[Federal Register Volume 77, Number 93 (Monday, May 14, 2012)]
[Notices]
[Pages 28417-28419]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-11532]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66940; File No. SR-CME-2012-14]


Self-Regulatory Organizations; Chicago Mercantile Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend the Fee Schedule Applicable to OTC S&P GSCI-ER Swaps Contracts

May 8, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934

[[Page 28418]]

(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given 
that on April 25, 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, 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 
parties.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    CME is proposing to amend the fee schedule that currently applies 
to its OTC S&P GSCI-ER swaps clearing offering.

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 of 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 these statements.\5\
---------------------------------------------------------------------------

    \5\ The Commission has modified the text of the summaries 
prepared by CME.
---------------------------------------------------------------------------

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

    CME currently offers clearing for certain OTC swap products. CME 
proposes to change the fee structure for cleared swap contracts in S&P 
GSCI-ER, S&P GSCI Gold ER, S&P GSCI Crude Oil ER, S&P GSCI-ER 2 Month 
Forward and S&P GSCI ER 3 Month Forward. As the proposed changes relate 
to fees, they became effective when they were filed on April 25, 2012. 
CME applied the new fee structure, however, only to contract months 
with a trade date of May 1, 2012 or later.
    Currently, fees for these OTC swap products are assessed as a 
portion (.0005 annually) of the notional value of the open positions in 
the contracts. This contrasts with the flat fees CME charges on futures 
and options on futures products. CME believes the marketplace would 
prefer a fee structure for OTC swap products that charges fees on a per 
contract basis. This type of fee structure is also easier to support 
from an operational standpoint. CME expects this change will attract 
additional interest and liquidity in these products.
    CME has also certified the proposed rule changes that are the 
subject of this filing to its primary regulator, the Commodity Futures 
Trading Commission (``CFTC''), in CME Submission 12-119.
    The proposed CME rule amendments establish or change a member due, 
fee or other charge imposed by CME 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, particularly, Section 
17A(b)(3)(D),\6\ in that the proposed rule change 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    CME does not believe 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. CME will notify 
the Commission of any written comments received by CME.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing proposed rule change was filed pursuant to Section 
19(b)(3)(A)(ii) \7\ of the Act and Rule 19b-4(f)(2) \8\ thereunder, and 
thus became effective upon filing because it establishes or changes a 
due, fee, or other charge applicable only to a member. At any time 
within 60 days after 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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 by sending an email to [email protected]. Please 
include File No. SR-CME-2012-14 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-2012-14. 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/files/SEC_19b-4_12-14.pdf. 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.

[[Page 28419]]

    All submissions should refer to File Number SR-CME-2012-14 and 
should be submitted on or before June 4, 2012.
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and markets, 
pursuant to delegated authority.\9\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-11532 Filed 5-11-12; 8:45 am]
BILLING CODE 8011-01-P