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

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