[Federal Register Volume 77, Number 51 (Thursday, March 15, 2012)]
[Notices]
[Pages 15447-15448]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-6232]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66554; File No. SR-CME-2012-04]


Self-Regulatory Organizations; Chicago Mercantile Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend the Fee Schedule Applicable to Its OTC Interest Rate Swap 
Clearing Offering

March 9, 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 March 1, 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)(ii) \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)(ii).
    \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 amend the fee schedule that currently applies 
to its OTC Interest Rate Swap clearing offering. The text of the 
proposed changes is attached as Exhibit 5 to the proposed rule change, 
which is available on CME's Web site at http://www.cmegroup.com/market-regulation/rule-filings.html.

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 OTC Interest Rate Swap 
products. The filing proposes to amend the current fee schedule that 
applies to CME's OTC Interest Rate Swap (``IRS'') clearing fees. The 
proposed changes are related to fees and therefore will become 
effective immediately. However, the proposed fee changes will become 
operative as of March 12, 2012, and by their terms will expire on 
September 30, 2012.
    The proposed fee changes will temporarily modify CME's current OTC 
IRS clearing fee schedule so that all house accounts of CME IRS 
Clearing Members will be charged a flat fee of $250 per ticket on a 
preallocation basis between March 12, 2012, and September 30, 2012, for 
any trades accepted for clearing where the effective date of the trade 
is prior to the date the trade was accepted for clearing (``backloaded 
trades''). The temporary fee rates will apply to all CME IRS Clearing 
members submitting backloaded trades to CME for clearing during the 
applicable time period.
    CME believes the temporary modification to the CME IRS Fee Schedule 
will encourage IRS Clearing members to submit additional volume into 
the system to ensure readiness and help build open interest ahead of a 
regulatory mandate.
    CME has also certified the proposed rule changes that are the 
subject of this

[[Page 15448]]

filing to its primary regulator, the Commodity Futures Trading 
Commission (``CFTC'').
    The proposed CME rule amendments establish or change a member due, 
fee, or other charge imposed by CME and therefore fall under Section 
19(b)(3)(A)(ii) of the Act and Rule 19b-4(f)(2) thereunder. CME 
believes that the proposed rule change is consistent with the 
requirements of the Act and the rules and regulations thereunder and in 
particular, with Section 17A(b)(3)(D) 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)(ii) of the Act and paragraph (f)(2) of Rule 19b-4 and 
therefore 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 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-2012-04 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-2012-04. 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-2012-04 and 
should be submitted on or before April 5, 2012.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-6232 Filed 3-14-12; 8:45 am]
BILLING CODE 8011-01-P