Federal Register / Vol. 79, No. 238 / Thursday, December 11, 2014 / Notices 73655 

16 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)(ii). 

4 17 CFR 240.19b–4(f)(2). 

5 15 U.S.C. 78q–1. 

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)(ii). 

10 17 CFR 240.19b–4(f)(2). 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–EDGA– 

2014–29 and should be submitted on or 

before January 2, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29007 Filed 12–10–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73752; File No. SR–CME– 

2014–55] 

Self-Regulatory Organizations; 

Chicago Mercantile Exchange Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Amend the Fee Schedule 

Applicable to Its OTC Credit Default 

Swap Clearing Offering 

December 5, 2014. 

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 December 

1, 2014, Chicago Mercantile Exchange 

Inc. (‘‘CME’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II and III 

below, which Items have been prepared 

primarily by CME. CME filed the 

proposal pursuant to Section 

19(b)(3)(A)(ii) 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 proposing to amend the fee 

schedule that currently applies to its 

OTC Credit Default Swap (‘‘CDS’’) index 

clearing offering. The text of the 

proposed rule change is available on 

CME’s Web site at http://

www.cmegroup.com, at the principal 

office of CME, 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, 

CME 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. CME has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of these 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 make 

certain amendments to the current fee 

schedule that applies to its OTC CDS 

index clearing offering. The changes 

described in this filing are limited to 

products that fall under the exclusive 

jurisdiction of the CFTC. 

The first set of proposed 

modifications specifies the fees that will 

apply to iTraxx Index Products that will 

be cleared by CME once the product is 

made available for clearing. This is 

scheduled to occur on December 8, 2014 

or whenever applicable regulatory 

approvals are obtained. In general, 

iTraxx products will have the same fee 

schedule as the similar North American 

CDX products that CME currently 

clears, but will be charged in Euros as 

opposed to U.S. Dollars. Additionally, 

the proposed modifications will also 

feature a temporary discount on these 

products to all clients. 

The second set of proposed 

modifications relate to the volumebased tiers that are currently offered in 

connection with CME’s North American 

CDX index product offering. These 

proposed modifications would lower 

certain of the current tier thresholds. 

These changes would become 

operational on January 1, 2015. 

The proposed fee changes are limited 

to CME’s business as a derivatives 

clearing organization clearing products 

and do not impact security-based swaps 

in any way. CME has also certified the 

proposed rule changes that are the 

subject of this filing to the CFTC in 

CFTC Submission 14–441. 

CME believes the proposed rule 

change is consistent with the 

requirements of the Act including 

Section 17A of the Act.5 More 

specifically, the proposed rule change 

establishes or changes a member due, 

fee or other charge imposed by CME 

under Section 19(b)(3)(A)(ii) 6 of the Act 

and Rule 19b–4(f)(2) 7 thereunder. CME 

believes that the proposed fee change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder and, in particular, to Section 

17A(b)(3)(D) of the Act,8 because the 

proposed fee changes apply equally to 

all market participants clearing covered 

products 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. As such, the 

proposed changes are appropriately 

filed pursuant to Section 19(b)(3)(A)(ii) 9

of the Act and Rule 19b–4(f)(2) 10

thereunder. 

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 

modifications will introduce pricing for 

a new OTC CDS index swap offering 

and will make minor modifications to 

the pricing schedules for current OTC 

CDS index clearing offerings. These 

products are swaps under the exclusive 

jurisdiction of the CFTC, and, as such, 

these proposed 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 upon filing pursuant to Section 

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73656 Federal Register / Vol. 79, No. 238 / Thursday, December 11, 2014 / Notices 

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

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)(iii). 

5The Exchange currently offers logical ports 

through which orders are submitted to the 

Exchange, receive drop copies of orders and 

execution messages, and receive transmission of 

depth of book data (‘‘Logical Ports’’). Each Logical 

Port is assigned an access gateway that performs 

order validations and manages the cycle of a 

submitted order’s flow of information back to the 

Member. The access gateway performs functions 

such as message validation, acknowledgement 

messaging, risk checks, matching engine routing 

and execution messaging. The Exchange currently 

assigns Members’ and non-Members’ Logical Ports 

to the access gateways through a standard method 

that accounts for the relative message traffic 

expected over the Logical Port as well as 

redundancy requirements, where an access gateway 

contains assigned Logical Ports for a number of 

firms. The Exchange assigns Member and nonMember sessions to multiple access gateways so 

that the failure of one gateway may not result in the 

loss of access. 

6See Securities Exchange Act Release No. 69855 

(June 25, 2013), 78 FR 39386 (SR–EDGX–2013–21) 

(Notice of Filing and Immediate Effectiveness of 

Proposed Rule Change to Offer and Establish Fees 

for a New Exchange Service, EdgeRisk Gateways). 

19(b)(3)(A)(ii) 11 of the Act and Rule 

19b–4(f)(2) 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 Number SR– 

CME–2014–55 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–2014–55. 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 

filings will also 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–2014–55 and should 

be submitted on or before January 2, 

2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29003 Filed 12–10–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73760; File No. SR–EDGX– 

2014–29] 

Self-Regulatory Organizations; EDGX 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Eliminate Reference to 

the EdgeRisk Gateway in Rule 13.10 of 

EDGX Exchange, Inc. 

December 5, 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 November 

25, 2014, EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX’’) 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 Exchange has 

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

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

Act 3 and Rule 19b–4(f)(6)(iii) 

thereunder,4 which renders it 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 

The Exchange is proposing to 

eliminate reference in Rule 13.10 to the 

EdgeRisk GatewaySM, which is a risk 

management tool that is to be 

discontinued by the Exchange. The 

Exchange also proposes to delete the 

fees related to EdgeRisk GatewaySM

from its fee schedule. 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at http://www.directedge.com/, at the 

principal office of the Exchange, 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to delete 

reference to the EdgeRisk GatewaySM in 

Rule 13.10 as well as its related fees 

from the Exchange’s fee schedule. In 

sum, the EdgeRisk GatewaySM is an 

optional fee-based risk management tool 

that provides Members and nonMembers the option to obtain dedicated 

primary and backup access gateways 5

in addition to, or in place of, a shared 

access gateway.6 The tool was intended 

to assist subscribers’ efforts to mitigate 

the risks associated with disruptions 

caused by excessive message traffic or 

programming mistakes experienced via 

mstockstill on DSK4VPTVN1PROD with NOTICES