[Federal Register Volume 63, Number 171 (Thursday, September 3, 1998)] [Notices] [Pages 47007-47008] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 98-23937] ======================================================================= ----------------------------------------------------------------------- COMMODITY FUTURES TRADING COMMISSION Chicago Mercantile Exchange: Proposed Amendments to the Cash Settlement Provisions of the CME Russian Ruble Futures Contract AGENCY: Commodity Futures Trading Commission. ACTION: Notice of availability of proposed amendments to the terms and conditions of commodity futures contract. ----------------------------------------------------------------------- SUMMARY: The Chicago Mercantile Exchange (CME or Exchange) has submitted proposed amendments related to the cash settlement provisions of its Russian Ruble futures contract. If the Moscow Interbank Currency Exchange (MICEX) did not determine and/or disseminate a rubles per dollar spot exchange rate on the last day of trading, then, under the proposal, the CME would set the cash settlement price based on the results of its survey of Russian ruble-US dollar interbank market participants used to determine the ruble/dollar exchange rate on that day. 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 purpose of the Commodity Exchange Act. DATES: Comments must be received on or before September 8, 1998. 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 amendments to the CME Russian Ruble futures contract. FOR FURTHER INFORMATION CONTACT: Please contact Thomas Leahy of the Division of Economic Analysis, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, 20581, telephone (202) 418-5278. Facsimile number: (202) 418-5527. Electronic mail: [email protected]. SUPPLEMENTARY INFORMATION: Under current rules for the CME ruble futures contract, the cash settlement price is the reciprocal of the spot rate of Russian rubles per US dollar determined by the Moscow Interbank Currency Exchange on the last day of trading. In the event that MICEX does not determine and/or disseminate that spot exchange rate, CME rules provide for the declaration of an emergency pursuant to existing Exchange rule 3025.J. To preclude an emergency declaration, the Exchange proposes to adopt in its rules, backup procedures that would be used if the MICEX does not determine and/or disseminate the spot rate of Russian rubles per US dollar on the last trading day of the subject contract. The backup cash settlement price would be based on the exchange rate derived from the CME's daily survey of banks. The daily CME survey was initiated on August 28, 1998. The daily CME survey is conducted as follows. The CME surveys eight reference institutions from a list of at least twelve institutions that are active participants in the market for spot and/or non-deliverable forward markets. At 11:00 a.m. (Moscow time), each randomly selected participant is asked for its perception of the prevailing bid and offer for a typically sized Russian ruble per US dollar spot transaction in the Moscow marketplace. The midpoint of each bid/offer pair is determined, and the highest two and the lowest two midpoints are eliminated. The remaining four midpoints are averaged and the reciprocal of that average is the daily rate, which could be used as the final settlement price, as noted above. If the CME is unable to obtain eight responses, but is able to obtain at least five responses, then the CME determines the midpoints of each bid/offer pair and eliminates the highest and the lowest midpoint and average the remaining midpoints. The daily rate, that may be the final settlement price, is the reciprocal of that average. If fewer than five responses are received, then the CME would invoke its emergency provisions. The CME proposes to implement the changes to the proposed amendments to the cash settlement provisions immediately upon Commission approval for application to all existing and newly listed contracts. The first contract month to which the amendments could apply is the September 1998 contract which expires on September 15, 1998. The Division requests comment on the proposed changes and implementation plan. The comment period is abbreviated in view of the short time period remaining to the expiration date of the September contract and in view of the recent suspension by MICEX of its daily fixing of the rubles per dollar exchange rate. Copies of the proposed amendments will be available for inspection at the Office of the Secretariat, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st St., NW, Washington, D.C. 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 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 CME, should send such comments to Jean A. Webb, Secretary, Commodity Futures Trading Commission, Three [[Page 47008]] Lafayette Centre, 1155 21st St., NW, Washington, DC 20581 by the specified date. Issued in Washington, DC, on September 1, 1998. Steven Manaster, Director. [FR Doc. 98-23937 Filed 9-2-98; 8:45 am] BILLING CODE 6351-01-M