
[Federal Register Volume 77, Number 213 (Friday, November 2, 2012)]
[Notices]
[Pages 66202-66204]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-26852]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68109; File No. SR-CME-2012-40]


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

DATE: October 26, 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 October 15, 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 so that the proposal was effective upon 
filing with the Commission. The Commission is publishing this notice to 
solicit comments on the rule change from interested parties.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the 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 1

APPENDIX 1

[[Page 66203]]



                               CDX Indices
------------------------------------------------------------------------
                                                    Termination date
             CDX Index                Series    (scheduled  termination
                                                         date)
------------------------------------------------------------------------
CDX North American Investment               8  20 June 2014.
 Grade (CDX.NA.IG).                            20 June 2017.
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 Jun 2015.
 Grade (CDX.NA.IG).                            20 Jun 2017.
                                               20 Jun 2018.
                                               20 Jun 2022.
CDX North American Investment              18  20 Dec 2014.
 Grade (CDX.NA.IG).                            20 Dec 2016.
                                               20 Dec 2018.
                                               20 Dec 2022.
CDX North American Investment              19  20 Dec 2015.
 Grade (CDX.NA.IG).                            20 Dec 2017.
                                               20 Dec 2019.
                                               20 Dec 2022.
CDX North America High Yield               11  20 Dec 2013.
 (CDX.NA.HY).
CDX North America High Yield               12  20 Jun 2014.
 (CDX.NA.HY).
CDX North America High Yield               13  20 Dec 2014.
 (CDX.NA.HY).
CDX North America High Yield               14  20 Jun 2015.
 (CDX.NA.HY).
CDX North America High Yield               15  20 Dec 2015.
 (CDX.NA.HY).
CDX North America High Yield               16  20 Jun 2016.
 (CDX.NA.HY).
CDX North America High Yield               17  20 Dec 2016.
 (CDX.NA.HY).
CDX North America High Yield               18  20 Jun 2017.
 (CDX.NA.HY).
CDX North America High Yield               19  20 Dec 2017.
 (CDX.NA.HY).
------------------------------------------------------------------------

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

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 offers clearing services for certain credit default swap index 
products. Currently, CME offers clearing of the Markit CDX North 
American Investment Grade Index Series 9, 10, 11, 12, 13, 14, 15, 16, 
17, 18 and 19 and also offers clearing of the Markit CDX North

[[Page 66204]]

American High Yield Index Series 11, 12, 13, 14, 15, 16, 17, 18 and 19.
    The proposed rule changes would expand CME's Markit CDX North 
American Investment Grade (``CDX IG'') Index product offerings by 
adding Series 8 to the current product set.
    The proposed rule changes are immediately effective upon filing but 
will become operational on October 15, 2012. CME notes that it will 
also certify the proposed rule changes that are the subject of this 
filing to its primary regulator, the Commodity Futures Trading 
Commission (``CFTC''). The text of the CME proposed rule amendments is 
included above, with additions italicized and deletions in brackets.
    The proposed CME rule amendments merely incorporate one additional 
series to CME's existing offering of broad-based Markit CDX North 
American Investment Grade 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 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 proposed rule change has become effective upon filing 
pursuant to Section 19(b)(3)(A) \5\ of the Act and Rule 19b-4(f)(4)(i) 
\6\ thereunder because it effects a change in an existing service of a 
registered clearing agency that (1) does 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) does not 
significantly affect the respective rights or obligations of the 
clearing agency or persons using the service. 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.
---------------------------------------------------------------------------

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

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 rule-comments@sec.gov. Please include 
File Number SR-CME-2012-40 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-2012-40. 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_12-40.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-2012-40 
and should be submitted on or before November 23, 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. 2012-26852 Filed 11-1-12; 8:45 am]
BILLING CODE 8011-01-P


