Federal Register / Vol. 65, No. 88 / Friday, May 5, 2000 / Notices 26187

exception of the rulemaking provisions of 5

U.S.C. 553(a)(1).

Sincerely,

D. Michael Hutchinson,

Acting Chairman, Committee for the

Implementation of Textile Agreements.

[FR Doc. 00–11240 Filed 5–4–00; 8:45 am]

BILLING CODE 3510–DR–F

COMMODITY FUTURES TRADING

COMMISSION

New York Cotton Exchange: Proposed

Amendments To Convert the U.S.

Dollar Index Futures Contract to

Physical Delivery From Cash

Settlement.

AGENCY: Commodity Futures Trading

Commission.

ACTION: Notice of availability of

proposed amendments to the terms and

conditions of commodity futures

contract.

SUMMARY: The FINEX Division of the

New York Cotton Exchange (NYCE or

Exchange) has submitted proposed

amendments to convert its U.S. Dollar

Index (USDX or Index) futures contract

to physical delivery from its existing

cash settlement provisions. Under the

proposal, the NYCE would no longer

cash settle the USDX futures contract

based on a survey of banks conducted

by Reuters. Rather, the contract would

provide for physical delivery of U.S.

dollars in exchange for a basket of

foreign currencies based on the fixed

percentage weights of the Index.

The Acting Director of the Division of

Economic Analysis (Division), acting

pursuant to the authority delegated by

Commission Regulation 140.96, has

determined that publication of the

proposal 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 May 22, 2000.

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

secretary@cftc.gov. Reference should be

made to the proposed amendments to

the NYCE U.S. Dollar Index futures

contract.

FOR FURTHER INFORMATION CONTACT:

Please contact Michael Penick of the

Division of Economic Analysis,

Commodity Futures Trading

Commission, Three Lafayette Centre,

1155 21st Street NW, Washington, DC

20581, telephone (202) 418–5279.

Facsimile number: (202) 418–5527.

Electronic mail: mpenick@cftc.gov.

SUPPLEMENTARY INFORMATION: The USDX

is a geometric index of six foreign

currencies with fixed percentage

weights. The six currencies and their

percentage weights are as follows: euro

(57.6%); Japanese yen (13.6%); British

pound (11.9%); Canadian dollar (9.1%);

Swedish krona (4.2%); and Swiss franc

(3.6%). The index formula is:

USDX Spot Rate

i

currency w

= = ( ) =50 14348112 ∏

1

6

. * it

eight i

Where Spot Ratei = exchange rate of

currency i at time t with all

exchange rates expressed in

European terms, i.e., units of

foreign currency per U.S. dollar,

and II is the mathematical symbol

for the product of a multiplication.

Under current rules, the USDX futures

contract is cash settled at expiration

based on a survey of banks for

indicative bids and offers. The survey is

conducted by Reuters USA during the

last half hour of trading on the last

trading day. The Exchange stated that

‘‘over time, there has been a

deterioration of the quality of the

indications and a decline in the number

of bank contributors.’’

The Exchange proposes replacing the

cash settlement procedure with a

physical delivery procedure. Under this

procedure, a long position holder in the

subject contract would receive delivery

of U.S. dollars and make payment in a

basket of the six foreign currencies that

are components of the USDX. Under the

proposal, the contract size would

remain $1,000 times the Index. Thus, at

an Index level at delivery time of 100,

the long would receive U.S. $100,000

and pay an amount of foreign currency

valued at $100,000. Similarly, the short

position holder would deliver U.S.

$100,000 and receive payment in the

basket of foreign currencies.

As part of the delivery procedure, the

Exchange would determine a final

settlement price. The final settlement

price would be based, to the extent

possible, on futures prices of NYCE

currency futures contracts that expire at

the same time as the subject USDX

futures contract. If necessary, the rate

for any currency that does not have an

NYCE futures contract expiring at the

same time as the USDX contract would

be ‘‘determined by the [NYCE’s]

Settlement Committee taking into

account cash and futures prices of the

underlying currency component and

any other information that the

Committee may deem appropriate.’’

The final settlement price would be

used to determine both the amount of

U.S. dollars that the short delivers and

the long receives and the amount of

foreign currency that the long pays and

the short receives. For example, suppose

the final USDX settlement price is

100.00 and one euro is worth exactly

$1.00. As noted, the weighting of the

euro is 57.6%. In this instance, the short

would deliver $100,000 ($1,000 times

100.00). The long would pay a basket of

foreign currency worth $100,000. That

basket would contain $57,600 (57.6% of

$100,000) worth of euros and $42.400

worth of the other five currencies

distributed according to their respective

weights. Since the euro in this example

is worth exactly $1.00, the long would

pay 57,600 euros. The amount that the

long would pay of each in the other five

foreign currencies would be calculated

similarly, based on their percentage

weights and currency exchange rates.

Now, suppose the final settlement

price is $110.00 and the euro is valued

at 90.00 cents. In this instance, the short

would deliver and the long would

receive $110,000 ($1,000 times 110.00).

The long would pay and the short

would receive a basket of foreign

currency worth $110,000. That basket

would contain $63,360 (57.6% of

$110.000) worth of the euros and

$46,640 worth of the other five

currencies distributed according to their

respective weights. Since the euro in

this example is worth $0.90, the long

would pay 70,400 euros ($63,360

divided by 0.90), compared to the

57,600 euros that the long would pay if

the USDX were 100.00 and the euro

were valued at $1.00 under the

preceding example.

As shown in these examples, under

the proposed physical delivery

procedure, neither the number of U.S.

26188 Federal Register / Vol. 65, No. 88 / Friday, May 5, 2000 / Notices

1For most futures contracts, the amount of the

commodity delivered is fixed (e.g. 5,000 bushels of

corn), while only the number of dollars paid for the

commodity varies as the futures price varies.

dollars delivered nor the size of the

basket of currencies is fixed.1 Rather,

both amounts vary in the same direction

as the futures price (or index level)

changes. Specifically, if the Index rises,

the long receives more dollars, but is

also obligated to pay more foreign

currency units. Conversely, if the Index

declines, the long receives fewer dollars,

but is obligated to pay fewer foreign

currency units.

The Division requests comment on

the above-noted delivery provision.

How does this novel delivery provision

affect the hedging or price discovery

functions of the futures contract? Also,

under this delivery procedure, can

market participant who make or take

delivery realize profits or losses in the

contract?

For most physical delivery futures

contracts, it is not possible to benefit

from manipulating the daily settlement

price used in delivery invoices, since

any benefit to a futures margin account

would be offset by losses associated

with that invoice price at delivery. In

the revised USDX contract, the final

settlement price would be used to

determine both the invoice price and

the amount of currency delivered. The

Division requests comment regarding

whether, given the unusual terms of the

revised USDX futures contract, it is

possible to benefit from manipulating

the proposed final settlement price and,

if so, whether the final settlement price

is readily susceptible to manipulation.

The proposal was submitted to the

Commission under the Commission’s

45-day Fast Track procedures of

Commission Regulation 1.41(b)(2).

Under these procedures, absent

Commission action to the contrary, the

proposal would be deemed approved at

the close of business on May 30, 2000.

In view of the limited review period

under the Fast Track procedures, the

Division has determined to publish for

public comment notice of the proposal

for 15 days, rather than 30 days as

provided for proposals submitted under

the regular review procedures.

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

proposed amendments 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

NYCE 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

(1997)), 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 the 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

proposed amendments, or with respect

to other materials submitted by the

NYCE, should send such comments to

Jean A. Webb, Secretary, Commodity

Futures Trading Commission, Three

Lafayette Centre, 1155 21st St., NW,

Washington, DC 20581 by the specified

date.

Issued in Washington, DC, on May 1, 2000.

Richard A. Shilts,

Acting Director.

[FR Doc. 00–11241 Filed 5–4–00; 8:45 am]

BILLING CODE 6351–01–M

CONSUMER PRODUCT SAFETY

COMMISSION

Sunshine Act Meeting

AGENCY: U.S. Consumer Product Safety

Commission Washington, DC 20207.

TIME AND DATE: Friday, May 12, 2000, 10

a.m.

LOCATION: Room 420, East West Towers,

4330 East West Highway, Bethesda,

Maryland.

STATUS: Open to the Public.

MATTER TO BE CONSIDERED: 

Mid-Year Review

The staff will brief the Commission on

issues related to fiscal year 2000 midyear review.

For a recorded message containing the

latest agenda information, call (301)

504–0709.

CONTACT PERSON FOR ADDITIONAL

INFORMATION: Sadye E. Dunn, Office of

the Secretary, 4330 East West Highway,

Bethesda, MD 20207 (301) 504–0800.

Dated: May 3, 2000.

Sadye E. Dunn,

Secretary.

[FR Doc. 00–11425 Filed 5–3–00; 2:46 pm]

BILLING CODE 6355–01–M

CORPORATION FOR NATIONAL AND

COMMUNITY SERVICE

Proposed New Information Collection;

Comment Request

AGENCY: Corporation for National and

Community Service.

ACTION: Notice.

SUMMARY: The Corporation for National

and Community Service (hereinafter the

‘‘Corporation’’), as part of its continuing

effort to reduce paperwork and

respondent burden, conducts a preclearance consultation program to

provide the general public and Federal

agencies with an opportunity to

comment on proposed and/or

continuing collections of information in

accordance with the Paperwork

Reduction Act of 1995 (PRA95) (44

U.S.C. 3506(c)(2)(A)). This program

helps to ensure that requested data can

be provided in the desired format,

reporting burden (time and financial

resources) is minimized, collection

instruments are clearly understood, and

the impact of collection requirement on

respondents can be properly assessed.

Currently, the Corporation is

soliciting comments concerning its

proposed application entitled:

Application for Outreach to Individuals

with a Disability. Copies of the

information collection requests can be

obtained by contacting the office listed

below in the ADDRESSES section of this

notice.

DATES: Written comments must be

submitted to the office listed in the

ADDRESSES section by July 5, 2000.

ADDRESSES: Send comments to the

Corporation for National and

Community Service, Attn: Ms. Nancy

Talbot, Director, Planning and Program

Development, 1201 New York Avenue,

NW., Washington, DC 20525.

FOR FURTHER INFORMATION CONTACT:

Nancy Talbot (202) 606–5000, ext. 470.

SUPPLEMENTARY INFORMATION: The

Corporation is particularly interested in

comments which:

• Evaluate whether the proposed

collection of information is necessary

for the proper performance of the

functions of the Corporation, including

whether the information will have

practical utility;

• Evaluate the accuracy of the

agency’s estimate of the burden of the

proposed collection of information,

including the validity of the

methodology and assumptions used;

• Enhance the quality, utility and

clarity of the information to be

collected; and

• Minimize the burden of the

collection of information on those who