[Federal Register: May 22, 1998 (Volume 63, Number 99)]
[Notices]
[Page 28363-28369]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22my98-60]
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COMMODITY FUTURES TRADING COMMISSION
Chicago Board of Trade Futures Contracts in Corn and Soybeans;
Order to Designate Contract Markets and Amendment Order of November 7,
1997, as Applied to Such Contracts; Correction
AGENCY: Commodity Futures Trading Commission.
ACTION: Final order to Chicago Board of Trade; correction.
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SUMMARY: On May 13, 1998, the Commission published in the Federal
Register (63 FR 26575) a final Order to the Chicago Board of Trade. The
purpose of the Order was to designate the Chicago Board of Trade as a
contract market in corn and soybeans futures contracts and amend the
Order of November 7, 1997, as applied to such contracts. This
correction includes Attachments 1 and 2 which were inadvertently
omitted.
DATES: This Order became effective on May 7, 1998.
ADDRESSES: Commodity Futures Trading Commission, Three Lafayette
Centre, 1155 21st Street, NW., Washington, DC 20581.
FOR FURTHER INFORMATION CONTACT:
Steve Manaster, Director, or Paul M. Architzel, Chief Counsel, Division
of Economic Analysis, Commodity Futures Trading Commission, Three
Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581, (202)
418-5260, or electronically, Mr. Architzel at [[email protected]].
SUPPLEMENTARY INFORMATION: The Commission is correcting inadvertent
omissions in the publication of the final Order to the Chicago Board of
Trade whereby the Commodity Futures Trading Commission ordered that the
applications for contract market designation in corn and in soybeans
submitted by the Board of Trade of the City of Chicago (CBT) on
December 19, 1997 and supplemented on March 20, 1998, be granted and
amended its Order under section 5a(a)(10), dated November 7, 1997, to
permit the applications for designation to be granted. Under this
Order, the Commission took the following actions:
(1) Granted under section 5 of the Commodity Exchange Act (Act) the
CBT's application for designation as a contract market in soybeans and
approved under section 5a(a)(12) of the Act all of the proposed rules
of the contract market contained in Attachment 1 to the Order;
(2) Granted under section 5 of the Act the CBT's application for
designation as a contract market in corn and approved under section
5a(a)(12) of the Act all of the proposed rules of the contract market
contained in Attachment 2 to the Order;
The Commission is publishing Attachments 1 and 2 which were
inadvertently omitted and were referred to on page 26575, column 3,
paragraphs (1) and (2).
Issued in Washington, DC on May 14, 1998.
Jean A. Webb,
Secretary of the Commission, Commodity Futures Trading Commission.
Attachment 1--Proposed Soybean Futures Contract Rules
Soybean Futures
ChXS Trading Conditions
XS04.01 Unit of Trading--(see 1004.00)
XS05.01 Months Traded In--(see 1005.01A)
XS06.01 Price Basis--(see 1006.00 and 1006.01)
XS05.01 Hours of Trading--(see 1007.00 and 1007.02)
XS08.01 Trading Limits--(see 1008.01 and 1008.02)
XS09.01 Last Day of Trading--(see 1009.02 and 1009.03)
XS10.01 Margin Requirements--see 431.03)
XS11.01 Disputes--All disputes between interested parties may be
settled by arbitration as provided in the Rules and Regulations.
XS12.01 Position Limits and Reportable Positions--(see 425.01)
ChXS Delivery Procedures
XS36.00 Grade Differentials--(see 1036.00)
XS36.01 Soybean Location Delivery Differentials--Soybeans for shipment
from regular shipping stations located within the Chicago Switching
District or the Burns Harbor, Indiana Switching District may be
delivered in satisfaction of Soybean futures contracts at contract
price, subject to the differentials for class and grade outlined above.
Soybeans for shipment from regular shipping stations located within the
Lockport-Seneca Shipping District may be delivered in satisfaction of
soybean futures contracts at a premium of 2 cents per bushel over
contract price, subject to the differentials for class and grade
outlined above. Soybeans for shipment from regular shipping stations
located within the Ottawa-Chillicothe Shipping District may be
delivered in satisfaction of Soybean futures contracts at a premium of
2\1/2\ cents per bushel over contract price, subject to the
differentials for class and grade outlined above. Soybeans for shipment
from regular shipping stations located within the Peoria-Pekin Shipping
District may be delivered in satisfaction of Soybean futures contracts
at a premium of 3 cents per bushel over contract price, subject tot he
differentials for class and grade outlined above. Soybeans for shipment
from regular shipping stations located within the Havana-Grafton
Shipping District may be delivered in satisfaction of soybean futures
contracts at a premium of 3\1/2\ cents per bushel over contract price,
subject to the differentials for class and grade outlined above.
Soybeans for shipment from regular shipping stations located in the St.
Louis-East St. Louis and Alton Switching Districts may be delivered in
satisfaction of Soybean futures contracts at a premium of 6 cents per
bushel over contract price, subject to the differentials for class and
grade outlined above.
XS38.01 Grades--(see 1038.00 and 1038.01)
XS41.01 Delivery Points--Soybean Shipping Certificates shall specify
shipment from one of the warehouses or shipping stations currently
regular for delivery and located in one of the following territories:
A. Chicago and Burns Harbor, Indiana Switching District--When used
in these Rules and Regulations, the Chicago Switching District will be
that area
[[Page 28364]]
geographically defined by Tariff ICC WTL 8020-Series and that portion
of the Illinois Waterway at or above river mile 304 which includes the
Calumet Sag Channel and the Chicago Sanitary & Ship Canal. When used in
these Rules and Regulations, Burns Harbor, Indiana Switching District
will be that area geographically defined by the boundaries of Burns
Waterway Harbor at Burns Harbor, Indiana which is owned and operated by
the Indiana Port Commission.
B. Lockport-Seneca Shipping District--When used in these Rules and
Regulations, the Lockport-Seneca Shipping District will be that portion
of the Illinois Waterway below river mile 304 at the junction of the
Calumet Sag Channel and Chicago Sanitary & Ship Canal and above river
mile 244.6 at the Marseilles Lock and Dam. Shipping stations within the
Lockport-Seneca Shipping District must deliver 5,000 bushel shipping
certificates of a like kind and quality of grain in multiples of 55,000
bushes against the futures contracts.
C. Ottawa-Chillicothe Shipping District--When used in these Rules
and Regulations, the Ottawa-Chillicothe Shipping District will be that
portion of the Illinois Waterway below river mile 244.6 at the
Marseilles Lock and Dam and at or above river mile 170 between
Chillicothe and Peoria, IL. Shipping stations within the Ottawa-
Chillicothe Shipping District must deliver 5,000 bushel shipping
certificates of a like kind and quality of grain in multiples of 55,000
bushels against the futures contracts.
D. Peoria-Pekin Shipping District--When used in these Rules and
Regulations, the Peoria-Pekin Shipping District will be that portion of
the Illinois Waterway below river mile 170 between Chillicothe and
Peoria, IL and at or above river mile 151 at Pekin, IL. Shipping
stations within the Peoria-Pekin Shipping District must deliver 5,000
bushel shipping certificates of a like kind and quality of grain in
multiples of 55,000 bushels against the futures contracts.
E. Havana-Grafton Shipping District--When used in these Rules and
Regulations, the Havana-Grafton Shipping District will be that portion
of the Illinois Waterway below river mile 151 at Pekin, IL to river
mile 0 at Grafton, IL. Shipping stations within the Havana-Grafton
Shipping District must deliver 5,000 bushel shipping certificates of a
like kind and quality of grain in multiples of 55,000 bushels against
the futures contracts.
F. St. Louis-East St. Louis and Alton Switching Districts--When
used in these Rules and Regulations, St. Louis-East St. Louis and Alton
Switching Districts will be that portion of the upper Mississippi River
below river mile 218 at Grafton, IL and above river mile 170 at
Jefferson Barracks Bridge in south St. Louis, MO. Shipping stations on
the St. Louis-East St. Louis and Alton Switching Districts must deliver
5,000 bushel shipping certificates of a like kind and quality of grain
in multiples of 55,000 bushels against the futures contracts.
XS43.01 Deliveries by Soybean Shipping Certificate--(see 1043.01)
XS43.02 Registration of Soybean Shipping Certificates--(see 1043.02)
XS43.03 Reissuance of Shipping Certificates--(see 1043.03)
XS44.01 Certificates Format--The following form of Soybean Shipping
Certificate shall be used with proper designation, indicating shipping
station.
Board of Trade of the City of Chicago Soybean Shipping Certificate for
Delivery in Satisfaction of Contract for 5,000 Bushels of Soybeans
This certificate not valid unless registered by the Registrar of
the Board of Trade of the City of Chicago.
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Soybeans Shipping Station of (grade)-----------------------------------
Located at-------------------------------------------------------------
Registered total daily rate of loading of ________ bushes.
Total rate of loading per day shall be in accordance with
Regulation 1081.01 (12) G and H. A premium charge of $________ cents
per bushel per calendar day for each day is to be assessed starting
the day after registration by the Registrar of this Certificate
through the business day loading is complete.
For value received and receipt of this document properly
endorsed and lien for payment of premium charges the undersigned
shipper, regular for delivery under the Rules and Regulations of the
Board of Trade of the City of Chicago, hereby agrees to deliver
5,000 bushels of Soybeans in bulk conforming to the standards of the
Board of Trade of the City of Chicago and ship said Soybeans in
accordance with orders of the lawful owner of this document and in
accordance with Rules and Regulations of the Board of Trade of the
City of Chicago. Delivery shall be by water or rail conveyance
according to the registered loading capability of the shipper.
Signed at ____________ this ____________ day of ____________, 19
____
____ Chicago, Il or Burns Harbor, IN Switching District
____ Lockport-Seneca Shipping District
____ Ottawa-Chillicothe Shipping District
____ Peoria-Pekin Shipping District
____ Havana-Grafton Shipping District
____ St. Louis-East St. Louis and Alton Switching Districts
By---------------------------------------------------------------------
Authorized Signature of Issuer
Registration date------------------------------------------------------
Registrar's Number-----------------------------------------------------
Registrar for Soybeans
Board of Trade of the City of Chicago
Registration canceled for purpose of shipment of Soybeans by
owner of certificate or by issuer of certificate for purpose of
withdrawal of certificate.
Cancellation Date------------------------------------------------------
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Registrar
All premium charges have been paid on Soybeans covered by this
certificate from date of registration, not counting date of
registration but counting date of payment.
Date________ by ________
Date________ by ________
Date________ by ________
Date________ by ________
Delivery of this Soybean Shipping Certificate to issuer is
conditioned upon loading of Soybeans in accordance with Rules and
Regulations of the Board of Trade of the City of Chicago and a lien
is claimed until all loadings are complete and proper shipping
documents presented accompanying demand draft for freight and
premium charges due which I (we) agree to honor upon presentation.
----------------------------------------------------------------------
Owner of this Soybean Shipping
Certificate or his duly authorized agent
Date________, 19 ________
XS46.01 Location for Buying or Selling Delivery Instruments-(see
1046.00A)
XS47.01 Delivery Notices-(see 1047.01)
XS48.01 Method of Delivery-(see 1048.01)
XS49.01 Time of Delivery, Payment, Form of Delivery Notice-(see
1049.00)
XS49.02 Time of Issuance of Delivery Notice-(see 1049.01)
XS49.03 Buyer's Report of Eligibility to Receive Delivery-(see
1049.02)
XS49.04 Seller's Invoice to Buyers-(see 1049.03)
XS49.05 Payment-(see 1049.04)
XS50.01 Duties of Members-(see 1050.00)
XS51.01 Office Delivers Prohibited-(see 1051.01)
XS54.01 Failure to Accent Delivery-(see 1054.00 and 1054.00A)
XS56.01 Payment of Premium Charges-To be valid for delivery on futures
contracts, all shipping certificates covering Soybeans under obligation
for shipment must indicate the applicable premium charge. No shipping
certificates shall be valid for delivery on futures contracts unless
the premium charges on such Soybeans shall have been paid up to and
including the 18th calendar day of the preceding month, and such
payment endorsed on the shipping certificate. Unpaid accumulated
premium charges at the posted rate applicable to the warehouse or
[[Page 28365]]
shipping station where the grain under obligation for shipment shall be
allowed and credited to the buyer by the seller to and including date
of delivery. Further, no shipping certificate shall be valid for
delivery if the shipping certificate has expired prior to delivery or
has an expiration date in the month in which delivered.
If premium charges are not paid on-time up to and including the
18th calendar day preceding the delivery months of March, July and
September and by the first Calendar day of each of these delivery
months, a late charge will apply. The late charge will be an amount
equal to the total unpaid accumulated premium charges rates multiplied
by the "prime interest rate" in effect on the day that the accrued
premium charges are paid plus a penalty of 5 percentage points, all
multiplied by the number of calendar days that premium is overdue,
divided by 360 days. The terms "prime interest rate" shall mean the
lowest of the rates announced by each of the following four banks at
Chicago, Illinois, at its "prime rate": Bank of America-Illinois, the
First National Bank of Chicago, Harris Trust & Savings Bank, and the
Northern Trust Company.
The premium charges on Soybeans for delivery from regular shippers
within the Chicago Switching District or the Burns Harbor, Indiana
Switching District shall not exceed \12/100\ of one cent per bushel per
day.
The premium charges on Soybeans for delivery from regular shippers
within the Lockport-Seneca Shipping District shall not exceed \10/100\
of one cent per bushel per day.
The premium charges on Soybeans for delivery from regular shippers
within the Ottawa-Chillicothe Shipping District shall not exceed \10/
100\ of one cent per bushel per day.
The premium charges on Soybeans for delivery from regular shippers
within the Peoria-Pekin Shipping District shall not exceed \10/100\ of
one cent per bushel per day.
The premium charges on Soybeans for delivery from regular shippers
within the Havana-Grafton Shipping District shall not exceed \10/100\
of one cent per bushel per day.
The premium charges on Soybeans for delivery from regular shippers
in the St. Louis-East St. Louis and Alton Switching Districts shall not
exceed \10/100\ of one cent per bushel per day.
ChXS Regularity of Issuers of Shipping Certificates
XS81.01 Regularity of Warehouses and Issuers of Shipping
Certificates--Persons operating grain warehouses or shippers who desire
to have such warehouses or shipping stations made regular for the
delivery of grain under the Rules and Regulations shall make
application for an initial Declaration of Regularity on a form
prescribed by the Exchange prior to May 1, 1994, and every even year
thereafter, for a two-year term beginning July 1, 1994, and every even
year thereafter, and at any time during a current term for the balance
of that term. Regular grain warehouses or shippers who desire to
increase their regular capacity during a current term shall make
application for the desired amount of total regular capacity on the
same form. Initial regularity for the current term and increases in
regularity shall be effective either thirty days after a notice that a
bona fide application has been received is posted on the floor of the
exchange, or the day after the application is approved by the Exchange,
whichever is later. Applications for a renewal of regularity shall be
made prior to May 1, 1994, and every even year thereafter, for the
respective years beginning July 1, 1994, and every even year
thereafter, and shall be on the same form.
The following shall constitute the requirements and conditions for
regularity:
(1) The warehouse or shipping station making application shall be
inspected by the Registrar or the United States Department of
Agriculture. Where application is made to list as regular a warehouse
which is not regular at the time of such application, the applicant may
be required to remove all grain from the warehouse and to permit the
warehouse to be inspected and the grain graded, after which such grain
may be returned to the warehouse and receipts issued therefor.
The operator of a shipping station issuing Soybean Shipping
Certificates shall limit the number of Shipping Certificates issued to
an amount not to exceed:
(a) 30 times his registered total daily rate of loading barges,
(b) a value greater than 25 percent of the operator's net worth,
(c) and in the case of Chicago, Illinois and Burns Harbor, Indiana
Switching Districts only, his registered storage capacity.
The shipper issuing Soybean Shipping Certificates shall register
his total daily rate of loading barges at his maximum 8 hour loadout
capacity in an amount not less than:
(a) one barge per day at each shipping station within the Lockport-
Seneca Shipping District, within the Ottawa-Chillicothe Shipping
District, within the Peoria-Pekin Shipping District, within the Havana-
Grafton Shipping District, and within the St. Louis-East St. Louis and
Alton Switching Districts and
(b) three barges per day at each shipping station in the Chicago,
Illinois and Burns Harbor, Indiana Switching District.
(2) Shippers located in the Chicago, Illinois and Burns Harbor,
Indiana Switching District shall be connected by railroad tracks with
one or more railway lines.
XS81.01(3) through XS81.01(12)G(8)--(see 1081.01(3) through 1081.01
(12)G(8))
XS81.01(12)G (9) In the event that it had been announced that river
traffic will be obstructed for a period of fifteen days or longer as a
result of one of the conditions of impossibility listed in regulation
1081.01(12)(G)(8) and in the event that the obstruction will affect a
majority of regular shipping stations, then the following barge load-
out procedures for soybeans shall apply to shipping stations upriver
from the obstruction.
(a) The maker and taker of delivery may negotiate mutually
agreeable terms of performance.
(b) If the maker and/or the taker elect not to negotiate mutually
agreeable terms of performance, then the maker is obligated to provide
the same quantity and like quality of grain pursuant to the terms of
the shipping certificate(s) with the following exceptions and
additional requirements:
(i) The maker must provide loaded barge(s) to the taker on the
Illinois River between the lowest closed lock and St. Louis, inclusive,
or on the Mid-Mississippi River between Lock 11 at Dubuque, Iowa and
St. Louis, inclusive.
(ii) The loaded barge(s) provided to the taker must have a value
equivalent to C.I.F. NOLA, with the maker of delivery responsible for
the equivalent cost, insurance and freight.
(iii) The taker of delivery shall pay the maker 18 cents per bushel
for Chicago and Burns Harbor Switching District shipping certificates,
16 cents per bushel for Lockport-Seneca District shipping certificates.
15\1/2\ cents per bushel for Ottawa-Chillicothe District shipping
certificates, 15 cents per bushel for Peoria-Pekin District shipping
certificates, and 14 \1/2\ cents per bushel for Havana-Grafton District
shipping certificates as a reimbursement for the cost of barge freight.
(c) In the event that the obstruction or condition of impossibility
listed in regulation 1081.01(12)(G)(8) will affect a
[[Page 28366]]
majority of regular shipping stations, but no announcement of the
anticipated period of obstruction is made, then shipment may be delayed
for the number of days that such impossibility prevails.
XS81.01(12)H Barge Load-Out Rates for Soybeans--(see 1081.01(12)(H)
XS81.01(13) Location--For the delivery of Soybeans, regular warehouses
or shipping stations may be located within the Chicago Switching
District or within the Burns Harbor, Indiana Switching District or
within the Lockport--Senaca Shipping District or within the Ottawa--
Chillicothe Shipping District or within the Peoria-Pekin Shipping
District or within the Havana-Grafton Shipping District or in the St.
Louis-East St. Louis and Alton Switching Districts.
No such warehouse or shipping station within the Chicago Switching
District shall be declared regular unless it is conveniently
approachable by vessels of ordinary draft and has customary shipping
facilities. Ordinary draft shall be defined as the lesser of (1)
channel draft as recorded in the Lake Calumet Harbor Draft Gauge, as
maintained by the Corps of Engineers, U.S. Army, minus one (1) foot, or
(2) 20 feet.
Delivery in Burns Harbor must be made "in store" in regular
elevators or by shipping certificate at regular shipping stations
providing water loading facilities and maintaining water depth equal to
normal seaway draft of 27 feet.
In addition, deliveries of grain may be made in regular elevators
or shipping stations within the Burns Harbor Switching District
PROVIDED that:
(a) When grain represented by shipping certificates is ordered out
for shipment by a barge, it will be the obligation of the party making
delivery to protect the barge freight rate from the Chicago Switching
District (i.e. the party making delivery and located in the Burns
Harbor Switching District will pay the party taking delivery an amount
equal to all expenses for the movement of the barge from the Chicago
Switching District, to the Burns Harbor Switching District and the
return movement back to the Chicago Switching District).
If inclement weather conditions make the warehouse or shipping
station located in the Burns Harbor Switching District unavailable for
barge loadings for a period of five or more calendar days, the party
making delivery will make grain available on the day following this
five calendar day period to load into a barge at one mutually agreeable
water warehouse or shipping station located in the Chicago Switching
District; PROVIDED that the party making delivery is notified on the
first day of that five-day period of inclement weather that the barge
is available for movement but cannot be moved from the Chicago
Switching District to the Burns Harbor Switching District, and is
requested on the last day of this five day calendar period in which the
barge cannot be moved.
(b) When grain represented by shipping certificates is ordered out
for shipment by vessel, and the party taking delivery is a recipient of
a split delivery of grain between a warehouse or shipping station
located in Burns Harbor and a warehouse or shipping station in Chicago,
and the grain in the Chicago warehouse or shipping station will be
loaded onto this vessel; it will be the obligation of the party making
delivery at the request of the party taking delivery to protect the
holder of the shipping certificates against any additional charges
resulting from loading at one berth in the Burns Harbor Switching
District and at one berth in the Chicago Switching District as compared
to a single berth loading at one location. The party making delivery,
at his option, will either make the grain available at one water
warehouse or shipping station operated by the party making delivery and
located in the Chicago Switching District for loading onto the vessel,
make grain available at the warehouse or shipping station in Burns
Harbor upon the surrender of shipping certificates issued by other
regular elevators or shipping stations located in the Chicago Switching
District at the time vessel loading orders are issued, or compensate
the party taking delivery in an amount equal to all applicable
expenses, including demurrage charges, if any, for the movement of the
vessel between a berth in the other switching district. On the day that
the grain is ordered out for shipment by vessel, the party making
delivery will declare the regular warehouse or shipping station in
which the grain will be available for loading.
Delivery within the Lockport-Seneca Shipping District or within the
Ottawa-Chilicothe Shipping District or within the Peoria-Pekin Shipping
District of within the Havana-Grafton Shipping District must be made at
regular shipping station providing water loading facilities and
maintaining water depth equal to the draft of the Illinois River
maintained by the Corp of Engineers
Delivery in the St. Louis-East St. Louis and Alton Switching
Districts must be made at regular shipping stations providing water
loading facilities and maintaining water depth equal to the draft of
the Mississippi River maintained by the Corp of Engineers.
XS81.01(14) Billing--(see 1081.01(14)A and 1081.01(14)D
XS81.01(15) through XS81.01(17)--(see 1081.01(15) through 1081.01(17))
XS81.01A Inspection (see 1081.01A)
XS81.01B Billing When Grain is Loaded Out (see 1081.01B)
XS81.01C Car of Specified Capacity (see 1081.01C)
XS82.01 Insurance (see 1082.00)
XS83.01 Variation Allowed (See 1083.00)
XS83.02 Excess or Deficiency in Quantity (see 1083.01)
XS84.0 Revocation, Expiration or Withdrawal of Regularity (see
1084.01)
XS85.01 Application for Declaration of Regularity (see 1085.01)
XS86.01 Federal Warehouses (see 1086.01)
Attachment 2--Proposed Corn Futures Contract Rules
Corn Futures
ChXC Trading Conditions
XC01.01 Application of Regulations--Transactions in Corn futures shall
be subject to the General Rules of the Association as far as applicable
and shall also be subject to Regulations contained in this chapter
which are exclusively applicable to trading in Corn.
XC04.01 Unit of Trading--(see 1004.00)
XC05.01 Months Traded In--(see 1005.01A)
XC06.01 Price Basis--(see 1006.00 and 1006.01)
XC07.01 Hours of Trading--(see 1007.00 and 1007.02)
XC08.01 Trading Limits--(see 1008.01 and 1008.02)
XC09.01 Last Day of Trading--(see 1009.02 and 1009.03)
XC10.01 Margin Requirements--(see 431.03)
XC11.01 Disputes--All disputes between interested parties may be
settled by arbitration as provided in the Rules and Regulations.
XC12.01 Position Limits and Reportable Positions--(see 425.01)
ChXC Delivery Procedures
XC36.00 Grade Differentials--(see 1036.00)
XC36.01 Corn Locational Delivery Differentials--Corn for shipment from
regular shipping stations located within the Chicago Switching District
or the Burns Harbor, Indiana
[[Page 28367]]
Switching District may be delivered in satisfaction of corn futures
contracts at contract price, subject to the differentials for class and
grade outlined above. Corn for shipment from regular shipping stations
located within the Lockport-Seneca Shipping District may be delivered
in satisfaction of corn futures contracts at a premium of 2 cents per
bushel over contract price, subject to the differentials for class and
grade outlined above. Corn for shipment from regular shipping stations
located within the Ottawa-Chillicothe Shipping District may be
delivered in satisfaction of corn futures contracts at a premium of 2
\1/2\ cents per bushel over contract price, subject to the
differentials for class and grade outlined above. Corn for shipment
from regular shipping stations located within the Peoria-Pekin Shipping
District may be delivered in satisfaction of corn futures contracts at
a premium of 3 cents per bushel over contract price, subject to the
differentials for class and grade outlined above.
XC38.01 Grades--(see 1038.00 and 1038.01)
XC41.00 Delivery Points--Corn Shipping Certificates shall specify
shipment from one of the warehouses or shipping stations currently
regular for delivery and located in one of the following territories:
A. Chicago and Burns Harbor, Indiana Switching District--When used
in these Rules and Regulations, the Chicago Switching District will be
that area geographically defined by Tariff ICC WTL 8020-Series and that
portion of the Illinois Waterway at or above river mile 304 which
includes the Calumet Sag Channel and the Chicago Sanitary & Ship Canal.
When used in these Rules and Regulations, Burns Harbor, Indiana
Switching District will be that area geographically defined by the
boundaries of Burns Waterway Harbor at Burns Harbor, Indiana which is
owned and operated by the Indiana Port Commission.
B. Lockport-Seneca Shipping District--When used in these Rules and
Regulations, the Lockport-Seneca Shipping District will be that portion
of the Illinois Waterway below river mile 304 at the junction of the
Calumet Sag Channel and the Chicago Sanitary & Ship Canal and above
river mile 244.6 at the Marseilles Lock and Dam. Shipping stations
within the Lockport-Seneca Shipping District must deliver 5,000 bushel
shipping certificates of a like kind and quality of grain in multiples
of 55,000 bushels against the futures contracts.
C. Ottawa-Chillicothe Shipping District--When used in these Rules
and Regulations, the Ottawa-Chillicothe Shipping District will be that
portion of the Illinois Waterway below river mile 244.6 at the
Marseilles Lock and Dam and at or above river mile 170 between
Chillicothe and Peoria, IL. Shipping stations within the Ottawa-
Chillicothe Shipping District must deliver 5,000 bushel shipping
certificates of a like kind and quality of grain in multiples of 55,000
bushels against the futures contracts.
D. Peoria-Pekin Shipping District--When used in these Rules and
Regulations, the Peoria-Pekin Shipping District will be that portion of
the Illinois Waterway below river mile 170 between Chillicothe and
Peoria, IL and above river mile 151 at Pekin, IL. Shipping stations
within the Peoria-Pekin Shipping District must deliver 5,000 bushel
shipping certificates of a like kind and quality of grain in multiples
of 55,000 bushels against the futures contracts.
XC43.01 Deliveries by Corn Shipping Certificate--(see 1043.01)
XC43.02 Registration of Corn Shipping Certificates--(see 1043.02)
XC43.03 Reissuance of Shipping Certificates--(see 1043.03)
XC44.01 Certificate Format--The following form of Corn Shipping
Certificate shall be used with proper designation, indicating shipping
station.
Board of Trade of The City of Chicago Corn Shipping Certificate For
Delivery in Satisfaction of Contract for 5,000 Bushels of Corn
This certificate not valid unless registered by the Registrar of
the Board of Trade of the City of Chicago.
----------------------------------------------------------------------
(grade)
Corn Shipping Station of-----------------------------------------------
Located at-------------------------------------------------------------
Registered total daily rate of loading of ________ bushels.
Total rate of loading per day shall be in accordance with
Regulation 1081.01(12) G and H. A premium change of $________ cents
per bushel per calendar day for each day is to be assessed starting
the day after registration by the Registrar of this Certificate
through the business day loading is complete.
For value received and receipt of this document properly
endorsed and lien for payment of premium charges the undersigned
shipper, regular for delivery under the Rules and Regulations of the
Board of Trade of the City of Chicago, hereby agrees to deliver
5,000 bushels of Corn in bulk conforming to the standards of the
Board of Trade of the City of Chicago and ship said Corn in
accordance with orders of the lawful owner of this document and in
accordance with Rules and Regulations of the Board of Trade of the
City of Chicago. Delivery shall be by water or rail conveyance
according to the registered loading capability of the shipper.
Signed at ____________ this ____________ day of ____________, 19____
____ Chicago, IL or Burns Harbor, IN Switching District
____ Lockport-Seneca Shipping District
____ Ottawa-Chillicothe Shipping District
____ Peoria-Pekin Shipping District
By---------------------------------------------------------------------
Authorized Signature of Issuer
Registration date------------------------------------------------------
Registrar's Number-----------------------------------------------------
Registrar for Corn
Board of Trade of the City of Chicago
Registration canceled for purpose of shipment of Corn by owner
of certificate or by issuer of certificate for purpose of withdrawal
of certificate.
Cancellation Date------------------------------------------------------
----------------------------------------------------------------------
Registrar
All premium charges have been paid on Corn covered by this
certificate from date of registration, not counting date of
registration but counting date of payment.
Date________ by ________
Date________ by ________
Date________ by ________
Date________ by ________
Delivery of this Corn Shipping Certificate to issuer is
conditioned upon loading of Corn in accordance with Rules and
Regulations of the Board of Trade of the City of Chicago and a lien
is claimed until all loadings are complete and proper shipping
documents presented accompanying demand draft for freight and
premium charges due which I (we) agree to honor upon presentation.
----------------------------------------------------------------------
Owner of this Corn Shipping
Certificate or his duty authorized agent
Date________, 19____
XC46.01 Location for Buying or Selling Delivery Instruments--(see
1046.00A)
XC47.01 Delivery Notices--(see 1047.01)
XC48.01 Method of Delivery--(see 1048.01)
XC49.01 Time of Delivery, Payment, Form of Delivery Notice--(see
1049.00)
XC49.02 Time of Issuance of Delivery Notice--(see 1049.01)
XC49.03 Buyer's Report of Eligibility to Receive Delivery--(see
1049.02)
XC49.04 Seller's Invoice to Buyers--(see 1049.03)
XC49.05 Payment--(see 1049.04)
XC50.01 Duties of Members--(see 1050.00)
XC51.01 Office Deliveries Prohibited--(see 1051.01)
XC54.01 Failure to Accent Delivery--(see 1054.00 and 1054.00A)
[[Page 28368]]
XC56.01 Payment of Premium Charges--To be valid for delivery on
futures contracts, all shipping certificates covering Corn under
obligation for shipment must indicate the applicable premium charge. No
shipping certificates shall be valid for delivery on futures contracts
unless the premium charges on such Corn shall have been paid up to and
including the 18th calendar day of the preceding month, and such
payment endorsed on the shipping certificate. Unpaid accumulated
premium charges at the posted rate applicable to the warehouse or
shipping station where the grain under obligation for shipment shall be
allowed and credited to the buyer by the seller to and including date
of delivery. Further, no shipping certificate shall be valid for
delivery if the shipping certificate has expired prior to delivery or
has an expiration date in the month in which delivered.
If premium charges are not paid on-time up to and including the
18th calendar day preceding the delivery months of March, July and
September and by the first calendar day of each of these delivery
months, a late charge will apply. The late charge will be an amount
equal to the total unpaid accumulated premium charges rates multiplied
by the "prime interest rate" in effect on the day that the accrued
premium charges are paid plus a penalty of 5 percentage points, all
multiplied by the number of calendar days that premium is overdue,
divided by 360 days. The terms "prime interest rate" shall mean the
lowest of the rates announced by each of the following four banks at
Chicago, Illinois, at its "prime rate": Bank of America-Illinois, The
First National Bank of Chicago, Harris Trust & Savings Bank, and the
Northern Trust Company.
The premium charges on Corn for delivery from regular shippers
within the Chicago Switching District or the Burns Harbor, Indiana
Switching District shall not exceed 12/100 of one cent per bushel per
day.
The premium charges on Corn for delivery from regular shippers
within the Lockport-Seneca Shipping District shall not exceed 10/100 of
one cent per bushel per day.
The premium charges on Corn for delivery from regular shippers
within the Ottawa-Chillicothe Shipping District shall not exceed 10/100
of one cent per bushel per day.
The premium charges on Corn for delivery from regular shippers
within the Peoria-Pekin Shipping District shall not exceed 10/100 of
one cent per bushel per day.
ChXC Regularity of Issuers of Shipping Certificates
XC81.01 Regularity of Warehouses and Issuers of Shipping
Certificates--Persons operating grain warehouses or shippers who desire
to have such warehouses or shipping stations made regular for the
delivery of grain under the Rules and Regulations shall make
application for an initial Declaration of Regularity on a form
prescribed by the Exchange prior to May 1, 1994, and every even year
thereafter, for a two-year term beginning July 1, 1994, and every even
year thereafter, and at any time during a current term for the balance
of that term. Regular grain warehouses or shippers who desire to
increase their regular capacity during a current term shall make
application for the desired amount of total regular capacity on the
same form. Initial regularity for the current term and increases in
regularity shall be effective either thirty days after a notice that a
bona fide application has been received is posted on the floor of the
exchange, or the day after the application is approved by the Exchange,
whichever is later. Applications for a renewal of regularity shall be
made prior to May 1, 1994, and every even year thereafter, for the
respective years beginning July 1, 1994, and every even year
thereafter, and shall be on the same form.
The following shall constitute the requirements and conditions for
regularity:
(1) The warehouse or shipping station making application shall be
inspected by the Registrar or the United States Department of
Agriculture. Where application is made to list as regular a warehouse
which is not regular at the time of such application, the applicant may
be required to remove all grain from the warehouse and to permit the
warehouse to be inspected and the grain graded, after which such grain
may be returned to the warehouse and receipts issued therefor.
The operator of a shipping station issuing Corn Shipping
Certificates shall limit the number of Shipping Certificates issued to
an amount not to exceed:
(a) 30 times his registered total daily rate of loading barges,
(b) a value greater than 25 percent of the operator's net worth,
(c) and in the case of Chicago, Illinois and Burns Harbor, Indiana
Switching Districts only, his registered storage capacity.
The shipper issuing Corn Shipping Certificates shall register his
total daily rate of loading barges at his maximum 8 hour loadout
capacity in an amount not less than:
(a) one barge per day at each shipping station within the Lockport-
Seneca Shipping District, within the Ottawa-Chillicothe Shipping
District, and within the Peoria-Pekin Shipping District and
(b) three barges per day at each shipping station in the Chicago,
Illinois and Burns Harbor, Indiana Switching District.
(2) Shippers located in the Chicago, Illinois and Burns Harbor,
Indiana Switching District shall be connected by railroad tracks with
one or more railway lines.
XC81.01(3) through XC81.01(12)G(8)-(see 1081.01(3) through
1081.01(12)G(8))
XC81.01(12)G(9) In the event that it has been announced that river
traffic will be obstructed for a period of fifteen days or longer as a
result of one of the conditions of impossibility listed in regulation
XC81.01(12)(G)(8) and in the event that the obstruction will affect a
majority of regular shipping stations, then the following barge load-
out procedures for corn shall apply to shipping stations upriver from
the obstruction:
(a) The maker and taker of delivery may negotiate mutually
agreeable terms of performance.
(b) If the maker and/or the taker elect not to negotiate mutually
agreeable terms of performance, then the maker is obligated to provide
the same quantity and like quality of grain pursuant to the terms of
the shipping certificate(s) with the following exceptions and
additional requirements:
(i) The maker must provide loaded barge(s) to the taker on the
Illinois River between the lowest closed lock and St. Louis, inclusive,
or on the Mid-Mississippi River between Lock 11 at Dubuque, Iowa and
St. Louis, inclusive.
(ii) The loaded barge(s) provided to the taker must have a value
equivalent to C.I.F. NOLA, with the maker of delivery responsible for
the equivalent cost, insurance and freight.
(iii) The taker of delivery shall pay the maker 18 cents per bushel
for Chicago and Burns Harbor Switching District shipping certificates,
16 cents per bushel for Lockport-Seneca District shipping certificates,
15\1/2\ cents per bushel for Ottawa-Chillicothe District shipping
certificates, and 15 cents per bushel for Peoria-Pekin District
shipping certificates as a reimbursement for the cost of barge freight.
(c) In the event that the obstruction or condition of impossibility
listed in
[[Page 28369]]
regulation XC81.01(12)(G)(8) will affect a majority of regular shipping
stations, but no announcement of the anticipated period of obstruction
is made, then shipment may be delayed for the number of days that such
impossibility prevails.
XC81.01(12)H Barge Load-Out Rates for Corn--(see 1081.01(12)H)
XC81.01(13) Location--For the delivery of corn, regular warehouses or
shipping stations may be located within the Chicago Switching District
or within the Burns Harbor, Indiana Switching District or within the
Lockport-Seneca Shipping District, or within the Ottawa-Chillicothe
Shipping District or within the Peoria-Pekin Shipping District.
No such warehouse or shipping station within the Chicago Switching
District shall be declared regular unless it is conveniently
approachable by vessels of ordinary draft and has customary shipping
facilities. Ordinary draft shall be defined as the lesser of (1)
channel draft as recorded in the Lake Calumet Harbor Draft Gauge, as
maintained by the Corps of Engineers, U.S. Army, minus one (1) foot, or
(2) 20 feet.
Delivery in Burns Harbor must be made "in store" in regular
elevators or by shipping certificate at regular shipping stations
providing water loading facilities and maintaining water depth equal to
normal seaway draft of 27 feet.
In addition, deliveries of grain may be made in regular elevators
or shipping stations within the Burns Harbor Switching District
PROVIDED that:
(a) When grain represented by shipping certificates is ordered out
for shipment by a barge, it will be the obligation of the party making
delivery to protect the barge freight rate from the Chicago Switching
District (i.e. the party making delivery and located in the Burns
Harbor Switching District will pay the party taking delivery an amount
equal to all expenses for the movement of the barge from the Chicago
Switching District, to the Burns Harbor Switching District and the
return movement back to the Chicago Switching District).
If inclement weather conditions make the warehouse or shipping
station located in the Burns Harbor Switching District unavailable for
barge loadings for a period of five or more calendar days, the party
making delivery will make grain available on the day following this
five calendar day period to load into a barge at one mutually agreeable
water warehouse or shipping station located in the Chicago Switching
District; PROVIDED that the party making delivery is notified on the
first day of that five-day period of inclement weather that the barge
is available for movement but cannot be moved from the Chicago
Switching District to the Burns Harbor Switching District, and is
requested on the last day of this five day calendar period in which the
barge cannot be moved.
(b) When grain represented by shipping certificates is ordered out
for shipment by vessel, and the party taking delivery is a recipient of
a split delivery of grain between a warehouse or shipping station
located in Burns Harbor and a warehouse or shipping station in Chicago,
and the grain in the Chicago warehouse or shipping station will be
loaded onto this vessel; it will be the obligation of the party making
delivery at the request of the party taking delivery to protect the
holder of the shipping certificates against any additional charges
resulting from loading at one berth in the Burns Switching District and
at one berth in the Chicago Switching District as compared to a single
berth loading at one location. The party making delivery, at his
option, will either make the grain available at one water warehouse or
shipping station operated by the party making delivery and located in
the Chicago Switching District for loading onto the vessel, make grain
available at the warehouse or shipping station in Burns Harbor upon the
surrender of shipping certificates issued by other regular elevators or
shipping stations located in the Chicago Switching District at the time
vessel loading orders are issued, or compensate the party taking
delivery in an amount equal to all applicable expenses, including
demurrage charges, if any, for the movement of the vessel between a
berth in the other switching district. On the day that the grain is
ordered out for shipment by vessel, the party making delivery will
declare the regular warehouse or shipping station in which the grain
will be available for loading.
Delivery within the Lockport-Seneca Shipping District, or within
the Ottawa-Chillicothe Shipping District or within the Peoria-Pekin
Shipping District must be made at regular shipping stations providing
water loading facilities and maintaining water depth equal to the draft
of the Illinois River maintained by the Corp of Engineers.
XC81.01(14) Billing--(see 1081.01(14)A and 1081.01(14)D)
XC81.01(15) through XC81.01(17)--(see 1081.01(15) through 1081.01(17))
XC81.01A Inspection (see 1081.01A)
XC81.01B Billing When Grain is Loaded Out (see 1081.01B)
XC81.01C Car of Specified Capacity (see 1081.01C)
XC82.01 Insurance (see 1082.00)
XC83.01 Variation Allowed (see 1083.00)
XC83.02 Excess or Deficiency in Quantity (see 108.01)
XC84.01 Revocation, Expiration or Withdrawal of Regularity (see
1084.01)
XC85.01 Application for Declaration of Regularity (see 1085.01)
XC86.01 Federal Warehouses (see 1086.01)
[FR Doc. 98-13335 Filed 5-21-98; 8:45 am]
BILLING CODE 6351-01-M
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