[Federal Register Volume 60, Number 206 (Wednesday, October 25, 1995)]
[Notices]
[Pages 54668-54669]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26372]
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COMMODITY FUTURES TRADING COMMISSION
New York Cotton Exchange: Proposed Amendments Relating to the
Maximum Daily Price Fluctuation Limits for the Cotton No. 2 Futures
Contract
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice of proposed contract market rule change.
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[[Page 54669]]
SUMMARY: The New York Cotton Exchange (``NYCE'') has submitted proposed
amendments to its cotton No. 2 futures contract that will increase the
contract's base maximum daily price fluctuation limit (``price limit'')
and make certain other changes to the contract's terms regarding the
contract's price limits.
In accordance with Section 5a(a)(12) of the Commodity Exchange Act
and acting pursuant to the authority delegated by Commission Regulation
140.96, the Acting Director of the Division of Economic Analysis
(``Division'') of the Commodity Futures Trading Commission
(``Commission'') has determined, on behalf of the Commission, that
publication of the proposed amendments is in the public interest and
will assist the Commission in considering the views of interested
persons.
DATES: Comments must be received on or before November 24, 1995.
ADDRESSES: Interested persons should submit their views and comments to
Jean A. Webb, Secretary, Commodity Futures Trading Commission, Three
Lafayette Center, 1155 21st Street NW., Washington, D.C. 20581.
Reference should be made to the proposed amendments relating to changes
in the maximum daily price fluctuation limits for the cotton No. 2
futures contract.
FOR FURTHER INFORMATION CONTACT: Frederick V. Linse, Division of
Economic Analysis, Commodity Futures Trading Commission, Three
Lafayette Center, 1155 21st Street NW., Washington, D.C. 20581,
telephone (202) 418-5273.
SUPPLEMENTARY INFORMATION: The cotton No. 2 futures contract currently
specifies a base price limit of two cents per pound above or below the
previous day's settlement price. The contract also stipulates that, if
three or more contract months settle at the two-cent-per-pound limit
for three consecutive business days, the price limit is increased to
three cents per pound. In addition, whenever the daily settlement price
for any single futures contract month is 95 cents per pound or higher,
the price limit for all contract months on the next business day is
increased to three cents per pound. Further, if three or more contract
months settle at the higher three-cent-per-pound limit for three
consecutive business days and the price for at least one contract month
is 95 cents per pound or greater, the three-cent limit is increased to
4\1/2\ cents per pound for all contract months. The existing terms also
contain provisions specifying the length of time the above-noted
expanded price limits remain in effect.
The proposed amendments will (1) increase to three from two cents
per pound the contract's base price limit for each contract month
listed for trading and (2) specify that the price limit will increase
to four from three cents per pound for all contract months listed for
trading whenever the settlement price for any one contract month equals
or exceeds 110 cents per pound. The proposed amendments also will
delete all of the contract's existing terms that provide for expansion
of the price limits.
The NYCE intends to apply the proposed amendments to all existing
and newly listed contract months following Commission approval.
In support of the proposed amendments the NYCE said that they would
simplify the operation of the rule regarding price limits. The NYCE
also noted that a study of the cotton futures market for the most
recent eighteen months indicated that a price limit of 3 cents per
pound would have allowed the futures market to trade freely in at least
90% of its trading sessions.
Copies of the proposed amendments will be available for inspection
at the Office of the Secretariat, Commodity Futures Trading Commission,
Three Lafayette Center, 1155 21st Street NW, Washington, D.C. 20581.
Copies of the amended terms and conditions can be obtained through the
Office of the Secretariat by facsimile by telephone at (202) 418-5100.
Materials submitted by the NYCE in support of the proposed
amendments may be available upon request pursuant to the Freedom of
Information Act (5 U.S.C. 552) and the Commission's regulations
thereunder (17 CFR Part 145 (1987)). Requests for copies of such
materials should be made to the FOI, Privacy and Sunshine Act
Compliance Staff of the Office of the Secretariat at the Commission's
headquarters in accordance with CFR 145.7 and 145.8.
Any person interested in submitting written data, views or
arguments on the proposed amendments should send such comments to Jean
A. Webb, Secretary, Commodity Futures Trading Commission, Three
Lafayette Center, 1155 21st Street NW, Washington, D.C. 20581 by the
specified date.
Issued in Washington, D.C. on October 18, 1995.
Blake Imel,
Acting Director, Division of Economic Analysis.
[FR Doc. 95-26372 Filed 10-24-95; 8:45 am]
BILLING CODE 6351-01-P
