Federal Register / Vol. 76, No. 162 / Monday, August 22, 2011 / Notices 52373 

11 17 CFR 200.30–3(a)(12). 

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)(ii). 

5Supra note 3. 

6Supra note 4. 

7The Commission notes that the proposed rule 

change became effective upon filing under Section 

19(b)(3)(A) of the Act. CME’s statement indicates 

that the proposed rule change, which became 

effective on August 5, 2011, will not become 

operative until August 9, 2011. 

Exchange. 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–Phlx– 

2011–112 and should be submitted on 

or before September 12, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–21321 Filed 8–19–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65141; File No. SR–CME– 

2011–01] 

Self-Regulatory Organizations; 

Chicago Mercantile Exchange, Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Adopt a New Rule 

Regarding Liens on Collateral That 

Relates Solely to Its Futures Clearing 

Operations 

August 16, 2011. 

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 August 5, 

2011, Chicago Mercantile Exchange Inc. 

(‘‘CME’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change described in 

Items I and II 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)(ii) 4 thereunder. 

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. 

* * * * * 

Rule 819. [Reserved] Lien on 

Collateral. 

Each Clearing Member hereby grants 

to the Clearing House a first priority and 

unencumbered lien, as security for all 

obligations of such Clearing Member to 

the Clearing House, against any 

property and collateral deposited with 

the Clearing House by the Clearing 

Member which is the property of the 

Clearing Member. Clearing Members 

shall execute any documents required 

by CME to create and enforce such lien. 

II. Self-Regulatory Organization’s 

Statement of Purpose of, and Statutory 

Basis for, the Proposed Rule Change 

In its filing with the Commission, the 

self-regulatory organization 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. 

The self-regulatory organization 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 

Current CME Rule 902.F provides that 

‘‘[e]ach Clearing Member hereby grants 

to the Clearing House a first priority and 

unencumbered lien against all 

memberships required for clearing 

membership by the Exchange.’’ Other 

CME rules in Chapters 8 and 9 of the 

CME rulebook address the CME Clearing 

House’s security interest in CME 

clearing member’s guaranty fund and 

performance bond deposits (perfected 

by possession of the collateral), but do 

not contain the type of express language 

as appears in Rule 902.F. In order to 

more clearly indicate CME Clearing’s 

security interest in CME clearing 

member’s guaranty fund and 

performance bond deposits, CME 

proposes to adopt new CME Rule 819, 

which states as follows: 

Each Clearing Member hereby grants 

to the Clearing House a first priority and 

unencumbered lien, as security for all 

obligations of such Clearing Member to 

the Clearing House, against any property 

and collateral deposited with the 

Clearing House by the Clearing Member 

which is the property of the Clearing 

Member. Clearing Members shall 

execute any documents required by 

CME to create and enforce such lien. 

The proposed rule language mirrors 

that of CME Rule 8F008 (Lien on 

Collateral), in Chapter 8F (Over-theCounter Derivative Clearing) of the CME 

rule book, which states that ‘‘[e]ach OTC 

Clearing Member hereby grants to CME 

a first priority and unencumbered lien 

against any cash, securities or other 

collateral deposited with the Clearing 

House by the OTC Clearing Member 

which is the property of the OTC 

Clearing Member. OTC Clearing 

Members shall execute any documents 

required by CME to create and enforce 

such lien.’’ 

New proposed Rule 819 only affects 

the futures clearing operations of CME. 

It does not significantly affect any 

securities clearing operations of CME or 

any related rights or obligations of CME 

clearing members. As discussed above, 

current CME Rule 8F008 currently 

applies to CME clearing members and is 

the operative rule covering the subject 

matter of proposed Rule 819 with 

respect to CME’s security-based swaps 

clearing activities. As such, the 

proposed rule change effects a change in 

an existing service of a registered 

clearing agency that primarily affects 

the futures clearing operations of the 

clearing agency with respect to futures 

that are not security futures and does 

not significantly affect any securities 

clearing operations of the clearing 

agency or any related rights or 

obligations of the clearing agency or 

persons using such service. 

CME also submitted a filing to the 

Commodity Futures Trading 

Commission (‘‘CFTC’’) regarding 

proposed Rule 819 pursuant to CFTC 

Regulation 40.6 on July 26, 2011 with a 

proposed effective date of August 9, 

2011 (that is, ten business days after the 

date of the submission). 

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 has been 

filed pursuant to Section 19(b)(3)(A) 5 of 

the Act and paragraph (f)(4)(ii) of Rule 

19b–4 6 thereunder and will become 

effective on August 9, 2011,7 the same 

date CME’s corresponding filing with 


jlentini on DSK4TPTVN1PROD with NOTICES
52374 Federal Register / Vol. 76, No. 162 / Monday, August 22, 2011 / Notices 

8 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3NOM Rule Chapter VI, Section 11; See 

Securities Exchange Act Release No. 57478 (March 

12, 2008), 73 FR 14521 (March 18, 2008) (SR– 

NASDAQ–2007–004; SR–NASDAQ–2007–080). 

4See Securities Exchange Act Release Nos. 58179 

(July 17, 2008), 73 FR 42874 (July 23, 2008) (SR– 

Phlx–2008–31); 61667 (March 5, 2010), 75 FR 11964 

(March 12, 2010) (SR–Phlx-2010–36); 61668 (March 

5, 2010), 75 FR 12323 (March 15, 2010) (SR– 

NASDAQ–2010–028); 63873 (February 9, 2011), 76 

FR 8798 (February 15, 2011) (SR–Phlx–2011–16). 

5The Exchange has filed a separate proposal with 

the Commission seeking permanent approval of the 

Phlx and NOS routing relationship. See SR–Phlx– 

2011–111. 

6 15 U.S.C. 78f. 

7 15 U.S.C. 78f(b)(5). 

the CFTC becomes effective. 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 e-mail 

to rule-comments@sec.gov. Please 

include File No. SR–CME–2011–01 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–2011–01. This file 

number should be included on the 

subject line if e-mail 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 website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street, NE., 

Washington, DC 20549. 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–2011–01 and should 

be submitted on or before September 12, 

2011. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–21348 Filed 8–19–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65140; File No. SR–Phlx2011–116] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Extending the 

Pilot Period To Receive Inbound 

Routes of Orders From NASDAQ 

Options Services 

August 16, 2011. 

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 August 

11, 2011, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Phlx submits this proposed rule 

change to extend the pilot period of 

Phlx’s prior approval to receive inbound 

routes of certain option orders from 

Nasdaq Options Services, LLC (‘‘NOS’’) 

through November 25, 2011. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

Phlx 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. Phlx 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 

1. Purpose 

Currently, NOS is the approved 

outbound routing facility of The 

NASDAQ Stock Market LLC 

(‘‘NASDAQ’’) for options, providing 

outbound routing from The NASDAQ 

Option Market (‘‘NOM’’) to other market 

centers.3 Phlx also has been previously 

approved to receive inbound routes of 

certain option orders by NOS in its 

capacity as an order routing facility of 

NASDAQ for NOM on a pilot basis.4

The Exchange hereby seeks to extend 

the previously approved pilot period for 

such inbound routing (with the 

attendant obligations and conditions) 

for an additional 3 months through 

November 25, 2011.5

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,6

in general, and with Section 6(b)(5) of 

the Act,7 in particular, in that the 

proposal is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

Specifically, the proposed rule change 

will allow the Exchange to continue 

receiving inbound routes of option 

orders from NOS acting in its capacity 

as a facility of NASDAQ for NOM, in a 

manner consistent with prior approvals 

and established protections. The 

Exchange believes that extending the 

previously approved pilot period for 

three months is of sufficient length to 

permit both the Exchange and the 


jlentini on DSK4TPTVN1PROD with NOTICES