[Federal Register Volume 61, Number 112 (Monday, June 10, 1996)]
[Notices]
[Pages 29358-29359]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14490]
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COMMODITY FUTURES TRADING COMMISSION
COMEX Division of the New York Mercantile Exchange: Proposed
Amendments to the Silver Futures Contract
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice of proposed contract market rule changes.
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SUMMARY: The COMEX Division of the New York Mercantile Exchange (COMEX
or Exchange) has submitted a proposal to amend its silver futures
contract. The amendments would add a new delivery point and facility to
the list of Exchange-approved depositories in Supplement No. 2 of the
rules of the silver futures contract. The Acting Director of the
Division of Economic Analysis (Division) of the Commodity Futures
Trading Commission (Commission) has determined that the proposal is of
major economic significance and that, accordingly, publication of the
proposal is in the public interest, will assist the Commission in
considering the views of interested persons, and is consistent with the
purposes of the Commodity Exchange Act. On behalf of the Commission,
the Division is hereby providing notice of, and seeking comment on, the
proposed amendments.
DATES: Comments should be received on or before July 10, 1996.
ADDRESSES: Interested persons should submit their views and comments to
Jean A. Webb, Secretary, Commodity Futures Trading Commission, Three
Lafayette Centre, 1155 21st Street, NW, Washington, DC 20581. Reference
should be made to the proposed amendments to Supplement No. 2 of the
rules of the COMEX silver futures contract.
FOR FURTHER INFORMATION CONTACT: Please contact John Forkkio of the
Division of Economic Analysis, Commodity Futures Trading Commission,
Three Lafayette Centre, 1155 21st Street, NW, Washington, DC 20581,
telephone 202-418-5281.
SUPPLEMENTARY INFORMATION: The proposed amendments would add a new
delivery point and facility to the list of Exchange-approved
depositories for the silver futures contract. The new delivery point
and facility are respectively, Wilmington, Delaware, and Wilmington
Trust Company. The Exchange proposes to make these amendments effective
on January 1, 1997. Consequently, the proposed amendments would apply
to newly listed and certain currently listed silver futures
contracts.1
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\1\ COMEX silver futures contract months currently are listed
out through the year 2000.
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Currently, there are five approved depositories for the silver
futures contract, all located in New York City. The Exchange submits
that the addition of the Wilmington Trust Company depository in
Wilmington, DE to its approved list may increase metals stocks
available for delivery and provide greater flexibility for market
participants wishing to make or take futures delivery. The NYMEX
further noted that:
The addition of Wilmington Trust would have the effect of making
the [silver] contract consistent with cash market practices, as was
[[Page 29359]]
the case with [identical changes previously adopted for] the NYMEX
platinum and palladium futures contracts. Market participants
should, at worst, be indifferent to the addition of a depository in
Wilmington, Delaware. In reviewing the data, and in talking with
various industry participants, many, in fact, would experience
greater flexibility should Wilmington Trust be approved. Approval
could also potentially benefit those users of the COMEX silver
futures contract who choose to store metal for periods of time
rather than remove it immediately from a depository. Consumers or
traders who desire to transport silver out of the location in which
they receive it would incur a $25 savings in withdrawal charges when
removing silver lots from Wilmington Trust that would offset most or
all of the difference in transportation costs for large shipments of
silver.
In conclusion, other depository facilities located outside of
New York City are indeed a part of the physical market for silver in
the Northeast U.S., particularly Wilmington Trust. This can be seen
by their use by a majority of participants in the silver industry *
* *.
The Division requests comments on the proposed amendments and the
proposed implementation procedure, including any potential impact on
the obligations of traders with open positions or on the value of such
positions in the affected months.
The COMEX proposal will be available for inspection at the Office
of the Secretariat, Commodity Futures Trading Commission, Three
Lafayette Centre, 1155 21st Street, NW, Washington, DC 20581. Copies of
the terms and conditions can be obtained through the Office of the
Secretariat by mail at the above address or by phone at (202) 418-5097.
Other materials submitted by the COMEX in support of the proposal
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)), except to the extent they are entitled to
confidential treatment as set forth in 17 C.F.R. 145.5 and 145.9.
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 17
C.F.R. 145.7 and 145.8.
Any person interested in submitting written data, views, or
arguments on the proposed amendments, or with respect to other
materials submitted by the COMEX in support of the proposal, should
send such comments to Jean A. Webb, Secretary, Commodity Futures
Trading Commission, Three Lafayette Centre, 1155 21st Street, NW,
Washington, DC 20581 by the specified date.
Issued in Washington, DC, on May 31, 1996.
John Mielke,
Acting Director.
[FR Doc. 96-14490 Filed 6-7-96; 8:45 am]
BILLING CODE 6351-01-P
