75520 Federal Register / Vol. 75, No. 232 / Friday, December 3, 2010 / Notices 

17See April 2010 Eurex Exemptive Order, supra 

note 4. 

1See generally Securities Exchange Act Release 

Nos. 60372 (Jul. 23, 2009), 74 FR 37748 (Jul. 29, 

2009) and 61973 (Apr. 23, 2010), 75 FR 22656 (Apr. 

29, 2010) (temporary exemptions in connection 

with CDS clearing by ICE Clear Europe Limited); 

Securities Exchange Act Release Nos. 60373 (Jul. 

23, 2009), 74 FR 37740 (Jul. 29, 2009) and 61975 

(Apr. 23, 2010), 75 FR 22641 (Apr. 29, 2010) 

(temporary exemptions in connection with CDS 

clearing by Eurex Clearing AG); Securities Exchange 

Act Release Nos. 59578 (Mar. 13, 2009), 74 FR 

11781 (Mar. 19, 2009), 61164 (Dec. 14, 2009), 74 FR 

67258 (Dec. 18, 2009), and 61803 (Mar. 30, 2010), 

75 FR 17181 (Apr. 5, 2010) (temporary exemptions 

in connection with CDS clearing by Chicago 

Mercantile Exchange Inc.); Securities Exchange Act 

Release Nos. 59527 (Mar. 6, 2009), 74 FR 10791 

(Mar. 12, 2009), 61119 (Dec. 4, 2009), 74 FR 65554 

(Dec. 10, 2009), and 61662 (Mar. 5, 2010), 75 FR 

11589 (Mar. 11, 2010) (temporary exemptions in 

connection with CDS clearing by ICE Trust U.S. 

LLC); Securities Exchange Act Release No. 59164 

(Dec. 24, 2008), 74 FR 139 (Jan. 2, 2009) (temporary 

exemptions in connection with CDS clearing by 

LIFFE A&M and LCH.Clearnet Ltd.); and other 

Commission actions discussed in several of these 

orders. In addition, the Commission has issued 

interim final temporary rules that provide 

exemptions under the Securities Act of 1933 and 

the Securities Exchange Act of 1934 for CDS to 

facilitate the operation of one or more central 

counterparties for the CDS market. See Securities 

Act Release Nos. 8999 (Jan. 14, 2009), 74 FR 3967 

(Jan. 22, 2009) (initial approval), 9063 (Sep. 14, 

2009), 74 FR 47719 (Sep. 17, 2009) (extension until 

Nov. 30, 2010), and 9158 (Nov. 30, 2010) (extension 

until Jul. 16, 2011). 

2Securities Exchange Act Release No. 60372 (Jul. 

23, 2009), 74 FR 37748 (Jul. 29, 2009) (‘‘July 2009 

ICE Clear Europe Exemptive Order’’). 

3Securities Exchange Act Release No. 61973 

(Apr. 23, 2010), 75 FR 22656 (Apr. 29, 2010) (‘‘April 

2010 ICE Clear Europe Exemptive Order’’). 

4See Letter from Russell D. Sacks, ICE Clear 

Europe, to Elizabeth Murphy, Secretary, 

Commission, Nov. 29, 2010 (‘‘November 2010 

Request’’). 

5Public Law 111–203 (July 21, 2010). 

requirements with respect to certain 

non-excluded CDS cleared by Eurex; the 

temporary conditional exemption of 

Eurex clearing members and certain 

others from broker-dealer registration 

requirements and related requirements 

in connection with CDS clearing by 

Eurex (including clearing of customer 

CDS transactions); and the temporary 

conditional exemption from certain 

Exchange Act requirements granted to 

registered broker-dealers with respect to 

certain non-excluded CDS.17

C. Solicitation of Comments 

When we granted the April 2010 

Eurex Exemptive Order, we requested 

comment on all aspects of the 

exemptions. We received no comments 

in response this request. 

In connection with this Order 

extending exemptions granted in 

connection with CDS clearing by Eurex, 

we reiterate our request for comments 

on all aspects of the exemptions. 

Comments may be submitted by any 

of the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/other.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number S7–17–09 on the subject line; 

or 

• Use the Federal eRulemaking Portal 

(http://www.regulations.gov/). Follow 

the instructions for submitting 

comments. 

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 S7–17–09. This file number 

should be included on the subject line 

if e-mail is used. To help us process and 

review your comments more efficiently, 

please use only one method. We will 

post all comments on the Commission’s 

Internet website (http://www.sec.gov/ 

rules/other.shtml). Comments are also 

available for website 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.. All comments received 

will be posted without change; we do 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. 

III. Conclusion 

It is hereby ordered, pursuant to 

Section 36(a) of the Exchange Act, that, 

until July 16, 2011, the following 

exemptions connected with CDS 

clearing by Eurex contained in the April 

2010 Eurex Exemptive Order are 

extended: (i) The temporary conditional 

exemption granted to Eurex from 

clearing agency registration under 

Section 17A of the Exchange Act solely 

to perform the functions of a clearing 

agency for certain non-excluded CDS; 

(ii) the temporary conditional 

exemption of Eurex and certain of its 

clearing members from the registration 

requirements of Sections 5 and 6 of the 

Exchange Act solely in connection with 

the calculation of mark-to-market prices 

for certain non-excluded CDS cleared by 

Eurex; (iii) the temporary conditional 

exemption of Eurex and certain eligible 

contract participants from certain 

Exchange Act requirements with respect 

to certain non-excluded CDS cleared by 

Eurex; (iv) the temporary conditional 

exemption of Eurex clearing members 

and certain others from broker-dealer 

registration requirements and related 

requirements in connection with CDS 

clearing by Eurex (including clearing of 

customer CDS transactions); and (v) the 

temporary conditional exemption from 

certain Exchange Act requirements 

granted to registered broker-dealers with 

respect to certain non-excluded CDS. 

By the Commission. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–30376 Filed 12–2–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63389; File No. S7–16–09] 

Order Extending Temporary 

Conditional Exemptions Under The 

Securities Exchange Act of 1934 in 

Connection With Request on Behalf of 

Ice Clear Europe, Limited Related to 

Central Clearing of Credit Default 

Swaps and Request for Comment 

November 29, 2010. 

I. Introduction 

The Securities and Exchange 

Commission (‘‘Commission’’) has taken 

multiple actions designed to help foster 

the prompt development of credit 

default swap (‘‘CDS’’) central 

counterparties (‘‘CCP’’), including 

granting temporary conditional 

exemptions from certain provisions of 

the federal securities laws.1

In July 2009, the Commission issued 

an order providing temporary 

conditional exemptions to ICE Clear 

Europe Limited (‘‘ICE Clear Europe’’), 

and certain other parties, to permit ICE 

Clear Europe to clear and settle CDS 

transactions.2 In response to ICE Clear 

Europe’s request, the Commission 

temporarily extended and expanded the 

exemptions in April 2010.3 The current 

exemptions pursuant to the April 2010 

ICE Clear Europe Exemptive Order are 

scheduled to expire on November 30, 

2010, and ICE Clear Europe has 

requested that the Commission extend 

the exemptions contained in the April 

2010 ICE Clear Europe Exemptive 

Order.4

II. Discussion 

A. Legislative Developments 

Subsequent to the Commission’s 

issuance of the April 2010 ICE Clear 

Exemptive Order, the President signed 

the Dodd-Frank Wall Street Reform and 

Consumer Protection Act of 2010 

(‘‘Dodd-Frank Act’’) into law.5 The 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 75, No. 232 / Friday, December 3, 2010 / Notices 75521 

6See Public Law 111–203, Preamble. 

7Section 761(a)(6) of the Dodd-Frank Act defines 

a ‘‘security-based swap’’ as any agreement, contract, 

or transaction that is a ‘‘swap,’’ as defined in Section 

1a(47) of the Commodity Exchange Act, 7 U.S.C. 

1a(47), that is based on an index that is a narrowbased security index, a single security, or a loan, 

including any interest therein or on the value 

thereof; or the occurrence, nonoccurrence, or extent 

of the occurrence of an event relating to a single 

issuer of a security or the issuers of securities in a 

narrow-based security index, provided that such 

event directly affects the financial statements, 

financial condition, or financial obligations of the 

issuer. See Section 3(a)(68) of the Securities 

Exchange Act of 1934 (‘‘Exchange Act’’), 15 U.S.C. 

78c(a)(68) (as added by Section 761(a)(6) of the 

Dodd-Frank Act). Section 712(d) of the Dodd-Frank 

Act provides that the Commission and the 

Commodity Futures Trading Commission (‘‘CFTC’’), 

in consultation with the Board of Governors of the 

Federal Reserve System, shall, among other things, 

jointly further define the terms ‘‘swap’’ and 

‘‘security-based swap.’’ 

8Section 761(a)(2) of the Dodd-Frank Act 

explicitly includes security-based swaps in the 

definition of ‘‘security’’ in Section 3(a)(10) of the 

Exchange Act, 15 U.S.C. 78c. 

9See Section 763(a) of the Dodd-Frank Act 

(adding new Section 3C to the Exchange Act, 15 

U.S.C. 78c–2). 

10See Section 763(b) of the Dodd-Frank Act 

(adding new Section 17A(l) to the Exchange Act, 15 

U.S.C. 78q–1(1)). Under this Deemed Registered 

Provision, ICE Clear Europe will be required to 

comply with all requirements of the Exchange Act, 

and the rules thereunder, applicable to registered 

clearing agencies to the extent it clears securitybased swaps after the effective date of the Deemed 

Registered Provision, including, for example, the 

obligation to file proposed rule changes under 

Section 19(b) of the Exchange Act. 

11Section 774 of the Dodd-Frank Act states, 

‘‘[u]nless otherwise provided, the provisions of this 

subtitle shall take effect on the later of 360 days 

after the date of the enactment of this subtitle or, 

to the extent a provision of this subtitle requires a 

rulemaking, not less than 60 days after publication 

of the final rule or regulation implementing such 

provision of this subtitle.’’ 

12See November 2010 Request, supra note 4. 13See id. ICE Clear Europe notes that it has 

created a set of amendments to its rulebook and 

procedures for technical improvements to the 

process for dealing with restructuring credit events 

and to facilitate the imminent introduction of 

clearing of non-U.S., non-U.K. sovereign CDS 

contracts. 

14 15 U.S.C. 78mm. Section 36 of the Exchange 

Act authorizes the Commission to conditionally or 

unconditionally exempt any person, security, or 

transaction, or any class of classes of persons, 

securities, or transactions, from any provision or 

provisions of the Exchange Act or any rule or 

regulation thereunder, by rule, regulation, or order, 

to the extent that such exemption is necessary or 

appropriate in the public interest, and is consistent 

with the protection of investors. 

15See November 2010 Request, supra note 4. The 

exemptions we are granting today are based on all 

of the representations made by ICE Clear Europe in 

its request, which incorporate representations made 

by ICE Clear Europe in connection with the April 

2010 ICE Clear Europe Exemptive Order, which in 

turn incorporate representations related to our 

earlier exemptive orders. We recognize, however, 

that there could be legal uncertainty in the event 

that one or more of the underlying representations 

were to become inaccurate. Accordingly, if any of 

these exemptions were to become unavailable by 

reason of an underlying representation no longer 

being materially accurate, the legal status of existing 

open positions in non-excluded CDS (as defined in 

the April 2010 ICE Clear Europe Exemptive Order) 

that previously had been cleared pursuant to the 

exemptions would remain unchanged, but no new 

positions could be established pursuant to the 

exemptions until all of the underlying 

representations were again accurate. 

16See April 2010 ICE Clear Europe Exemptive 

Order, supra note 3. 

Dodd-Frank Act was enacted to, among 

other purposes, promote the financial 

stability of the United States by 

improving accountability and 

transparency in the financial system.6

To this end, the provisions of Title VII 

of the Dodd-Frank Act provide for the 

comprehensive regulation of securitybased swaps 7 by the Commission.8 The 

Dodd-Frank Act amends the Exchange 

Act to require, among other things, that 

transactions in security-based swaps be 

cleared through a clearing agency that is 

registered with the Commission or that 

is exempt from registration if they are of 

a type that the Commission determines 

must be cleared, unless an exception or 

exemption from mandatory clearing 

applies.9 Furthermore, Title VII of the 

Dodd-Frank Act provides that a 

derivatives clearing organization 

registered with the CFTC that cleared 

swaps pursuant to an exemption from 

registration as a clearing agency prior to 

the date of enactment of the Dodd-Frank 

Act, such as ICE Clear Europe, is 

deemed registered as a clearing agency 

for the purposes of clearing securitybased swaps (‘‘Deemed Registered 

Provision’’).10 The Deemed Registered 

Provision, along with other general 

provisions under Title VII of the DoddFrank Act, becomes effective on July 16, 

2011.11 As a result, ICE Clear Europe 

will no longer need the exemption from 

registration as a clearing agency under 

Section 17A of the Exchange Act 

provided by the April 2010 ICE Clear 

Europe Exemptive Order, and previous 

orders, to clear security-based swaps 

after the Deemed Registered Provision 

becomes effective. 

B. ICE Clear Europe’s Request for 

Extension of April 2010 ICE Clear 

Europe Exemptive Order 

ICE Clear Europe seeks an extension 

of the temporary exemptions of the 

April 2010 ICE Clear Europe Exemptive 

Order under the same terms and 

conditions contained in the April 2010 

ICE Clear Europe Exemptive Order.12 In 

ICE Clear’s request for an extension of 

the April 2010 ICE Clear Exemptive 

Order, ICE Clear represents that there 

have been no material changes to the 

operations of ICE Clear, and that the 

representations made by ICE Clear in 

connection with the April 2010 ICE 

Clear Exemptive Order remain true in 

all material respects.13 These 

representations are discussed in detail 

in our earlier ICE Clear orders. 

Accordingly, consistent with our 

findings in the April 2010 ICE Clear 

Europe Order, and, in particular, in light 

of the risk management and systemic 

benefits in continuing to facilitate CDS 

clearing by ICE Clear Europe until Title 

VII of the Dodd-Frank Act becomes fully 

effective, the Commission finds that it is 

necessary or appropriate in the public 

interest and is consistent with the 

protection of investors to exercise its 

authority to extend the exemptive relief 

granted in the April 2010 ICE Clear 

Europe Exemptive Order until July 16, 

2011. Specifically, pursuant to the 

Commission’s authority under Section 

36 of the Exchange Act,14 based on the 

facts presented and the representations 

made by ICE Clear Europe,15 the 

Commission is extending until July 16, 

2011, under the same terms and 

conditions in the April 2010 ICE Clear 

Europe Exemptive Order each of the 

existing exemptions connected with 

CDS clearing by ICE Clear Europe, 

which include: The temporary 

conditional exemption granted to ICE 

Clear Europe from clearing agency 

registration under Section 17A of the 

Exchange Act solely to perform the 

functions of a clearing agency for certain 

non-excluded CDS; the temporary 

conditional exemption of ICE Clear 

Europe and certain of its clearing 

members from the registration 

requirements of Sections 5 and 6 of the 

Exchange Act solely in connection with 

the calculation of mark-to-market prices 

for certain non-excluded CDS cleared by 

ICE Clear Europe; the temporary 

conditional exemption of ICE Clear 

Europe and certain eligible contract 

participants from certain Exchange Act 

requirements with respect to certain 

non-excluded CDS cleared by ICE Clear 

Europe; and the temporary conditional 

exemption from certain Exchange Act 

requirements granted to registered 

broker-dealers with respect to certain 

non-excluded CDS.16

C. Solicitation of Comments 

When we granted the April 2010 ICE 

Clear Europe Order, we requested 

comment on all aspects of the 

exemptions. We received no comments 

in response. In connection with this 

Order extending the exemptions granted 

in connection with CDS clearing by ICE 

Clear Europe, we reiterate our request 

for comments on all aspects of the 

exemptions. 

Comments may be submitted by any 

of the following methods: 

mstockstill on DSKH9S0YB1PROD with NOTICES

75522 Federal Register / Vol. 75, No. 232 / Friday, December 3, 2010 / Notices 

1See generally Securities Exchange Act Release 

Nos. 60372 (Jul. 23, 2009), 74 FR 37748 (Jul. 29, 

2009) and 61973 (Apr. 23, 2010), 75 FR 22656 (Apr. 

29, 2010) (temporary exemptions in connection 

with CDS clearing by ICE Clear Europe Limited); 

Securities Exchange Act Release Nos. 60373 (Jul. 

23, 2009), 74 FR 37740 (Jul. 29, 2009) and 61975 

(Apr. 23, 2010), 75 FR 22641 (Apr. 29, 2010) 

(temporary exemptions in connection with CDS 

clearing by Eurex Clearing AG); Securities Exchange 

Act Release Nos. 59578 (Mar. 13, 2009), 74 FR 

11781 (Mar. 19, 2009), 61164 (Dec. 14, 2009), 74 FR 

67258 (Dec. 18, 2009), and 61803 (Mar. 30, 2010), 

75 FR 17181 (Apr. 5, 2010) (temporary exemptions 

in connection with CDS clearing by Chicago 

Mercantile Exchange Inc.); Securities Exchange Act 

Release Nos. 59527 (Mar. 6, 2009), 74 FR 10791 

(Mar. 12, 2009), 61119 (Dec. 4, 2009), 74 FR 65554 

(Dec. 10, 2009), and 61662 (Mar. 5, 2010), 75 FR 

11589 (Mar. 11, 2010) (temporary exemptions in 

connection with CDS clearing by ICE Trust U.S. 

LLC); Securities Exchange Act Release No. 59164 

(Dec. 24, 2008), 74 FR 139 (Jan. 2, 2009) (temporary 

exemptions in connection with CDS clearing by 

LIFFE A&M and LCH.Clearnet Ltd.); and other 

Commission actions discussed in several of these 

orders. In addition, the Commission has issued 

interim final temporary rules that provide 

exemptions under the Securities Act of 1933 and 

the Securities Exchange Act of 1934 for CDS to 

facilitate the operation of one or more central 

counterparties for the CDS market. See Securities 

Act Release Nos. 8999 (Jan. 14, 2009), 74 FR 3967 

(Jan. 22, 2009) (initial approval), 9063 (Sep. 14, 

2009), 74 FR 47719 (Sep. 17, 2009) (extension until 

Nov. 30, 2010), and 9158 (Nov. 30, 2010) (extension 

until Jul. 16, 2011). 

2Securities Exchange Act Release No. 59578 

(Mar. 13, 2009), 74 FR 11781 (Mar. 19, 2009) 

(‘‘March 2009 CME Exemptive Order’’). 

3Securities Exchange Act Release Nos. 61164 

(Dec. 14, 2009), 74 FR 67258 (Dec. 18, 2009) 

(‘‘December 2009 CME Exemptive Order’’); 61803 

(Mar. 30, 2010), 75 FR 17181 (Apr. 5, 2010) (‘‘March 

2010 CME Exemptive Order’’). 

4See Letter from Ann K. Shuman, Managing 

Director and Deputy General Counsel, CME, to 

Elizabeth Murphy, Secretary, Commission, Nov. 29, 

2010 (‘‘November 2010 Request’’). 

5Public Law 111–203 (July 21, 2010). 

6See Public Law 111–203, Preamble. 

7Section 761(a)(6) of the Dodd-Frank Act defines 

a ‘‘security-based swap’’ as any agreement, contract, 

or transaction that is a ‘‘swap,’’ as defined in Section 

1a(47) of the Commodity Exchange Act, 7 U.S.C. 

1a(47), that is based on an index that is a narrowbased security index, a single security, or a loan, 

including any interest therein or on the value 

thereof; or the occurrence, nonoccurrence, or extent 

of the occurrence of an event relating to a single 

issuer of a security or the issuers of securities in a 

narrow-based security index, provided that such 

event directly affects the financial statements, 

financial condition, or financial obligations of the 

issuer. See Section 3(a)(68) of the Securities 

Exchange Act of 1934 (‘‘Exchange Act’’), 15 U.S.C. 

78c(a)(68) (as added by Section 761(a)(6) of the 

Dodd-Frank Act). Section 712(d) of the Dodd-Frank 

Act provides that the Commission and the 

Commodity Futures Trading Commission (‘‘CFTC’’), 

in consultation with the Board of Governors of the 

Federal Reserve System, shall, among other things, 

jointly further define the terms ‘‘swap’’ and 

‘‘security-based swap.’’ 

8Section 761(a)(2) of the Dodd-Frank Act 

explicitly includes security-based swaps in the 

definition of ‘‘security’’ in Section 3(a)(10) of the 

Exchange Act, 15 U.S.C. 78c. 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/other.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number S7–16–09 on the subject line; 

or 

• Use the Federal eRulemaking Portal 

(http://www.regulations.gov/). Follow 

the instructions for submitting 

comments. 

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 S7–16–09. This file number 

should be included on the subject line 

if e-mail is used. To help us process and 

review your comments more efficiently, 

please use only one method. We will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/other.shtml). Comments are also 

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. All comments received 

will be posted without change; we do 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. 

III. Conclusion 

It is hereby ordered, pursuant to 

Section 36(a) of the Exchange Act, that, 

until July 16, 2011, the following 

exemptions connected with CDS 

clearing by ICE Clear Europe contained 

in the April 2010 ICE Clear Europe 

Exemptive Order are extended: (i) The 

temporary conditional exemption 

granted to ICE Clear Europe from 

clearing agency registration under 

Section 17A of the Exchange Act solely 

to perform the functions of a clearing 

agency for certain non-excluded CDS; 

(ii) the temporary conditional 

exemption of ICE Clear Europe and 

certain of its clearing members from the 

registration requirements of Sections 5 

and 6 of the Exchange Act solely in 

connection with the calculation of 

mark-to-market prices for certain nonexcluded CDS cleared by ICE Clear 

Europe; (iii) the temporary conditional 

exemption of ICE Clear Europe and 

certain eligible contract participants 

from certain Exchange Act requirements 

with respect to certain non-excluded 

CDS cleared by ICE Clear Europe; and 

(iv) the temporary conditional 

exemption from certain Exchange Act 

requirements granted to registered 

broker-dealers with respect to certain 

non-excluded CDS. 

By the Commission. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–30375 Filed 12–2–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63388; File No. S7–06–09] 

Order Extending Temporary 

Conditional Exemptions Under the 

Securities Exchange Act of 1934 in 

Connection With Request of Chicago 

Mercantile Exchange Inc. Related to 

Central Clearing of Credit Default 

Swaps and Request for Comment 

November 29, 2010. 

I. Introduction 

The Securities and Exchange 

Commission (‘‘Commission’’) has taken 

multiple actions designed to help foster 

the prompt development of credit 

default swap (‘‘CDS’’) central 

counterparties (‘‘CCP’’), including 

granting temporary conditional 

exemptions from certain provisions of 

the federal securities laws.1

In March 2009, the Commission 

issued an order providing temporary 

conditional exemptions to the Chicago 

Mercantile Exchange Inc. (‘‘CME’’), and 

certain other parties, to permit CME to 

clear and settle CDS transactions.2 In 

response to CME’s request, the 

Commission temporarily extended and 

expanded the exemptions in December 

2009 and in March 2010.3 The current 

exemptions pursuant to the March 2010 

CME Exemptive Order are scheduled to 

expire on November 30, 2010, and CME 

has requested that the Commission 

extend the exemptions contained in the 

March 2010 CME Exemptive Order.4

II. Discussion 

A. Legislative Developments 

Subsequent to the Commission’s 

issuance of the March 2010 CME 

Exemptive Order, the President signed 

the Dodd-Frank Wall Street Reform and 

Consumer Protection Act of 2010 

(‘‘Dodd-Frank Act’’) into law.5 The 

Dodd-Frank Act was enacted to, among 

other purposes, promote the financial 

stability of the United States by 

improving accountability and 

transparency in the financial system.6

To this end, the provisions of Title VII 

of the Dodd-Frank Act provide for the 

comprehensive regulation of securitybased swaps 7 by the Commission.8 The 

Dodd-Frank Act amends the Exchange 

Act to require, among other things, that 

mstockstill on DSKH9S0YB1PROD with NOTICES