Document ID: SEC-2014-1710-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Mercantile Exchange Inc.
Posted Date: 2014-10-08T04:00Z

[Federal Register Volume 79, Number 195 (Wednesday, October 8, 2014)]
[Notices]
[Pages 60873-60874]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-23983]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73290; File No. SR-CME-2014-31]

Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; 
Notice of Designation of Longer Period for Commission Action on 
Proposed Rule Change, as Modified by Amendment No. 2, Related to 
Clearing of Certain iTraxx Europe Index Untranched CDS Contracts on 
Indices Administered by Markit

October 2, 2014.
    On August 11, 2014, Chicago Mercantile Exchange Inc. (``CME'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change SR-CME-2014-31 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 August 18, 2014.\3\ The Commission has not 
received comments on the proposed rule change. On September 2, 2014, 
CME filed Amendment No. 2 to the proposed rule change.\4\ The 
Commission is publishing this notice to designate a longer period for 
Commission action on the proposed rule change, as modified by Amendment 
No. 2.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 34-72833 (Aug. 13, 
2014), 79 FR 48797 (Aug. 18, 2014) (SR-CME-2014-31).
    \4\ On August 18, 2014, CME filed Amendment No. 1 to the 
proposed rule change. CME withdrew Amendment No. 1 on August 29, 
2014. CME subsequently filed Amendment No. 2 to the proposed rule 
change. Amendment No. 2 is currently pending Federal Register 
publication. See Securities Exchange Act Release No. 34-73275 (Oct. 
1, 2014), 79 FR _-- (Oct. _, 2014) (SR-CME-2014-31).
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    Section 19(b)(2) of the Act \5\ provides that within 45 days of the 
publication of

[[Page 60874]]

notice of the filing of a proposed rule change, or within such longer 
period up to 90 days as the Commission may designate if it finds such 
longer period to be appropriate and publishes its reasons for so 
finding or as to which the self-regulatory organization consents, the 
Commission shall either approve the proposed rule change, disapprove 
the proposed rule change, or institute proceedings to determine whether 
the proposed rule change should be disapproved. The 45th day from the 
publication of notice of filing of this proposed rule change is October 
2, 2014. The Commission is extending this 45-day time period.
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    \5\ 15 U.S.C. 78s(b)(2).
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    CME is proposing to amend its clearing rules to enable CME to offer 
clearing of certain iTraxx Europe index untranched credit default swap 
(``CDS'') contracts on indices administered by Markit (``iTraxx 
Contracts''). In addition, CME has submitted to the Commission a 
proposed rule change to modify its risk model for broad-based index CDS 
products, including adding a self-referencing risk component, to enable 
CME to offer, among other things, clearing of additional CDS 
instruments that entail self-referencing risk, such as the iTraxx 
Contracts.\6\ The clearing of iTraxx Contracts is contingent upon the 
approval of the proposed rule change with respect to the risk model, 
including the self-referencing risk component designed for clearing 
iTraxx Contracts, which is currently pending with the Commission. The 
Commission therefore finds it appropriate to designate a longer period 
within which to take action on the proposed rule change so that it has 
sufficient time to consider the complex issues under the proposed rule 
change.
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    \6\ See Securities Exchange Act Release No. 34-72834 (Aug. 13, 
2014), 79 FR 48805 (Aug. 18, 2014) (SR-CME-2014-28) and Securities 
Exchange Act Release No. 34-72959 (Sep. 2, 2014), 79 FR 53234 (Sep. 
8, 2014) (SR-CME-2014-28).
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    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\7\ designates November 16, 2014, as the date by which the 
Commission should either approve or disapprove, or institute 
proceedings to determine whether to disapprove, the proposed rule 
change (File No. SR-CME-2014-31).
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(31).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-23983 Filed 10-7-14; 8:45 am]
BILLING CODE 8011-01-P