Federal Register / Vol. 79, No. 213 / Tuesday, November 4, 2014 / Notices 65463 

126 15 U.S.C. 78s(b)(2). 

127 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)(2). 5 15 U.S.C. 78q–1. 

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 the 

filing also will 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 Number SR–EDGX– 

2014–18 and should be submitted on or 

before November 25, 2014. 

VI. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,126 that the 

proposed rule change (SR–EDGX–2014– 

18), as modified by Amendment Nos. 1 

and 3, be, and hereby is, approved on 

an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.127

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–26127 Filed 11–3–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73465; File No. SR–CME– 

2014–44] 

Self-Regulatory Organizations; 

Chicago Mercantile Exchange Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Regarding Modifications to Its 

OTC IRS Fee Schedule 

October 29, 2014. 

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

Securities Exchange Act of 1934 (‘‘Act’’ 

or ‘‘Exchange Act’’),1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on October 20, 2014, 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 primarily 

prepared by CME. CME filed the 

proposal pursuant to Section 19(b)(3)(A) 

of the Act,3 and Rule 19b–4(f)(2) 4

thereunder, so that the proposal was 

effective upon filing with the 

Commission. 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 

CME is filing proposed rule changes 

that are limited to its business as a 

derivatives clearing organization. More 

specifically, the proposed rule changes 

would modify the fee schedule 

applicable to its over-the-counter 

(‘‘OTC’’) interest rate swap (‘‘IRS’’) 

clearing offering. 

II. Self-Regulatory Organization’s 

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 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 is registered as a derivatives 

clearing organization with the 

Commodity Futures Trading 

Commission (‘‘CFTC’’) and currently 

offers clearing services for many 

different futures and swaps products. 

With this filing, CME proposes to 

modify the fee schedule (the ‘‘Fee 

Schedule’’) that applies to OTC IRS 

cleared at CME. 

The propose fee changes relate to 

back-loaded trades submitted by IRS 

Clearing Members. The proposed 

changes are limited to the current CME 

OTC Interest Rate Swaps IRS Clearing 

Member Fee Schedule and would not 

impact the corresponding OTC IRS 

Customer Fee Schedule. The proposed 

modifications would simply make 

amendments to certain exceptions that 

apply to the basic transaction fee 

charged to IRS Clearing Members for 

OTC IRS. Currently, transaction fees are 

eligible for waiver on all back-loaded 

trades, which are defined as trades 

‘‘where the Trade Date is prior to the 

Cleared Date’’—the amendments would 

change this definition so that 

backloaded trades for these purposes 

would instead be defined as trades 

where the Trade Date is at least five 

days prior to the Cleared Date. In 

addition, the amendments would make 

clear that transaction fees will be 

waived on all trades executed to 

facilitate client terminations, defined as 

where the Effective Date is no more than 

the Standard Day Offset for that 

currency denomination after the Trade 

Date, rather than Cleared Date. 

The changes that are described in this 

filing impact fees that are limited to 

CME’s business as a derivatives clearing 

organization clearing products under 

the exclusive jurisdiction of the CFTC 

and do not materially impact CME’s 

security-based swap clearing business in 

any way. The fee changes would 

become effective immediately but 

would be operationalized on November 

1, 2014. CME notes that it has already 

submitted the proposed rule changes 

that are the subject of this filing to its 

primary regulator, the CFTC, in CME 

Submission 14–442. 

CME believes the proposed rule 

changes are consistent with the 

requirements of the Exchange Act 

including Section 17A of the Exchange 

Act.5 More specifically, the proposed 

rule changes establish or change a 

member due, fee or other charge 


rmajette on DSK3VPTVN1PROD with NOTICES
65464 Federal Register / Vol. 79, No. 213 / Tuesday, November 4, 2014 / Notices 

6 15 U.S.C. 78s(b)(3)(A)(ii). 

7 17 CFR 240.19b–4(f)(2). 

8 15 U.S.C. 78q–1(b)(3)(D). 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(2). 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(2). 

13 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)(6). 

imposed by CME under Section 

19(b)(3)(A)(ii) 6 of the Securities 

Exchange Act of 1934 and Rule 19b– 

4(f)(2) 7 thereunder. CME believes that 

the proposed fee change is consistent 

with the requirements of the Securities 

Exchange Act of 1934 and the rules and 

regulations thereunder and, in 

particular, to 17A(b)(3)(D),8 because the 

proposed fee changes apply equally to 

all OTC IRS Clearing Members at CME 

and therefore the proposed changes 

provide for the equitable allocation of 

reasonable dues, fees and other charges 

among participants. CME also notes that 

it operates in a highly competitive 

market in which market participants can 

readily direct business to competing 

venues. For these reasons, the proposed 

changes are appropriately filed pursuant 

to Section 19(b)(3)(A) 9 of the Act and 

paragraph (f)(2) of Rule 19b–4 

thereunder.10

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. The proposed change to 

the definition of a back-loaded trade for 

purposes of establishing a fee waiver 

that applies equally to all IRS Clearing 

Members at CME. Back-loaded 

transactions will now be defined as 

where the trade date for the transaction 

is at least five days prior to the cleared 

date and, thus, by definition, are 

transactions which have already 

occurred well before clearing. Backloaded transactions promote the general 

goal of increasing central clearing of 

OTC derivatives products. Further, OTC 

IRS are swaps under the exclusive 

jurisdiction of the CFTC, and, as such, 

these proposed fee changes do not affect 

the security-based swap clearing 

activities of CME in any way and 

therefore do not impose any burden on 

competition that is inappropriate 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 

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 become 

effective pursuant to Section 

19(b)(3)(A) 11 of the Act and paragraph 

(f)(2) of Rule 19b–4 12 thereunder. 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. 

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 No. SR– 

CME–2014–44 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–CME–2014–44. 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/marketregulation/rule-filings.html. 

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–2014–44 and should 

be submitted on or before November 25, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–26126 Filed 11–3–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73460; File No. SR–CBOE– 

2014–080] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Related To Extending the 

FLEX Exercise Settlement Values Pilot 

October 29, 2014. 

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 October 

16, 2014, the Chicago Board Options 

Exchange, Incorporated (‘‘Exchange’’ or 

‘‘CBOE’’) filed with the Securities and 

Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange has 

designated the proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6) thereunder.4

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 extend the 

operation of its Flexible Exchange 


rmajette on DSK3VPTVN1PROD with NOTICES