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External Meetings: Meeting w/Delta Strategy Group, Louis Dreyfus, Noble

4/21/2014 2:00 PM
XXVI. Position Limits

CFTC Staff:
Stephen Sherrod

Harold Hild
Scott Parsons (Delta Stategy Group)

Joe Nicosia (Louis Dreyfus Commodities)

Crawford Tatum (Noble)

Salvatore Penna (Noble)
Delta Strategy Group

Louis Dreyfus

  • Topic:  Louis Dreyfus and Noble discussed cash market practices in the cotton market.  Their view is that CFTC should recognize, as a bona fide hedging position, a calendar month spread comprised of long nearby futures and short deferred futures when a commercial merchant has entered into a cash market sale of cotton on call (an unfixed price sales contract), prior to the cash market counterparty fixing the cotton on call price (resulting in a fixed price sales contract).