[Federal Register Volume 60, Number 226 (Friday, November 24, 1995)]
[Notices]
[Pages 58048-58049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28701]



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COMMODITY FUTURES TRADING COMMISSION

Chicago Mercantile Exchange Options on the Butter Futures 
Contract, and Amendments to the Dormant Butter Futures Contract

AGENCY: Commodity Futures Trading Commission.

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

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SUMMARY: The Chicago Mercantile Exchange (CME or Exchange) has applied 
for designation as a contract market in options on its butter futures 
contract. In addition, the CME proposes to amend the dormant butter 
futures contract that would underlie the proposed contract, and it has 
filed a request to list butter futures and option contracts. The 
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 
purposes of the Commodity Exchange Act.

DATES: Comments must be received on or before December 26, 1995.

ADDRESSES: Interested persons should submit their views and comments to 
Jean A. Webb, Secretary, Commodity Futures Trading Commission, 2033 K 
Street NW., Washington, DC 20581. Reference should be made to the CME 
butter futures option contract and the request to reactivate trading in 
the butter futures contract.

 
[[Page 58049]]

FOR FURTHER INFORMATION CONTACT: Please contact Fred Linse of the 
Division of Economic Analysis, Commodity Futures Trading Commission, 
Three Lafayette Centre, 1155 21st St., NW., Washington, DC 20581, 
telephone 202-418-5273.

SUPPLEMENTARY INFORMATION: The amended butter futures contract would 
call for the delivery of 40,000 pounds of Grade AA fresh or storage 
butter, packaged to conform to the requirements of the Commodity Credit 
Corporation for bulk butter, in carload lots containing only 25-
kilogram or 68-pound net capacity boxes. Butter would be deliverable in 
store in Exchange-approved warehouses (not including plant storage 
facilities) within the 48 contiguous states. Delivery would be at par 
in Chicago and at location differentials to be determined by the 
Exchange at locations outside Chicago.
    Trading would be conducted in the contract months of January, 
March, May, July, September, and November. Prices would be quoted in 
dollars and cents per pound. The minimum price fluctuation would be 
$0.00025 per pound. The maximum price fluctuation would be $0.025 per 
pound, which could be expanded to $0.05 per pound under certain 
conditions.
    Delivery could be made on any business day of the contract month on 
or after the third business day following the first Friday of the 
contract month. Trading in an expiring contract month would end on the 
business day immediately preceding the last five business days of that 
month.
    Butter options would trade in the same months as the futures 
contract, but would expire on the first Friday of the contract month. 
Thus, delivery on the futures contract would not be made until after 
the corresponding option had expired. Strike prices for the option 
would be listed at 2 cents per pound intervals above and below the 
previous day's closing price.
    Speculative traders of the futures and option contracts would be 
subject to a combined position limit of 900 futures and futures 
equivalent option contracts net long or short in any contract month. In 
addition, futures positions held by speculative traders after the first 
Friday of expiring contract months would be subject to a limit of 300 
contracts.
    Copies of the terms and conditions 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 terms and conditions can be obtained through the Office 
of the Secretariat by mail at the above address or by phone at (202) 
418-5097.
    Other materials submitted by the CME 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 proposed terms and conditions, or with respect to 
other materials submitted by the CME, should send such comments to Jean 
A. Webb, Secretary, Commodity Futures Trading Commission, Three 
Lafayette Centre, 1155 21st St., NW., Washington, DC 20581 by the 
specified date.

    Issued in Washington, DC, on November 15, 1995.
John R. Mielke,
Acting Director.
[FR Doc. 95-28701 Filed 11-22-95; 8:45 am]
BILLING CODE 6351-01-P