[Federal Register Volume 76, Number 188 (Wednesday, September 28, 2011)]
[Notices]
[Pages 60110-60112]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-24864]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65378; File No. SR-CME-2011-07]


Self-Regulatory Organizations; Chicago Mercantile Exchange, Inc.; 
Notice of Filing of Proposed Rule Change To Accept Additional Credit 
Default Index Swaps for Clearing

September 22, 2011.
    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 September 9, 2011, the Chicago Mercantile Exchange Inc. (``CME'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change described in Items I and II below, which items 
have been prepared primarily by CME. 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.
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I. Self-Regulatory Organization's Statement of Terms of Substance of 
the Proposed Rule Change

    The text of the proposed rule change is below. Italicized text 
indicates additions; bracketed text indicates deletions.
* * * * *

Chicago Mercantile Exchange Inc. Rulebook

    Rule 100--80203--No Change.
* * * * *

CME Chapter 802 Rules: Appendix 1

Appendix 1

                               CDX Indices
------------------------------------------------------------------------
                                                     Termination date
           CDX Index                 Series             (scheduled
                                                       termination)
------------------------------------------------------------------------
CDX North America Investment                  10  20 Jun 2013.
 Grade (CDX.NA.IG).

[[Page 60111]]

 
                                ................  20 Jun 2015.
                                ................  20 Jun 2018.
CDX North America Investment                  11  20 Dec 2011.
 Grade (CDX.NA.IG).
                                ................  20 Dec 2013.
                                ................  20 Dec 2015.
                                ................  20 Dec 2018.
CDX North America Investment                  12  20 Jun 2012.
 Grade (CDX.NA.IG).
                                ................  20 Jun 2014.
                                ................  20 Jun 2016.
                                ................  20 Jun 2019.
CDX North America Investment                  13  20 Dec 2012.
 Grade (CDX.NA.IG).
                                ................  20 Dec 2014.
                                ................  20 Dec 2016.
                                ................  20 Dec 2019.
CDX North America Investment                  14  20 Jun 2013.
 Grade (CDX.NA.IG).
                                ................  20 Jun 2015.
                                ................  20 Jun 2017.
                                ................  20 Jun 2020.
CDX North America Investment                  15  20 Dec 2013.
 Grade (CDX.NA.IG).
                                ................  20 Dec 2015.
                                ................  20 Dec 2017.
                                ................  20 Dec 2020.
CDX North America Investment                  16  20 Jun 2014.
 Grade (CDX.NA.IG).
                                ................  20 Jun 2016.
                                ................  20 Jun 2018.
                                ................  20 Jun 2021.
CDX North America Investment                  17  20 Dec 2014.
 Grade (CDX.NA.IG).
                                ................  20 Dec 2016.
                                ................  20 Dec 2018.
                                ................  20 Dec 2021.
CDX North America High Yield                  11  20 Dec 2013.
 (CDX.NA.HY).
CDX North America High Yield                  12  20 Jun 2014.
 (CDX.NA.HY).
CDX North America High Yield                  13  20 Dec 2014.
 (CDX.NA.HY).
CDX North America High Yield                  14  20 Jun 2015.
 (CDX.NA.HY).
CDX North America High Yield                  15  20 Dec 2015.
 (CDX.NA.HY).
CDX North America High Yield                  16  20 Jun 2016.
 (CDX.NA.HY).
CDX North America High Yield                  17  20 Dec 2016.
 (CDX.NA.HY).
------------------------------------------------------------------------

* * * * *
    Rule 80301-End--No change.

II. Self-Regulatory Organization's Statement of 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 III 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 Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    CME offers clearing services for certain credit default swap index 
products. Currently, CME offers clearing for Markit CDX North American 
Investment Grade Index Series 10, 11, 12, 13, 14, 15 and 16 and will 
offer Series 17 on September 20, 2011. The proposed rule changes that 
are the subject of this filing are intended to expand CME's credit 
default swap index product offering by adding clearing for Markit CDX 
North American High Yield Index Series 11, 12, 13, 14, 15, 16 and 17.
    CME notes that it has also submitted the proposed rule changes that 
are the subject of this filing to its primary regulator, the Commodity 
Futures Trading Commission (``CFTC''). The text of the CME proposed 
rule amendments is included above, with additions italicized and 
deletions in brackets.
    CME believes the proposed rule changes are consistent with the 
requirements of the Exchange Act including Section 17A of the Exchange 
Act. CME notes that the proposed rule changes involve the addition of 
new CFTC-regulated swaps for clearing and therefore are primarily 
related to CME's swaps clearing activities pursuant to its registration 
as a derivatives clearing organization under the Commodity Exchange Act 
(``CEA''). CME further notes that the policies of the CEA with respect 
to clearing 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. The proposed rule changes accomplish those objectives by 
offering investors clearing for an expanded range of credit default 
swap products based on broad-based indexes.

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.

[[Page 60112]]

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

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) As the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove the proposed rule change or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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 may be submitted by using the 
Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml), or send an e-mail to [email protected]. Please include 
File No. SR-CME-2011-07 on the subject line.
     Paper comments should be sent in triplicate to Elizabeth 
M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, 
NE., Washington, DC 20549-1090.
    All submissions should refer to File Number SR-CME-2011-07. This 
file number should be included on the subject line if e-mail 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. 
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-2011-07 and 
should be submitted on or before October 19, 2011.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\3\
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    \3\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-24864 Filed 9-27-11; 8:45 am]
BILLING CODE 8011-01-P