79 FR 81 pg. 23400 - Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Order Approving Proposed Rule Change Regarding Adoption of Rule 980.F
Type: NOTICEVolume: 79Number: 81Page: 23400
Page: 23400Docket number: [Release No. 34-71987; File No. SR-CME-2014-07]
FR document: [FR Doc. 2014-09525 Filed 4-25-14; 8:45 am]
Agency: Securities and Exchange Commission
Official PDF Version: PDF Version
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71987; File No. SR-CME-2014-07]
Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.; Order Approving Proposed Rule Change Regarding Adoption of Rule 980.F
April 22, 2014.
I. Introduction
On March 4, 2014, Chicago Mercantile Exchange Inc. ("CME") filed with the Securities and Exchange Commission ("Commission") the proposed rule change SR-CME-2014-07 pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 ("Act")1and Rule 19b-4 thereunder.2The proposed rule change was published for comment in the Federal Register on March 19, 2014.3The Commission received no comment letters regarding the proposed change. For the reasons discussed below, the Commission is granting approval of the proposed rule change.
Footnotes:
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b-4.
3 Securities Exchange Act Release No. 34-71719 (March 13, 2014), 79 FR 15380 (March 19, 2014) (SR-CME-2014-07).
II. Description
CME is proposing to amend CME Rule 980, which sets out required records and reports for clearing members of CME, by adding a new paragraph F. The new paragraph would provide for administrative fees to be imposed for late submissions of reports and other financial information to CME's Financial and Regulatory Surveillance Department ("FRSD"). Pursuant to the additional language, CME's FRSD would be able to assess clearing members a $1,000 administrative fee for each required submission that is not received by the due date and time. The proposed additional language would also give the FRSD the discretion to waive assessment of the administrative fee for good cause shown.
III. Discussion and Commission Findings
Section 19(b)(2)(C) of the Act4directs 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 and the rules and regulations thereunder applicable to such self-regulatory organization. Section 17A(b)(3)(F) of the Act5requires, 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.
Footnotes:
4 15 U.S.C. 78s(b)(2)(C).
5 15 U.S.C. 78q-1(b)(3)(F).
The Commission finds that the proposed rule change is consistent with the requirements of Section 17A of the Act.6The proposed change provides CME with the ability to assess a $1,000 administrative fee upon clearing members for late submissions of financial information to CME's FRSD. This fee will supplement, not replace, the existing processes that impose additional disciplinary sanctions in appropriate circumstances. The proposed rule change is intended to address timely reporting of required financial information by clearing members and is consistent with the requirements of Section 17A(b)(3)(F) of the Act7of promoting the prompt and accurate clearance and settlement of securities transactions and, to the extent applicable, derivatives agreements, contracts, and transactions, and helping to protect investors and the public interest.
Footnotes:
6 15 U.S.C. 78q-1.
7 15 U.S.C. 78q-1(b)(3)(F).
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 Act8and the rules and regulations thereunder.
Footnotes:
8 15 U.S.C. 78q-1.
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,9that the proposed rule change (File No. SR-CME-2014-07) be, and hereby is, approved.10
Footnotes:
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
Footnotes:
11 17 CFR 200.30-3(a)(12).
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-09525 Filed 4-25-14; 8:45 am]
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