
[Federal Register Volume 76, Number 250 (Thursday, December 29, 2011)]
[Notices]
[Pages 82006-82007]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-33362]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66030; File No. SR-CME-2011-18]


Self-Regulatory Organizations; Chicago Mercantile Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Establish a Fee Schedule Applicable to Its OTC Credit Default Swap 
North American Index Clearing Offering

December 22, 2011.
    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 20, 2011, 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

[[Page 82007]]

Section 19(b)(3)(A) \3\ of the Act and Rule 19b-4(f)(2) \4\ thereunder.
---------------------------------------------------------------------------

    \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)(2).
---------------------------------------------------------------------------

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

    CME is proposing to establish a fee schedule applicable to its OTC 
Credit Default Swap North American Index clearing offering. The text of 
the proposed rule change is available at CME's Web site at http://www.cmegroup.com, at the principal office of CME, and at the 
Commission's Public Reference Room.

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 has in place a temporary fee waiver program that 
applies to its OTC credit default swap index clearing business (the 
``Waiver Program'').\5\ The Waiver Program is a general fee waiver that 
applies equally to all market participants, including CDS Clearing 
Members and their customers. The Program is set to expire on December 
31, 2011.
---------------------------------------------------------------------------

    \5\ The Commission notes that the Waiver Program became 
effective on October 17, 2011. See Exchange Act Release No. 65634 
(October 26, 2011), 76 FR 67517 (November 1, 2011) (SR-CME-2011-11).
---------------------------------------------------------------------------

    The filing proposes to establish two new fee schedules that will 
apply to CME's OTC Credit Default Swap North American Index clearing 
fees. North American Index CDS Fee Schedule A is the default fee 
schedule for all market participants clearing North American CDX Index 
CDS products at CME Group. Market participants may alternatively elect 
to participate in North American Index CDS Fee Schedule B (the ``Flat 
Rate Fee Program''). The Flat Rate Fee Program features a single 
blended flat rate for each transaction cleared and employs a look back 
period to determine an implied average clearing fee and establish a 
single blended flat rate in the subsequent period. The look-back period 
for the Flat Rate Fee Program is semi-annual, based on a calendar year, 
ending fifteen days prior to the beginning of the next six month 
period.
    The proposed rules changes are related to fees and therefore will 
become effective immediately.\6\ However, the Program will become 
operative as of January 1, 2012. The text of the proposed rule 
amendments is available on CME's Web site, as noted above.
---------------------------------------------------------------------------

    \6\ The staff notes that pursuant to 15 U.S.C. 78s(b)(3)(A)(ii) 
rule changes related to fees are effective upon filing.
---------------------------------------------------------------------------

    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'').

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) 
of the Act and paragraph (f)(2) of Rule 19b-4 and 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 rule-comments@sec.gov. Please include 
File No. SR-CME-2011-18 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-2011-18. 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-2011-18 and 
should be submitted on or before January 19, 2012.

    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. 2011-33362 Filed 12-28-11; 8:45 am]
BILLING CODE 8011-01-P


