
[Federal Register Volume 77, Number 115 (Thursday, June 14, 2012)]
[Notices]
[Pages 35738-35739]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-14535]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67170; File No. SR-CME-2012-20]


Self-Regulatory Organizations; Chicago Mercantile Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Regarding Extension of Fee Waiver Program Relating to Its Cleared-only 
OTC FX Clearing Offering

June 8, 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 June 5, 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)(ii) \3\ of the Act and Rule 19b-4(f)(2) 
\4\ thereunder, so that the proposed rule change was effective upon 
filing with the Commission. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested parties.
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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)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of Terms of Substance of 
the Proposed Rule Change

    CME is proposing to make certain changes to an existing fee waiver 
program that currently applies to its cleared-only OTC foreign exchange 
(``FX'') swap clearing offering.\5\ The text of the proposed changes is 
as follows with additions italicized and deletions in brackets.
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    \5\ CME previously amended the fee program in another rule 
filing. See Exchange Act Release No. 34-66261 (January 26, 2012), 77 
FR 5283 (February 2, 2012) [CME-2012-02].
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* * * * *

Program Purpose

    The purpose of this Program is to incentivize market participants 
to submit transaction in the OTC FX products listed below to the 
Clearing House for clearing. The resulting increase in volume benefits 
all participant segments in the market.

Product Scope

    The following cleared only OTC FX products (``Products''):
    1. CME Cleared OTC FX--Emerging Markets
    a. USDBRL, USDCLP, USDCNY, USDCOP, USDIDR, USDINR, USDKRW, USDMYR, 
USDPEN, USDPHP, USDRUB, USDTWD Non-Deliverable Forwards
    b. USDCZK, USDHUF, USDHKD, USDILS, USDMXN, USDPLN, USDSGD, USDTHB, 
USDTRY, USDZAR Cash-Settled Forwards
    2. CME Cleared OTC FX--Majors
    a. AUDJPY, AUDUSD, CADJPY, EURAUD, EURCHF, EURGBP, EURJPY, EURUSD, 
GBPUSD, NZDUSD, USDCAD, USDCHF, USDDKK, USDJPY, USDNOK, USDSEK Cash-
Settled Forwards.

Eligible Participants

    The temporary reduction in fees will be open to all market 
participants and will automatically be applied to any transaction in 
the Products submitted to the Clearing House for clearing.

Program Term

    Start date is February 1, 2012. End date is [June 30] December 31, 
2012.

Hours

    The Program will be applicable regardless of the transaction time.

Program Incentives

    Fee Waivers. All market participants that clear the Products will 
have their clearing fees waived.

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.\6\
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    \6\ The Commission has modified the text of the summaries 
prepared by CME.
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A. Self-Regulatory Organization's Statement of Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    CME currently offers clearing for certain cleared-only OTC FX swap 
products. The filing proposes to extend a current fee waiver program 
that will apply to the following cleared-only OTC FX products 
(``Products''):
    1. CME Cleared OTC FX--Emerging Markets
    a. USDBRL, USDCLP, USDCNY, USDCOP, USDIDR, USDINR, USDKRW, USDMYR, 
USDPEN, USDPHP,

[[Page 35739]]

USDRUB, USDTWD Non-Deliverable Forwards
    b. USDCZK, USDHUF, USDHKD, USDILS, USDMXN, USDPLN, USDSGD, USDTHB, 
USDTRY, USDZAR Cash-Settled Forwards
    2. CME Cleared OTC FX--Majors
    a. AUDJPY, AUDUSD, CADJPY, EURAUD, EURCHF, EURGBP, EURJPY, EURUSD, 
GBPUSD, NZDUSD, USDCAD, USDCHF, USDDKK, USDJPY, USDNOK, USDSEK Cash-
Settled Forwards.
    The fee waiver is open to all market participants and will continue 
to be so during the extension period. The fee waiver will automatically 
be applied to any transaction in the products submitted to CME's 
clearinghouse for clearing.
    Pursuant to Commodity Futures Trading Commission (``CFTC'') 
regulations, the rule changes are subject to CFTC Regulation 40.6(d), 
requiring a self-certification filing to the CFTC, although no change 
to text of the CME rulebook is required. CME notes that it has already 
certified the proposed changes that are the subject of this filing to 
the CFTC.
    The proposed changes establish or change a member due, fee or other 
charge imposed by CME under Section 19(b)(3)(A)(ii) of the Act and Rule 
19b-4(f)(2) thereunder. CME believes that the proposed changes are 
consistent with the requirements of the Act and the rules and 
regulations thereunder and, in particular, to Section 17A(b)(3)(D) \7\ 
in that it provides for the equitable allocation of reasonable dues, 
fees and other charges among participants. CME notes that it operates 
in a highly competitive market in which market participants can readily 
direct business to competing venues.
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    \7\ 15 U.S.C. 78q-1(b)(3)(D).
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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)(ii) \8\ of the Act and Rule 19b-4(f)(2) \9\ thereunder and 
thus became effective upon filing because it establishes or changes a 
due, fee, or other charge applicable to a member. 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.
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    \8\ 15 U.S.C, 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
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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-2012-20 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-2012-20. 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. 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-2012-20 and 
should be submitted on or before July 5, 2012.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-14535 Filed 6-13-12; 8:45 am]
BILLING CODE 8011-01-P


