80 FR 18881 - 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
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 67 (April 8, 2015)
Federal Register Volume 80, Issue 67 (April 8, 2015)
| Page Range | 18881-18883 | |
| FR Document | 2015-07962 |
[Federal Register Volume 80, Number 67 (Wednesday, April 8, 2015)] [Notices] [Pages 18881-18883] From the Federal Register Online [www.thefederalregister.org] [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. --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A). \11\ 17 CFR 240.19b-4(f)(4)(ii). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://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 (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 10:00 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 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-2015-004 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\ --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-07962 Filed 4-7-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 67 / Wednesday, April 8, 2015 / Notices 18881
relief from section 22(e) with respect to accordance with the procedures For the Commission, by the Division of
Global Funds that do not effect described in section I.G.1. of the Investment Management, under delegated
redemptions of Creation Units in kind. application, Deposit Instruments and authority.
Redemption Instruments will be the Brent J. Fields,
Sections 17(a)(1) and (2) of the Act Secretary.
same for all purchasers and redeemers.
9. Section 17(a)(1) and (2) of the Act Therefore, applicants state that the in- [FR Doc. 2015–08022 Filed 4–7–15; 8:45 am]
generally prohibit an affiliated person of kind purchases and redemptions will BILLING CODE 8011–01–P
a registered investment company, or an afford no opportunity for the specified
affiliated person of such a person affiliated persons of a Fund to effect a
(‘‘second tier affiliate’’), from selling any transaction detrimental to other holders SECURITIES AND EXCHANGE
security to or purchasing any security of Shares of that Fund. Applicants do COMMISSION
from the company. Section 2(a)(3) of the not believe that in-kind purchases and
Act defines ‘‘affiliated person’’ to [Release No. 34–74634; File No. SR–CME–
redemptions will result in abusive self- 2015–004]
include any person directly or indirectly dealing or overreaching of the Fund.
owning, controlling, or holding with Self-Regulatory Organizations;
power to vote 5% or more of the Applicant’s Conditions
Chicago Mercantile Exchange Inc.;
outstanding voting securities of the Applicants agree that any order of the Notice of Filing and Immediate
other person and any person directly or Commission granting the requested Effectiveness of Proposed Rule
indirectly controlling, controlled by, or relief will be subject to the following Change To Amend Rulebook
under common control with, the other conditions: Provisions Establishing Decision-
person. Section 2(a)(9) of the Act 1. As long as the Funds operate in Making and Emergency Authority Over
defines ‘‘control’’ of a fund as ‘‘the reliance on the requested order, the Clearing House Matters
power to exercise a controlling Shares of the Funds will be listed on a
influence over the management or Listing Exchange. April 2, 2015.
policies’’ of the fund and provides that 2. Neither the Trust nor any Fund will Pursuant to Section 19(b)(1) of the
a control relationship will be presumed Securities Exchange Act of 1934 (‘‘Act’’
be advertised or marketed as an open-
where one person owns more than 25% or ‘‘Exchange Act’’),1 and Rule 19b–4
end investment company or a mutual
of another person’s voting securities. thereunder,2 notice is hereby given that
fund. Any advertising material that
The Funds may be deemed to be on March 30, 2015, Chicago Mercantile
describes the purchase or sale of
controlled by an Adviser and hence Exchange Inc. (‘‘CME’’) filed with the
Creation Units or refers to redeemability
affiliated persons of each other. In Securities and Exchange Commission
will prominently disclose that the
addition, the Funds may be deemed to (‘‘Commission’’) the proposed rule
Shares are not individually redeemable
be under common control with any change as described in Items I, II and III,
and that owners of the Shares may
other registered investment company (or below, which Items have been prepared
acquire those Shares from the Fund and
series thereof) advised by an Adviser (an primarily by CME. CME filed the
‘‘Affiliated Fund’’). tender those Shares for redemption to
the Fund in Creation Units only. proposal pursuant to Section
10. Applicants request an exemption 19(b)(3)(A)(ii) 3 of the Act, and Rule
from section 17(a) under sections 6(c) 3. The Web site for the Funds, which
is and will be publicly accessible at no 19b–4(f)(4)(ii) 4 thereunder, so that the
and 17(b) to permit in-kind purchases proposal was effective upon filing with
and redemptions of Creation Units from charge, will contain on a per Share
basis, for each Fund, the prior Business the Commission. The Commission is
the Funds by persons that are affiliated publishing this notice to solicit
persons or second tier affiliates of the Day’s NAV and the market closing price
or Bid/Ask Price, and a calculation of comments on the proposed rule change
Funds solely by virtue of one or more from interested persons.
of the following: (a) Holding 5% or the premium or discount of the market
more, or more than 25%, of the closing price or Bid/Ask Price against I. Self-Regulatory Organization’s
outstanding Shares of one or more such NAV. Statement of the Terms of Substance of
Funds; (b) an affiliation with a person 4. On each Business Day, before the Proposed Rule Change
with an ownership interest described in commencement of trading in Shares on
CME is filing a proposed rule change
(a); or (c) holding 5% or more, or more the Listing Exchange, the Fund will
that is limited to its business as a
than 25%, of the shares of one or more disclose on its Web site the identities
derivatives clearing organization. More
Affiliated Funds. and quantities of the Portfolio Positions
specifically, the proposed rule change
11. Applicants assert that no useful held by the Fund that will form the
would make amendments to rulebook
purpose would be served by prohibiting basis for the Fund’s calculation of NAV
provisions establishing decision-making
the affiliated persons described above at the end of the Business Day.
and emergency authority over clearing
from making in-kind purchases or in- 5. The Adviser or any Fund Sub-
house matters.
kind redemptions of Shares of a Fund in Adviser, directly or indirectly, will not
Creation Units. Both the deposit cause any Authorized Participant (or II. Self-Regulatory Organization’s
procedures for in-kind purchases of any investor on whose behalf an Statement of the Purpose of, and
Creation Units and the redemption Authorized Participant may transact Statutory Basis for, the Proposed Rule
procedures for in-kind redemptions will with the Fund) to acquire any Deposit Change
be effected in exactly the same manner Instrument for the Fund through a
asabaliauskas on DSK5VPTVN1PROD with NOTICES
In its filing with the Commission,
for all purchases and redemptions. The transaction in which the Fund could not CME included statements concerning
valuation of the Deposit Instruments engage directly. the purpose and basis for the proposed
and Redemption Instruments will be 6. The requested relief to permit ETF rule change and discussed any
made in the same manner, and in the operations will expire on the effective
same manner as the Fund’s Portfolio date of any Commission rule under the 1 15 U.S.C. 78s(b)(1).
Positions, regardless of the identity of 1940 Act that provides relief permitting 2 17 CFR 240.19b–4.
the purchaser or redeemer. Except with the operation of actively managed 3 15 U.S.C. 78s(b)(3)(A)(ii).
respect to cash determined in exchange-traded funds. 4 17 CFR 240.19b–4(f)(4)(ii).
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![Federal Register / Vol. 80, No. 67 / Wednesday, April 8, 2015 / Notices 18883
III. Date of Effectiveness of the filing also will be available for affidavit or, for lawyers, a certificate of
Proposed Rule Change and Timing for inspection and copying at the principal service. Pursuant to rule 0–5 under the
Commission Action office of CME and on CME’s Web site at Act, hearing requests should state the
The foregoing rule change has become http://www.cmegroup.com/market- nature of the writer’s interest, any facts
effective upon filing pursuant to Section regulation/rule-filings.html. bearing upon the desirability of a
19(b)(3)(A) 10 of the Act and Rule 19b– All comments received will be posted hearing on the matter, the reason for the
4(f)(4)(ii) 11 thereunder. At any time without change; the Commission does request, and the issues contested.
within 60 days of the filing of the not edit personal identifying Persons who wish to be notified of a
proposed rule change, the Commission information from submissions. You hearing may request notification by
summarily may temporarily suspend should submit only information that writing to the Commission’s Secretary.
such rule change if it appears to the you wish to make available publicly. ADDRESSES: Secretary, Securities and
Commission that such action is All submissions should refer to File Exchange Commission, 100 F Street NE.,
necessary or appropriate in the public Number SR–CME–2015–004 and should Washington, DC 20549–1090;
interest, for the protection of investors, be submitted on or before April 29, Applicants: Trust for Professional
or otherwise in furtherance of the 2015. Managers, 615 East Michigan Street,
purposes of the Act. For the Commission, by the Division of Milwaukee, WI 53202; and William
Trading and Markets, pursuant to delegated Blair & Company, L.L.C., 222 West
IV. Solicitation of Comments authority.12 Adams Street, Chicago, Illinois 60606.
Interested persons are invited to Brent J. Fields, FOR FURTHER INFORMATION CONTACT:
submit written data, views and Secretary. Steven I. Amchan, Senior Counsel, at
arguments concerning the foregoing, [FR Doc. 2015–07962 Filed 4–7–15; 8:45 am] (202) 551–6826, or Dalia Osman Blass,
including whether the proposed rule Assistant Chief Counsel, at (202) 551–
BILLING CODE 8011–01–P
change is consistent with the Act. 6821 (Division of Investment
Comments may be submitted by any of Management, Chief Counsel’s Office).
the following methods: SECURITIES AND EXCHANGE SUPPLEMENTARY INFORMATION: The
Electronic Comments COMMISSION following is a summary of the
• Use the Commission’s Internet [Investment Company Act Release No. application. The complete application
comment form (http://www.sec.gov/ 31543; 812–14354] may be obtained via the Commission’s
rules/sro.shtml), or Web site by searching for the file
• Send an email to rule-comments@ Trust for Professional Managers and number, or for an applicant using the
sec.gov. Please include File No. SR– William Blair & Company, L.L.C.; Company name box, at http://
CME–2015–004 on the subject line. Notice of Application www.sec.gov/search/search.htm or by
calling (202) 551–8090.
Paper Comments April 1, 2015.
AGENCY: Securities and Exchange Applicants’ Representations
• Send paper comments in triplicate
to Secretary, Securities and Exchange Commission (‘‘Commission’’). 1. The Trust was organized as a
Commission, 100 F Street NE., ACTION: Notice of an application under Delaware statutory trust on May 29,
Washington, DC, 20549–1090. section 6(c) of the Investment Company 2001 and is registered under the Act as
All submissions should refer to File Act of 1940 (‘‘Act’’) for an exemption an open-end management investment
Number SR–CME–2015–004. This file from rule 12d1–2(a) under the Act. company. William Blair, a Delaware
number should be included on the limited liability company, is registered
SUMMARY: Summary of Application: as an investment adviser under the
subject line if email is used. To help the
Applicants request an order to permit Investment Advisers Act of 1940
Commission process and review your
open-end management investment (‘‘Advisers Act’’). Of the funds in the
comments more efficiently, please use
companies relying on rule 12d1–2 under Trust, William Blair currently serves as
only one method. The Commission will
the Act to invest in certain financial investment adviser only to the William
post all comments on the Commission’s
instruments. Blair Directional Multialternative Fund.
Internet Web site (http://www.sec.gov/
Applicants: Trust for Professional William Blair also serves as the Funds’
rules/sro.shtml). Copies of the
Managers (the ‘‘Trust’’) and William (as defined below) principal
submission, all subsequent
Blair & Company, L.L.C. (‘‘William underwriter and distributor.
amendments, all written statements
Blair’’). 2. Applicants request the exemption
with respect to the proposed rule
change that are filed with the DATES: Filing Date: The application was to the extent necessary to permit any
Commission, and all written filed on August 29, 2014, and amended existing or future series of the Trust and
communications relating to the on March 24, 2015. any other registered open-end
proposed rule change between the Hearing or Notification of Hearing: An management investment company or
Commission and any person, other than order granting the application will be series thereof that (a) is advised by
those that may be withheld from the issued unless the Commission orders a William Blair or any person controlling,
public in accordance with the hearing. Interested persons may request controlled by or under common control
provisions of 5 U.S.C. 552, will be a hearing by writing to the with William Blair (any such adviser or
Commission’s Secretary and serving William Blair, an ‘‘Adviser’’); (b) is in
asabaliauskas on DSK5VPTVN1PROD with NOTICES
available for Web site viewing and
printing in the Commission’s Public applicants with a copy of the request, the same group of investment
Reference Room, 100 F Street NE., personally or by mail. Hearing requests companies as defined in section
Washington, DC 20549, on official should be received by the Commission 12(d)(1)(G) of the Act; (c) operates as a
business days between the hours of by 5:30 p.m. on April 27, 2015, and ‘‘fund of funds’’ and invests in other
10:00 a.m. and 3:00 p.m. Copies of such should be accompanied by proof of registered open-end management
service on applicants, in the form of an investment companies (‘‘Underlying
10 15 U.S.C. 78s(b)(3)(A). Funds’’) in reliance on section
11 17 CFR 240.19b–4(f)(4)(ii). 12 17 CFR 200.30–3(a)(12). 12(d)(1)(G) of the Act; and (d) is also
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Document Created: 2018-02-21 10:06:54
Document Modified: 2018-02-21 10:06:54
| 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 18881 |
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