[Federal Register: December 1, 1997 (Volume 62, Number 230)]
[Page 63532-63533]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



Proposed Amendments to Minneapolis Grain Exchange Durum Wheat
Futures Contract and an Application for Designation as a Contract
Market in Durum Wheat Futures Options

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of availability of proposed rule amendments and an
application for contract market designation.


SUMMARY: The Minneapolis Grain Exchange (MGE or Exchange) has proposed
amendments to the dormant durum wheat futures contract, along with a
proposal to reactivate trading in that futures contract pursuant to the
provisions of Commission Regulation 5.2. In addition, the Exchange
submitted an application for designation as a contract market in durum
wheat futures options. The proposals were submitted under the
Commission's 45-day Fast Track procedures. The Acting Director of the
Division of Economic Analysis (Division) of the Commission, acting
pursuant to the authority delegated by Commission Regulation 140.96,
has determined that publication of the proposals for comment is in the
public interest, will assist the Commission in considering the views of
interested persons, and is consistent with the purpose of the Commodity
Exchange Act.

DATES: Comments must be received on or before December 16, 1997.

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. In
addition, comments may be sent by facsimile transmission to facsimile
number (202) 418-5521, or by electronic mail to [email protected].
Reference should be made to MGE durum wheat.

FOR FURTHER INFORMATION CONTACT: Please contact John Bird of the
Division of Economic Analysis, Commodity Futures Trading Commission,
Three Lafayette Centre, 21st Street NW, Washington, 20581, telephone
(202) 418-5274. Facsimile number: (202) 418-5527. Electronic mail:
[email protected]

SUPPLEMENTARY INFORMATION: The proposed amendments and the designation
application were submitted pursuant to the Commission's Fast Track
procedures for streamlining the review of futures contract rule
amendments and new contract approvals (62 FR 10434). Under those
procedures, the proposals, absent any contrary action by the
Commission, may be deemed approved at the close of business on January
2, 1998, 45 days after receipt of the proposals. In view of the limited
review period provided under the Fast Track procedures, the Commission
has determined to publish for public comment notice of the availability
of the terms and conditions for 15 days, rather than 30 days as
provided for proposals submitted under the regular review procedures.
    The amended durum wheat futures contract would call for the
delivery at par of shipping certificates representing 5,000 bushels of
durum wheat meeting or exceeding specified quality requirements,
including a minimum test weight of 60 pounds per bushel and a minimum
protein content of 13 percent. Issuers of the proposed shipping
certificates would be required to meet certain financial and other
requirements, and must be approved by the MGE. Upon surrender of a
shipping certificate, the issuer would be required to load the delivery
durum wheat in rail cars at a location specified by the certificate
issuer, with the issuer being obligated to pay the railroad freight
costs to a point designated by the issuer located in the Minneapolis-
St. Paul Switching District. Delivery by truck would also be permitted
under specified conditions.
    Shipping certificate receivers would be obligated to pay a premium
charge of one-twelfth of one cent per bushel for each calendar day that
the receiver holds the certificates.
    Trading would be conducted in the contract months of March, May,
July, September, and December. Prices would be quoted in dollars and
cents per bushel. The minimum price fluctuation would be one-quarter
(\1/4\) cent per bushel. A maximum daily price fluctuation limit of 20
cents per bushel would be applicable to trading at all times in each
contract month, except that such price limit would not be applicable to
expiring contract months commencing on the first business day of such
    Delivery of shipping certificates could be made on any business day
of the contract month. Trading in an expiring contract month would end
on the business day immediately preceding the last seven business day
of that month.
    Durum wheat options would trade in the same months as the futures
contract. The last trading day for expiring option contract months
would be the Friday that precedes the first notice day of the
underlying futures contract month by at least five business days. The
options for

[[Page 63533]]

such months would expire at 10:00 a.m. on the first Saturday following
the last trading day. Thus, delivery on the futures contract would not
be made until after the corresponding option had expired.
    Copies of the proposed amendments and terms and conditions 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 can be obtained through the Office of
the Secretariat by mail at the above address, by phone at (202) 418-
5100, or via the internet on the CFTC website at www.cftc.gov under
``What's Pending.''
    Other materials submitted by the MGE in support of the proposals
may be available upon request pursuant to the Freedom of Information
Act (5 U.S.C. 552) and the Commission's regulations thereunder (17 CFR
Part 145 (1987)), except to the extent they are entitled to
confidential treatment as set forth in 17 CFR 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 Secretariat at the
Commission's headquarters in accordance with 17 CFR 145.7 and 145.8.
    Any person interested in submitting written data, views, or
arguments on the proposals, or with respect to other materials
submitted by the MGE, 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

    Issued in Washington, DC, on November 24, 1997.
John R. Mielke,
Acting Director.
[FR Doc. 97-31318 Filed 11-28-97; 8:45 am]

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