[Federal Register Volume 77, Number 82 (Friday, April 27, 2012)]
[Notices]
[Pages 25215-25216]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-10159]



[[Page 25215]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66847; File No. SR-CME-2012-12]


Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Rules Regarding Clearing Member Anti-Money Laundering Programs

April 23, 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 April 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)(1) \4\ 
thereunder so that the proposed rule change was effective upon filing 
with the Commission.
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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)(1).
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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 100-980--No Change.
* * * * *
Chapter 9. Clearing Members

Rule 981. ANTI-MONEY LAUNDERING AND ECONOMIC SANCTIONS COMPLIANCE
    Each clearing member shall develop and implement a written [anti-
money laundering] compliance program approved in writing by senior 
management reasonably designed to achieve and monitor the clearing 
member's compliance with [the] all applicable requirements of the Bank 
Secrecy Act (31 U.S.C. Sec.   5311 et[.] seq.), the International 
Emergency Economic Powers Act (50 U.S.C. Sec.  1701 et seq.) 
(``IEEPA''), the Trading with the Enemy Act (50 U.S.C. App. Sec.  1 et 
seq.) (``TWEA''), and the Executive Orders and [the implementing] 
regulations issued pursuant thereto, including the regulations issued 
[promulgated thereunder] by the U.S. Department of the Treasury and, as 
applicable, the Commodity Futures Trading Commission. That [anti-money 
laundering] compliance program shall, at a minimum,
    1. Establish and implement policies, procedures and internal 
controls reasonably designed to assure compliance with [the] all 
applicable provisions of the Bank Secrecy Act, IEEPA, TWEA, and all 
applicable Executive Orders and regulations issued pursuant thereto 
[the implementing regulations thereunder];
    2. Provide for independent testing for compliance to be conducted 
by clearing member personnel or by a qualified outside party;
    3. Designate an individual or individuals responsible for 
implementing and monitoring the day-to-day operations and internal 
controls of the program; and
    4. Provide ongoing training for appropriate personnel.
    Clearing members must also supervise and ensure that their 
guaranteed introducing brokers are in compliance with the [anti-money 
laundering] provisions contained in this Rule.
* * * * *
Rule 981-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 proposes to adopt certain rule changes to CME Rule 981, which 
deals with CME clearing member anti-money laundering (``AML'') 
compliance programs. At present, CME Rule 981 requires clearing members 
to develop and implement a written AML program reasonably designed to 
achieve compliance with applicable requirements of the Bank Secrecy Act 
(31 U.S.C. 5311, et seq.). CME proposes to revise Rule 981 to further 
require clearing members to have a written AML compliance program 
reasonably designed to achieve compliance with the International 
Emergency Economic Powers Act (50 U.S.C. 1701, et seq.), the Trading 
with the Enemy Act (50 U.S.C. App. 1, et seq.), and Executive Orders 
and regulations issued thereunder.
    These amendments would therefore expand Rule 981 to encompass all 
applicable Office of Foreign Asset Control (OFAC) sanctions programs. 
OFAC administers and enforces economic and trade sanctions based on 
U.S. foreign policy and national security goals against targeted 
foreign countries and regimes, terrorists, international narcotics 
traffickers, those engaged in activities related to the proliferation 
of weapons of mass destruction, and other threats to the national 
security, foreign policy, or economy of the United States. OFAC acts 
under Presidential national emergency powers, as well as authority 
granted by specific legislation, to impose controls on transactions and 
freeze assets under U.S. jurisdiction. OFAC sanctions are broad and 
extraterritorial in scope and all investments and transactions in the 
U.S., or involving U.S. persons or corporations, must comply.
    The proposed rule change that is the subject of this filing will 
become immediately effective upon filing. CME notes that it has also 
certified the proposed rule change that is the subject of this filing 
to its primary regulator, the Commodity Futures Trading Commission. The 
text of the CME proposed rule amendment is listed above with additions 
italicized and deletions in brackets.
    The proposed CME rule amendment is designed to ensure that CME has 
in place appropriate eligibility standards by ensuring that clearing 
members have AML compliance programs that address all applicable 
requirements. The amendment simply expands existing CME Rule 981 to 
encompass all applicable OFAC sanctions programs. As such, the proposed 
amendments constitute a stated policy, practice, or interpretation with 
respect to the meaning, administration, or enforcement of an existing 
CME rule. Therefore, the proposed rule change is therefore properly 
filed under Section 19(b)(3)(A) and Rule 19b-4(f)(1) thereunder of the 
Act.

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.

[[Page 25216]]

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)(1) 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:
    <bullet> 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 <a href="/cdn-cgi/l/email-protection#5e2c2b323b733d3133333b302a2d1e2d3b3d70393128"><span class="__cf_email__" data-cfemail="1d6f687178307e7270707873696e5d6e787e337a726b">[email protected]</span></a>. Please include 
File No. SR-CME-2012-12 on the subject line.
    <bullet> 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-2012-12. 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 and on CME's Web 
site at http://www.cmegroup.com/market-regulation/files/SEC_19b-4_12-12.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-2012-12 and 
should be submitted on or before May 18, 2012.
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    \5\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\5\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-10159 Filed 4-26-12; 8:45 am]
BILLING CODE 8011-01-P


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