Document ID: SEC-2012-1603-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Mercantile Exchange Inc.
Posted Date: 2012-09-28T04:00Z

[Federal Register Volume 77, Number 189 (Friday, September 28, 2012)]
[Notices]
[Pages 59688-59690]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-23856]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67916; File No. SR-CME-2012-36]

Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Add Additional Series of Credit Default Index Swaps Available for 
Clearing

September 24, 2012.
    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 September 12, 2012, 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 prepared primarily by CME. CME filed the proposed rule 
change pursuant to Section 19(b)(3)(A) \3\ of the Act and Rule 19b-
4(f)(4)(i) \4\ thereunder.
---------------------------------------------------------------------------

    \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)(4)(i).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The text of the proposed rule change is below. Italicized text 
indicates additions; bracketed text indicates deletions.
* * * * *
CHICAGO MERCANTILE EXCHANGE INC. RULEBOOK
    Rule 100--80203--No Change.
* * * * *
CME Chapter 802 Rules: Appendix 1

                                             APPENDIX 1--CDX Indices
----------------------------------------------------------------------------------------------------------------
                   CDX Index                       Series         Termination date  (scheduled termination)
----------------------------------------------------------------------------------------------------------------
CDX North American Investment Grade                       9  20 Dec 2012.
 (CDX.NA.IG).

[[Page 59689]]

 
                                                             20 Dec 2014.
                                                             20 Dec 2017.
CDX North American Investment Grade                      10  20 Jun 2013.
 (CDX.NA.IG).
                                                             20 Jun 2015.
                                                             20 Jun 2018.
CDX North American Investment Grade                      11  20 Dec 2011.
 (CDX.NA.IG).
                                                             20 Dec 2013.
                                                             20 Dec 2015.
                                                             20 Dec 2018.
CDX North American Investment Grade                      12  20 Jun 2012.
 (CDX.NA.IG).
                                                             20 Jun 2014.
                                                             20 Jun 2016.
                                                             20 Jun 2019.
CDX North American Investment Grade                      13  20 Dec 2012.
 (CDX.NA.IG).
                                                             20 Dec 2014.
                                                             20 Dec 2016.
                                                             20 Dec 2019.
CDX North American Investment Grade                      14  20 Jun 2013.
 (CDX.NA.IG).
                                                             20 Jun 2015.
                                                             20 Jun 2017.
                                                             20 Jun 2020.
CDX North American Investment Grade                      15  20 Dec 2013.
 (CDX.NA.IG).
                                                             20 Dec 2015.
                                                             20 Dec 2017.
                                                             20 Dec 2020.
CDX North American Investment Grade                      16  20 Jun 2014.
 (CDX.NA.IG).
                                                             20 Jun 2016.
                                                             20 Jun 2018.
                                                             20 Jun 2021.
CDX North American Investment Grade                      17  20 Dec 2014.
 (CDX.NA.IG).
                                                             20 Dec 2016.
                                                             20 Dec 2018.
                                                             20 Dec 2021.
CDX North American Investment Grade                      18  20 Dec 2014.
 (CDX.NA.IG).
                                                             20 Dec 2016.
                                                             20 Dec 2018.
                                                             20 Dec 2021.
CDX North American Investment Grade                      19  20 Dec 2015.
 (CDX.NA.IG).
                                                             20 Dec 2017.
                                                             20 Dec 2019.
                                                             20 Dec 2022.
CDX North America High Yield (CDX.NA.HY)......           11  20 Dec 2013.
CDX North America High Yield (CDX.NA.HY)......           12  20 Jun 2014.
CDX North America High Yield (CDX.NA.HY)......           13  20 Dec 2014.
CDX North America High Yield (CDX.NA.HY)......           14  20 Jun 2015.
CDX North America High Yield (CDX.NA.HY)......           15  20 Dec 2015.
CDX North America High Yield (CDX.NA.HY)......           16  20 Jun 2016.
CDX North America High Yield (CDX.NA.HY)......           17  20 Dec 2016.
CDX North America High Yield (CDX.NA.HY)......           18  20 Jun 2017.
CDX North America High Yield (CDX.NA.HY)......           19  20 Dec 2017.
----------------------------------------------------------------------------------------------------------------

* * * * *
Rule 80301--End--No change
* * * * *

II. Self-Regulatory Organizations 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 offers clearing services for certain credit default swap index 
products. Currently, CME offers clearing of the Markit CDX North 
American Investment Grade Index Series 9, 10, 11, 12, 13, 14, 15, 16, 
17 and 18 and also offers clearing of the Markit CDX North American 
High Yield Index Series 11, 12, 13, 14, 15, 16, 17 and 18.
    The proposed rule changes that are the subject of this filing are 
intended to expand CME's Markit CDX North American Investment Grade 
Index and Markit CDX North American High Yield Index product offerings 
by incorporating the upcoming Series 19 for both sets of index 
products.
    The proposed rule changes that are the subject of this filing 
became immediately effective upon filing the proposed rule change with 
the Commission but will become operational as follows: CME will accept

[[Page 59690]]

CDX IG Series 19 for clearing on September 20, 2012 and will accept CDX 
HY Series 19 for clearing on September 27, 2012. CME notes that it has 
also certified the proposed rule changes that are the subject of this 
filing to its primary regulator, the Commodity Futures Trading 
Commission (``CFTC''), in CFTC Submission 12-283. The text of the CME 
proposed rule amendments is included above, with additions underlined 
and deletions in brackets.
    The proposed CME rule amendments merely incorporate one additional 
series to CME's existing offering of broad-based Markit CDX North 
American Investment Grade and High Yield Index credit default swaps. As 
such, the proposed amendments simply effect changes to an existing 
service of a registered clearing agency that (1) do not adversely 
affect the safeguarding of securities or funds in the custody or 
control of the clearing agency or for which it is responsible and (2) 
do not significantly affect the respective rights or obligations of the 
clearing agency or persons using its clearing agency services. 
Therefore, the proposed rule change is properly filed under Section 
19(b)(3)(A) and Rule 19b-4(f)(4)(i) 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.

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 was filed pursuant to Section 19(b)(3)(A) 
\5\ of the Act and paragraph (f)(4)(i) of Rule 19b-4 \6\ thereunder and 
therefore became effective on filing. At any time within 60 days of the 
filing of such 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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(4)(i).
---------------------------------------------------------------------------

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-2012-36 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-2012-36. 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/market-regulation/files/SEC_19B-4_12-36.pdf. 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-2012-36 and 
should be submitted on or before October 19, 2012.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-23856 Filed 9-27-12; 8:45 am]
BILLING CODE 8011-01-P