[Federal Register Volume 61, Number 112 (Monday, June 10, 1996)]
[Notices]
[Pages 29358-29359]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14490]



=======================================================================
-----------------------------------------------------------------------

COMMODITY FUTURES TRADING COMMISSION


COMEX Division of the New York Mercantile Exchange: Proposed 
Amendments to the Silver Futures Contract

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of proposed contract market rule changes.

-----------------------------------------------------------------------

SUMMARY: The COMEX Division of the New York Mercantile Exchange (COMEX 
or Exchange) has submitted a proposal to amend its silver futures 
contract. The amendments would add a new delivery point and facility to 
the list of Exchange-approved depositories in Supplement No. 2 of the 
rules of the silver futures contract. The Acting Director of the 
Division of Economic Analysis (Division) of the Commodity Futures 
Trading Commission (Commission) has determined that the proposal is of 
major economic significance and that, accordingly, publication of the 
proposal 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. On behalf of the Commission, 
the Division is hereby providing notice of, and seeking comment on, the 
proposed amendments.

DATES: Comments should be received on or before July 10, 1996.

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. Reference 
should be made to the proposed amendments to Supplement No. 2 of the 
rules of the COMEX silver futures contract.

FOR FURTHER INFORMATION CONTACT: Please contact John Forkkio of the 
Division of Economic Analysis, Commodity Futures Trading Commission, 
Three Lafayette Centre, 1155 21st Street, NW, Washington, DC 20581, 
telephone 202-418-5281.

SUPPLEMENTARY INFORMATION: The proposed amendments would add a new 
delivery point and facility to the list of Exchange-approved 
depositories for the silver futures contract. The new delivery point 
and facility are respectively, Wilmington, Delaware, and Wilmington 
Trust Company. The Exchange proposes to make these amendments effective 
on January 1, 1997. Consequently, the proposed amendments would apply 
to newly listed and certain currently listed silver futures 
contracts.1
---------------------------------------------------------------------------

    \1\ COMEX silver futures contract months currently are listed 
out through the year 2000.
---------------------------------------------------------------------------

    Currently, there are five approved depositories for the silver 
futures contract, all located in New York City. The Exchange submits 
that the addition of the Wilmington Trust Company depository in 
Wilmington, DE to its approved list may increase metals stocks 
available for delivery and provide greater flexibility for market 
participants wishing to make or take futures delivery. The NYMEX 
further noted that:

    The addition of Wilmington Trust would have the effect of making 
the [silver] contract consistent with cash market practices, as was

[[Page 29359]]

the case with [identical changes previously adopted for] the NYMEX 
platinum and palladium futures contracts. Market participants 
should, at worst, be indifferent to the addition of a depository in 
Wilmington, Delaware. In reviewing the data, and in talking with 
various industry participants, many, in fact, would experience 
greater flexibility should Wilmington Trust be approved. Approval 
could also potentially benefit those users of the COMEX silver 
futures contract who choose to store metal for periods of time 
rather than remove it immediately from a depository. Consumers or 
traders who desire to transport silver out of the location in which 
they receive it would incur a $25 savings in withdrawal charges when 
removing silver lots from Wilmington Trust that would offset most or 
all of the difference in transportation costs for large shipments of 
silver.
    In conclusion, other depository facilities located outside of 
New York City are indeed a part of the physical market for silver in 
the Northeast U.S., particularly Wilmington Trust. This can be seen 
by their use by a majority of participants in the silver industry * 
* *.

    The Division requests comments on the proposed amendments and the 
proposed implementation procedure, including any potential impact on 
the obligations of traders with open positions or on the value of such 
positions in the affected months.
    The COMEX proposal 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 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 COMEX in support of the proposal 
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)), except to the extent they are entitled to 
confidential treatment as set forth in 17 C.F.R. 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 
C.F.R. 145.7 and 145.8.
    Any person interested in submitting written data, views, or 
arguments on the proposed amendments, or with respect to other 
materials submitted by the COMEX in support of the proposal, 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 date.

    Issued in Washington, DC, on May 31, 1996.
John Mielke,
Acting Director.
[FR Doc. 96-14490 Filed 6-7-96; 8:45 am]
BILLING CODE 6351-01-P