For Release: November 26, 1997
Commodity Futures Trading Commission Requests
Public Comment on Draft Proposed Revisions by the CBT To Corn and Soybean Futures Contracts
Washington, D.C.-- The Commodity Futures Trading Commission (Commission) on November 26, 1997, invited public comment on draft proposed revisions by the Chicago Board of Trade (CBT) to the delivery specifications of its corn and soybean futures contracts. This request for comments will appear shortly in the Federal Register. On November 7, 1997, the Commission issued an Order changing and supplementing under section 5a(a)(10) of the Commodity Exchange Act (Act) the terms of the CBT corn and soybean futures contracts beginning with the year 2000 contracts. The November 7 Order followed a notification to the CBT by the Commission that the CBT corn and soybean futures contracts no longer accomplish the objectives of that section of the Act and found that the CBT's response to the notification did not meet the requirements of the Act. The Commission's November 7 Order changed and supplemented the year 2000 and subsequent CBT contracts by making changes relating to the delivery locations proposed by the CBT for the soybean futures contract and for both the soybean and corn futures contracts by making changes relating to locational price differentials, to a contingency plan to be followed at times when river traffic is obstructed and to a minimum net worth requirement for eligibility to issue shipping certificates. The November 7 Order did not preclude the CBT from submitting for Commission review and consideration alternative proposals for the year 2000 contracts.
The CBT on November 18, 1997, provided to the Commission draft proposed revisions for the year 2000 and subsequent corn and soybean futures contracts. The draft proposed revisions differ from the contract terms contained in the Commission's November 7 Order for soybeans by proposing to delete Toledo, Ohio as a delivery point and adding shipping stations on the Illinois River from Pekin to the river's mouth. In addition, for both corn and soybeans the CBT's draft proposed revisions would establish fixed cents per bushel price differentials for all non-par locations within a specified "region," by proposing a different reimbursement method under the contingency plan and by establishing a new regularity requirement that shipping certificate issuers would have to register for a minimum of 30 barges.
The complete text of the Commission's request for comments can be accessed through the Commission's internet web site, at http://www.cftc.gov., "What's Pending," and is also available by request from the Commission's Office of the Secretariat. Comments must be received by the Commission 45 days after publication of the request for comments in the Federal Register. Comments should be mailed to the Commission at Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581, attention: Office of the Secretariat.