Proposed Amendments to Minneapolis Grain Exchange Durum Wheat Futures Contract and an Application for Designation as a Contract Market in Durum Wheat Futures Options

COMMODITY FUTURES TRADING COMMISSION

Proposed Amendments to Minneapolis Grain Exchange Durum Wheat

Futures Contract and an Application for Designation as a Contract

Market in Durum Wheat Futures Options

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of availability of proposed rule amendments and an

application for contract market designation.

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SUMMARY: The Minneapolis Grain Exchange (MGE or Exchange) has proposed

amendments to the dormant durum wheat futures contract, along with a

proposal to reactivate trading in that futures contract pursuant to the

provisions of Commission Regulation 5.2. In addition, the Exchange

submitted an application for designation as a contract market in durum

wheat futures options. The proposals were submitted under the

Commission's 45-day Fast Track procedures. The Acting 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 December 16, 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 MGE durum wheat.

FOR FURTHER INFORMATION CONTACT: Please contact John Bird of the

Division of Economic Analysis, Commodity Futures Trading Commission,

Three Lafayette Centre, 21st Street NW, Washington, 20581, telephone

(202) 418-5274. Facsimile number: (202) 418-5527. Electronic mail:

[email protected]

SUPPLEMENTARY INFORMATION: The proposed amendments and the designation

application were submitted pursuant to the Commission's Fast Track

procedures for streamlining the review of futures contract rule

amendments and new contract approvals (62 FR 10434). Under those

procedures, the proposals, absent any contrary action by the

Commission, may be deemed approved at the close of business on January

2, 1998, 45 days after receipt of the proposals. 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 terms and conditions for 15 days, rather than 30 days as

provided for proposals submitted under the regular review procedures.

The amended durum wheat futures contract would call for the

delivery at par of shipping certificates representing 5,000 bushels of

durum wheat meeting or exceeding specified quality requirements,

including a minimum test weight of 60 pounds per bushel and a minimum

protein content of 13 percent. Issuers of the proposed shipping

certificates would be required to meet certain financial and other

requirements, and must be approved by the MGE. Upon surrender of a

shipping certificate, the issuer would be required to load the delivery

durum wheat in rail cars at a location specified by the certificate

issuer, with the issuer being obligated to pay the railroad freight

costs to a point designated by the issuer located in the Minneapolis-

St. Paul Switching District. Delivery by truck would also be permitted

under specified conditions.

Shipping certificate receivers would be obligated to pay a premium

charge of one-twelfth of one cent per bushel for each calendar day that

the receiver holds the certificates.

Trading would be conducted in the contract months of March, May,

July, September, and December. Prices would be quoted in dollars and

cents per bushel. The minimum price fluctuation would be one-quarter

(\1/4\) cent per bushel. A maximum daily price fluctuation limit of 20

cents per bushel would be applicable to trading at all times in each

contract month, except that such price limit would not be applicable to

expiring contract months commencing on the first business day of such

months.

Delivery of shipping certificates could be made on any business day

of the contract month. Trading in an expiring contract month would end

on the business day immediately preceding the last seven business day

of that month.

Durum wheat options would trade in the same months as the futures

contract. The last trading day for expiring option contract months

would be the Friday that precedes the first notice day of the

underlying futures contract month by at least five business days. The

options for

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such months would expire at 10:00 a.m. on the first Saturday following

the last trading day. Thus, delivery on the futures contract would not

be made until after the corresponding option had expired.

Copies of the proposed amendments and 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 can be obtained through the Office of

the Secretariat by mail at the above address, by phone at (202) 418-

5100, or via the internet on the CFTC website at www.cftc.gov under

``What's Pending.''

Other materials submitted by the MGE in support of the proposals

may be available upon request pursuant to the Freedom of Information

Act (5 U.S.C. 552) and the Commission's regulations thereunder (17 CFR

Part 145 (1987)), except to the extent they are entitled to

confidential treatment as set forth in 17 CFR 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 CFR 145.7 and 145.8.

Any person interested in submitting written data, views, or

arguments on the proposals, or with respect to other materials

submitted by the MGE, 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 24, 1997.

John R. Mielke,

Acting Director.

[FR Doc. 97-31318 Filed 11-28-97; 8:45 am]

BILLING CODE 6351-01-P