For Release: May 2, 1997
CFTC Requires Chicago Board of Trade to Notify All Soybean and Corn Market
Participants that the Commission has not Approved the Listing of July and November
1999 Soybean Contracts and July and December 1999 Corn Contracts
On April 25, 1997, the Board of Trade of the City of Chicago (CBT) listed for trading the July and November 1999 soybean contracts and the July and December 1999 corn contracts. This action was taken prior to Commodity Futures Trading Commission (Commission) review and approval of amendments to the delivery specifications of those contracts which had been proposed by the CBT on April 16, 1997.
By letter dated May 2, 1997, the Commission notified the CBT that, because the listing of these trading months is not consistent with Commission rule 1.41(1) and Commission review and approval of the listing of such trading months under section 5a(a)(12) and rule 1.41(b) is required, their listing for trading by the CBT is not legally authorized at the present time. The Commission will consider whether to approve listing of these contract months as part of its ongoing proceeding pursuant to section 5a(a)(10) of the Act. The Commission reserved all of its authority under sections 5a(a)(10), 5a(a)(12) and 8a(7) of the Act to approve, disapprove, supplement or modify the proposed delivery specifications of the CBT corn and soybean futures contracts and to apply that determination to the July and December 1999 corn and the July and November 1999 soybean trading months.
The Commission instructed the CBT to notify all market participants that the Commission has not approved the listing of these contract months as required by law, that the Commission may approve or disapprove the listing of these contract months, and that the Commission may approve, disapprove, supplement or modify the delivery terms applicable to these trading months.
A copy of the May 2, 1997, Commission letter may be obtained by contacting the Commission's Office of the Secretariat, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581, (202) 418-5100.