[Federal Register Volume 63, Number 99 (Friday, May 22, 1998)]
[Notices]
[Pages 28363-28369]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13335]


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COMMODITY FUTURES TRADING COMMISSION


Chicago Board of Trade Futures Contracts in Corn and Soybeans; 
Order to Designate Contract Markets and Amendment Order of November 7, 
1997, as Applied to Such Contracts; Correction

AGENCY: Commodity Futures Trading Commission.

ACTION: Final order to Chicago Board of Trade; correction.

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SUMMARY: On May 13, 1998, the Commission published in the Federal 
Register (63 FR 26575) a final Order to the Chicago Board of Trade. The 
purpose of the Order was to designate the Chicago Board of Trade as a 
contract market in corn and soybeans futures contracts and amend the 
Order of November 7, 1997, as applied to such contracts. This 
correction includes Attachments 1 and 2 which were inadvertently 
omitted.

DATES: This Order became effective on May 7, 1998.

ADDRESSES: Commodity Futures Trading Commission, Three Lafayette 
Centre, 1155 21st Street, NW., Washington, DC 20581.

FOR FURTHER INFORMATION CONTACT:
Steve Manaster, Director, or Paul M. Architzel, Chief Counsel, Division 
of Economic Analysis, Commodity Futures Trading Commission, Three 
Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581, (202) 
418-5260, or electronically, Mr. Architzel at [PA<a href="/cdn-cgi/l/email-protection#c9bbaaa1a0bdb3aca589aaafbdaae7aea6bf"><span class="__cf_email__" data-cfemail="7002131819040a151c30131604135e171f06">[email protected]</span></a>].

SUPPLEMENTARY INFORMATION: The Commission is correcting inadvertent 
omissions in the publication of the final Order to the Chicago Board of 
Trade whereby the Commodity Futures Trading Commission ordered that the 
applications for contract market designation in corn and in soybeans 
submitted by the Board of Trade of the City of Chicago (CBT) on 
December 19, 1997 and supplemented on March 20, 1998, be granted and 
amended its Order under section 5a(a)(10), dated November 7, 1997, to 
permit the applications for designation to be granted. Under this 
Order, the Commission took the following actions:
    (1) Granted under section 5 of the Commodity Exchange Act (Act) the 
CBT's application for designation as a contract market in soybeans and 
approved under section 5a(a)(12) of the Act all of the proposed rules 
of the contract market contained in Attachment 1 to the Order;
    (2) Granted under section 5 of the Act the CBT's application for 
designation as a contract market in corn and approved under section 
5a(a)(12) of the Act all of the proposed rules of the contract market 
contained in Attachment 2 to the Order;
    The Commission is publishing Attachments 1 and 2 which were 
inadvertently omitted and were referred to on page 26575, column 3, 
paragraphs (1) and (2).

    Issued in Washington, DC on May 14, 1998.
Jean A. Webb,
Secretary of the Commission, Commodity Futures Trading Commission.

Attachment 1--Proposed Soybean Futures Contract Rules

Soybean Futures

ChXS Trading Conditions
XS04.01  Unit of Trading--(see 1004.00)
XS05.01  Months Traded In--(see 1005.01A)
XS06.01  Price Basis--(see 1006.00 and 1006.01)
XS05.01  Hours of Trading--(see 1007.00 and 1007.02)
XS08.01  Trading Limits--(see 1008.01 and 1008.02)
XS09.01  Last Day of Trading--(see 1009.02 and 1009.03)
XS10.01  Margin Requirements--see 431.03)
XS11.01  Disputes--All disputes between interested parties may be 
settled by arbitration as provided in the Rules and Regulations.
XS12.01  Position Limits and Reportable Positions--(see 425.01)
ChXS Delivery Procedures
XS36.00  Grade Differentials--(see 1036.00)
XS36.01  Soybean Location Delivery Differentials--Soybeans for shipment 
from regular shipping stations located within the Chicago Switching 
District or the Burns Harbor, Indiana Switching District may be 
delivered in satisfaction of Soybean futures contracts at contract 
price, subject to the differentials for class and grade outlined above. 
Soybeans for shipment from regular shipping stations located within the 
Lockport-Seneca Shipping District may be delivered in satisfaction of 
soybean futures contracts at a premium of 2 cents per bushel over 
contract price, subject to the differentials for class and grade 
outlined above. Soybeans for shipment from regular shipping stations 
located within the Ottawa-Chillicothe Shipping District may be 
delivered in satisfaction of Soybean futures contracts at a premium of 
2\1/2\ cents per bushel over contract price, subject to the 
differentials for class and grade outlined above. Soybeans for shipment 
from regular shipping stations located within the Peoria-Pekin Shipping 
District may be delivered in satisfaction of Soybean futures contracts 
at a premium of 3 cents per bushel over contract price, subject tot he 
differentials for class and grade outlined above. Soybeans for shipment 
from regular shipping stations located within the Havana-Grafton 
Shipping District may be delivered in satisfaction of soybean futures 
contracts at a premium of 3\1/2\ cents per bushel over contract price, 
subject to the differentials for class and grade outlined above. 
Soybeans for shipment from regular shipping stations located in the St. 
Louis-East St. Louis and Alton Switching Districts may be delivered in 
satisfaction of Soybean futures contracts at a premium of 6 cents per 
bushel over contract price, subject to the differentials for class and 
grade outlined above.
XS38.01  Grades--(see 1038.00 and 1038.01)
XS41.01  Delivery Points--Soybean Shipping Certificates shall specify 
shipment from one of the warehouses or shipping stations currently 
regular for delivery and located in one of the following territories:

    A. Chicago and Burns Harbor, Indiana Switching District--When used 
in these Rules and Regulations, the Chicago Switching District will be 
that area

[[Page 28364]]

geographically defined by Tariff ICC WTL 8020-Series and that portion 
of the Illinois Waterway at or above river mile 304 which includes the 
Calumet Sag Channel and the Chicago Sanitary & Ship Canal. When used in 
these Rules and Regulations, Burns Harbor, Indiana Switching District 
will be that area geographically defined by the boundaries of Burns 
Waterway Harbor at Burns Harbor, Indiana which is owned and operated by 
the Indiana Port Commission.
    B. Lockport-Seneca Shipping District--When used in these Rules and 
Regulations, the Lockport-Seneca Shipping District will be that portion 
of the Illinois Waterway below river mile 304 at the junction of the 
Calumet Sag Channel and Chicago Sanitary & Ship Canal and above river 
mile 244.6 at the Marseilles Lock and Dam. Shipping stations within the 
Lockport-Seneca Shipping District must deliver 5,000 bushel shipping 
certificates of a like kind and quality of grain in multiples of 55,000 
bushes against the futures contracts.
    C. Ottawa-Chillicothe Shipping District--When used in these Rules 
and Regulations, the Ottawa-Chillicothe Shipping District will be that 
portion of the Illinois Waterway below river mile 244.6 at the 
Marseilles Lock and Dam and at or above river mile 170 between 
Chillicothe and Peoria, IL. Shipping stations within the Ottawa-
Chillicothe Shipping District must deliver 5,000 bushel shipping 
certificates of a like kind and quality of grain in multiples of 55,000 
bushels against the futures contracts.
    D. Peoria-Pekin Shipping District--When used in these Rules and 
Regulations, the Peoria-Pekin Shipping District will be that portion of 
the Illinois Waterway below river mile 170 between Chillicothe and 
Peoria, IL and at or above river mile 151 at Pekin, IL. Shipping 
stations within the Peoria-Pekin Shipping District must deliver 5,000 
bushel shipping certificates of a like kind and quality of grain in 
multiples of 55,000 bushels against the futures contracts.
    E. Havana-Grafton Shipping District--When used in these Rules and 
Regulations, the Havana-Grafton Shipping District will be that portion 
of the Illinois Waterway below river mile 151 at Pekin, IL to river 
mile 0 at Grafton, IL. Shipping stations within the Havana-Grafton 
Shipping District must deliver 5,000 bushel shipping certificates of a 
like kind and quality of grain in multiples of 55,000 bushels against 
the futures contracts.
    F. St. Louis-East St. Louis and Alton Switching Districts--When 
used in these Rules and Regulations, St. Louis-East St. Louis and Alton 
Switching Districts will be that portion of the upper Mississippi River 
below river mile 218 at Grafton, IL and above river mile 170 at 
Jefferson Barracks Bridge in south St. Louis, MO. Shipping stations on 
the St. Louis-East St. Louis and Alton Switching Districts must deliver 
5,000 bushel shipping certificates of a like kind and quality of grain 
in multiples of 55,000 bushels against the futures contracts.

XS43.01  Deliveries by Soybean Shipping Certificate--(see 1043.01)
XS43.02  Registration of Soybean Shipping Certificates--(see 1043.02)
XS43.03  Reissuance of Shipping Certificates--(see 1043.03)
XS44.01  Certificates Format--The following form of Soybean Shipping 
Certificate shall be used with proper designation, indicating shipping 
station.

Board of Trade of the City of Chicago Soybean Shipping Certificate for 
Delivery in Satisfaction of Contract for 5,000 Bushels of Soybeans

    This certificate not valid unless registered by the Registrar of 
the Board of Trade of the City of Chicago.

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Soybeans Shipping Station of (grade)-----------------------------------
Located at-------------------------------------------------------------
Registered total daily rate of loading of ________ bushes.

    Total rate of loading per day shall be in accordance with 
Regulation 1081.01 (12) G and H. A premium charge of $________ cents 
per bushel per calendar day for each day is to be assessed starting 
the day after registration by the Registrar of this Certificate 
through the business day loading is complete.
    For value received and receipt of this document properly 
endorsed and lien for payment of premium charges the undersigned 
shipper, regular for delivery under the Rules and Regulations of the 
Board of Trade of the City of Chicago, hereby agrees to deliver 
5,000 bushels of Soybeans in bulk conforming to the standards of the 
Board of Trade of the City of Chicago and ship said Soybeans in 
accordance with orders of the lawful owner of this document and in 
accordance with Rules and Regulations of the Board of Trade of the 
City of Chicago. Delivery shall be by water or rail conveyance 
according to the registered loading capability of the shipper.

Signed at ____________ this ____________ day of ____________, 19 
____
____ Chicago, Il or Burns Harbor, IN Switching District
____ Lockport-Seneca Shipping District
____ Ottawa-Chillicothe Shipping District
____ Peoria-Pekin Shipping District
____ Havana-Grafton Shipping District
____ St. Louis-East St. Louis and Alton Switching Districts

By---------------------------------------------------------------------
Authorized Signature of Issuer

Registration date------------------------------------------------------
Registrar's Number-----------------------------------------------------
Registrar for Soybeans
Board of Trade of the City of Chicago

    Registration canceled for purpose of shipment of Soybeans by 
owner of certificate or by issuer of certificate for purpose of 
withdrawal of certificate.

Cancellation Date------------------------------------------------------
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Registrar

    All premium charges have been paid on Soybeans covered by this 
certificate from date of registration, not counting date of 
registration but counting date of payment.

Date________ by ________
Date________ by ________
Date________ by ________
Date________ by ________

    Delivery of this Soybean Shipping Certificate to issuer is 
conditioned upon loading of Soybeans in accordance with Rules and 
Regulations of the Board of Trade of the City of Chicago and a lien 
is claimed until all loadings are complete and proper shipping 
documents presented accompanying demand draft for freight and 
premium charges due which I (we) agree to honor upon presentation.

----------------------------------------------------------------------
Owner of this Soybean Shipping
Certificate or his duly authorized agent

Date________, 19 ________

XS46.01  Location for Buying or Selling Delivery Instruments-(see 
1046.00A)
XS47.01  Delivery Notices-(see 1047.01)
XS48.01  Method of Delivery-(see 1048.01)
XS49.01  Time of Delivery, Payment, Form of Delivery Notice-(see 
1049.00)
XS49.02  Time of Issuance of Delivery Notice-(see 1049.01)
XS49.03  Buyer's Report of Eligibility to Receive Delivery-(see 
1049.02)
XS49.04  Seller's Invoice to Buyers-(see 1049.03)
XS49.05  Payment-(see 1049.04)
XS50.01  Duties of Members-(see 1050.00)
XS51.01  Office Delivers Prohibited-(see 1051.01)
XS54.01  Failure to Accent Delivery-(see 1054.00 and 1054.00A)
XS56.01  Payment of Premium Charges-To be valid for delivery on futures 
contracts, all shipping certificates covering Soybeans under obligation 
for shipment must indicate the applicable premium charge. No shipping 
certificates shall be valid for delivery on futures contracts unless 
the premium charges on such Soybeans shall have been paid up to and 
including the 18th calendar day of the preceding month, and such 
payment endorsed on the shipping certificate. Unpaid accumulated 
premium charges at the posted rate applicable to the warehouse or

[[Page 28365]]

shipping station where the grain under obligation for shipment shall be 
allowed and credited to the buyer by the seller to and including date 
of delivery. Further, no shipping certificate shall be valid for 
delivery if the shipping certificate has expired prior to delivery or 
has an expiration date in the month in which delivered.

    If premium charges are not paid on-time up to and including the 
18th calendar day preceding the delivery months of March, July and 
September and by the first Calendar day of each of these delivery 
months, a late charge will apply. The late charge will be an amount 
equal to the total unpaid accumulated premium charges rates multiplied 
by the ``prime interest rate'' in effect on the day that the accrued 
premium charges are paid plus a penalty of 5 percentage points, all 
multiplied by the number of calendar days that premium is overdue, 
divided by 360 days. The terms ``prime interest rate'' shall mean the 
lowest of the rates announced by each of the following four banks at 
Chicago, Illinois, at its ``prime rate'': Bank of America-Illinois, the 
First National Bank of Chicago, Harris Trust & Savings Bank, and the 
Northern Trust Company.
    The premium charges on Soybeans for delivery from regular shippers 
within the Chicago Switching District or the Burns Harbor, Indiana 
Switching District shall not exceed \12/100\ of one cent per bushel per 
day.
    The premium charges on Soybeans for delivery from regular shippers 
within the Lockport-Seneca Shipping District shall not exceed \10/100\ 
of one cent per bushel per day.
    The premium charges on Soybeans for delivery from regular shippers 
within the Ottawa-Chillicothe Shipping District shall not exceed \10/
100\ of one cent per bushel per day.
    The premium charges on Soybeans for delivery from regular shippers 
within the Peoria-Pekin Shipping District shall not exceed \10/100\ of 
one cent per bushel per day.
    The premium charges on Soybeans for delivery from regular shippers 
within the Havana-Grafton Shipping District shall not exceed \10/100\ 
of one cent per bushel per day.
    The premium charges on Soybeans for delivery from regular shippers 
in the St. Louis-East St. Louis and Alton Switching Districts shall not 
exceed \10/100\ of one cent per bushel per day.
ChXS Regularity of Issuers of Shipping Certificates
XS81.01  Regularity of Warehouses and Issuers of Shipping 
Certificates--Persons operating grain warehouses or shippers who desire 
to have such warehouses or shipping stations made regular for the 
delivery of grain under the Rules and Regulations shall make 
application for an initial Declaration of Regularity on a form 
prescribed by the Exchange prior to May 1, 1994, and every even year 
thereafter, for a two-year term beginning July 1, 1994, and every even 
year thereafter, and at any time during a current term for the balance 
of that term. Regular grain warehouses or shippers who desire to 
increase their regular capacity during a current term shall make 
application for the desired amount of total regular capacity on the 
same form. Initial regularity for the current term and increases in 
regularity shall be effective either thirty days after a notice that a 
bona fide application has been received is posted on the floor of the 
exchange, or the day after the application is approved by the Exchange, 
whichever is later. Applications for a renewal of regularity shall be 
made prior to May 1, 1994, and every even year thereafter, for the 
respective years beginning July 1, 1994, and every even year 
thereafter, and shall be on the same form.

    The following shall constitute the requirements and conditions for 
regularity:
    (1) The warehouse or shipping station making application shall be 
inspected by the Registrar or the United States Department of 
Agriculture. Where application is made to list as regular a warehouse 
which is not regular at the time of such application, the applicant may 
be required to remove all grain from the warehouse and to permit the 
warehouse to be inspected and the grain graded, after which such grain 
may be returned to the warehouse and receipts issued therefor.
    The operator of a shipping station issuing Soybean Shipping 
Certificates shall limit the number of Shipping Certificates issued to 
an amount not to exceed:
    (a) 30 times his registered total daily rate of loading barges,
    (b) a value greater than 25 percent of the operator's net worth,
    (c) and in the case of Chicago, Illinois and Burns Harbor, Indiana 
Switching Districts only, his registered storage capacity.
    The shipper issuing Soybean Shipping Certificates shall register 
his total daily rate of loading barges at his maximum 8 hour loadout 
capacity in an amount not less than:
    (a) one barge per day at each shipping station within the Lockport-
Seneca Shipping District, within the Ottawa-Chillicothe Shipping 
District, within the Peoria-Pekin Shipping District, within the Havana-
Grafton Shipping District, and within the St. Louis-East St. Louis and 
Alton Switching Districts and
    (b) three barges per day at each shipping station in the Chicago, 
Illinois and Burns Harbor, Indiana Switching District.
    (2) Shippers located in the Chicago, Illinois and Burns Harbor, 
Indiana Switching District shall be connected by railroad tracks with 
one or more railway lines.

XS81.01(3) through XS81.01(12)G(8)--(see 1081.01(3) through 1081.01 
(12)G(8))
XS81.01(12)G  (9)  In the event that it had been announced that river 
traffic will be obstructed for a period of fifteen days or longer as a 
result of one of the conditions of impossibility listed in regulation 
1081.01(12)(G)(8) and in the event that the obstruction will affect a 
majority of regular shipping stations, then the following barge load-
out procedures for soybeans shall apply to shipping stations upriver 
from the obstruction.

    (a) The maker and taker of delivery may negotiate mutually 
agreeable terms of performance.
    (b) If the maker and/or the taker elect not to negotiate mutually 
agreeable terms of performance, then the maker is obligated to provide 
the same quantity and like quality of grain pursuant to the terms of 
the shipping certificate(s) with the following exceptions and 
additional requirements:
    (i) The maker must provide loaded barge(s) to the taker on the 
Illinois River between the lowest closed lock and St. Louis, inclusive, 
or on the Mid-Mississippi River between Lock 11 at Dubuque, Iowa and 
St. Louis, inclusive.
    (ii) The loaded barge(s) provided to the taker must have a value 
equivalent to C.I.F. NOLA, with the maker of delivery responsible for 
the equivalent cost, insurance and freight.
    (iii) The taker of delivery shall pay the maker 18 cents per bushel 
for Chicago and Burns Harbor Switching District shipping certificates, 
16 cents per bushel for Lockport-Seneca District shipping certificates. 
15\1/2\ cents per bushel for Ottawa-Chillicothe District shipping 
certificates, 15 cents per bushel for Peoria-Pekin District shipping 
certificates, and 14 \1/2\ cents per bushel for Havana-Grafton District 
shipping certificates as a reimbursement for the cost of barge freight.
    (c) In the event that the obstruction or condition of impossibility 
listed in regulation 1081.01(12)(G)(8) will affect a

[[Page 28366]]

majority of regular shipping stations, but no announcement of the 
anticipated period of obstruction is made, then shipment may be delayed 
for the number of days that such impossibility prevails.

XS81.01(12)H  Barge Load-Out Rates for Soybeans--(see 1081.01(12)(H)
XS81.01(13)  Location--For the delivery of Soybeans, regular warehouses 
or shipping stations may be located within the Chicago Switching 
District or within the Burns Harbor, Indiana Switching District or 
within the Lockport--Senaca Shipping District or within the Ottawa--
Chillicothe Shipping District or within the Peoria-Pekin Shipping 
District or within the Havana-Grafton Shipping District or in the St. 
Louis-East St. Louis and Alton Switching Districts.
    No such warehouse or shipping station within the Chicago Switching 
District shall be declared regular unless it is conveniently 
approachable by vessels of ordinary draft and has customary shipping 
facilities. Ordinary draft shall be defined as the lesser of (1) 
channel draft as recorded in the Lake Calumet Harbor Draft Gauge, as 
maintained by the Corps of Engineers, U.S. Army, minus one (1) foot, or 
(2) 20 feet.
    Delivery in Burns Harbor must be made ``in store'' in regular 
elevators or by shipping certificate at regular shipping stations 
providing water loading facilities and maintaining water depth equal to 
normal seaway draft of 27 feet.
    In addition, deliveries of grain may be made in regular elevators 
or shipping stations within the Burns Harbor Switching District 
PROVIDED that:
    (a) When grain represented by shipping certificates is ordered out 
for shipment by a barge, it will be the obligation of the party making 
delivery to protect the barge freight rate from the Chicago Switching 
District (i.e. the party making delivery and located in the Burns 
Harbor Switching District will pay the party taking delivery an amount 
equal to all expenses for the movement of the barge from the Chicago 
Switching District, to the Burns Harbor Switching District and the 
return movement back to the Chicago Switching District).
    If inclement weather conditions make the warehouse or shipping 
station located in the Burns Harbor Switching District unavailable for 
barge loadings for a period of five or more calendar days, the party 
making delivery will make grain available on the day following this 
five calendar day period to load into a barge at one mutually agreeable 
water warehouse or shipping station located in the Chicago Switching 
District; PROVIDED that the party making delivery is notified on the 
first day of that five-day period of inclement weather that the barge 
is available for movement but cannot be moved from the Chicago 
Switching District to the Burns Harbor Switching District, and is 
requested on the last day of this five day calendar period in which the 
barge cannot be moved.
    (b) When grain represented by shipping certificates is ordered out 
for shipment by vessel, and the party taking delivery is a recipient of 
a split delivery of grain between a warehouse or shipping station 
located in Burns Harbor and a warehouse or shipping station in Chicago, 
and the grain in the Chicago warehouse or shipping station will be 
loaded onto this vessel; it will be the obligation of the party making 
delivery at the request of the party taking delivery to protect the 
holder of the shipping certificates against any additional charges 
resulting from loading at one berth in the Burns Harbor Switching 
District and at one berth in the Chicago Switching District as compared 
to a single berth loading at one location. The party making delivery, 
at his option, will either make the grain available at one water 
warehouse or shipping station operated by the party making delivery and 
located in the Chicago Switching District for loading onto the vessel, 
make grain available at the warehouse or shipping station in Burns 
Harbor upon the surrender of shipping certificates issued by other 
regular elevators or shipping stations located in the Chicago Switching 
District at the time vessel loading orders are issued, or compensate 
the party taking delivery in an amount equal to all applicable 
expenses, including demurrage charges, if any, for the movement of the 
vessel between a berth in the other switching district. On the day that 
the grain is ordered out for shipment by vessel, the party making 
delivery will declare the regular warehouse or shipping station in 
which the grain will be available for loading.
    Delivery within the Lockport-Seneca Shipping District or within the 
Ottawa-Chilicothe Shipping District or within the Peoria-Pekin Shipping 
District of within the Havana-Grafton Shipping District must be made at 
regular shipping station providing water loading facilities and 
maintaining water depth equal to the draft of the Illinois River 
maintained by the Corp of Engineers
    Delivery in the St. Louis-East St. Louis and Alton Switching 
Districts must be made at regular shipping stations providing water 
loading facilities and maintaining water depth equal to the draft of 
the Mississippi River maintained by the Corp of Engineers.

XS81.01(14)  Billing--(see 1081.01(14)A and 1081.01(14)D
XS81.01(15) through XS81.01(17)--(see 1081.01(15) through 1081.01(17))
XS81.01A  Inspection (see 1081.01A)
XS81.01B  Billing When Grain is Loaded Out (see 1081.01B)
XS81.01C  Car of Specified Capacity (see 1081.01C)
XS82.01  Insurance (see 1082.00)
XS83.01  Variation Allowed (See 1083.00)
XS83.02  Excess or Deficiency in Quantity (see 1083.01)
XS84.0  Revocation, Expiration or Withdrawal of Regularity (see 
1084.01)
XS85.01  Application for Declaration of Regularity (see 1085.01)
XS86.01  Federal Warehouses (see 1086.01)

Attachment 2--Proposed Corn Futures Contract Rules

Corn Futures

ChXC Trading Conditions
XC01.01  Application of Regulations--Transactions in Corn futures shall 
be subject to the General Rules of the Association as far as applicable 
and shall also be subject to Regulations contained in this chapter 
which are exclusively applicable to trading in Corn.
XC04.01  Unit of Trading--(see 1004.00)
XC05.01  Months Traded In--(see 1005.01A)
XC06.01  Price Basis--(see 1006.00 and 1006.01)
XC07.01  Hours of Trading--(see 1007.00 and 1007.02)
XC08.01  Trading Limits--(see 1008.01 and 1008.02)
XC09.01  Last Day of Trading--(see 1009.02 and 1009.03)
XC10.01  Margin Requirements--(see 431.03)
XC11.01  Disputes--All disputes between interested parties may be 
settled by arbitration as provided in the Rules and Regulations.
XC12.01  Position Limits and Reportable Positions--(see 425.01)
ChXC Delivery Procedures
XC36.00  Grade Differentials--(see 1036.00)
XC36.01  Corn Locational Delivery Differentials--Corn for shipment from 
regular shipping stations located within the Chicago Switching District 
or the Burns Harbor, Indiana

[[Page 28367]]

Switching District may be delivered in satisfaction of corn futures 
contracts at contract price, subject to the differentials for class and 
grade outlined above. Corn for shipment from regular shipping stations 
located within the Lockport-Seneca Shipping District may be delivered 
in satisfaction of corn futures contracts at a premium of 2 cents per 
bushel over contract price, subject to the differentials for class and 
grade outlined above. Corn for shipment from regular shipping stations 
located within the Ottawa-Chillicothe Shipping District may be 
delivered in satisfaction of corn futures contracts at a premium of 2 
\1/2\ cents per bushel over contract price, subject to the 
differentials for class and grade outlined above. Corn for shipment 
from regular shipping stations located within the Peoria-Pekin Shipping 
District may be delivered in satisfaction of corn futures contracts at 
a premium of 3 cents per bushel over contract price, subject to the 
differentials for class and grade outlined above.
XC38.01  Grades--(see 1038.00 and 1038.01)
XC41.00  Delivery Points--Corn Shipping Certificates shall specify 
shipment from one of the warehouses or shipping stations currently 
regular for delivery and located in one of the following territories:

    A. Chicago and Burns Harbor, Indiana Switching District--When used 
in these Rules and Regulations, the Chicago Switching District will be 
that area geographically defined by Tariff ICC WTL 8020-Series and that 
portion of the Illinois Waterway at or above river mile 304 which 
includes the Calumet Sag Channel and the Chicago Sanitary & Ship Canal. 
When used in these Rules and Regulations, Burns Harbor, Indiana 
Switching District will be that area geographically defined by the 
boundaries of Burns Waterway Harbor at Burns Harbor, Indiana which is 
owned and operated by the Indiana Port Commission.
    B. Lockport-Seneca Shipping District--When used in these Rules and 
Regulations, the Lockport-Seneca Shipping District will be that portion 
of the Illinois Waterway below river mile 304 at the junction of the 
Calumet Sag Channel and the Chicago Sanitary & Ship Canal and above 
river mile 244.6 at the Marseilles Lock and Dam. Shipping stations 
within the Lockport-Seneca Shipping District must deliver 5,000 bushel 
shipping certificates of a like kind and quality of grain in multiples 
of 55,000 bushels against the futures contracts.
    C. Ottawa-Chillicothe Shipping District--When used in these Rules 
and Regulations, the Ottawa-Chillicothe Shipping District will be that 
portion of the Illinois Waterway below river mile 244.6 at the 
Marseilles Lock and Dam and at or above river mile 170 between 
Chillicothe and Peoria, IL. Shipping stations within the Ottawa-
Chillicothe Shipping District must deliver 5,000 bushel shipping 
certificates of a like kind and quality of grain in multiples of 55,000 
bushels against the futures contracts.
    D. Peoria-Pekin Shipping District--When used in these Rules and 
Regulations, the Peoria-Pekin Shipping District will be that portion of 
the Illinois Waterway below river mile 170 between Chillicothe and 
Peoria, IL and above river mile 151 at Pekin, IL. Shipping stations 
within the Peoria-Pekin Shipping District must deliver 5,000 bushel 
shipping certificates of a like kind and quality of grain in multiples 
of 55,000 bushels against the futures contracts.

XC43.01  Deliveries by Corn Shipping Certificate--(see 1043.01)
XC43.02  Registration of Corn Shipping Certificates--(see 1043.02)
XC43.03  Reissuance of Shipping Certificates--(see 1043.03)
XC44.01  Certificate Format--The following form of Corn Shipping 
Certificate shall be used with proper designation, indicating shipping 
station.

Board of Trade of The City of Chicago Corn Shipping Certificate For 
Delivery in Satisfaction of Contract for 5,000 Bushels of Corn

    This certificate not valid unless registered by the Registrar of 
the Board of Trade of the City of Chicago.
----------------------------------------------------------------------
(grade)
Corn Shipping Station of-----------------------------------------------
Located at-------------------------------------------------------------
Registered total daily rate of loading of ________ bushels.

    Total rate of loading per day shall be in accordance with 
Regulation 1081.01(12) G and H. A premium change of $________ cents 
per bushel per calendar day for each day is to be assessed starting 
the day after registration by the Registrar of this Certificate 
through the business day loading is complete.
    For value received and receipt of this document properly 
endorsed and lien for payment of premium charges the undersigned 
shipper, regular for delivery under the Rules and Regulations of the 
Board of Trade of the City of Chicago, hereby agrees to deliver 
5,000 bushels of Corn in bulk conforming to the standards of the 
Board of Trade of the City of Chicago and ship said Corn in 
accordance with orders of the lawful owner of this document and in 
accordance with Rules and Regulations of the Board of Trade of the 
City of Chicago. Delivery shall be by water or rail conveyance 
according to the registered loading capability of the shipper.

Signed at ____________ this ____________ day of ____________, 19____

____ Chicago, IL or Burns Harbor, IN Switching District
____ Lockport-Seneca Shipping District
____ Ottawa-Chillicothe Shipping District
____ Peoria-Pekin Shipping District

By---------------------------------------------------------------------
Authorized Signature of Issuer

Registration date------------------------------------------------------
Registrar's Number-----------------------------------------------------
Registrar for Corn
Board of Trade of the City of Chicago

    Registration canceled for purpose of shipment of Corn by owner 
of certificate or by issuer of certificate for purpose of withdrawal 
of certificate.
Cancellation Date------------------------------------------------------
----------------------------------------------------------------------
Registrar

    All premium charges have been paid on Corn covered by this 
certificate from date of registration, not counting date of 
registration but counting date of payment.

Date________ by ________
Date________ by ________
Date________ by ________
Date________ by ________

    Delivery of this Corn Shipping Certificate to issuer is 
conditioned upon loading of Corn in accordance with Rules and 
Regulations of the Board of Trade of the City of Chicago and a lien 
is claimed until all loadings are complete and proper shipping 
documents presented accompanying demand draft for freight and 
premium charges due which I (we) agree to honor upon presentation.

----------------------------------------------------------------------
Owner of this Corn Shipping
Certificate or his duty authorized agent

Date________, 19____

XC46.01  Location for Buying or Selling Delivery Instruments--(see 
1046.00A)
XC47.01  Delivery Notices--(see 1047.01)
XC48.01  Method of Delivery--(see 1048.01)
XC49.01  Time of Delivery, Payment, Form of Delivery Notice--(see 
1049.00)
XC49.02  Time of Issuance of Delivery Notice--(see 1049.01)
XC49.03  Buyer's Report of Eligibility to Receive Delivery--(see 
1049.02)
XC49.04  Seller's Invoice to Buyers--(see 1049.03)
XC49.05  Payment--(see 1049.04)
XC50.01  Duties of Members--(see 1050.00)
XC51.01  Office Deliveries Prohibited--(see 1051.01)
XC54.01  Failure to Accent Delivery--(see 1054.00 and 1054.00A)

[[Page 28368]]

XC56.01  Payment of Premium Charges--To be valid for delivery on 
futures contracts, all shipping certificates covering Corn under 
obligation for shipment must indicate the applicable premium charge. No 
shipping certificates shall be valid for delivery on futures contracts 
unless the premium charges on such Corn shall have been paid up to and 
including the 18th calendar day of the preceding month, and such 
payment endorsed on the shipping certificate. Unpaid accumulated 
premium charges at the posted rate applicable to the warehouse or 
shipping station where the grain under obligation for shipment shall be 
allowed and credited to the buyer by the seller to and including date 
of delivery. Further, no shipping certificate shall be valid for 
delivery if the shipping certificate has expired prior to delivery or 
has an expiration date in the month in which delivered.

    If premium charges are not paid on-time up to and including the 
18th calendar day preceding the delivery months of March, July and 
September and by the first calendar day of each of these delivery 
months, a late charge will apply. The late charge will be an amount 
equal to the total unpaid accumulated premium charges rates multiplied 
by the ``prime interest rate'' in effect on the day that the accrued 
premium charges are paid plus a penalty of 5 percentage points, all 
multiplied by the number of calendar days that premium is overdue, 
divided by 360 days. The terms ``prime interest rate'' shall mean the 
lowest of the rates announced by each of the following four banks at 
Chicago, Illinois, at its ``prime rate'': Bank of America-Illinois, The 
First National Bank of Chicago, Harris Trust & Savings Bank, and the 
Northern Trust Company.
    The premium charges on Corn for delivery from regular shippers 
within the Chicago Switching District or the Burns Harbor, Indiana 
Switching District shall not exceed 12/100 of one cent per bushel per 
day.
    The premium charges on Corn for delivery from regular shippers 
within the Lockport-Seneca Shipping District shall not exceed 10/100 of 
one cent per bushel per day.
    The premium charges on Corn for delivery from regular shippers 
within the Ottawa-Chillicothe Shipping District shall not exceed 10/100 
of one cent per bushel per day.
    The premium charges on Corn for delivery from regular shippers 
within the Peoria-Pekin Shipping District shall not exceed 10/100 of 
one cent per bushel per day.

ChXC Regularity of Issuers of Shipping Certificates
XC81.01  Regularity of Warehouses and Issuers of Shipping 
Certificates--Persons operating grain warehouses or shippers who desire 
to have such warehouses or shipping stations made regular for the 
delivery of grain under the Rules and Regulations shall make 
application for an initial Declaration of Regularity on a form 
prescribed by the Exchange prior to May 1, 1994, and every even year 
thereafter, for a two-year term beginning July 1, 1994, and every even 
year thereafter, and at any time during a current term for the balance 
of that term. Regular grain warehouses or shippers who desire to 
increase their regular capacity during a current term shall make 
application for the desired amount of total regular capacity on the 
same form. Initial regularity for the current term and increases in 
regularity shall be effective either thirty days after a notice that a 
bona fide application has been received is posted on the floor of the 
exchange, or the day after the application is approved by the Exchange, 
whichever is later. Applications for a renewal of regularity shall be 
made prior to May 1, 1994, and every even year thereafter, for the 
respective years beginning July 1, 1994, and every even year 
thereafter, and shall be on the same form.
    The following shall constitute the requirements and conditions for 
regularity:
    (1) The warehouse or shipping station making application shall be 
inspected by the Registrar or the United States Department of 
Agriculture. Where application is made to list as regular a warehouse 
which is not regular at the time of such application, the applicant may 
be required to remove all grain from the warehouse and to permit the 
warehouse to be inspected and the grain graded, after which such grain 
may be returned to the warehouse and receipts issued therefor.
    The operator of a shipping station issuing Corn Shipping 
Certificates shall limit the number of Shipping Certificates issued to 
an amount not to exceed:
    (a) 30 times his registered total daily rate of loading barges,
    (b) a value greater than 25 percent of the operator's net worth,
    (c) and in the case of Chicago, Illinois and Burns Harbor, Indiana 
Switching Districts only, his registered storage capacity.
    The shipper issuing Corn Shipping Certificates shall register his 
total daily rate of loading barges at his maximum 8 hour loadout 
capacity in an amount not less than:
    (a) one barge per day at each shipping station within the Lockport-
Seneca Shipping District, within the Ottawa-Chillicothe Shipping 
District, and within the Peoria-Pekin Shipping District and
    (b) three barges per day at each shipping station in the Chicago, 
Illinois and Burns Harbor, Indiana Switching District.
    (2) Shippers located in the Chicago, Illinois and Burns Harbor, 
Indiana Switching District shall be connected by railroad tracks with 
one or more railway lines.
XC81.01(3) through XC81.01(12)G(8)-(see 1081.01(3) through 
1081.01(12)G(8))
XC81.01(12)G(9)  In the event that it has been announced that river 
traffic will be obstructed for a period of fifteen days or longer as a 
result of one of the conditions of impossibility listed in regulation 
XC81.01(12)(G)(8) and in the event that the obstruction will affect a 
majority of regular shipping stations, then the following barge load-
out procedures for corn shall apply to shipping stations upriver from 
the obstruction:
    (a) The maker and taker of delivery may negotiate mutually 
agreeable terms of performance.
    (b) If the maker and/or the taker elect not to negotiate mutually 
agreeable terms of performance, then the maker is obligated to provide 
the same quantity and like quality of grain pursuant to the terms of 
the shipping certificate(s) with the following exceptions and 
additional requirements:
    (i) The maker must provide loaded barge(s) to the taker on the 
Illinois River between the lowest closed lock and St. Louis, inclusive, 
or on the Mid-Mississippi River between Lock 11 at Dubuque, Iowa and 
St. Louis, inclusive.
    (ii) The loaded barge(s) provided to the taker must have a value 
equivalent to C.I.F. NOLA, with the maker of delivery responsible for 
the equivalent cost, insurance and freight.
    (iii) The taker of delivery shall pay the maker 18 cents per bushel 
for Chicago and Burns Harbor Switching District shipping certificates, 
16 cents per bushel for Lockport-Seneca District shipping certificates, 
15\1/2\ cents per bushel for Ottawa-Chillicothe District shipping 
certificates, and 15 cents per bushel for Peoria-Pekin District 
shipping certificates as a reimbursement for the cost of barge freight.
    (c) In the event that the obstruction or condition of impossibility 
listed in

[[Page 28369]]

regulation XC81.01(12)(G)(8) will affect a majority of regular shipping 
stations, but no announcement of the anticipated period of obstruction 
is made, then shipment may be delayed for the number of days that such 
impossibility prevails.

XC81.01(12)H  Barge Load-Out Rates for Corn--(see 1081.01(12)H)
XC81.01(13)  Location--For the delivery of corn, regular warehouses or 
shipping stations may be located within the Chicago Switching District 
or within the Burns Harbor, Indiana Switching District or within the 
Lockport-Seneca Shipping District, or within the Ottawa-Chillicothe 
Shipping District or within the Peoria-Pekin Shipping District.

    No such warehouse or shipping station within the Chicago Switching 
District shall be declared regular unless it is conveniently 
approachable by vessels of ordinary draft and has customary shipping 
facilities. Ordinary draft shall be defined as the lesser of (1) 
channel draft as recorded in the Lake Calumet Harbor Draft Gauge, as 
maintained by the Corps of Engineers, U.S. Army, minus one (1) foot, or 
(2) 20 feet.
    Delivery in Burns Harbor must be made ``in store'' in regular 
elevators or by shipping certificate at regular shipping stations 
providing water loading facilities and maintaining water depth equal to 
normal seaway draft of 27 feet.
    In addition, deliveries of grain may be made in regular elevators 
or shipping stations within the Burns Harbor Switching District 
PROVIDED that:
    (a) When grain represented by shipping certificates is ordered out 
for shipment by a barge, it will be the obligation of the party making 
delivery to protect the barge freight rate from the Chicago Switching 
District (i.e. the party making delivery and located in the Burns 
Harbor Switching District will pay the party taking delivery an amount 
equal to all expenses for the movement of the barge from the Chicago 
Switching District, to the Burns Harbor Switching District and the 
return movement back to the Chicago Switching District).
    If inclement weather conditions make the warehouse or shipping 
station located in the Burns Harbor Switching District unavailable for 
barge loadings for a period of five or more calendar days, the party 
making delivery will make grain available on the day following this 
five calendar day period to load into a barge at one mutually agreeable 
water warehouse or shipping station located in the Chicago Switching 
District; PROVIDED that the party making delivery is notified on the 
first day of that five-day period of inclement weather that the barge 
is available for movement but cannot be moved from the Chicago 
Switching District to the Burns Harbor Switching District, and is 
requested on the last day of this five day calendar period in which the 
barge cannot be moved.
    (b) When grain represented by shipping certificates is ordered out 
for shipment by vessel, and the party taking delivery is a recipient of 
a split delivery of grain between a warehouse or shipping station 
located in Burns Harbor and a warehouse or shipping station in Chicago, 
and the grain in the Chicago warehouse or shipping station will be 
loaded onto this vessel; it will be the obligation of the party making 
delivery at the request of the party taking delivery to protect the 
holder of the shipping certificates against any additional charges 
resulting from loading at one berth in the Burns Switching District and 
at one berth in the Chicago Switching District as compared to a single 
berth loading at one location. The party making delivery, at his 
option, will either make the grain available at one water warehouse or 
shipping station operated by the party making delivery and located in 
the Chicago Switching District for loading onto the vessel, make grain 
available at the warehouse or shipping station in Burns Harbor upon the 
surrender of shipping certificates issued by other regular elevators or 
shipping stations located in the Chicago Switching District at the time 
vessel loading orders are issued, or compensate the party taking 
delivery in an amount equal to all applicable expenses, including 
demurrage charges, if any, for the movement of the vessel between a 
berth in the other switching district. On the day that the grain is 
ordered out for shipment by vessel, the party making delivery will 
declare the regular warehouse or shipping station in which the grain 
will be available for loading.
    Delivery within the Lockport-Seneca Shipping District, or within 
the Ottawa-Chillicothe Shipping District or within the Peoria-Pekin 
Shipping District must be made at regular shipping stations providing 
water loading facilities and maintaining water depth equal to the draft 
of the Illinois River maintained by the Corp of Engineers.

XC81.01(14)  Billing--(see 1081.01(14)A and 1081.01(14)D)
XC81.01(15) through XC81.01(17)--(see 1081.01(15) through 1081.01(17))
XC81.01A  Inspection (see 1081.01A)
XC81.01B  Billing When Grain is Loaded Out (see 1081.01B)
XC81.01C  Car of Specified Capacity (see 1081.01C)
XC82.01  Insurance (see 1082.00)
XC83.01  Variation Allowed (see 1083.00)
XC83.02  Excess or Deficiency in Quantity (see 108.01)
XC84.01  Revocation, Expiration or Withdrawal of Regularity (see 
1084.01)
XC85.01  Application for Declaration of Regularity (see 1085.01)
XC86.01  Federal Warehouses (see 1086.01)

[FR Doc. 98-13335 Filed 5-21-98; 8:45 am]
BILLING CODE 6351-01-M


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