Federal Register November 11, 1999 Chicago Board of Trade: Proposed Amendments to the Speculative Position Limit Provisions of the Municipal Bond Index Futures Contract

[Federal Register: November 12, 1999 (Volume 64, Number 218)]
[Notices]
[Page 61606-61607]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12no99-55]

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COMMODITY FUTURES TRADING COMMISSION


Chicago Board of Trade: Proposed Amendments to the Speculative
Position Limit Provisions of the Municipal Bond Index Futures Contract

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of availability of proposed amendments to the terms and
conditions of commodity futures contract.

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SUMMARY: The Chicago Board of Trade (CBOT or Exchange) has submitted a
proposed amendment to the speculative position limit provision of its
Municipal Bond Index futures and futures option contracts. Under the
proposal, the subject futures and option contracts would be subject to
a joint 4,000-contract spot month position limit, with no exemptions
allowed, that would be in effect during the last three trading days
prior to expiration.

    The Acting Director of the Division of Economic Analysis
(Division), acting pursuant to the authority delegated by Commission
Regulation 140.96, has determined that publication of the proposal 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 November 29, 1999.

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 the proposed amendments to the CBOT
Municipal Bond Index futures contract.

FOR FURTHER INFORMATION CONTACT: Please contact Michael Penick of the
Division of Economic Analysis, Commodity Futures Trading Commission,
Three Lafayette Centre, 1155 21st Street NW, Washington, 20581,
telephone (202) 418-5279.

[[Page 61607]]

Facsimile number: (202) 418-5527. Electronic mail: [email protected].

SUPPLEMENTARY INFORMATION: The Municipal Bond Index futures contract is
settled on the last day of trading based on the level of the Municipal
Bond Index as calculated by Bond Buyer, an independent third party, on
the last trading day. The contract is currently listed for trading in
the March, June, September, and December quarterly cycle.
    Under current rules, the subject contracts are subject to a joint
all-months-combined speculative position limit of 5,000 futures-
equivalent contracts. Bona fide hedgers and certain other qualified
position holders are eligible for exemptions from this speculative
position limit. The Exchange is proposing to adopt, in addition to the
all-months-combined limit, a spot month position limit of 4,000
contracts applicable during the last three trading days. This limit
would apply to all positions and no exemptions, for hedging or other
enumerated positions, would be permitted. (See, Commission Rule
150.5(d).)
    The CBOT proposes to implement the proposal for application to
existing contract months, including the December 1999 contract month,
shortly after receipt of Commission approval. The December 1999
contract month expires on Tuesday, December 21, 1999. Thus, the
proposed spot month position limit would go into effect on Friday,
December 17, 1999. The CBOT issued a notice of the proposed amendment
and implementation plan on November 1, 1999.
    The Division requests comment on the proposed amendment and
implementation plan.
    Copies of the proposal will be available for inspection at the
Office of the Secretariat, Commodity Futures Trading Commission, Three
Lafayette Centre, 1155 21st St., NW, Washington, DC 20581. Copies of
the proposal can be obtained through the Office of the Secretariat by
mail at the above address or by phone at (202) 418-5100.
    Other materials submitted by the CBOT 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 the 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 proposal, or with respect to other materials submitted
by the CBOT, should send such comments to Jean A. Webb, Secretary,
Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21
St., NW, Washington, DC 20581 by the specified date.

    Issued in Washington, DC, on November 5, 1999.
John R. Mielke,
Acting Director.
[FR Doc. 99-29578 Filed 11-10-99; 8:45 am]
BILLING CODE 6351-01-M
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