Federal Register / Vol. 62, No. 189 / Tuesday, September 30, 1997 / Notices 51087

exception to 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. 97–25799 Filed 9–29–7; 8:45 am]

BILLING CODE 3510–DR–F

COMMODITY FUTURES TRADING

COMMISSION

Chicago Board of Trade Futures

Contracts in Corn and Soybeans;

Proposed Disapproval of Exchange

Listing for Trading of January 1999

Soybean Futures Contract and March

1999 Corn Futures Contract

AGENCY: Commodity Futures Trading

Commission.

ACTION: Notice of, and Request for

Public Comment on, Proposed

Disapproval of Contract Listing and

Proposed Disapproval and Proposed

Order to Change and to Supplement

Chicago Board of Trade Proposal on

Contract Specifications.

SUMMARY: The Commodity Futures

Trading Commission (‘‘Commission’’)

has issued a Proposed Order to the

Board of Trade of the City of Chicago

(‘‘CBT’’), under sections 5a(a)(10) and

15 of the Commodity Exchange Act

(‘‘Act’’), 7 U.S.C. 7a(a)(10) and 19, to

change and to supplement its proposal

regarding the delivery terms of the CBT

corn and soybean futures contracts.

Notice of the Commission’s Proposed

Order was published in the Federal

Register on Monday, September 22,

1997. 62 FR 49474. The Proposed Order

proposed a number of changes and

supplements to the CBT proposal for its

corn and soybean futures contracts. The

Commission also proposed to

disapprove, to change and to

supplement the terms of the July and

December 1999 corn futures contracts

and the July and November 1999

soybean futures contracts proposed by

the CBT.

The Commission has become aware

that the Board of Trade of the City of

Chicago (CBT) notified its members on

September 19, 1997, of its intent to

propose listing for trading the January

1999 soybean futures contract and the

March 1999 corn futures contract. By

letter dated September 23, 1997, the

Commission notified the CBT that the

Commission is proposing under sections

5a(a)(10), 5a(a)(12), 8a(7) and 15 of the

Act to disapprove the listing for trading

and to disapprove, to change and to

supplement the terms of the January

1999 soybean futures contract and the

March 1999 corn futures contract on the

same basis and for the same reasons as

it has determined in its Proposed Order

of September 15, 1997, to propose to

disapprove, to change and to

supplement the July and December 1999

corn futures contracts and the July and

November 1999 soybean futures

contracts.

The Commission has determined that

publication of the notice to the CBT

proposing to disapprove the listing and

to disapprove, to change and to

supplement the terms of the January

1999 soybean futures contract and the

March 1999 corn futures contract is in

the public interest, will assist the

Commission in considering the views of

interested persons, and is consistent

with the purposes of the Commodity

Exchange Act.

DATES: Comment must be received by

October 22, 1997.

ADDRESSES: Comments should be

mailed to the Commodity Futures

Trading Commission, Three Lafayette

Centre, 1155 21st Street, N.W.,

Washington, D.C. 20581, attention:

Office of the Secretariat; transmitted by

facsimile at (202) 418–5521; or

transmitted electronically at

[secretary@cftc.gov]. Reference should

be made to ‘‘Corn and Soybean Delivery

Points—Additional Delivery Months.’’

FOR FURTHER INFORMATION CONTACT: John

Mielke, Acting Director, or Paul M.

Architzel, Chief Counsel, Division of

Economic Analysis, Commodity Futures

Trading Commission, Three Lafayette

Centre, 1155 21st Street, N.W.,

Washington, D.C. 20581, (202) 418–

5260, or electronically, Mr. Architzel at

[PArchitzel@cftc.gov].

SUPPLEMENTARY INFORMATION: Section

5a(a)(10) of the Act provides that as a

condition of contract market

designation, boards of trade are required

to:

permit the delivery of any commodity, on

contracts of sale thereof for future delivery,

of such grade or grades, at such point or

points and at such quality and locational

price differentials as will tend to prevent or

diminish price manipulation, market

congestion, or the abnormal movement of

such commodity in interstate commerce. If

the Commission after investigation finds that

the rules and regulations adopted by a

contract market permitting delivery of any

commodity on contracts of sale thereof for

future delivery, do not accomplish the

objectives of this subsection, then the

Commission shall notify the contract market

of its finding and afford the contract market

an opportunity to make appropriate changes

in such rules and regulations. If the contact

market within seventy-five days fails to make

the changes which in the opinion of the

Commission are necessary to accomplish the

objectives of this subsection, then the

Commission after granting the contract

market an opportunity to be heard, may

change or supplement such rules and

regulations of the contract market to achieve

the above objectives * * * .

The Commission, on September 15,

1997, issued a Proposed Order under

sections 5a(a)(10) and 15 of the Act to

change and to supplement the proposal

of the CBT relating to the delivery

specifications of the corn and soybean

futures contracts. That proposal was

submitted in response to prior

Commission notification to the CBT that

its futures contracts for corn and

soybeans no longer were in compliance

with the requirements of section

5a(a)(10) of the Act. The text of the

Proposed Order was published in the

Federal Register, and public comment

was requested thereon. 62 FR 49474

(September 22, 1997).

The Commission has become aware

that the CBT notified its members on

September 19, 1997, of its intent to

propose listing for trading of the January

1999 soybean futures contract and the

March 1999 corn futures contract. By

letter dated September 23, 1997, the

Commission notified the CBT that it is

proposing under sections 5a(a)(10),

5a(a)(12), 8a(7) and 15 of the Act to

disapprove the listing for trading and to

disapprove, to change and to

supplement the terms of the January

1999 soybean futures contract and the

March 1999 corn futures contract on the

same basis and for the same reasons as

it has determined in its Proposed Order

of September 15, 1997, to propose to

disapprove, to change and to

supplement the July and December 1999

corn futures contracts and the July and

November 1999 soybean futures

contracts.

A public hearing on the Proposed

Order has been scheduled for October

15, 1997, (or at an earlier date if the CBT

requests) at the Commission’s

Washington, D.C. office. The CBT also

will have an opportunity at that public

hearing to make an oral presentation

before the Commission on the matters

raised in this notice to disapprove the

listing and to disapprove, to change and

to supplement the January 1999 soybean

futures contract and the March 1999

corn futures contract. The Commission

will also accept written comments from

the CBT on this issue on or before the

date of the hearing. The text of this

notification is as follows:

September 23, 1997.

Mr. Patrick Arbor,

Chairman of the Board, Board of Trade of the

City of Chicago, 141 W. Jackson Blvd.,

Chicago, Illinois 60604–2994.
51088 Federal Register / Vol. 62, No. 189 / Tuesday, September 30, 1997 / Notices

1Commission rule 1.41(l) provides, in part, that:

Notwithstanding the provisions of paragraph (b)

of this section, all changes in trading months shall

be deemed approved by the Commission ten days

after written notice of such a change is received by

the Commission if:

(i) The change is consistent with a rule of the

contract market governing the listing of trading

months which has been approved by the

Commission, and with the Act and the

Commission’s regulations; * * *.

2 In this regard, the Commission notes that the

listing of contract months under the current

contract terms prior to the December notification’s

finding that the contracts’ terms are in violation of

section 5a(a)(10) of the Act is fundamentally

different from the listing of trading months after

such a finding has been made.

Re: Proposed Disapproval of Exchange

Listing for Trading of January 1999

Soybean Futures Contract and March

1999 Corn Futures Contract

Dear Mr. Arbor: The Commission is aware

that the Board of Trade of the City of Chicago

(CBT) notified its members on September 19,

1997, of its intent to propose listing for

trading the January 1999 soybean futures

contract and the March 1999 corn futures

contract.

The Commodity Futures Trading

Commission (Commission) hereby notifies

the CBT that listing the above contract

months is not consistent with the abbreviated

review provisions of Commission rule 1.41(l),

17 CFR 1.41(l), and will be subject to the

usual review and approval procedures under

section 5a(a)(12) of the Commodity Exchange

Act (Act) and rule 1.41(b). Commission rule

1.41(l) provides that all changes in contract

months shall be deemed approved by the

Commission ten days after notice of the

change is received by the Commission if

consistent with the Act and the

Commission’s regulations.1

The Commission, by letter dated December

19, 1996, notified the CBT that the delivery

terms of its corn and soybean futures

contracts are not consistent with the

requirements of section 5a(a)(10) of the Act.

In its December 19, 1996 notification, the

Commission stated:

[i]n light of the Commission’s

determination that the CBT’s futures

contracts in corn and soybeans no longer

comply with the requirements of section

5a(a)(10) of the Act, the CBT should refrain

from listing additional months for trading in

those contracts during the pendency of these

proceedings.

61 FR 67998, 67999 (December 26, 1997).

On September 15, 1997, the Commission

issued a proposed Order to change and to

supplement the CBT’s response to the

December 19, 1996 section 5a(a)(10) notice

and to disapprove, to change and to

supplement the terms proposed by the CBT

for the July and December 1999 corn and July

and November 1999 soybean futures

contracts, which were listed by the CBT

without Commission approval. The

Commission has notified the CBT under the

proposed Order that the CBT will have an

opportunity to be heard by the Commission

on October 15, 1997, or sooner if the CBT

requests.

The delivery specifications intended by the

CBT to be applicable to the January 1999

soybean futures contract and the March 1999

corn futures contract are the same as those

that the Commission proposed to disapprove

for application to the July and December

1999 corn futures contracts and the July and

November 1999 soybean futures contracts in

its Proposed Order of September 15, 1997.

Listing additional delivery months under

either the contract terms found by the

Commission to violate the provisions of

section 5a(a)(10) or under proposed terms on

which the Commission already has taken

action proposing disapproval is not

consistent with the provisions and policies of

the Act. The Commission proposes to

disapprove the listing of these contract

months on those grounds.

Because the Commission finds that listing

these trading months is not consistent with

Commission rule 1.41(l) and that

Commission review and approval under

section 5a(a)(12) and rule 1.41(b) is required

prior to their listing, their listing for trading

by the CBT is not legally authorized at the

present time. Moreover, the Commission

proposes under sections 5a(a)(10), 5a(a)(12),

8a (7) and 15 of the Act to disapprove the

listing for trading and to disapprove, to

change and to supplement the terms of the

January 1999 soybean futures contract and

the March 1999 corn futures contract on the

same bases and for the same reasons as it has

stated in its December 19, 1996 notification

and its Proposed Order of September 15,

1997.

A public hearing on the Proposed Order of

September 15, 1997, has been scheduled for

October 15, 1997, (or at an earlier date if the

CBT requests) at the Commission’s

Washington, D.C. office. The CBT also will

have an opportunity at that public hearing to

make an oral presentation before the

Commission on the matters raised in this

notice to disapprove the listing and to

disapprove, to change and to supplement the

January 1999 soybean futures contract and

the March 1999 corn futures contract. The

Commission will also accept written

comments from the CBT on this issue on or

before the date of the hearing.

The Commission also reserves all of its

authority under the Act to bring appropriate

legal action against the CBT for the violation

of section 5a(a)(12) of the Act and

Commission rules 1.41(b) and 1.41(l) which

require the CBT to obtain approval by the

Commission prior to listing new delivery

months for trading. Such reservation of

authority relates to the January, July and

November 1999 soybeans futures contracts

and the March, July and December 1999 corn

futures contracts, as well as any contract

months CBT attempts to list without prior

approval hereafter.2 As the Commission

noted in its Proposed Order of September 15,

1997, the Commission is prepared to approve

immediately the listing of delivery months

which incorporate the Commission’s

proposed changes and supplements.

The Commission hereby instructs the CBT

that it must notify all market participants that

the Commission has not approved the listing

of these contract months as required by law

and that the Commission has proposed to

disapprove the listing and to disapprove, to

change and to supplement the terms

proposed by the CBT.

By the Commission.

Jean A. Webb,

Secretary of the Commission.

The Commission has determined that

publication of this Proposed

Disapproval of Contract Listing and

Proposed Order to Disapprove, to

Change and to Supplement the Chicago

Board of Trade Proposal on Contract

Specifications relating to the January

1999 soybean futures contract and the

March 1999 corn futures contract for

public comment will assist the

Commission in its consideration of

these issues. Accordingly, the

Commission is requesting written

comments from interested members of

the public.

Issued in Washington, D.C., this 23rd day

of September, 1997, by the Commodity

Futures Trading Commission.

Jean A. Webb,

Secretary of the Commission.

[FR Doc. 97–25779 Filed 9–29–97; 8:45 am]

BILLING CODE 6351–01–P

DEPARTMENT OF DEFENSE

Department of the Air Force

HQ USAF Scientific Advisory Board

Meeting

The Science & Technology Panel

Review of Air Force Research

Laboratory (AFRL), in support of the HQ

USAF Scientific Advisory Board, will

meet in Dayton, OH on November 3–7,

1997, from 8:00 a.m. to 5:00 p.m.

The purpose of the meeting is to

gather information, receive briefings and

review AFRL.

The meeting will be closed to the

public in accordance with Section 552b

of Title 5, United States Code,

specifically subparagraphs (1) and (4)

thereof.

For further information, contact the

HQ USAF Scientific Advisory Board

Secretariat at (703) 697–8404.

Barbara A. Carmichael,

Alternate Air Force Federal Register Liaison

Officer.

[FR Doc. 97–25887 Filed 9–29–97; 8:45 am]

BILLING CODE 3910–01–P