For Release: August 14, 2000
CFTC APPROVES CBT PROPOSAL TO INCREASE MAXIMUM DAILY PRICE FLUCTUATION LIMITS FOR ITS AGRICULTURAL AND PRECIOUS METAL FUTURES AND OPTION CONTRACTS
WASHINGTON, D.C. - The Commodity Futures Trading Commission has approved a proposal by the Chicago Board of Trade (CBT) to increase the maximum daily price fluctuation limits for its agricultural and precious metal futures and option contracts. The CBT proposed, among other things, to increase price limits to 20 from 12 cents per bushel for corn, to 50 from 30 cents per bushel for soybeans, and to 30 from 20 cents per bushel for wheat. The CBT noted that its proposed increases are necessary to accommodate trading during the overnight hours on the Eurex electronic trading system. The CBT plans to begin trading on the Eurex system on August 27, 2000. The existing trading halt procedures, which allow trading to continue in delivery months in which prices have not reached the limit and for trading in a halted delivery month to resume at any subsequent time during the trading day, will continue to apply to the daytime open outcry trading session.
The Commission approved the CBT's proposal based on its finding that the CBT plan, does not violate the Commodity Exchange Act, Commission regulations and Commission policies. The staff’s analysis of the CBT amendments, including an extensive analysis of the many public comments received, can be found on the Commission’s website at the following address: http://www.cftc.gov/dea/analysis/deapricelim.pdf.