
[Federal Register Volume 77, Number 55 (Wednesday, March 21, 2012)]
[Notices]
[Pages 16572-16574]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-6763]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66601; File No. SR-CME-2012-07]


 Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Add Additional Series of Credit Default Index Swaps Available for 
Clearing

March 15, 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 March 9, 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) \3\ of the Act and Rule 19b-4(f)(4)(i) 
\4\ thereunder.
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    \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)(i).
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I. Self-Regulatory Organization's Statement of Terms of Substance of 
the Proposed Rule Change

    The text of the proposed rule change is below. Italicized text 
indicates additions; bracketed text indicates deletions.
* * * * *
CHICAGO MERCANTILE EXCHANGE INC. RULEBOOK
    Rule 100--80203--No Change.
    CME Chapter 802 Rules: Appendix I

Appendix 1

                               CDX Indices
------------------------------------------------------------------------
                                                      Termination date
          CDX Index                  Series              (scheduled
                                                        termination)
------------------------------------------------------------------------
CDX North American Investment                   9  20 Dec 2012.
 Grade (CDX.NA.IG).
                               ..................  20 Dec 2014.
                               ..................  20 Dec 2017.
CDX North American Investment                  10  20 Jun 2013.
 Grade (CDX.NA.IG).
                               ..................  20 Jun 2015.
                               ..................  20 Jun 2018.
CDX North American Investment                  11  20 Dec 2011.
 Grade (CDX.NA.IG).
                               ..................  20 Dec 2013.
                               ..................  20 Dec 2015.
                               ..................  20 Dec 2018.
CDX North American Investment                  12  20 Jun 2012.
 Grade (CDX.NA.IG).
                               ..................  20 Jun 2014.
                               ..................  20 Jun 2016.
                               ..................  20 Jun 2019.
CDX North American Investment                  13  20 Dec 2012.
 Grade (CDX.NA.IG).
                               ..................  20 Dec 2014.
                               ..................  20 Dec 2016.
                               ..................  20 Dec 2019.
CDX North American Investment                  14  20 Jun 2013.
 Grade (CDX.NA.IG).
                               ..................  20 Jun 2015.
                               ..................  20 Jun 2017.
                               ..................  20 Jun 2020.
CDX North American Investment                  15  20 Dec 2013.
 Grade (CDX.NA.IG).
                               ..................  20 Dec 2015.
                               ..................  20 Dec 2017.
                               ..................  20 Dec 2020.
CDX North American Investment                  16  20 Jun 2014.
 Grade (CDX.NA.IG).
                               ..................  20 Jun 2016.
                               ..................  20 Jun 2018.
                               ..................  20 Jun 2021.
CDX North American Investment                  17  20 Dec 2014.
 Grade (CDX.NA.IG).
                               ..................  20 Dec 2016.
                               ..................  20 Dec 2018.

[[Page 16573]]

 
                               ..................  20 Dec 2021.
CDX North American Investment                  18  20 Dec 2014.
 Grade (CDX.NA.IG).
                               ..................  20 Dec 2016.
                               ..................  20 Dec 2018.
                               ..................  20 Dec 2021.
CDX North American High Yield                  11  20 Dec 2013.
 (CDX.NA.HY).
CDX North American High Yield                  12  20 Jun 2014.
 (CDX.NA.HY).
CDX North American High Yield                  13  20 Dec 2014.
 (CDX.NA.HY).
CDX North American High Yield                  14  20 Jun 2015.
 (CDX.NA.HY).
CDX North American High Yield                  15  20 Dec 2015.
 (CDX.NA.HY).
CDX North American High Yield                  16  20 Jun 2016.
 (CDX.NA.HY).
CDX North American High Yield                  17  20 Dec 2016.
 (CDX.NA.HY).
CDX North American High Yield                  18  20 Jun 2017.
 (CDX.NA.HY).
------------------------------------------------------------------------

* * * * *
    Rule 80301--End--No change
* * * * *

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 offers clearing services for certain credit default swap index 
products. Currently, CME offers clearing of the Markit CDX North 
American Investment Grade Series 9, 10, 11, 12, 13, 14, 15, 16 and 17 
and also offers clearing of the Markit CDX North American High Yield 
Series 11, 12, 13, 14, 15, 16 and 17.
    The proposed rule changes that are the subject of this filing are 
intended to expand CME's Markit CDX North American Investment Grade and 
Markit CDX North American High Yield product offerings by incorporating 
the upcoming Series 18 for both sets of index products.
    The proposed rule changes that are the subject of this filing 
became immediately effective upon filing this proposed rule change with 
the Commission. CME notes that it has also certified the proposed rule 
changes that are the subject of this filing to its primary regulator 
for swaps, the Commodity Futures Trading Commission (``CFTC''). The 
text of the CME proposed rule change is included above, with additions 
italicized and deletions in brackets.
    The proposed CME rule change merely incorporates one additional 
series to CME's existing offering of broad-based Markit CDX North 
American Investment Grade and CDX North American High Yield credit 
default swaps. As such, the proposed amendments simply effect changes 
to an existing service of a registered clearing agency that (1) do not 
adversely affect the safeguarding of securities or funds in the custody 
or control of the clearing agency or for which it is responsible and 
(2) do not significantly affect the respective rights or obligations of 
the clearing agency or persons using its clearing agency services. 
Therefore, the proposed rule change is therefore properly filed under 
Section 19(b)(3)(A) and Rule 19b-4(f)(4)(i) thereunder.

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)(4)(i) of Rule 19b-4 thereunder and 
therefore 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-2012-07 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-2012-07. 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

[[Page 16574]]

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 and on CME's Web 
site at http://www.cmegroup.com/market-regulation/files/SEC_19b-4_x12-07x.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-2012-07 and 
should be submitted on or before April 11, 2012.


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-6763 Filed 3-20-12; 8:45 am]
BILLING CODE 8011-01-P


