[Federal Register Volume 75, Number 245 (Wednesday, December 22, 2010)]
[Notices]
[Pages 80551-80553]
From the Federal Register Online via the Government Publishing 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:
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Position limit in
Approved security Unit of trading Minimum fluctuation expiring contract in
last 5 trading days
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[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].
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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
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Jan-Oct 2010 2009
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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 [email protected]. 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