Coffee, Sugar & Cocoa Exchange: Proposed Amendments to the Nonfat Dry Milk Futures Contract to Change the Contract form Physical Delivery to Cash Settlement

[Federal Register: November 21, 1997 (Volume 62, Number 225)]
[Notices]
[Page 62291-62292]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21no97-34]

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COMMODITY FUTURES TRADING COMMISSION


Coffee, Sugar & Cocoa Exchange: Proposed Amendments to the Nonfat
Dry Milk Futures Contract to Change the Contract From Physical Delivery
to Cash Settlement

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of proposed contract market rule change.

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SUMMARY: The Coffee, Sugar & Cocoa Exchange (CSCE or Exchange) has
submitted amendments to its nonfat dry milk futures contract that would
change the contract from physical delivery to cash settlement. 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) has
determined, on behalf of the Commission, that the proposed amendments
are of major economic significance. On behalf of the Commission, the
Division is requesting public comment on the proposal.

DATES: Comments must be received on or before December 8, 1997.

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 CSCE nonfat dry milk futures contract.

FOR FURTHER INFORMATION CONTACT: Please contact Fred Linse of the
Division of Economic Analysis, Commodity Futures Trading Commission,
Three Lafayette Centre, 1155 21st Street NW, Washington, 20581,
telephone (202) 418-5273. Facsimile number: (202) 418-5527. Electronic
mail: [email protected].

SUPPLEMENTARY INFORMATION: The amendments provide for cash settlement
of the nonfat dry milk (NDM) futures contract against the NDM ``West
Mostly'' monthly average price as calculated and published by the
United States Department of Agriculture (USDA). The USDA's NDM West
Mostly price is published weekly and represents a survey of both buyers
and sellers of NDM in western states. From this weekly price data, the
USDA calculates the monthly average price. The value of the cash
settled NDM contract would be 11,000 times the monthly average price.
    The Exchange said that changing the NDM contract to one which is
cash settled would significantly enhance the viability of this
contract. The Exchange said that it has polled NDM industry
participants who have reported that the USDA's West Mostly price is a
fair and representative price, and that a majority of industry
participants utilize it to price their product.
    The amendments were submitted pursuant to the Commission's ast
Track procedures for streamlining the review

[[Page 62292]]

of amendments to contract terms and conditions (62 Fed. Reg. 10434).
Under those procedures, the amendments, absent any contrary action by
the Commission, may be deemed approved on December 26, 1997, 45 days
after receipt of the submission. In view of the limited review period
provided under the Fast Track procedures, the Commission has determined
to publish for public comment notice of the availability of the amended
terms and conditions for 15 days, rather than 30 days as provided for
amendments submitted under the regular review procedures. 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 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) 418-5100.
    Other materials submitted by the CSCE 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 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 CSCE, 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 November 18, 1997.
John R. Mielke,
Acting Director.
[FR Doc. 97-30676 Filed 11-20-97; 8:45 am]
BILLING CODE 6351-01-P
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