[Federal Register Volume 60, Number 21 (Wednesday, February 1, 1995)]
[Notices]
[Pages 6075-6076]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2425]
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COMMODITY FUTURES TRADING COMMISSION
New York Cotton Exchange: Proposed Amendments Relating to
Permissible Compression, Bale Weight, and Numbers of Bales in a
Delivery Unit for the Cotton No. 2 Futures Contract
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice of proposed contract rule change.
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SUMMARY: The New York Cotton Exchange (``NYCE'') has submitted proposed
amendments to its cotton No. 2 futures contract that will: (1) Provide
that only cotton bales that have been gin universal density (GUD)
compressed may be delivered on the futures contract; (2) narrow the
weight range for deliverable individual bales of cotton to 400 to 650
pounds from the existing range of 325 to 675 pounds; and (3) specify
that the total number of bales in a delivery unit may not be fewer than
92 or greater than 108. 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 March 3, 1995.
ADDRESSES: Interested persons should submit their views and comments to
Jean A. Webb, Secretary, Commodity Futures Trading Commission, 2033 K
Street NW, Washington, D.C. 20581. Reference should be made to the
proposed amendments relating to permissible compression, bale weight,
and numbers of bales in a delivery unit for the cotton No. 2 futures
contract.
FOR FURTHER INFORMATION CONTACT: Frederick V. Linse, Division of
Economic Analysis, Commodity Futures Trading Commission, 2033 K Street
NW, Washington, D.C. 20581, telephone (202) 254-7303.
SUPPLEMENTARY INFORMATION: The existing terms of Section 6.03 of the
NYCE By-Laws describe the types of compressed bales that may be
deliverable on the futures contract. Section 6.03(o) currently
specifies that deliverable cotton bales may be standard compressed,
universal compressed, or GUD compressed. Bales [[Page 6076]] of cotton
which have been compressed to high density are not deliverable on the
contract. The existing terms of Section 5.06(c) of the By-laws specify
that deliverable cotton bales must weigh no less than 325 pounds or no
more than 675 pounds.
Under the proposed amendments, Section 6.03(o) will be modified to
specify that GUD compressed bales shall be the only bales permitted for
delivery, thereby eliminating the delivery of cotton bales that have
been standard compressed or universal compressed. The proposed
amendments also will revise Section 5.06(c) of the By-laws to the
extent that the deliverable weight range for individual bales will be
reduced to 400 to 650 pounds from the existing range of 325 to 675
pounds. In addition, the proposed amendments will establish a new
requirement that the number of bales in a delivery unit be no less than
92 or more than 108.1
\1\Further, the proposed amendments will delete an existing
provision of the Exchange's rules which requires that the party
submitting cotton for inspection and certification furnish a
statement that specifies the manner in which the cotton has been
compressed. The proposed amendments also will delete the contract's
existing specifications that the deliverer must pay to the receiver
the prevailing penalty charges assessed by the delivery warehouse
for any cotton which such warehouse has not compressed and that no
penalties will be allowed unless the penalties due are stamped on
the warehouse receipt at the time it is issued.
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The Exchange intends to implement the proposed amendments for all
newly certificated cotton on and after August 1, 1995.
Copies of the proposed amendments will be available for inspection
at the Office of the Secretariat, Commodity Futures Trading Commission,
2033 K Street NW, Washington, D.C. 20581. Copies of the amended terms
and conditions can be obtained through the Office of the Secretariat by
mail at the above address or by telephone at (202) 254-6314.
The 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 C.F.R. 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 C.F.R. 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, 2033 K Street
NW, Washington, D.C. 20581 by the specified date.
Issued in Washington, D.C. on January 26, 1995.
Blake Imel,
Acting Director, Division of Economic Analysis.
[FR Doc. 95-2425 Filed 1-31-95; 8:45 am]
BILLING CODE 6351-01-P
