[Federal Register Volume 78, Number 35 (Thursday, February 21, 2013)]
[Notices]
[Page 12127]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-03967]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68929; File No. SR-CME-2012-34]


Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; 
Notice of Designation of a Longer Period for Commission Action on 
Proposed Rule Change Related to the Liquidity Factor of CME's CDS 
Margin Methodology

February 14, 2013.
    On December 10, 2012, Chicago Mercantile Exchange Inc. (``CME'') 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to 
make adjustments to the liquidity risk factor component of its credit 
default swap (``CDS'') margin model. CME proposes to use an index 
portfolio's market risk rather than its gross notional as the basis for 
determining the margins associated with the liquidity risk factor 
component. The proposed rule change was published for comment in the 
Federal Register on December 31, 2012.\3\ The Commission did not 
receive comments on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 68529 (December 21, 
2012), 77 FR 77160 (December 31, 2012).
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    Section 19(b)(2) of the Act \4\ provides that within 45 days of the 
publication of notice of the filing of a proposed rule change, or 
within such longer period up to 90 days as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or as to which the self-regulatory organization 
consents, the Commission shall either approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether the proposed rule change should be disapproved. The 
45th day from the publication of notice of filing of this proposed rule 
change is February 14, 2013. The Commission is extending this 45-day 
time period.
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    \4\ 15 U.S.C. 78s(b)(2).
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    The Commission finds it is appropriate to designate a longer period 
within which to take action on the proposed rule change so that it has 
sufficient time to consider the proposed rule change, which would 
implement a significant change to CME's CDS margin methodology.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\5\ designates March 31, 2013, as the date by which the Commission 
should either approve or disapprove, or institute proceedings to 
determine whether to disapprove, the proposed rule change (File No. SR-
CME-2012-34).
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    \5\ 15 U.S.C. 78s(b)(2).

    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)(31).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-03967 Filed 2-20-13; 8:45 am]
BILLING CODE 8011-01-P