[Federal Register Volume 77, Number 248 (Thursday, December 27, 2012)]
[Notices]
[Pages 76314-76315]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-31122]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68490; File No. SR-CME-2012-46]


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 Credit Default Swap 
Clearing Offering

December 20, 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 December 18, 2012, the Chicago Mercantile Exchange Inc. (``CME'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as 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 proposal 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)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

I. Clearing Agency'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 Credit Default Swap clearing offering. The text of the 
proposed rule change is 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. Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

    In its filing with the Commission, the clearing agency 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. The clearing agency has prepared summaries, 
set forth in sections (A), (B) and (C) below, of the most significant 
aspects of such statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

    This filing proposes to make minor amendments to the current fee 
schedule that applies to CDX North American Index Credit Default Swaps 
cleared at CME. The only modification that is proposed is to extend the 
current twenty five percent (25%) discount of base clearing fees for 
all market participants that clear OTC North American Index CDS 
products at CME for another year. This discount was scheduled to expire 
as of December 31, 2012.
    The proposed changes are related to fees and therefore will become 
effective immediately. However, the proposed fee changes will become 
operative as of January 2, 2013. CME has also certified the proposed 
rule changes that are the subject of this filing to the Commodity 
Futures Trading Commission (``CFTC''), in CFTC Submission 12-464.
    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 Securities Exchange Act of 1934 and Rule 19b-4(f)(2) thereunder. 
CME believes that the proposed rule change is consistent with the 
requirements of the Securities Exchange Act of 1934 and the rules and 
regulations thereunder and, in particular, to 17A(b)(3)(D), in that it 
provides for the equitable allocation of reasonable dues, fees, and 
other charges among participants. The proposed changes apply to all 
market participants clearing trades at CME. CME believes the 
modifications should encourage firms to submit additional volume into 
the system which should help ensure readiness and also help build open 
interest ahead of a regulatory mandate. CME notes that it operates in a 
highly competitive market in which market participants can readily 
direct business to competing venues.

[[Page 76315]]

(B) Clearing Agency's Statement on Burden on Competition

    The proposed rule change does not impose any burden on competition.

(C) Clearing Agency'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 been filed pursuant to Section 
19(b)(3)(A)(ii) \5\ of the Act and paragraph (f)(2) of Rule 19b-4 \6\ 
thereunder and became effective on filing. 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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 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

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml) or
     Send an email to [email protected]. Please include 
File Number SR-CME-2012-46 on the subject line.

Paper Comments

     Send paper comments 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-2012-46. 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 filings will also be available 
for inspection and copying at the principal office of CME and on CME's 
Web site (http://www.cmegroup.com).
    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-2012-46 
and should be submitted on or before January 17, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-31122 Filed 12-26-12; 8:45 am]
BILLING CODE 8011-01-P