Document ID: SEC-2010-1983-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Mercantile Exchange Inc.
Posted Date: 2010-12-22T05:00Z

[Federal Register Volume 75, Number 245 (Wednesday, December 22, 2010)]
[Notices]
[Pages 80551-80553]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32086]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63551; File No. SR-CME-2010-01]

 Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to Amendments to Chicago Mercantile Exchange's Rules Governing 
Contract Specifications for Physically Delivered Single Security 
Futures

December 15, 2010.
    Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 7, 2010, Chicago 
Mercantile Exchange Inc. (``CME'') filed with the Securities and 
Exchange Commission (``SEC'' or ``Commission'') the proposed rule 
change described in Items I and II below, which Items have been 
prepared by the self-regulatory organization. The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons. CME also has filed this proposed rule change 
concurrently with the Commodity Futures Trading Commission (``CFTC''). 
CME filed a written certification with the CFTC under Section 5c(c) of 
the Commodity Exchange Act on November 24, 2010.
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    \1\ 15 U.S.C. 78s(b)(7).

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[[Page 80552]]

I. Self-Regulatory Organization's Description of the Proposed Rule 
Change

    CME proposes to amend its Rules governing the trade of physically 
delivered single security futures. Specifically, the Exchange intends 
to delist futures on three (3) Exchange Traded Funds (ETFs), 
specifically the Nasdaq-100 Tracking Stock\SM\ (``QQQQ''), Standard & 
Poor's Depositary Receipts[supreg] (``SPDR'') and iShares Russell 2000 
(``IWM'').
    The text of the proposed rule changed [sic] is as follows (brackets 
indicate words to be deleted; italics indicate words to be added):

CHAPTER 710: PHYSICALLY DELIVERED SINGLE SECURITY FUTURES 71004. 
APPROVED SECURITIES

    The following securities have been approved by the Board of 
Directors as the subject of Physically Delivered Single Security 
Futures Contracts:

----------------------------------------------------------------------------------------------------------------
                                                                                              Position limit in
          Approved security                  Unit of trading          Minimum fluctuation   expiring contract in
                                                                                             last 5 trading days
----------------------------------------------------------------------------------------------------------------
[Nasdaq-100 Tracking Stock\SM\        [200 Shares]................  [$0.01 or $2.00 per                 [11,250]
 (``QQQQ'')].                                                        contract].
[Standard & Poor's Depositary         [100 Shares]................  [$0.01 or $1.00 per                 [22,500]
 Receipts[supreg] (``SPDR'')].                                       contract].
[iShares Russell 2000 (``IWM'')]....  [200 Shares]................  [$0.01 or $2.00 per                 [11,250]
                                                                     contract].
----------------------------------------------------------------------------------------------------------------

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 self-regulatory organization 
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 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 the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    CME intends to delist futures on three (3) Exchange Traded Funds 
(ETFs), specifically the Nasdaq-100 Tracking Stock\SM\ (``QQQQ''), 
Standard & Poor's Depositary Receipts[supreg] (``SPDR'') and iShares 
Russell 2000 (``IWM''), because trading activity has been de minimis in 
these products as illustrated below.

                          Average Daily Volume
------------------------------------------------------------------------
                                        Jan-Oct 2010          2009
------------------------------------------------------------------------
Nasdaq-100 Tracking Stock\SM\                        1                 1
 (``QQQQ'').........................
Standard & Poor's Depositary                         4                 7
 Receipts[supreg] (``SPDR'')........
iShares Russell 2000 (``IWM'')......                 0                 0
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2. Statutory Basis
    CME believes that the proposed delistings are consistent with 
Section 6 of the Act.\2\ CME believes the rule changes are designed to 
prevent fraudulent and manipulative acts and practices, to promote just 
and equitable principles of trade, and, in general to protect investors 
and the public interest, because the proposed rule change merely 
delists products that have had a de minimus amount of historical 
trading activity on CME.
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    \2\ 15 U.S.C. 78f(b).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    CME does not believe that the proposed action will have an impact 
on competition because the proposed rule change merely delists products 
that have had a de minimus amount of historical trading activity on 
CME.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Comments on the proposed rule change have not been solicited.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change has become effective on December 7, 2010. 
However, CME intends to implement this delisting in such a way as to 
avoid impacting any current positions in these markets. Accordingly, 
CME will not delist any contract months while there are open positions. 
Rather, CME will simply refrain from listing any new contracts. To the 
extent that open interest declines to zero in any contract month listed 
subsequent to December 7, 2010, CME shall retire that contract month. 
Note that, as of Friday, November 12, 2010, there were a total of 14 
open positions in the SPDR contract with 5 open contracts in December 
2010 and 9 open contracts in January 2011. There was a total of 9 open 
positions in the QQQQ contract, all held in the December 2010 contract. 
Finally, there were zero (0) open positions held in the IWN [sic] 
contract.
    Within 60 days of the date of effectiveness of the proposed rule 
change, the Commission, after consultation with the CFTC, may summarily 
abrogate the proposed rule change and require that the proposed rule 
change be refiled in accordance with the provisions of Section 19(b)(1) 
of the Act.\3\
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    \3\ 15 U.S.C. 78s(b)(1).
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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:

[[Page 80553]]

Electronic Comments

     Use 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 Number SR-CME-2010-01 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-CME-2010-01. 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 inspection and 
copying 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 the filing also will be available for 
inspection and copying at the principal office of the Exchange.\4\ 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-2010-01 and should be 
submitted on or before January 12, 2011.
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    \4\ The text of the proposed rule change is available on the 
Commission's Web site at http://www.sec.gov.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-32086 Filed 12-21-10; 8:45 am]
BILLING CODE 8011-01-P