[Federal Register Volume 78, Number 76 (Friday, April 19, 2013)]
[Notices]
[Pages 23616-23617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-09190]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69374; File No. SR-CME-2013-05]


Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Related to the Acquisition of the Kansas City Board of Trade Clearing 
Corporation

April 15, 2013.
    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 April 4, 2013, Chicago Mercantile Exchange Inc. (``CME'') 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) of the Act,\3\ and Rule 19b-4(f)(4)(ii) 
\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).
    \4\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------

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

    CME proposes to adopt revisions to certain CME rules in connection 
with the November 30, 2012, acquisition of the Kansas City Board of 
Trade Clearing Corporation (``KCBTCC'') by CME Group Inc., the parent 
holding company of CME. The proposed changes that are the subject of 
this filing would establish the eligibility of the Board of Trade of 
the City of Chicago, Inc. (``CBOT'') and CME Clearing Members to clear 
trades executed on the Board of Trade of Kansas City, Missouri, Inc. 
(``KCBT'').
    The proposed revisions became effective upon filing but will not 
become operational until April 15, 2013, or the effective date 
established by a Commodity Futures Trading Commission (``CFTC'') order 
permitting the transfer of open interest from the KCBTCC to CME.

II. Self-Regulatory Organizations 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 such statements.

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

    CME is proposing certain revisions to its rulebook related to its 
November 30, 2012, acquisition of KCBTCC by CME Group Inc., the parent 
holding company of CME. KCBTCC is currently the derivatives clearing 
organization (``DCO'') for transactions executed on the KCBT. CME is 
the DCO for transactions executed on CME, CBOT, the New York Mercantile 
Exchange, Inc., and Commodity Exchange, Inc. In a letter dated January 
14, 2013, CME and KCBTCC jointly petitioned the CFTC for approval to 
transfer all open interest from KCBTCC to CME on April 15, 2013. Upon 
the transfer of open interest from KCBTCC to CME, KCBTCC will cease 
clearing transactions for KCBT and CME will assume the role of DCO for 
all trades executed on or through KCBT. To facilitate clearing of KCBT 
products by CME, the proposed changes that are the subject of this 
filing would simply establish the eligibility of CBOT and CME Clearing 
Members (collectively, the ``Clearing Members'') to clear trades 
executed on KCBT.
    CME also certified the proposed changes that are the subject of 
this filing to its primary regulator, the CFTC, in CME Submission 13-
115. Although these changes are effective on filing, CME proposes to 
make them operational on April 15, 2013, or the effective date 
established by a CFTC order permitting the transfer of open interest 
from the KCBTCC to CME.
    The proposed CME changes relate to CME's activities as a 
derivatives clearing organization clearing futures transactions. As 
such, CME believes the proposed changes do not significantly affect the 
security-based swap clearing operations of CME or any related rights or 
obligations of CME security-based swap clearing participants. CME 
believes the proposed change is therefore properly filed under Section 
19(b)(3)(A) of the Act \5\ and Rule 19b-4(f)(4)(ii) \6\ thereunder 
because it effects a change in an existing service of a registered 
clearing agency that primarily affects the futures clearing operations 
of the clearing agency with respect to futures that are not security 
futures and does not significantly affect any securities clearing 
operations of the clearing agency or any related rights or obligations 
of the clearing agency or persons using such service.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------

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

    CME does not believe that the proposed 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 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) of the Act \7\ and Rule 19b-4(f)(4)(ii) \8\ thereunder and 
was effective upon filing but will not become operational until April 
15, 2013, or the effective date established by a CFTC order permitting

[[Page 23617]]

the transfer of open interest from the KCBTCC to CME. 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.\9\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(4)(ii).
    \9\ 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------

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-2013-05 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-2013-05. 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_13-05.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. All submissions should refer to File Number SR-CME-2013-05 
and should be submitted on or before May 10, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-09190 Filed 4-18-13; 8:45 am]
BILLING CODE 8011-01-P