2012-23856. 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.

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 (CDX.NA.IG)	9	20 Dec 2012.
		20 Dec 2014.
		20 Dec 2017.
CDX North American Investment Grade (CDX.NA.IG)	10	20 Jun 2013.
		20 Jun 2015.
		20 Jun 2018.
CDX North American Investment Grade (CDX.NA.IG)	11	20 Dec 2011.
		20 Dec 2013.
		20 Dec 2015.
		20 Dec 2018.
CDX North American Investment Grade (CDX.NA.IG)	12	20 Jun 2012.
		20 Jun 2014.
		20 Jun 2016.
		20 Jun 2019.
CDX North American Investment Grade (CDX.NA.IG)	13	20 Dec 2012.
		20 Dec 2014.
		20 Dec 2016.
		20 Dec 2019.
CDX North American Investment Grade (CDX.NA.IG)	14	20 Jun 2013.
		20 Jun 2015.
		20 Jun 2017.
		20 Jun 2020.
CDX North American Investment Grade (CDX.NA.IG)	15	20 Dec 2013.
		20 Dec 2015.
		20 Dec 2017.
		20 Dec 2020.
CDX North American Investment Grade (CDX.NA.IG)	16	20 Jun 2014.
		20 Jun 2016.
		20 Jun 2018.
		20 Jun 2021.
CDX North American Investment Grade (CDX.NA.IG)	17	20 Dec 2014.
		20 Dec 2016.
		20 Dec 2018.
		20 Dec 2021.
CDX North American Investment Grade (CDX.NA.IG)	18	20 Dec 2014.
		20 Dec 2016.
		20 Dec 2018.
		20 Dec 2021.
CDX North American Investment Grade (CDX.NA.IG)	19	20 Dec 2015.
		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 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.

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 [e-mail]. 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]

Kevin M. O'Neill,

Deputy Secretary.

Footnotes

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).

5.  15 U.S.C. 78s(b)(3)(A).

6.  17 CFR 240.19b-4(f)(4)(i).

7.  17 CFR 200.30-3(a)(12).