Document ID: SEC-2014-0092-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Mercantile Exchange, Inc.
Posted Date: 2014-01-17T05:00Z

[Federal Register Volume 79, Number 12 (Friday, January 17, 2014)]
[Notices]
[Page 3261]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-00834]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71218; File No. SR-CME-2013-24]

Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; 
Order Approving Proposed Rule Change Regarding the Designation of a 
Primary Backup Data Center

December 31, 2013.

I. Introduction

    On November 15, 2013, Chicago Mercantile Exchange Inc. (``CME'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change (SR-CME-2013-24) pursuant to Section 19(b)(1) of 
the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 
thereunder.\2\ The proposed rule change was published for comment in 
the Federal Register on November 27, 2013.\3\ The Commission received 
no comment letters regarding the proposal. For the reasons discussed 
below, the Commission is granting approval of the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 34-70917 (November 21, 
2013), 78 FR 71015 (November 27, 2013).
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II. Description

    CME is proposing to activate its New York Data Center (``1NE Data 
Center'') as its primary backup data center. The 1NE Data Center 
currently operates in part as a tertiary data center for CME. CME has 
proposed that the 1NE Data Center will be redesigned and will become 
the primary backup data center in place of CME's current backup data 
center, the Remote Data Center (``RDC''). In addition to housing CME's 
New York trading floor and office staff systems, the 1NE Data Center 
will house CME's primary back-up for electronic trading, clearing, and 
regulatory infrastructures. CME has stated that because the 1NE Data 
Center will be located in a distinct geographic area from CME's primary 
facility, the proposal to relocate the primary backup data facility 
will mitigate risks associated with a large scale disruption associated 
with only one geographical area (for example, a weather event). Because 
the 1NE Data Center will feature single IP connectivity, CME's 
customers will not have to change their configurations or take any 
additional steps to connect to the 1NE Data Center and the risk of 
disruptions in connectivity will be decreased.
    CME has stated that the proposal will help to ensure that CME has 
sufficient physical, technological and personnel resources to enable 
the timely recovery and resumption of operations following disruptions, 
resulting in an increase in reliability and security of its backup data 
facilities. The proposed change does not involve any changes to CME's 
rulebook.

III. Discussion and Commission Findings

    Section 19(b)(2)(C) of the Act \4\ directs the Commission to 
approve a proposed rule change of a self-regulatory organization if the 
Commission finds that such proposed rule change is consistent with the 
requirements of the Act \5\ and the rules and regulations thereunder 
applicable to such self-regulatory organization. Section 17A(b)(3)(F) 
of the Act \6\ requires, among other things, that the rules of a 
clearing agency are designed to promote the prompt and accurate 
clearance and settlement of securities transactions and, to the extent 
applicable, derivative agreements, contracts, and transactions, to 
assure the safeguarding of securities and funds which are in the 
custody or control of the clearing agency and for which it is 
responsible and, in general, to protect investors and the public 
interest. The Commission finds that the proposed rule change is 
designed to enhance CME's business continuity program and data 
reliability and security and thereby (1) promote the prompt and 
accurate clearance and settlement of securities transactions and, to 
the extent applicable, derivatives agreements, contracts, and 
transactions; (2) help to assure the safeguarding of securities and 
funds which are in the custody or control of CME; and (3) help to 
protect investors and the public interest, consistent with the 
requirements of Section 17A(b)(3)(F) of the Act.\7\
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    \4\ 15 U.S.C. 78s(b)(2)(C).
    \5\ 15 U.S.C. 78s(b)(1).
    \6\ 15 U.S.C. 78q-1(b)(3)(F).
    \7\ 15 U.S.C. 78q-1(b)(3)(F).
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IV. Conclusion

    On the basis of the foregoing, the Commission finds that the 
proposal is consistent with the requirements of the Act and in 
particular with the requirements of Section 17A of the Act \8\ and the 
rules and regulations thereunder.
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    \8\ 15 U.S.C. 78q-1.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule change (File No. SR-CME-2013-24) be, and 
hereby is, approved.\10\
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    \9\ 15 U.S.C. 78s(b)(2).
    \10\ In approving the proposed rule change, the Commission 
considered the proposal's impact on efficiency, competition and 
capital formation. 15 U.S.C. 78c(f).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2014-00834 Filed 1-16-14; 8:45 am]
BILLING CODE 8011-01-P