid/Ask Price, and a calculation of
the premium or discount of the market
closing price or Bid/Ask Price against
such NAV.
4. On each Business Day, before
commencement of trading in Shares on
the Listing Exchange, the Fund will
disclose on its Web site the identities
and quantities of the Portfolio Positions
held by the Fund that will form the
basis for the Fund’s calculation of NAV
at the end of the Business Day.
5. The Adviser or any Fund SubAdviser, directly or indirectly, will not
cause any Authorized Participant (or
any investor on whose behalf an
Authorized Participant may transact
with the Fund) to acquire any Deposit
Instrument for the Fund through a
transaction in which the Fund could not
engage directly.
6. The requested relief to permit ETF
operations will expire on the effective
date of any Commission rule under the
1940 Act that provides relief permitting
the operation of actively managed
exchange-traded funds.
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[FR Doc. 2015–08022 Filed 4–7–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74634; File No. SR–CME–
2015–004]
April 2, 2015.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘Exchange Act’’),1 and Rule 19b–4
thereunder,2 notice is hereby given that
on March 30, 2015, 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)(ii) 3 of the Act, 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. More
specifically, the proposed rule change
would make amendments to rulebook
provisions establishing decision-making
and emergency authority over clearing
house matters.
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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(4)(ii).
2 17
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18882
Federal Register / Vol. 80, No. 67 / Wednesday, April 8, 2015 / Notices
asabaliauskas on DSK5VPTVN1PROD with NOTICES
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
rulebook provisions establishing
decision-making and emergency
authority over clearing house matters.
The proposed rule change relates to
recent management structure and
reporting line changes at CME. Current
CME rules do not include any reference
to or establishment of authority in the
newly created role of President of
Global Operations, Technology & Risk
(‘‘President GOTR’’). The proposed rule
change referenced in this submission is
designed to ensure the President GOTR
is authorized to undertake certain
actions related to clearing house
operations and emergency financial
conditions. In light of the Chief
Operating Officer‘s (‘‘COO’’) newly
established reporting line to the
President GOTR, authority regarding
certain clearing house matters and
emergency financial conditions will be
conferred from the COO to the President
GOTR with these changes. The
proposed rule revisions are designed to
clearly specify the roles and
responsibilities of management during
extraordinary circumstances that impact
the clearing house.
The proposed rule change adds
references to or establishes authority for
the President GOTR in the following
CME rules: Rule 257 (Exchange Physical
Emergencies); Rule 403 (Clearing House
Risk Committee); Rule 701 (Declarations
of Force Majeure); Rule 744 (Failsafe
Currency Availability Procedures for
Physical Delivery); Rule 812 (Final
Settlement Price); Rule 824 (Additional
Performance Bond); Rule 8G25 (IRS
Default Management Committee); Rule
8G824 (Additional IRS Performance
Bond); Rule 8G975 (IRS Emergency
Financial Conditions); Rule 8H26 (CDS
Default Management Committee); Rule
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8H27 (CDS Risk Committee); Rule
8H824 (Additional CDS Performance
Bond); Rule 8H975 (CDS Emergency
Financial Conditions); Rule 974
(Suspension of Member Firm
Privileges); Rule 975 (Emergency
Financial Conditions); Rule 976
(Suspension of Clearing Members); Rule
978 (Open Trades of Suspended
Clearing Members); and Rule 979
(Suspended or Expelled Clearing
Members).
The proposed rule change that is
described in this filing is limited to its
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 would 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 15–047.
CME believes the proposed rule
change is consistent with the
requirements of the Exchange Act
including Section 17A of the Exchange
Act.5 The proposed rule revisions are
designed to clearly specify the roles and
responsibilities of management during
extraordinary circumstances that impact
the clearing house. The changes would
help ensure that all appropriate officers
of CME have the ability to exercise
decision-making and emergency
authority in relation to matters
impacting the clearing house, thereby
enhancing the overall safety of the
clearing house and the efficiency with
which such actions may be taken. As
such, the proposed rule change 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 rule
change is limited to CME’s futures and
swaps clearing businesses, which mean
they are limited in their effect to
products that are under the exclusive
jurisdiction of the CFTC. As such, the
changes are 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 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 rule change is
limited in its effect to CME’s futures and
swaps clearing businesses, the 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
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 proposed rule
revisions simply specify the roles and
responsibilities of management during
extraordinary circumstances that impact
the clearing house. 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.
7 15
5 15
U.S.C. 78q–1.
6 15 U.S.C. 78q–1(b)(3)(F).
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Frm 00077
Fmt 4703
Sfmt 4703
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. 67 / Wednesday, April 8, 2015 / Notices
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.
Comments may be submitted by any of
the following methods:
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml), or
• Send an email to rule-comments@
sec.gov. Please include File No. SR–
CME–2015–004 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–2015–004. 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
10 15
11 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(4)(ii).
VerDate Sep<11>2014
17:55 Apr 07, 2015
Jkt 235001
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–2015–004 and should
be submitted on or before April 29,
2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Brent J. Fields,
Secretary.
[FR Doc. 2015–07962 Filed 4–7–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
31543; 812–14354]
Trust for Professional Managers and
William Blair & Company, L.L.C.;
Notice of Application
April 1, 2015.
18883
affidavit or, for lawyers, a certificate of
service. Pursuant to rule 0–5 under the
Act, hearing requests should state the
nature of the writer’s interest, any facts
bearing upon the desirability of a
hearing on the matter, the reason for the
request, and the issues contested.
Persons who wish to be notified of a
hearing may request notification by
writing to the Commission’s Secretary.
ADDRESSES: Secretary, Securities and
Exchange Commission, 100 F Street NE.,
Washington, DC 20549–1090;
Applicants: Trust for Professional
Managers, 615 East Michigan Street,
Milwaukee, WI 53202; and William
Blair & Company, L.L.C., 222 West
Adams Street, Chicago, Illinois 60606.
FOR FURTHER INFORMATION CONTACT:
Steven I. Amchan, Senior Counsel, at
(202) 551–6826, or Dalia Osman Blass,
Assistant Chief Counsel, at (202) 551–
6821 (Division of Investment
Management, Chief Counsel’s Office).
SUPPLEMENTARY INFORMATION: The
following is a summary of the
application. The complete application
may be obtained via the Commission’s
Web site by searching for the file
number, or for an applicant using the
Company name box, at https://
www.sec.gov/search/search.htm or by
calling (202) 551–8090.
Applicants’ Representations
1. The Trust was organized as a
Delaware statutory trust on May 29,
2001 and is registered under the Act as
an open-end management investment
company. William Blair, a Delaware
limited liability company, is registered
SUMMARY: Summary of Application:
as an investment adviser under the
Applicants request an order to permit
Investment Advisers Act of 1940
open-end management investment
(‘‘Advisers Act’’). Of the funds in the
companies relying on rule 12d1–2 under Trust, William Blair currently serves as
the Act to invest in certain financial
investment adviser only to the William
instruments.
Blair Directional Multialternative Fund.
Applicants: Trust for Professional
William Blair also serves as the Funds’
Managers (the ‘‘Trust’’) and William
(as defined below) principal
Blair & Company, L.L.C. (‘‘William
underwriter and distributor.
Blair’’).
2. Applicants request the exemption
to the extent necessary to permit any
DATES: Filing Date: The application was
existing or future series of the Trust and
filed on August 29, 2014, and amended
any other registered open-end
on March 24, 2015.
Hearing or Notification of Hearing: An management investment company or
series thereof that (a) is advised by
order granting the application will be
William Blair or any person controlling,
issued unless the Commission orders a
hearing. Interested persons may request controlled by or under common control
with William Blair (any such adviser or
a hearing by writing to the
William Blair, an ‘‘Adviser’’); (b) is in
Commission’s Secretary and serving
the same group of investment
applicants with a copy of the request,
companies as defined in section
personally or by mail. Hearing requests
12(d)(1)(G) of the Act; (c) operates as a
should be received by the Commission
‘‘fund of funds’’ and invests in other
by 5:30 p.m. on April 27, 2015, and
registered open-end management
should be accompanied by proof of
investment companies (‘‘Underlying
service on applicants, in the form of an
Funds’’) in reliance on section
12 17 CFR 200.30–3(a)(12).
12(d)(1)(G) of the Act; and (d) is also
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of an application under
section 6(c) of the Investment Company
Act of 1940 (‘‘Act’’) for an exemption
from rule 12d1–2(a) under the Act.
AGENCY:
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]]>Agencies
[Federal Register Volume 80, Number 67 (Wednesday, April 8, 2015)]
[Notices]
[Pages 18881-18883]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-07962]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74634; File No. SR-CME-2015-004]
Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Rulebook Provisions Establishing Decision-Making and Emergency
Authority Over Clearing House Matters
April 2, 2015.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on March 30, 2015, 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)(ii) \3\ of the Act,
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)(ii).
\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 rulebook provisions
establishing decision-making and emergency authority over clearing
house matters.
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
[[Page 18882]]
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 rulebook provisions establishing decision-
making and emergency authority over clearing house matters.
The proposed rule change relates to recent management structure and
reporting line changes at CME. Current CME rules do not include any
reference to or establishment of authority in the newly created role of
President of Global Operations, Technology & Risk (``President GOTR'').
The proposed rule change referenced in this submission is designed to
ensure the President GOTR is authorized to undertake certain actions
related to clearing house operations and emergency financial
conditions. In light of the Chief Operating Officer`s (``COO'') newly
established reporting line to the President GOTR, authority regarding
certain clearing house matters and emergency financial conditions will
be conferred from the COO to the President GOTR with these changes. The
proposed rule revisions are designed to clearly specify the roles and
responsibilities of management during extraordinary circumstances that
impact the clearing house.
The proposed rule change adds references to or establishes
authority for the President GOTR in the following CME rules: Rule 257
(Exchange Physical Emergencies); Rule 403 (Clearing House Risk
Committee); Rule 701 (Declarations of Force Majeure); Rule 744
(Failsafe Currency Availability Procedures for Physical Delivery); Rule
812 (Final Settlement Price); Rule 824 (Additional Performance Bond);
Rule 8G25 (IRS Default Management Committee); Rule 8G824 (Additional
IRS Performance Bond); Rule 8G975 (IRS Emergency Financial Conditions);
Rule 8H26 (CDS Default Management Committee); Rule 8H27 (CDS Risk
Committee); Rule 8H824 (Additional CDS Performance Bond); Rule 8H975
(CDS Emergency Financial Conditions); Rule 974 (Suspension of Member
Firm Privileges); Rule 975 (Emergency Financial Conditions); Rule 976
(Suspension of Clearing Members); Rule 978 (Open Trades of Suspended
Clearing Members); and Rule 979 (Suspended or Expelled Clearing
Members).
The proposed rule change that is described in this filing is
limited to its 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 would 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 15-047.
CME believes the proposed rule change is consistent with the
requirements of the Exchange Act including Section 17A of the Exchange
Act.\5\ The proposed rule revisions are designed to clearly specify the
roles and responsibilities of management during extraordinary
circumstances that impact the clearing house. The changes would help
ensure that all appropriate officers of CME have the ability to
exercise decision-making and emergency authority in relation to matters
impacting the clearing house, thereby enhancing the overall safety of
the clearing house and the efficiency with which such actions may be
taken. As such, the proposed rule change 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 rule change is limited to CME's futures
and swaps clearing businesses, which mean they are limited in their
effect to products that are under the exclusive jurisdiction of the
CFTC. As such, the changes are 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 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 rule change is limited in its effect to CME's
futures and swaps clearing businesses, the 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.
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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
revisions simply specify the roles and responsibilities of management
during extraordinary circumstances that impact the clearing house.
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.
[[Page 18883]]
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 No. SR-CME-2015-004 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-2015-004. 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 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-2015-004 and
should be submitted on or before April 29, 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. 2015-07962 Filed 4-7-15; 8:45 am]
BILLING CODE 8011-01-P
