Federal Register / Vol. 77, No. 59 / Tuesday, March 27, 2012 / Notices 18287 

23 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. 78f(b). 

4 15 U.S.C. 78f(b)(4). 

5 15 U.S.C. 78s(b)(3)(A). 

6 17 CFR 240.19b–4(f). 

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–NSCC–2012–04. 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 filings 

also will be available for inspection and 

copying at the principal office of NSCC 

and on NSCC’s Web site at http://www.

dtcc.com/downloads/legal/rule_filings/

2012/nscc/2012–04.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–NSCC–2012–04 and should 

be submitted on or before April 17, 

2012. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Kevin O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–7276 Filed 3–26–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66639; File No. SR–C2– 

2012–009] 

Self-Regulatory Organizations; C2 

Options Exchange, Incorporated; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend Its Fees Schedule 

March 21, 2012. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on March 19, 

2012, C2 Options Exchange, 

Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) 

filed with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III 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 

The Exchange proposes to amend its 

Fees Schedule. The text of the proposed 

rule change is available on the 

Exchange’s Web site (http:// 

www.c2exchange.com/Legal/), at the 

Exchange’s Office of the Secretary, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange 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. The 

Exchange 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 

The Exchange currently lists on its 

Fees Schedule the fingerprint 

processing fees that are collected and 

retained by the Financial Industry 

Regulatory Authority, Inc. (‘‘FINRA’’) 

via its Web CRDSM registration system 

for the registration of associated persons 

of Exchange Trading Permit Holder 

(‘‘TPH’’) and TPH organizations that are 

not also FINRA members. The Exchange 

was recently notified by FINRA that, 

effective March 19, 2012, FINRA is 

decreasing the per card Initial 

Submission and Third Submission fees 

from $30.25 to $27.50. As such, the 

Exchange proposes to amend its Fees 

Schedule to reflect this change. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the Act 

and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.3 Specifically, 

the Exchange believes the proposed rule 

change is consistent with Section 6(b)(4) 

of the Act,4 which provides that 

Exchange rules may provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among its 

Trading Permit Holders and other 

persons using its facilities. The 

proposed change is reasonable because 

the fees for fingerprint processing will 

now be lower than it previously was. 

The proposed change is equitable and 

not unfairly discriminatory because the 

new, lower fingerprint processing fees 

will apply to all eligible parties. Further, 

this fee is not being assessed or set by 

the Exchange, but by FINRA. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

C2 does not believe that the proposed 

rule change will impose any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A) 5 of the Act and paragraph (f) 

of Rule 19b–4 6 thereunder. At any time 

within 60 days of the filing of the 

proposed rule change, the Commission 

mstockstill on DSK4VPTVN1PROD with NOTICES

18288 Federal Register / Vol. 77, No. 59 / Tuesday, March 27, 2012 / Notices 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 

• Use the Commission’s Internet 

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

rules/sro.shtml); or 

• Send an email to rulecomments@sec.gov. Please include File 

Number SR–C2–2012–009 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–C2–2012–009. 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 

will also be available for inspection and 

copying at the principal office of the 

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 No. SR–C2–2012– 

009 and should be submitted on or 

before April 17, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–7281 Filed 3–26–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66641; File No. SR–CME– 

2012–05] 

Self-Regulatory Organizations; 

Chicago Mercantile Exchange Inc.; 

Notice of Filing and Order Granting 

Accelerated Approval of Proposed 

Rule Change To Amend Its Rules 

Relating to Interest Rate Swaps 

Clearing 

March 21, 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 March 8, 

2012, the 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. The Commission is 

publishing this Notice and Order to 

solicit comments on the proposed rule 

change from interested persons and to 

approve the proposed rule change on an 

accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of Terms of Substance of the 

Proposed Rule Change 

CME proposes to amend rules related 

to its interest rate swaps and interest 

rate futures currency businesses by 

establishing a portfolio margining 

program for proprietary portfolios 

containing interest rate swaps and 

futures positions. The text of the 

proposed rule change is available at 

CME’s Web site at http:// 

www.cmegroup.com/market-regulation/ 

rule-filings.html. 

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 III 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 is registered as a derivatives 

clearing organization (‘‘DCO’’) with the 

Commodity Futures Trading 

Commission (‘‘CFTC’’) and currently 

operates a substantial business clearing 

both interest rate swaps (‘‘IRS’’) and 

interest rate futures contracts. The 

changes that are the subject of this filing 

are proposed rules that would establish 

a portfolio margining program for 

proprietary portfolios containing IRS 

and interest rate futures positions. More 

specifically, the proposed changes 

include: new rules regarding portfolio 

margining; amendments to existing CME 

rules relating to its IRS Guaranty Fund 

Allocation rules; IRS Guaranty Fund 

Application rule amendments; and 

amendments to rules dealing with 

outsourcing to third parties. CME will 

also make corresponding changes to its 

Manual of Operations for CME Cleared 

Interest Rate Swaps. The specific rule 

amendments are discussed in more 

detail below. 

CME notes that it has also submitted 

the proposed changes that are the 

subject of this filing to its primary 

regulator, the CFTC. CME expects that 

the proposed changes will be effective 

with the CFTC as of March 14, 2012. As 

described more below, CME believes 

there is good cause for the Commission 

to grant approval for the proposed rule 

changes on an accelerated basis so that 

they become effective with the 

Commission as of March 30, 2012. 

1. Portfolio Margining Among Eligible 

Futures Products and IRS; Comingling 

of Related Positions 

The proposed CME rule amendments 

would establish a portfolio margining 

program (‘‘Program’’) for portfolios 

containing IRS and Interest Rate Futures 

positions in order for eligible clearing 

members to receive risk offsets across 

CME’s listed interest rate futures and 

cleared interest rate swap product suite. 

These amendments will appear in CME 

Rule 8G831 and certain related changes 

to existing CME Rule 802. 

To participate in the Program a 

Clearing Member must under the 

proposed rules be both an IRS Clearing 

Member and a CME Clearing Member. 

The listed interest rate products that 

will be eligible for this program will be 

those with price risks that are 

mstockstill on DSK4VPTVN1PROD with NOTICES