80 FR 20271 - Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Facilitate Acceptance of a New Credit Default Swap Index Product Series
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 72 (April 15, 2015)
Federal Register Volume 80, Issue 72 (April 15, 2015)
| Page Range | 20271-20272 | |
| FR Document | 2015-08544 |
[Federal Register Volume 80, Number 72 (Wednesday, April 15, 2015)] [Notices] [Pages 20271-20272] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-08544] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74689; File No. SR-CME-2015-012] Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Facilitate Acceptance of a New Credit Default Swap Index Product Series April 9, 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 31, 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 its rules regarding the listing of new series of CDS indexes available for clearing and the deletion of the series whose termination dates have passed. 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 (``DCO'') with the Commodity Futures Trading Commission (``CFTC'') and offers clearing services for many different futures and swaps products, including certain credit default swap index products. Currently, CME offers clearing of the Markit CDX North American Investment Grade Index Series 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22 and 23. CME also offers clearing of the Markit CDX North American High Yield Index Series 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22 and 23. The proposed rule change would expand CME's Markit CDX North American Investment Grade (``CDX IG'') Index and Markit CDX North American High Yield (``CDX HY'') Index product offerings by incorporating the upcoming Series 24 for both sets of index products. In addition to the changes to expand CME's CDX offering, CME also proposes to remove from the current list of accepted CDX indices certain products whose termination dates have passed. These products are set forth in the following table: ---------------------------------------------------------------------------------------------------------------- CDX index Series Termination date (scheduled termination date) ---------------------------------------------------------------------------------------------------------------- CDX North American Investment Grade 9 20 Dec 2014. (CDX.NA.IG). CDX North American Investment Grade 13 20 Dec 2014. (CDX.NA.IG). CDX North American Investment Grade 17 20 Dec 2014. (CDX.NA.IG). CDX North American High Yield (CDX.NA.HY).... 13 20 Dec 2014. ---------------------------------------------------------------------------------------------------------------- Although these changes will be effective on filing, CME plans to operationalize the proposed changes as follows: CDX IG 24 will become available for clearing on March 20, 2015 and CDX HY 24 will become available for clearing on March 27, 2015; the product deletions would be effective immediately.\5\ --------------------------------------------------------------------------- \5\ Staff has not altered any part of this paragraph even though the dates referenced in this paragraph have passed. --------------------------------------------------------------------------- The change that is described in this filing is limited to CME's business as a DCO clearing products under the exclusive jurisdiction of the CFTC and do not materially impact CME's security-based swap clearing business in any way. CME notes that it has also certified the proposed rule change that is the subject of this filing to its primary regulator, the CFTC, in a separate filing, CME Submission 15-100. [[Page 20272]] CME believes the proposed rule change is consistent with the requirements of the Act, including Section 17A of the Act.\6\ The proposed rule change would expand CME's CDX IG and CDX HY product offerings by incorporating the upcoming Series 24 for both sets of index products and would therefore provide investors with an expanded range of derivatives products for clearing and would also remove certain products whose termination dates have passed. As such, the proposed rule change is 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.\7\ --------------------------------------------------------------------------- \6\ 15 U.S.C. 78q-1. \7\ 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 DCO clearing futures that are not security futures and swaps that are not security-based swaps. CME notes that the policies of the CFTC with respect to administering the Commodity Exchange Act are comparable to a number of the policies underlying the Act, such as promoting market transparency for over-the-counter derivatives markets, promoting the prompt and accurate clearance of transactions and protecting investors and the public interest. Because the proposed 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 \8\ and are properly filed under Section 19(b)(3)(A) \9\ and Rule 19b-4(f)(4)(ii) \10\ thereunder. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78q-1. \9\ 15 U.S.C. 78s(b)(3)(A). \10\ 17 CFR 240.19b-4(f)(4)(ii). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition CME does not believe that the proposed rule change will have any impact, or impose any burden, on competition. The proposed rule change simply facilitates the offering of two new series of credit default swap index products and deletes certain products whose termination dates have passed. 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. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) \11\ of the Act and paragraph (f)(4)(ii) of Rule 19b-4 \12\ thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A). \12\ 17 CFR 240.19b-4(f)(4)(ii). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse 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-2015-012 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-2015-012. 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 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 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-2015-012 and should be submitted on or before May 6, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-08544 Filed 4-14-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 72 / Wednesday, April 15, 2015 / Notices 20271
Frequency of Use: One per investor (‘‘Act’’),1 and Rule 19b–4 thereunder,2 A. Self-Regulatory Organization’s
per project. notice is hereby given that on March 31, Statement of the Purpose of, and
Type of Respondents: Business or 2015, Chicago Mercantile Exchange Inc. Statutory Basis for, the Proposed Rule
other institution (except farms); (‘‘CME’’) filed with the Securities and Change
individuals. Exchange Commission (‘‘Commission’’)
Standard Industrial Classification the proposed rule change described in CME is registered as a derivatives
Codes: All. Items I, II and III, below, which Items clearing organization (‘‘DCO’’) with the
Description of Affected Public: U.S. have been primarily prepared by CME. Commodity Futures Trading
companies or citizens investing Commission (‘‘CFTC’’) and offers
CME filed the proposed rule change
overseas. clearing services for many different
Reporting Hours: 150 hours (2 hours pursuant to Section 19(b)(3)(A) of the
Act,3 and Rule 19b–4(f)(4)(ii) 4 futures and swaps products, including
per response).
thereunder, so that the proposed rule certain credit default swap index
Number of Responses: 75 per year.
Federal Cost: $11,572. change was effective upon filing with products. Currently, CME offers clearing
Authority for Information Collection: the Commission. The Commission is of the Markit CDX North American
Sections 231, 234(a), 239(d), and 240A publishing this notice to solicit Investment Grade Index Series 9, 10, 11,
of the Foreign Assistance Act of 1961, comments on the proposed rule change 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22
as amended. from interested persons. and 23. CME also offers clearing of the
Abstract (Needs and Uses): The Markit CDX North American High Yield
application is the principal document I. Self-Regulatory Organization’s Index Series 11, 12, 13, 14, 15, 16, 17,
used by OPIC to determine the Statement of the Terms of Substance of 18, 19, 20, 21, 22 and 23.
investor’s and the project’s eligibility for the Proposed Rule Change
The proposed rule change would
political risk insurance and collect
CME is filing a proposed rule change expand CME’s Markit CDX North
information for underwriting analysis.
that is limited to its business as a American Investment Grade (‘‘CDX IG’’)
Dated: April 6, 2015. derivatives clearing organization. More Index and Markit CDX North American
Nichole Cadiente, specifically, the proposed rule change High Yield (‘‘CDX HY’’) Index product
Administrative Counsel, Department of Legal would make amendments to its rules offerings by incorporating the upcoming
Affairs. regarding the listing of new series of Series 24 for both sets of index
[FR Doc. 2015–08609 Filed 4–14–15; 8:45 am] CDS indexes available for clearing and products.
BILLING CODE 3210–01–P the deletion of the series whose
In addition to the changes to expand
termination dates have passed.
CME’s CDX offering, CME also proposes
SECURITIES AND EXCHANGE II. Self-Regulatory Organization’s to remove from the current list of
COMMISSION Statement of the Purpose of, and accepted CDX indices certain products
Statutory Basis for, the Proposed Rule whose termination dates have passed.
[Release No. 34–74689; File No. SR–CME– Change These products are set forth in the
2015–012]
following table:
In its filing with the Commission,
Self-Regulatory Organizations; CME included statements concerning
Chicago Mercantile Exchange Inc.; the purpose and basis for the proposed
Notice of Filing and Immediate rule change and discussed any
Effectiveness of Proposed Rule comments it received on the proposed
Change To Facilitate Acceptance of a
rule change. The text of these statements
New Credit Default Swap Index
may be examined at the places specified
Product Series
in Item IV below. CME has prepared
April 9, 2015. summaries, set forth in sections A, B,
Pursuant to Section 19(b)(1) of the and C below, of the most significant
Securities Exchange Act of 1934 aspects of such statements.
Termination date
CDX index Series (scheduled termination
date)
CDX North American Investment Grade (CDX.NA.IG) ...................................................................... 9 20 Dec 2014.
CDX North American Investment Grade (CDX.NA.IG) ...................................................................... 13 20 Dec 2014.
CDX North American Investment Grade (CDX.NA.IG) ...................................................................... 17 20 Dec 2014.
CDX North American High Yield (CDX.NA.HY) ................................................................................. 13 20 Dec 2014.
Although these changes will be product deletions would be effective security-based swap clearing business in
effective on filing, CME plans to immediately.5 any way. CME notes that it has also
operationalize the proposed changes as The change that is described in this certified the proposed rule change that
follows: CDX IG 24 will become filing is limited to CME’s business as a is the subject of this filing to its primary
tkelley on DSK3SPTVN1PROD with NOTICES
available for clearing on March 20, 2015 DCO clearing products under the regulator, the CFTC, in a separate filing,
and CDX HY 24 will become available exclusive jurisdiction of the CFTC and CME Submission 15–100.
for clearing on March 27, 2015; the do not materially impact CME’s
1 15 U.S.C. 78s(b)(1). 3 15 U.S.C. 78s(b)(3)(A). 5 Staff has not altered any part of this paragraph
2 17 CFR 240.19b–4. 4 17 CFR 240.19b–4(f)(4)(ii). even though the dates referenced in this paragraph
have passed.
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![20272 Federal Register / Vol. 80, No. 72 / Wednesday, April 15, 2015 / Notices
CME believes the proposed rule requirements of Section 17A of the Act 8 Electronic Comments
change is consistent with the and are properly filed under Section
requirements of the Act, including 19(b)(3)(A) 9 and Rule 19b–4(f)(4)(ii) 10 • Use the Commission’s Internet
Section 17A of the Act.6 The proposed thereunder. comment form (http://www.sec.gov/
rule change would expand CME’s CDX rules/sro.shtml), or
IG and CDX HY product offerings by B. Self-Regulatory Organization’s • Send an email to rule-comments@
incorporating the upcoming Series 24 Statement on Burden on Competition
sec.gov. Please include File No. SR–
for both sets of index products and CME–2015–012 on the subject line.
CME does not believe that the
would therefore provide investors with
proposed rule change will have any Paper Comments
an expanded range of derivatives
products for clearing and would also impact, or impose any burden, on
remove certain products whose competition. The proposed rule change • Send paper comments in triplicate
termination dates have passed. As such, simply facilitates the offering of two to Secretary, Securities and Exchange
the proposed rule change is designed to new series of credit default swap index Commission, 100 F Street NE.,
promote the prompt and accurate products and deletes certain products Washington, DC 21049–1090.
clearance and settlement of securities whose termination dates have passed.
All submissions should refer to File
transactions and, to the extent Further, the proposed rule change is
Number SR–CME–2015–012. This file
applicable, derivatives agreements, limited to CME’s futures and swaps
number should be included on the
contracts, and transactions, to assure the clearing businesses and, as such, does
subject line if email is used. To help the
safeguarding of securities and funds not affect the security-based swap
Commission process and review your
which are in the custody or control of clearing activities of CME in any way
comments more efficiently, please use
the clearing agency or for which it is and therefore does not impose any
responsible, and, in general, to protect only one method. The Commission will
burden on competition that is
investors and the public interest inappropriate in furtherance of the post all comments on the Commission’s
consistent with Section 17A(b)(3)(F) of purposes of the Act. Internet Web site (http://www.sec.gov/
the Act.7 rules/sro.shtml). Copies of the
Furthermore, the proposed rule C. Self-Regulatory Organization’s submission, all subsequent
change is limited to CME’s futures and Statement on Comments on the amendments, all written statements
swaps clearing businesses, which means Proposed Rule Change Received From with respect to the proposed rule
it is limited in its effect to products that Members, Participants, or Others change that are filed with the
are under the exclusive jurisdiction of Commission, and all written
the CFTC. As such, the proposed rule CME has not solicited, and does not
communications relating to the
change is limited to CME’s activities as intend to solicit, comments regarding
proposed rule change between the
a DCO clearing futures that are not this proposed rule change. CME has not
Commission and any person, other than
security futures and swaps that are not received any unsolicited written
those that may be withheld from the
security-based swaps. CME notes that comments from interested parties.
public in accordance with the
the policies of the CFTC with respect to III. Date of Effectiveness of the provisions of 5 U.S.C. 552, will be
administering the Commodity Exchange Proposed Rule Change and Timing for available for Web site viewing and
Act are comparable to a number of the Commission Action printing in the Commission’s Public
policies underlying the Act, such as Reference Room, 100 F Street NE.,
promoting market transparency for over- The foregoing rule change has become Washington, DC 20549, on official
the-counter derivatives markets, effective pursuant to Section business days between the hours or
promoting the prompt and accurate 19(b)(3)(A) 11 of the Act and paragraph 10:00 a.m. and 3:00 p.m. Copies of such
clearance of transactions and protecting (f)(4)(ii) of Rule 19b–4 12 thereunder. At filing also will be available for
investors and the public interest. any time within 60 days of the filing of
Because the proposed rule change is inspection and copying at the principal
the proposed rule change, the office of CME and on CME’s Web site at
limited in its effect to CME’s futures and Commission summarily may
swaps clearing businesses, the proposed http://www.cmegroup.com/market-
temporarily suspend such rule change if regulation/rule-filings.html.
rule change is properly classified as it appears to the Commission that such
effecting a change in an existing service action is necessary or appropriate in the All comments received will be posted
of CME that: without change; the Commission does
public interest, for the protection of
(a) Primarily affects the clearing not edit personal identifying
operations of CME with respect to investors, or otherwise in furtherance of
the purposes of the Act. information from submissions. You
products that are not securities, should submit only information that
including futures that are not security IV. Solicitation of Comments you wish to make available publicly.
futures, swaps that are not security-
based swaps or mixed swaps; and Interested persons are invited to All submissions should refer to File
forwards that are not security forwards; submit written data, views and Number SR–CME–2015–012 and should
and arguments concerning the foregoing, be submitted on or before May 6, 2015.
(b) does not significantly affect any including whether the proposed rule For the Commission, by the Division of
securities clearing operations of CME or change is consistent with the Act. Trading and Markets, pursuant to delegated
any rights or obligations of CME with Comments may be submitted by any of authority.13
tkelley on DSK3SPTVN1PROD with NOTICES
respect to securities clearing or persons the following methods: Brent J. Fields,
using such securities-clearing service. Secretary.
As such, the proposed rule change is 8 15 U.S.C. 78q–1. [FR Doc. 2015–08544 Filed 4–14–15; 8:45 am]
therefore consistent with the 9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(4)(ii). BILLING CODE 8011–01–P
6 15 U.S.C. 78q–1. 11 15 U.S.C. 78s(b)(3)(A).
7 15 U.S.C. 78q–1(b)(3)(F). 12 17 CFR 240.19b–4(f)(4)(ii). 13 17 CFR 200.30–3(a)(12).
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Document Created: 2015-12-18 11:13:33
Document Modified: 2015-12-18 11:13:33
| 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 20271 |
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