80 FR 17525 - Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rules Change To Amend Listing Rules for New CDX Indexes Available for Clearing

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 62 (April 1, 2015)

Page Range		17525-17526
FR Document		2015-07365
Federal Register, Volume 80 Issue 62 (Wednesday, April 1, 2015)
[Federal Register Volume 80, Number 62 (Wednesday, April 1, 2015)]
[Notices]
[Pages 17525-17526]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-07365]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74591; File No. SR-CME-2015-010]


Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rules Change 
To Amend Listing Rules for New CDX Indexes Available for Clearing

March 26, 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 23, 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)(2) \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.
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    \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)(2).
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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 its rules regarding the 
listing of new CDS indexes available for clearing.

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 
make amendments to its rules regarding the listing of new CDS indexes 
available for clearing.
    CME offers clearing for CDX North American Investment Grade (Series 
8-24) and CDX North American High Yield (14-24) Index Contracts. 
Further, CME plans to clear all future on-the-run series of the 
respective indices on a going forward basis. The proposed amendments 
would permit CME to maintain a list on its Web site of each index that 
a cleared CDX Index Untranched CDS Contract may reference, in lieu of 
maintaining such list in Appendix 1 to Rule 802, as it currently does. 
CME currently maintains on its Web site a similar list for iTraxx 
Europe Index Untranched CDS Contracts; the amendments proposed hereby 
would simply conform CME's practice for maintaining the list of indices 
for CDX Index Untranched CDS Contracts to CME's existing practice for 
maintaining the list of indices for iTraxx Europe Index Untranched CDS 
Contracts. The proposed amendments would affect CME Rules 80202.A.B. 
and 80202.B. and Appendix 1 of Rule 802.
    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 Commodity Futures 
Trading Commission (``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 14-
095.
    CME believes the proposed rule change is consistent with the 
requirements of the Exchange Act including Section 17A of the Exchange

[[Page 17526]]

Act.\5\ The revisions to Rules 80202.A.B. and 80202.B.B. and to 
Appendix 1 to Rule 802 will conform CME's practice for listing indices 
for cleared CDX Index Untranched CDS Contracts to its existing practice 
for listing indices for cleared iTraxx Europe Index Untranched CDS 
Contracts. These amendments would provide market participants with a 
consistent format for identifying product eligibility requirements and 
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 Exchange Act.\6\
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    \5\ 15 U.S.C. 78q-1.
    \6\ 15 U.S.C. 78q-1(b)(3)(F).
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    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 their 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 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 amendments 
would simply provide market participants with a consistent format for 
identifying product eligibility requirements. 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 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 (http://www.sec.gov/rules/sro.shtml), or
     Send an email to [email protected]. Please include 
File No. SR-CME-2015-010 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-2015-010. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of such filing also will be available for 
inspection and copying at the principal office of CME and on CME's Web 
site at http://www.cmegroup.com/market-regulation/rule-filings.html.
    All comments received will be posted without change; the Commission 
does not edit personal identifying information from submissions. You 
should submit only information that you wish to make available 
publicly.
    All submissions should refer to File Number SR-CME-2015-010 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. 2015-07365 Filed 3-31-15; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 62 / Wednesday, April 1, 2015 / Notices 17525

Electronic Comments SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
COMMISSION Statement of the Purpose of, and
• Use the Commission’s Internet Statutory Basis for, the Proposed Rule
comment form (http://www.sec.gov/ Change
[Release No. 34–74591; File No. SR–CME–
rules/sro.shtml); or
2015–010] CME is registered as a derivatives
• Send an email to rule-comments@
sec.gov. Please include File Number SR– clearing organization with the
Self-Regulatory Organizations;
BYX–2015–18 on the subject line. Commodity Futures Trading
Chicago Mercantile Exchange Inc.;
Commission (‘‘CFTC’’) and currently
Notice of Filing and Immediate
Paper Comments offers clearing services for many
Effectiveness of Proposed Rules different futures and swaps products.
• Send paper comments in triplicate Change To Amend Listing Rules for With this filing, CME proposes to make
to Secretary, Securities and Exchange New CDX Indexes Available for rulebook changes that are limited to its
Commission, 100 F Street NE., Clearing business clearing futures and swaps
Washington, DC 20549–1090. under the exclusive jurisdiction of the
March 26, 2015.
All submissions should refer to File CFTC. More specifically, the proposed
Pursuant to Section 19(b)(1) of the changes would make amendments to its
Number SR–BYX–2015–18. This file Securities Exchange Act of 1934 (‘‘Act’’
number should be included on the rules regarding the listing of new CDS
or ‘‘Exchange Act’’),1 and Rule 19b–4 indexes available for clearing.
subject line if email is used. To help the thereunder,2 notice is hereby given that
Commission process and review your CME offers clearing for CDX North
on March 23, 2015, Chicago Mercantile
comments more efficiently, please use American Investment Grade (Series 8–
Exchange Inc. (‘‘CME’’) filed with the 24) and CDX North American High
only one method. The Commission will Securities and Exchange Commission
post all comments on the Commission’s Yield (14–24) Index Contracts. Further,
(‘‘Commission’’) the proposed rule CME plans to clear all future on-the-run
Internet Web site (http://www.sec.gov/ change as described in Items I, II and III,
rules/sro.shtml). Copies of the series of the respective indices on a
below, which Items have been prepared going forward basis. The proposed
submission, all subsequent primarily by CME. CME filed the
amendments, all written statements amendments would permit CME to
proposal pursuant to Section maintain a list on its Web site of each
with respect to the proposed rule 19(b)(3)(A)(ii) 3 of the Act, and Rule
change that are filed with the index that a cleared CDX Index
19b–4(f)(2) 4 thereunder, so that the Untranched CDS Contract may
Commission, and all written proposal was effective upon filing with reference, in lieu of maintaining such
communications relating to the the Commission. The Commission is list in Appendix 1 to Rule 802, as it
proposed rule change between the publishing this notice to solicit currently does. CME currently
Commission and any person, other than comments on the proposed rule change maintains on its Web site a similar list
those that may be withheld from the from interested persons. for iTraxx Europe Index Untranched
public in accordance with the CDS Contracts; the amendments
provisions of 5 U.S.C. 552, will be I. Self-Regulatory Organization’s
Statement of the Terms of Substance of proposed hereby would simply conform
available for Web site viewing and CME’s practice for maintaining the list
printing in the Commission’s Public the Proposed Rule Change
of indices for CDX Index Untranched
Reference Room, 100 F Street, NE., CDS Contracts to CME’s existing
CME is filing a proposed rule change
Washington, DC 20549 on official that is limited to its business as a practice for maintaining the list of
business days between the hours of 10 derivatives clearing organization. More indices for iTraxx Europe Index
a.m. and 3 p.m. Copies of such filing specifically, the proposed rule change Untranched CDS Contracts. The
also will be available for inspection and would make amendments to its rules proposed amendments would affect
copying at the principal offices of the regarding the listing of new CDS CME Rules 80202.A.B. and 80202.B. and
Exchange. All comments received will indexes available for clearing. Appendix 1 of Rule 802.
be posted without change; the The proposed rule change that is
Commission does not edit personal II. Self-Regulatory Organization’s described in this filing is limited to its
identifying information from Statement of the Purpose of, and business as a derivatives clearing
submissions. You should submit only Statutory Basis for, the Proposed Rule organization clearing products under
information that you wish to make Change the exclusive jurisdiction of the
available publicly. All submissions Commodity Futures Trading
In its filing with the Commission,
should refer to File Number SR–BYX– Commission (‘‘CFTC’’). CME has not
CME included statements concerning
2015–18, and should be submitted on or cleared security based swaps and does
the purpose and basis for the proposed
before April 22, 2015. not plan to and therefore the proposed
rule change and discussed any
For the Commission, by the Division of rule change does not impact CME’s
comments it received on the proposed
Trading and Markets, pursuant to delegated security-based swap clearing business in
rule change. The text of these statements any way. The proposed rule change
authority.12 may be examined at the places specified would become effective immediately.
Brent J. Fields, in Item IV below. CME has prepared CME notes that it has also submitted the
mstockstill on DSK4VPTVN1PROD with NOTICES

Secretary. summaries, set forth in sections A, B, proposed rule change that is the subject
[FR Doc. 2015–07368 Filed 3–31–15; 8:45 am] and C below, of the most significant of this filing to its primary regulator, the
BILLING CODE 8011–01–P aspects of such statements. CFTC, in CME Submission 14–095.
1 15
CME believes the proposed rule
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
change is consistent with the
3 15 U.S.C. 78s(b)(3)(A)(ii). requirements of the Exchange Act
12 17 CFR 200.30–3(a)(12). 4 17 CFR 240.19b–4(f)(2). including Section 17A of the Exchange

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17526 Federal Register / Vol. 80, No. 62 / Wednesday, April 1, 2015 / Notices

Act.5 The revisions to Rules 80202.A.B. are properly filed under Section Paper Comments
and 80202.B.B. and to Appendix 1 to 19(b)(3)(A) 8 and Rule 19b–4(f)(4)(ii) 9 • Send paper comments in triplicate
Rule 802 will conform CME’s practice thereunder. to Secretary, Securities and Exchange
for listing indices for cleared CDX Index Commission, 100 F Street NE.,
B. Self-Regulatory Organization’s
Untranched CDS Contracts to its Washington, DC 20549–1090.
Statement on Burden on Competition
existing practice for listing indices for
CME does not believe that the All submissions should refer to File
cleared iTraxx Europe Index
proposed rule change will have any Number SR–CME–2015–010. This file
Untranched CDS Contracts. These
impact, or impose any burden, on number should be included on the
amendments would provide market
competition. The proposed amendments subject line if email is used. To help the
participants with a consistent format for
would simply provide market Commission process and review your
identifying product eligibility
participants with a consistent format for comments more efficiently, please use
requirements and should therefore be
seen to be designed to promote the identifying product eligibility only one method. The Commission will
prompt and accurate clearance and requirements. Further, the changes are post all comments on the Commission’s
settlement of securities transactions limited to CME’s futures and swaps Internet Web site (http://www.sec.gov/
and, to the extent applicable, derivatives clearing businesses and, as such, do not rules/sro.shtml). Copies of the
agreements, contracts, and transactions, affect the security-based swap clearing submission, all subsequent
to assure the safeguarding of securities activities of CME in any way and amendments, all written statements
and funds which are in the custody or therefore do not impose any burden on with respect to the proposed rule
control of the clearing agency or for competition that is inappropriate in change that are filed with the
which it is responsible, and, in general, furtherance of the purposes of the Act. Commission, and all written
to protect investors and the public communications relating to the
C. Self-Regulatory Organization’s proposed rule change between the
interest consistent with Section Statement on Comments on the
17A(b)(3)(F) of the Exchange Act.6 Commission and any person, other than
Proposed Rule Change Received From those that may be withheld from the
Furthermore, the proposed rule Members, Participants, or Others
change is limited to CME’s futures and public in accordance with the
swaps clearing businesses, which mean CME has not solicited, and does not provisions of 5 U.S.C. 552, will be
they are limited in their effect to intend to solicit, comments regarding available for Web site viewing and
products that are under the exclusive this proposed rule change. CME has not printing in the Commission’s Public
jurisdiction of the CFTC. As such, the received any unsolicited written Reference Room, 100 F Street NE.,
changes are limited to CME’s activities comments from interested parties. Washington, DC 20549, on official
as a DCO clearing futures that are not III. Date of Effectiveness of the business days between the hours of 10
security futures and swaps that are not Proposed Rule Change and Timing for a.m. and 3 p.m. Copies of such filing
security-based swaps. CME notes that Commission Action also will be available for inspection and
the policies of the CFTC with respect to copying at the principal office of CME
administering the Commodity Exchange The foregoing rule change has become and on CME’s Web site at http://
Act are comparable to a number of the effective upon filing pursuant to Section www.cmegroup.com/market-regulation/
policies underlying the Exchange Act, 19(b)(3)(A) 10 of the Act and Rule 19b– rule-filings.html.
4(f)(4)(ii) 11 thereunder. At any time All comments received will be posted
such as promoting market transparency
within 60 days of the filing of the without change; the Commission does
for over-the-counter derivatives markets,
proposed rule change, the Commission not edit personal identifying
promoting the prompt and accurate
summarily may temporarily suspend information from submissions. You
clearance of transactions and protecting
such rule change if it appears to the should submit only information that
investors and the public interest.
Because the proposed rule change is Commission that such action is you wish to make available publicly.
limited in their effect to CME’s futures necessary or appropriate in the public All submissions should refer to File
and swaps clearing businesses, the interest, for the protection of investors, Number SR–CME–2015–010 and should
or otherwise in furtherance of the be submitted on or before April 22,
proposed rule change is properly
purposes of the Act. 2015.
classified as effecting a change in an
existing service of CME that: IV. Solicitation of Comments For the Commission, by the Division of
(a) Primarily affects the clearing Interested persons are invited to Trading and Markets, pursuant to delegated
operations of CME with respect to submit written data, views and
authority.12
products that are not securities, arguments concerning the foregoing, Brent J. Fields,
including futures that are not security including whether the proposed rule Secretary.
futures, swaps that are not security- change is consistent with the Act. [FR Doc. 2015–07365 Filed 3–31–15; 8:45 am]
based swaps or mixed swaps; and Comments may be submitted by any of BILLING CODE 8011–01–P
forwards that are not security forwards; the following methods:
and
(b) does not significantly affect any Electronic Comments SECURITIES AND EXCHANGE
securities clearing operations of CME or • Use the Commission’s Internet COMMISSION
any rights or obligations of CME with comment form (http://www.sec.gov/
respect to securities clearing or persons [SEC File No. 270–237, OMB Control No.
rules/sro.shtml), or 3235–0226]
mstockstill on DSK4VPTVN1PROD with NOTICES

using such securities-clearing service. • Send an email to rule-comments@
As such, the changes are therefore sec.gov. Please include File No. SR– Proposed Collection; Comment
consistent with the requirements of CME–2015–010 on the subject line. Request
Section 17A of the Exchange Act 7 and
8 15 U.S.C. 78s(b)(3)(A). Upon Written Request, Copies Available
5 15 U.S.C. 78q–1. 9 17 CFR 240.19b–4(f)(4)(ii). From: Securities and Exchange
6 15 U.S.C. 78q–1(b)(3)(F). 10 15 U.S.C. 78s(b)(3)(A).
7 15 U.S.C. 78q–1. 11 17 CFR 240.19b–4(f)(4)(ii). 12 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 18:37 Mar 31, 2015 Jkt 235001 PO 00000 Frm 00141 Fmt 4703 Sfmt 4703 E:\FR\FM\01APN1.SGM 01APN1
Document Created: 2015-12-18 11:03:35
Document Modified: 2015-12-18 11:03:35
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 17525