[Federal Register Volume 60, Number 21 (Wednesday, February 1, 1995)]
[Notices]
[Pages 6075-6076]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2425]



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COMMODITY FUTURES TRADING COMMISSION


New York Cotton Exchange: Proposed Amendments Relating to 
Permissible Compression, Bale Weight, and Numbers of Bales in a 
Delivery Unit for the Cotton No. 2 Futures Contract

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of proposed contract rule change.

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SUMMARY: The New York Cotton Exchange (``NYCE'') has submitted proposed 
amendments to its cotton No. 2 futures contract that will: (1) Provide 
that only cotton bales that have been gin universal density (GUD) 
compressed may be delivered on the futures contract; (2) narrow the 
weight range for deliverable individual bales of cotton to 400 to 650 
pounds from the existing range of 325 to 675 pounds; and (3) specify 
that the total number of bales in a delivery unit may not be fewer than 
92 or greater than 108. In accordance with Section 5a(a)(12) of the 
Commodity Exchange Act and acting pursuant to the authority delegated 
by Commission Regulation 140.96, the Acting Director of the Division of 
Economic Analysis (``Division'') of the Commodity Futures Trading 
Commission (``Commission'') has determined, on behalf of the 
Commission, that publication of the proposed amendments is in the 
public interest and will assist the Commission in considering the views 
of interested persons.

DATES: Comments must be received on or before March 3, 1995.

ADDRESSES: Interested persons should submit their views and comments to 
Jean A. Webb, Secretary, Commodity Futures Trading Commission, 2033 K 
Street NW, Washington, D.C. 20581. Reference should be made to the 
proposed amendments relating to permissible compression, bale weight, 
and numbers of bales in a delivery unit for the cotton No. 2 futures 
contract.

FOR FURTHER INFORMATION CONTACT: Frederick V. Linse, Division of 
Economic Analysis, Commodity Futures Trading Commission, 2033 K Street 
NW, Washington, D.C. 20581, telephone (202) 254-7303.

SUPPLEMENTARY INFORMATION: The existing terms of Section 6.03 of the 
NYCE By-Laws describe the types of compressed bales that may be 
deliverable on the futures contract. Section 6.03(o) currently 
specifies that deliverable cotton bales may be standard compressed, 
universal compressed, or GUD compressed. Bales [[Page 6076]] of cotton 
which have been compressed to high density are not deliverable on the 
contract. The existing terms of Section 5.06(c) of the By-laws specify 
that deliverable cotton bales must weigh no less than 325 pounds or no 
more than 675 pounds.
    Under the proposed amendments, Section 6.03(o) will be modified to 
specify that GUD compressed bales shall be the only bales permitted for 
delivery, thereby eliminating the delivery of cotton bales that have 
been standard compressed or universal compressed. The proposed 
amendments also will revise Section 5.06(c) of the By-laws to the 
extent that the deliverable weight range for individual bales will be 
reduced to 400 to 650 pounds from the existing range of 325 to 675 
pounds. In addition, the proposed amendments will establish a new 
requirement that the number of bales in a delivery unit be no less than 
92 or more than 108.1

    \1\Further, the proposed amendments will delete an existing 
provision of the Exchange's rules which requires that the party 
submitting cotton for inspection and certification furnish a 
statement that specifies the manner in which the cotton has been 
compressed. The proposed amendments also will delete the contract's 
existing specifications that the deliverer must pay to the receiver 
the prevailing penalty charges assessed by the delivery warehouse 
for any cotton which such warehouse has not compressed and that no 
penalties will be allowed unless the penalties due are stamped on 
the warehouse receipt at the time it is issued.
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    The Exchange intends to implement the proposed amendments for all 
newly certificated cotton on and after August 1, 1995.
    Copies of the proposed amendments will be available for inspection 
at the Office of the Secretariat, Commodity Futures Trading Commission, 
2033 K Street NW, Washington, D.C. 20581. Copies of the amended terms 
and conditions can be obtained through the Office of the Secretariat by 
mail at the above address or by telephone at (202) 254-6314.
    The materials submitted by the NYCE in support of the proposed 
amendments may be available upon request pursuant to the Freedom of 
Information Act (5 U.S.C. 552) and the Commission's regulations 
thereunder (17 C.F.R. Part 145 (1987)). 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 C.F.R. 145.7 and 145.8.
    Any person interested in submitting written data, views or 
arguments on the proposed amendments should send such comments to Jean 
A. Webb, Secretary, Commodity Futures Trading Commission, 2033 K Street 
NW, Washington, D.C. 20581 by the specified date.

    Issued in Washington, D.C. on January 26, 1995.
Blake Imel,
Acting Director, Division of Economic Analysis.
[FR Doc. 95-2425 Filed 1-31-95; 8:45 am]
BILLING CODE 6351-01-P