[Federal Register Volume 77, Number 22 (Thursday, February 2, 2012)]
[Notices]
[Pages 5283-5284]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-2231]



[[Page 5283]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66261; File No. SR-CME-2012-02]


Self-Regulatory Organizations; Chicago Mercantile Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Regarding Fees for Its Cleared-only OTC FX Clearing Offering

January 26, 2012.
    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 January 24, 2012, 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 prepared primarily by CME. CME filed the proposed rule 
change pursuant to Section 19(b)(3)(A) \3\ of the Act and Rule 19b-
4(f)(2) \4\ thereunder.
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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).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of Terms of Substance of 
the Proposed Rule Change

    CME is proposing to make certain fee-related changes that would 
apply to its cleared-only OTC foreign exchange (``FX'') swap clearing 
offering. The text of the proposed changes \5\ is as follows:
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    \5\ The text of the proposed changes does not appear in CME's 
rulebook but is available on CME's Web site at http://www.cmegroup.com/market-regulation/rule-filings.html.
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CME OTC FX Fee Waiver Program

Program Purpose

    The purpose of this Program is to incentivize market 
participants to submit transaction in the OTC FX products listed 
below to the Clearing House for clearing. The resulting increase in 
volume benefits all participant segments in the market.

Product Scope

    The following cleared only OTC FX products (``Products''):

1. CME Cleared OTC FX--Emerging Markets

    a. USDBRL, USDCLP, USDCNY, USDCOP, USDIDR, USDINR, USDKRW, 
USDMYR, USDPEN, USDPHP, USDRUB, USDTWD Non-Deliverable Forwards
    b. USDCZK, USDHUF, USDHKD, USDILS, USDMXN, USDPLN, USDSGD, 
USDTHB, USDTRY, USDZAR Cash-Settled Forwards

2. CME Cleared OTC FX--Majors

    a. AUDJPY, AUDUSD, CADJPY, EURAUD, EURCHF, EURGBP, EURJPY, 
EURUSD, GBPUSD, NZDUSD, USDCAD, USDCHF, USDDKK, USDJPY, USDNOK, 
USDSEK Cash-Settled Forwards.

Eligible Participants

    The temporary reduction in fees will be open to all market 
participants and will automatically be applied to any transaction in 
the Products submitted to the Clearing House for clearing.

Program Term

    Start date is February 1, 2012. End date is June 30, 2012.

Hours

    The Program will be applicable regardless of the transaction 
time.

Program Incentives

    Fee Waivers. All market participants that clear the Products 
will have their clearing fees waived.
* * * * *

    The text of the proposed changes is also available at the 
Exchange's Web site at http://www.cmegroup.com, at the principal office 
of the Exchange, and at the Commission's Public Reference Room.

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 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 Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    CME currently offers clearing for certain cleared-only OTC FX swap 
products. The filing proposes to implement a fee waiver program that 
will apply to the following cleared-only OTC FX products 
(``Products''):

1. CME Cleared OTC FX--Emerging Markets

    a. USDBRL, USDCLP, USDCNY, USDCOP, USDIDR, USDINR, USDKRW, 
USDMYR, USDPEN, USDPHP, USDRUB, USDTWD Non-Deliverable Forwards
    b. USDCZK, USDHUF, USDHKD, USDILS, USDMXN, USDPLN, USDSGD, 
USDTHB, USDTRY, USDZAR Cash-Settled Forwards

2. CME Cleared OTC FX--Majors

    a. AUDJPY, AUDUSD, CADJPY, EURAUD, EURCHF, EURGBP, EURJPY, 
EURUSD, GBPUSD, NZDUSD, USDCAD, USDCHF, USDDKK, USDJPY, USDNOK, 
USDSEK Cash-Settled Forwards.

    The fee waiver will be open to all market participants and will 
automatically be applied to any transaction in the Products submitted 
to CME's clearinghouse for clearing. The proposed changes that are the 
subject of this filing are related to the fees CME charges for clearing 
and therefore will become effective upon filing. However, the changes 
will become operative on February 1, 2012.
    Pursuant to Commodity Futures Trading Commission (``CFTC'') 
regulations, the proposed changes are subject to CFTC Regulation 
40.6(d), requiring a self-certification filing to the CFTC, although no 
change to text of the CME rulebook is required. CME notes that it has 
already certified the proposed changes that are the subject of this 
filing to its primary regulator, the CFTC. The text of the CME proposed 
changes is set out in Section I above.
    The proposed changes establish or change a member due, fee or other 
charge imposed by CME under Section 19(b)(3)(A)(ii) of the Securities 
Exchange Act of 1934 and Rule 19b-4(f)(2) thereunder. CME believes that 
the proposed changes are consistent with the requirements of the 
Securities Exchange Act of 1934 and the rules and regulations 
thereunder and, in particular, to 17A(b)(3)(iv), in that it provides 
for the equitable allocation of reasonable dues, fees and other charges 
among participants. CME notes that it operates in a highly competitive 
market in which market participants can readily direct business to 
competing venues.

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.

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 was filed pursuant to Section 19(b)(3)(A) 
of the Act and paragraph (f)(2) of Rule 19b-4 and became effective on 
filing. At any time within sixty days of the filing of such rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is

[[Page 5284]]

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:
     Electronic comments may be submitted by using 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-2012-02 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-2012-02. 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. 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-2012-02 and should be 
submitted on or before February 23, 2012.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-2231 Filed 2-1-12; 8:45 am]
BILLING CODE 8011-01-P