Notice2026-16098
Self-Regulatory Organizations; CME Securities Clearing Inc.; Notice of Filing of Proposed Rule Change To Adopt CMESC Margin Policy
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 7, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 151 (Friday, August 7, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 151 (Friday, August 7, 2026)]
[Notices]
[Pages 51191-51196]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-16098]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106037; File No. SR-CMESC-2026-005]
Self-Regulatory Organizations; CME Securities Clearing Inc.;
Notice of Filing of Proposed Rule Change To Adopt CMESC Margin Policy
August 4, 2026.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on July 22, 2026, CME Securities Clearing Inc. (``CMESC'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change described in Items I, II, and III below, which
Items have been substantially prepared by CMESC. CMESC filed the
proposed rule change pursuant to Section 19(b)(3)(A) of the Act.\3\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
---------------------------------------------------------------------------
I. CMESC's Statement of the Terms and Substance of the Proposed Rule
Change
The proposed rule change of CME Securities Clearing Inc.
(``CMESC'') is annexed hereto as Exhibit 5 and consists of the CMESC
Margin Policy (``Margin Policy'' or ``Policy''), which documents the
design and core components of CMESC's proprietary margin methodology,
i.e., the SPAN 2 framework, for purposes of administration and
implementation of CMESC's margin model. As described in more detail
below, the Margin Policy consists of six parts--the purpose and
statement of the Policy, the applicability of the Policy, governance of
the Policy, the role of the CMESC margin working group and the SPAN 2
framework and margin add-ons. The proposed revisions to the CMESC Rules
are annexed hereto as Exhibit 5.
II. CMESC's Statement of the Purpose of, and Statutory Basis for the
Proposed Rule Change
In its filing with the Commission, CMESC 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. CMESC has prepared summaries, set forth in Sections A,
B,
[[Page 51192]]
and C below, of the most significant aspects of such statements.
A. CMESC's Statement of the Purpose of, and Statutory Basis for the
Proposed Rule Change
1. Purpose
Background
On December 1, 2025, the Securities and Exchange Commission
(``Commission'' or ``SEC'') issued an order (``Order'') approving
CMESC's Form CA-1 (``Application'') for registration as a clearing
agency to provide central counterparty services for transactions
involving U.S. Treasury securities, finding the Application satisfies
the requirements of the Act and rules and regulations thereunder.\4\
Specifically, the Commission determined that ``CMESC's rules are
consistent with the requirements for the prompt and accurate clearance
and settlement of securities and the safeguarding of funds and
securities as set forth in Section 17A(b)(3)(F) of the Exchange Act.''
\5\ The Commission's determination was based, among others, on its
review of CMESC's margin model, i.e., the SPAN 2 framework.\6\ CMESC
previously included in submissions related to its Application a
technical document describing the SPAN 2 framework, including detailed
explanations for modeling choices and the mathematical implementation
of the model. To facilitate administration and implementation of the
SPAN 2 framework, CMESC is filing this proposed rule change to
establish the Policy.
---------------------------------------------------------------------------
\4\ Release No. 34-104281 (Dec. 1, 2025), 90 FR 55926 (Dec. 4,
2025), available at <a href="https://www.federalregister.gov/documents/2025/12/04/2025-21908/cme-securities-clearing-inc-order-granting-an-application-for-registration-as-a-clearing-agency">https://www.federalregister.gov/documents/2025/12/04/2025-21908/cme-securities-clearing-inc-order-granting-an-application-for-registration-as-a-clearing-agency</a>.
\5\ Id. at 55937.
\6\ Id. at 55938.
---------------------------------------------------------------------------
The Policy does not modify any aspect of the SPAN 2 framework that
the Commission reviewed and approved in connection with the
Application. Rather, the Policy, as proposed, serves to administer and
implement the SPAN 2 framework in support of compliance with the
Commission rules, in particular, the covered clearing agency
standards,\7\ by documenting the core aspects of the SPAN 2 framework
consistent with the specifications outlined in the technical document
provided in connection with the Application and by describing the
purpose and statement of the Policy, applicability of the Policy,
governance of the Policy, and role of the CMESC Margin Working Group,
and CMESC's ability to call for additional margin.
---------------------------------------------------------------------------
\7\ Rule 17ad-22(e), 17 CFR 240.17ad-22(e).
---------------------------------------------------------------------------
Description of the Proposed Rule Change
The Policy is organized in six parts: (1) Purpose and Statement of
Policy; (2) Applicability; (3) Governance of the Policy; (4) Role of
the CMESC Margin Working Group; (5) CMESC SPAN 2 Framework; and (6)
Margin Add-Ons, each as described in more details below.
1. Purpose and Statement of Policy
The Purpose and Statement of Policy section sets forth the purpose
of the Policy. It starts with a description of CMESC as a SEC-
registered covered clearing agency maintaining a risk management
program designed to comply with SEC rules, including Rules 17ad-
22(b)(2) and (e)(6)(i), (iii) and (v) and then states the purpose of
the Policy is to document CMESC's margin practices as related to the
administration of its proprietary risk-based margin model, the SPAN 2
framework, which is designed to ensure margin coverage of at least 99%
of anticipated daily price changes over the margin period of risk
(``MPOR'') on an ex post basis for each cleared portfolio. The Purpose
and Statement of Policy section further states that CMESC considers an
array of both qualitative and quantitative inputs, including historical
data, in setting and adjusting the SPAN 2 framework's parameter
calibration. The SPAN 2 framework is designed to capture the risk
profile of U.S. Treasury securities, including to reflect price
movements, trading practices, and patterns specific to these
securities.
2. Applicability
The Applicability section states that the Policy applies to all
employees, internal consultants, and temporary personnel resources of
CMESC.
3. Governance of the Policy
The Governance of the Policy section establishes the governance
arrangements for the Policy, including a provision that CMESC's Risk
Management team \8\ maintains the Policy. Changes to the Policy will
follow different governance arrangements as described below, depending
on whether the changes are substantive, non-substantive or
administrative in nature. The CMESC Model Risk Committee (``SCMRC'')
(i.e., staff-level internal governance committee) reviews and approves
the Policy, as well as any substantive changes, on at least an annual
basis. The Policy is then presented to CMESC's Risk Management
Committee (``CSRMC'') for review and approval. If the CSRMC determines
that any changes have a significant impact on CMESC's risk profile, the
CSRMC will recommend such changes to the Board for approval. Non-
substantive changes to the Policy can be reviewed and approved by the
Head of the Corporation,\9\ CMESC Head of Risk, the Chief Compliance
Officer of CMESC, or an employee at the level of ``Managing Director''
or above. Administrative changes to the Policy can be reviewed and
approved by an employee at the level of ``Executive Director'' or
above. The SCMRC will be notified of the revised version of the Policy
containing approved non-substantive or administrative changes;
revisions and approvals are recorded in the Policy's revision history.
---------------------------------------------------------------------------
\8\ Risk Management team'' collectively refers to the staff- and
management-level employees of the ``Risk Management'' function
within CMESC, that has various responsibilities related to credit,
market, and liquidity risk management, risk methodologies, risk
research and development, pricing and valuations, and default
management, as described in the CMESC Risk Management Framework
(``RMF''). The RMF was submitted to the Commission as part of the
Application. Commission determined that ``the CMESC Application
establishes a comprehensive risk management framework consistent
with Commission rules.'' 90 FR at 55937. The Commission's
determination was based, among others, on its review of CMESC's RMF,
which provides a comprehensive risk management. framework for CMESC
to identify, measure, monitor, and manage the range of risks that
arise in or are borne by the covered clearing agency, consistent
with Rule 17ad-22(e)(3). See 17 CFR 240.17ad-22(e)(3).
\9\ Capitalized terms used herein and not defined have the
meanings assigned to such terms in the Rules of CME Securities
Clearing Inc. (``Rules''), as applicable, available at <a href="https://www.cmegroup.com/rulebook/CMESC/CMESC%20Rulebook.pdf">https://www.cmegroup.com/rulebook/CMESC/CMESC%20Rulebook.pdf</a>.
---------------------------------------------------------------------------
4. Role of the CMESC Margin Working Group
The Role of the CMESC Margin Working Group section sets forth the
role of the CMESC Working Group (``Working Group'')--a staff-level
working group--consistent with the RMF, in administering the SPAN 2
framework, including monitoring margin levels. The Working Group is one
of the primary means for CMESC to identify whether parameter or
methodology changes or any other non-routine changes to the SPAN 2
framework are warranted, including changes based on changing market
conditions. The Working Group members review the performance of margin
levels and review the parameters of the SPAN 2 framework, as necessary.
The senior members of the Working Group review and approve certain
[[Page 51193]]
proposed changes relating to administering the SPAN 2 framework and set
the timeline for their implementation. In consultation with CMESC's
Policy and Compliance team,\10\ the Working Group advises when such
changes must be communicated to the SCMRC. In turn, the SCMRC
recommends whether such changes must be escalated further within
CMESC's governance arrangements. Typically, any changes to the SPAN 2
framework's methodology or parameters are communicated through public
advisory notices.
---------------------------------------------------------------------------
\10\ ``Compliance & Policy team'' collectively refers to the
staff- and management-level employees of the ``Policy & Compliance''
function within CMESC, that is tasked with the responsibility and
authority to implement and administer policies and procedures that
are designed to ensure that CMESC satisfies its obligations set
forth in the Section 17A of the Exchange Act and all other laws and
rules applicable to the operation of CMESC's clearance and
settlement functions, such as the SEC rules for covered clearing
agencies, as described in the RMF.
---------------------------------------------------------------------------
4.1. New Product Group Margins
The New Product Group Margins subsection establishes the protocol
for the Working Group to determine the appropriate parameter setting
within the SPAN 2 framework for all new product groups, consistent with
Policy practices. The parameter setting process will incorporate, if
available, relevant data for the underlying product group being
launched. For example, if the product group being launched has the same
underlying instrument as an existing product group cleared by CMESC,
the Working Group generally uses the existing data to fit the new
product group into the SPAN 2 framework, assuming sufficient history is
available to do so. Where the Working Group lacks sufficient data to
calibrate parameters for a new product group, it identifies appropriate
proxy data to determine outright margin levels, among other applicable
parameters; a senior member of the Working Group may approve the
selected proxy and its data set prior to its incorporation into the
margin setting process.
5. CMESC SPAN 2 Framework
The CMESC SPAN 2 Framework section describes the core components of
CMESC's proprietary risk-based margin model, including its market risk
component and liquidity and concentration risk component. The section
also describes the design of the margin methodology aiming to achieve a
minimum portfolio coverage level of 99% on an ex post basis, using
parameters based on relevant historical data spanning a prudent
historical lookback period and at the same time permitting CMESC's use
of additional hypothetical scenarios, consistent with the Purpose and
Statement of Policy section. This section further documents that the
MPOR is at least two business days. The MPOR used by CMESC is driven by
the liquidity characteristics and market structure of products
supported, in this instance, U.S. Treasury securities.
Each of the market risk component and liquidity and concentration
risk component of the SPAN 2 framework is described in further detail
below.
5.1. Market Risk Component
The Market Risk Component subsection describes the market risk
component of the SPAN 2 framework that is designed to capture the
potential losses a portfolio could incur as a result of daily price
movements due to risk factors identified by CMESC (e.g., interest rate
and repo rate risks). Three components of the market risk component are
described in this subsection, each of which are further described in
other subsections of the Policy: filtered historical value-at-risk
(``FHVaR''), stress value-at-risk (``SVaR''), and valuation uncertainty
margin (``VUM''). Both the FHVaR and SVaR use a percentile to identify
the tail of the distribution, or confidence level.
The Market Risk Component subsection further explains that risk
factors are financial variables that help explain and measure the risk
of a portfolio and are the building blocks for historical simulation of
the distribution of the underlying risk (e.g., FHVaR). The Policy
further documents that a set of risk factors is identified to capture
interest rate risk and repo rate risk exposure within the market risk
component.
The interest rate risk factor covers the risk that U.S. Treasury
securities change in value over the MPOR due to interest rate moves.
Interest rate risk is captured by shocking the zero-rates or the spread
between two curves at predetermined offset points. The repo rate risk
covers (i) the risk of net interest payments owed over the MPOR and
(ii) the risk of changes in the market repo rate over the MPOR and the
impacts this would have on the cost of hedging transactions, where
CMESC would have to pay the difference of repo interest on hedging
transactions when closing out a portfolio.
The Market Risk Component subsection further describes the
methodology for computing risk factor returns for historical simulation
models, such as the FHVaR methodology described below, and
considerations for achieving an appropriate mixture of return
properties, such that the return calculation works sensibly across
different rate environments, noting that certain risk factors may use
different return types.
The Market Risk Component subsection contains three sub-sections
that describe each of the FHVaR, SVaR and VUM methodologies in more
detail.
5.1.1 FHVaR Methodology
The FHVaR Methodology subsection describes the market risk
component's FHVaR as a historical simulation model based on historical
interest rate moves and repo rate moves within the market risk
component. Rather than using historical market returns to estimate
risk, FHVaR adjusts historical returns to reflect current market
conditions by normalizing historical returns and scaling these returns
considering current market conditions. Historical returns are scaled
using an exponentially weighted moving average (``EWMA'') methodology
to account for the current environment. The parameterization of the
EWMA methodology is designed to ensure that margin calculations will
not overreact to the current volatility or market conditions (whether
positive or negative) and will foster overall stability in margin
calculations. The FHVaR methodology captures historical return data
from a rolling lookback period of at least 5 years, which CMESC may
supplement with additional historical periods if needed.
The FHVaR Methodology subsection further describes two sub-
components of the FHVaR component:
<bullet> The FHVaR-I sub-component uses current short-term
volatility estimates (from the EWMA methodology) to scale historical
returns, which is designed to ensure that margin requirements react
appropriately to the most recent market changes.
<bullet> The FHVaR-II sub-component uses a target forecast
volatility floor to scale the historical returns, which is designed to
prevent margin requirements from falling to low levels during
relatively calm periods, thus providing a margin buffer in the event of
sudden spikes of volatility.
Collectively, the FHVaR sub-components are designed to yield margin
requirements that are anti-procyclical, resulting in the necessary
margin coverage while maintaining appropriately stable margin
requirements. In particular, the target forecast volatility floor
within the FHVaR-II sub-component acts as an anti-procyclicality
(``APC'') measure, as described above.
[[Page 51194]]
5.1.2 SVaR Component
The SVaR Component subsection describes the SVaR methodology, the
second main component of the market risk component within the SPAN 2
framework. As stated above, the SPAN 2 framework's market risk
component is primarily based on the FHVaR and SVaR methodologies to
capture the market risk of a portfolio. While FHVaR uses adjusted
historical returns to reflect current market conditions, the SVaR
component includes historical scenarios that are composed of actual
historical events within or outside the FHVaR component's lookback
period. The SVaR is designed to act as an additional APC measure, as
described below.
Specifically, the SVaR component includes historical scenarios from
an unscaled VaR from a rolling lookback period that are not subject to
filtering. Specifically, historical returns from a rolling lookback
period of at least 5 years and additional stress periods from history
that extend beyond the rolling lookback period are used in the SVaR
component. Hypothetical scenarios that may not have occurred in history
and that are determined by the Working Group as appropriate are also
included in the SVaR component.
The SVaR Component subsection further explains how additional
historical stress periods are selected (i.e., beyond the rolling
lookback period). Under the SVaR Component subsection, the selection of
stress periods is based on the following:
<bullet> Significant Portfolio Loss: Stress periods exhibiting
significant portfolio losses for a varied set of portfolio types of
U.S. Treasury securities (including repos with U.S. Treasury
securities). The overlapping scenarios corresponding to these losses
are selected from shifted-log return and absolute return types of
historical moves for risk factors for these portfolios.
<bullet> Risk Factor Extreme Moves: Stress periods exhibiting
extreme returns for a predefined set of risk factors impacting U.S.
Treasury securities and their combinations. The risk factor set
includes, but is not limited to, U.S. Treasury curve outright, calendar
spreads, butterflies, and repo rate.
The final set of additional stress scenario periods included in the
SVaR Component are generated using a combination of the above two
selections.
The Policy provides that the SVaR component is designed to act as
an additional APC measure by including stress scenarios, regardless of
current volatility level, that persists in the margin requirement even
during a period of low volatility.
5.1.3 Valuation Uncertainty Margin
The Valuation Uncertainty Margin subsection describes the market
risk component's VUM, which dynamically accounts for the profit and
loss of the pricing discrepancy between the curve-based U.S. Treasury
prices and actual U.S. Treasury prices. The VUM is especially relevant
for U.S. Treasury securities, where the underlying bond is priced under
the curve.
The calculation of the VUM involves aggregation of portfolio Greeks
(i.e., the positions are aggregated and grouped into buckets) and
applying shocks derived from historical pricing differences to the
aggregated buckets.
5.2. Liquidity & Concentration Risk Component
The Liquidity & Concentration Risk Component subsection describes
the liquidity and concentration risk component of the SPAN 2 framework
that is designed to account for the additional risks that may arise in
closing out a concentrated portfolio of a Defaulting Member or
Defaulting User. Specifically, the liquidity and concentration risk
component captures the additional costs that may be incurred from
closing out a portfolio, including additional costs to close-out a
larger portfolio, and to estimate the liquidation risk for concentrated
portfolios in the form of tail market risk. The liquidity and
concentration risk component accounts for risks separately for each
tenor bucket of U.S. Treasury securities and is parameterized
leveraging market-based information, such as information from market
surveys. Thresholds within the liquidity and concentration risk
component are set based on a percentage of average daily volume of U.S.
Treasury securities by maturity bucket to determine if additional
margin beyond what is required from the market risk component is
required to address the potential increased close-out costs.
6. Margin Add-Ons
The Margin Add-Ons section establishes that CMESC, in its sole
discretion, may require additional margin from participants, pursuant
to the Rules.\11\
---------------------------------------------------------------------------
\11\ See Rule 509(b).
---------------------------------------------------------------------------
(b) Statutory Basis
For the reasons set forth below, CMESC believes the proposed rule
change is consistent with Section 17A of the Securities Exchange Act of
1934 (``Act''),\12\ Rule 17ad-22(b)(2), Rule 17ad-22(e)(4), Rule 17ad-
22(e)(6),\13\ and Rule 17ad-22(e)(1).\14\
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78q-1(b)(3)(F).
\13\ 17 CFR 240.17ad-22(b)(2), (e)(4), (e)(6).
\14\ 17 CFR 240.17ad-22(e)(1).
---------------------------------------------------------------------------
Consistency With Section 17A(b)(3)(F) of the Act
CMESC believes that the proposed rule change is consistent with
Section 17A(b)(3)(F) of the Act. Section 17A(b)(3)(F) requires, in
part, that the rules of a clearing agency be designed to promote the
prompt and accurate clearance and settlement of securities
transactions, to remove impediments to and perfect the mechanism of a
national system for the prompt and accurate clearance and settlement of
securities transactions, and, in general, to protect investors and the
public interest.\15\ The Policy codifies CMESC's SPAN 2 framework by
documenting the core components of the margin model. As stated above,
the Commission reviewed and determined CMESC's SPAN 2 framework as
being consistent with Section 17A(b)(3)(F) of the Act. The Policy
provides a clear, transparent, and enforceable mechanism for CMESC to
administer and implement its margin methodology to cover its exposures,
which is essential for the prompt and accurate clearance and settlement
of securities and the safeguarding of funds. As such, CMESC believes
that the Policy facilitates the prompt and accurate clearance and
settlement of securities transactions, which, in turn, promotes the
protection of investors and the public interest consistent with Section
17A(b)(3)(F).\16\
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78q-1(b)(3)(F).
\16\ Id.
---------------------------------------------------------------------------
Consistency With Rules 17ad-22(b)(2), (e)(4) and (e)(6)
For the same reason, CMESC believes that the proposed rule change
is consistent with Rules 17ad-22(b)(2), (e)(4) and (e)(6) under the
Act.\17\ Rule 17ad-22(b)(2) requires a clearing agency to use margin
requirements to limit its credit exposures to participants under normal
market conditions and use risk-based models and parameters to set
margin requirements. Similarly, Rule 17ad-22(e)(4) and (e)(6) generally
require a covered clearing agency establish, implement, maintain, and
enforce written policies and procedures reasonably designed to cover
its credit exposures to each participant fully with a high degree of
confidence by maintaining sufficient financial resources and by
establishing a risk-
[[Page 51195]]
based margin system that, at a minimum, considers, and produces margin
levels commensurate with, the risks and particular attributes of each
relevant product, portfolio, and market.
---------------------------------------------------------------------------
\17\ 17 CFR 240.17ad-22(b)(2), (e)(4) and (e)(6).
---------------------------------------------------------------------------
The purpose of the Policy is to administer and implement CMESC's
SPAN 2 framework for the purpose of determining how much margin will be
required for each Participant of CMESC to cover CMESC's credit exposure
to such Participant with a high degree of confidence. Specifically, the
SPAN 2 framework is designed to cover the potential portfolio losses a
Participant Default could incur as a result of price movements over the
MPOR with a coverage level of at least 99%. As stated above, the Policy
does not change any aspect of the SPAN 2 framework that the Commission
reviewed and determined as being ``consistent with Commission rules
that help ensure CMESC will collect sufficient margin to cover its
exposures. . . and will be able to manage a default and allocate losses
appropriately, if or when needed.'' \18\ Therefore, CMESC believes that
the Policy is consistent with Rules 17ad-22(b)(2), (e)(4) and (e)(6).
---------------------------------------------------------------------------
\18\ 90 FR at 55937.
---------------------------------------------------------------------------
Consistency With Rule 17ad-22(e)(1)
Finally, CMESC believes that the proposed rule change is also
consistent with Rule 17ad-22(e)(1) under the Act.\19\ Rule 17ad-
22(e)(1) requires that a covered clearing agency's policies and
procedures be reasonably designed to provide for a well-founded, clear,
transparent, and enforceable legal basis for each aspect of its
activities in all relevant jurisdictions. The Policy documents the core
components of CMESC's margin model and provides governance
arrangements, including the role of the Working Group, that are
essential to the administration and implementation of the margin model
and serves to further document CMESC's margin practices in conjunction
with the RMF. As such, the Policy enhances transparency and
accountability of CMESC's margin practices, which, in turn, will
support the legal certainty and enforceability of the Rules regarding
margin requirements.
---------------------------------------------------------------------------
\19\ 17 CFR 240.17ad-22(e)(1).
---------------------------------------------------------------------------
B. CMESC's Statement on Burden on Competition
CMESC does not believe that the proposed rule change will impose
any burden on competition not necessary or appropriate in furtherance
of the purposes of the Act. The proposed rule change is designed to
serve as a policy document to administer and implement CMESC's
proprietary risk-based margin model and to document the core components
of the margin model without changing any aspect of the SPAN 2 framework
that was previously determined by the Commission to be consistent with
SEC rules. The proposed rule change does not change any existing, or
create additional, rights and obligations of CMESC's Participants that
are not already provided in the Rules. As such, CMESC does not believe
the proposed rule change would have any impact on burden on competition
that does not already exist under the existing Rules or other risk
management policies and technical documentation and if it were
determined that the proposed rule change impacts burden on competition,
such impact would be distributed equally among all CMESC's Participants
and would be necessary or appropriate in furtherance of the purposes of
the Act.
C. CMESC's Statement on Comments on the Proposed Rule Change Received
From Members, Participants, or Others
CMESC currently does not have any Members or Users and has not
received nor solicited any written comments from others related to this
proposal. CMESC has not received any unsolicited written comments from
any interested parties. If any written comments are received, they will
be publicly filed as an Exhibit 2 to this filing, as required by Form
19b-4 and the General Instructions thereto.
Persons submitting comments are cautioned that, according to
Section IV (Solicitation of Comments) of the Exhibit 1A in the General
Instructions to Form 19b-4, the Commission does not edit personal
identifying information from comment submissions. Commenters should
submit only information that they wish to make available publicly,
including their name, email address, and any other identifying
information.
All prospective commenters should follow the Commission's
instructions on how to submit comments, available at <a href="https://www.sec.gov/regulatory-actions/how-to-submit-comments">https://www.sec.gov/regulatory-actions/how-to-submit-comments</a>. General
questions regarding the rule filing process or logistical questions
regarding this filing should be directed to the Main Office of the
Commission's Division of Trading and Markets at
<a href="/cdn-cgi/l/email-protection#f2868093969b9c95939c969f938099978681b2819791dc959d84"><span class="__cf_email__" data-cfemail="c8bcbaa9aca1a6afa9a6aca5a9baa3adbcbb88bbadabe6afa7be">[email protected]</span></a> or 202-551-5777. CMESC reserves the right to
not respond to any comments received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not:
(i) Significantly affect the protection of investors or the public
interest;
(ii) Impose any significant burden on competition; and
(iii) Become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \20\ and
Rule 19b-4(f)(6) \21\ thereunder.
---------------------------------------------------------------------------
\20\ 15 U.S.C. 78s(b)(3)(A).
\21\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed 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
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking">https://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking</a>);
or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#7d0f081118501e1210101813090e3d0e181e531a120b"><span class="__cf_email__" data-cfemail="abd9dec7ce86c8c4c6c6cec5dfd8ebd8cec885ccc4dd">[email protected]</span></a>. Please include
file number SR-CMESC-2026-005 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities and
Exchange Commission, Station Place, 100 F Street NE, Washington, DC
20549.
All submissions should refer to file number SR-CMESC-2026-005. 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 website (<a href="https://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking">https://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking</a>). Copies of the
filing also will be available for inspection and copying at the
principal office of CMESC and on CMESC's website (<a href="https://www.cmegroup.com/market-regulation/rule-filings.html">https://www.cmegroup.com/market-regulation/rule-filings.html</a>). Do not include
personal identifiable
[[Page 51196]]
information in submissions; you should submit only information that you
wish to make available publicly. We may redact in part or withhold
entirely from publication submitted material that is obscene or subject
to copyright protection. All submissions should refer to File Number
SR-CMESC-2026-005 and should be submitted on or before August 28, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
---------------------------------------------------------------------------
\22\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-16098 Filed 8-6-26; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on August 7, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.