The-ext fe £ each-d d-lid-may-not-show-dirtproduct,rust 4 flaking
INFERIOR GE DRUMS AND LIDS:
Dr nd-tid +-be-cle: d. eed-condition- letels- £ product-and-all-f
ee r pi oF
terials-(rast— fi int-ete)-Surk +-be-paint iyi: th f;
7 S-paint,-ete-}. FP BRARE- Ber
fblist dak by 5.

@ Peb4 feach—2 nN theof 2 nil -strensth lent-Pel+} n
© a + ie = eH eg 7
hk +-least £6}4ach ini fer bas is-clesed-ortied-Rreduct tside-ofb
<8} iS eS 7 ‘PPI Se Ss
iH idered-evid: fan 43 tied-er breken-b: d-net-i table cenditi
propery eS P

9] Every unit of FCOJ which is stored in tanks and eligible for delivery by [shipping-certifieates]
EWRs under the Rules shall be stored in tanks acceptable to the United States Department of
Agriculture.

Rule 7.75. [Warehouse Receipts] Reserved

[After FCO} has-b laced. ji ed-publi h ind: tiabl hy int
P P ia P
tating th ber-en-the-di foridentificati hall-be- d-to-th £ the Lot ipt-for
th: (4) -centract-unit-shall-be4 d-Receists-shall-b ‘bered- tivel: formine-t
2} 7 pt ry iS
that- adepted-by-the Beard of Citrus Advi and d-by-the Beard-o£G. J
‘Opt on PP? os -

Rule 7.76. [Shipping-Certificate] Delivery Obligations of Facility Issuing An EWR
(a) The form of an FCOJ [Shipping-Certi e-thereinafter-referred he-“Certi
shall be prescribed by the Exchange.

(b) An EWR issued by a tank facility must be issued a Certificate of Registration, as defined in Rule
13.13(a)(1), in order to be eligible for delivery.

(c) A tank facility is obligated to keep the storage fees current on all EWRs said facility issues.

([b]d) A tank facility shall deliver to the holder of an [Gertifieate] EWR fifteen thousand (15,000) Ibs.
solids (plus or minus 3%) of FCOJ, specified in the [Gertifieate] EWR issued by the tank facility, at the
unloading platform of said facility meeting the specifications for deliverable FCOJ under the Rules upon
the surrender of the [Certificate] EWR by the holder and the payment only of all unpaid storage charges
due to the facility for periods subsequent to the date of the issuance of the [Certifieate] EWR and of such
load-out charges which have not been previously paid to the facility.

(i) The facility agrees to deliver for shipment the FCOJ specified in the [Certificate] EWR
commencing no later than ten (10) calendar days (“Day 10”) and ending no later than thirty (30)
Business Days (“Day 30”) after the date of demand by the holder. All requests for delivery made by a
single holder or a nominee of that holder within a five (5) day continuous period may be declared to
be a batch and will be subject to the same date of demand. For purposes of this Rule, the term “Date
of Demand” means the date on which the facility receives the [Certifieate] EWR, or in the case of the
batch being declared by the facility, the term “Date of Demand” will refer to the first date of receipt



(ii) to count and inspect Exchange FCOJ for comparison with outstanding [wareheuse-receipts-and
shipping-certifieates] EWRs for Exchange FCOJ.

[@Hendling FCOF

theref d jon-shall-be. -ded-en-th h ipt-when-issued.

£43}] The operator of a tank facility shall keep a record of the amount of Exchange FCOJ stored in
tanks for which [shipping-certifieates] EWRs have been issued.

([k]i) Discrimination

The facility operator shall not charge discriminatory rates for any of its services in storing or
handling Exchange FCOJ nor give any rebate of its charges for such services.

(Lk) Inspection of Records

All records of a licensed facility pertaining to the storage, handling and inspection of Exchange
FCOJ shall be open for inspection by representatives of the Exchange and, at the request of the Exchange,
the facility operator shall promptly furnish to the Exchange a statement of stocks, receipts, and deliveries
of Exchange FCOJ, the amount of FCOJ for which [shipping-certifieates] EWRs are outstanding and such
other information relating to the foregoing as the Exchange may require.

([mJ) Delivery of FCOJ
Upon the payment or tender of the storage and other charges due to the facility on the FCOJ

covered by an [swarehe: pt hipping-certificate] EWR and the surrender of the [warehouse

receipt oF shipping certificate] EWR, EWR, the facility operator shall promptly make available to the holder of
the [ hh shipping -certifieate] EWR at the unloading platform or exit door of the facility

all FCOJ covered by ‘the [warehouse-receipt- or shipping -certifieate] EWR.

([A]m) Selection of Samples for Inspection
The United States Department of Agriculture i inspectors shall be permitted to select their own samples in
inspecting FCOJ represented by [warehi pe hipping-certifieates] EWRs issued by the facility
operator.
([e]n) Notification of Damage
The facility operator shall notify the Exchange immediately by telephone or telegram of any Exchange
FCOJ suffering any kind of damage.
({plo) Temperature
The facility operator shall maintain in all tank storage areas where Exchange FCOJ is kept a constant
temperature of not more than 30° Fahrenheit; provided, however, that [4] tank deliveries, in accordance with
[shipping corsificstes) EWRs, shall be e made ata maximum m of 20° 0” Fahrenbeitf, and -(2} storage-areas-where
an ph ess]

(ap) Change i in Ownership; F Financial ol impairment

The facility operator agrees to notify the Exchange promptly in writing of any contemplated change in
ownership of the facility or in the identity of the operator thereof as far as possible in advance of any such
change and to notify the Exchange in writing without delay in the event of any impairment of capital or of any


Rule 13.05. Form of Delivery

Each contract for FCOJ {#aay] shall be delivered by [drum-deliver;ti.e._stored-in-drums)-or] tank
delivery (i.e., stored in tanks). [-atthe-Option-ef the-seHer,-as-felows:

(a}Each tract-deli d-by-d deli hall ire-the-deli £ h eipt-for
{ay ry y Om y P
ECOsstered-in-d: eetine the-specificati for-deli: byd i a ith the Rul
Ss Pt yoy te

b)] Each contract delivered by tank delivery shall require the delivery of an EWR registered with the
Exchange [shipping-certifieate] for FCOJ meeting the specifications for delivery by tank in accordance
with the Rules.

Rule 13.06. Trading Months
(a) Futures trading in FCOJ shall be conducted in, and be confined to contracts providing for delivery
in, the months of January, March, May, July, September, and November.

(b) Trading in a new delivery month shall be initiated at the opening of trading on the first (1")
Business Day of the nineteenth (19") month preceding any delivery month except for the January
[fetures] delivery month which always will have the two (2) nearest Januarys listed for trading.

Rule 13.09. First and Last Notice Days

(a) The first (1°) notice day for FCOJ-A and FCOJ-B shall be the first (1) Business Day of the
expiring month.

(b) The last day on which a Delivery Notice [netiee-day] may be issued (the “Last Notice Day”) for
FCOJ-A shall be the fifth (5") Business Day prior to the last Business Day of the expiring month.

(c) The [J]Last [aJNotice [4]Day for [the] FCOJ-B shall be the sixth (6) Business Day prior to the
last Business Day of the expiring month.

Rule 13.13. Delivery Notices

(a) The following terms, as used in this Chapter 13, shall have the meanings indicated unless the
context requires otherwise:

(1) “Certificate of Registration” shall mean an electronic record created on eCOPS® in accordance
with eCOPS procedures which signifies that_an EWR has been registered with the Exchange in
accordance with the Rules and that the tank facility has met the performance bond requirements as
provided in Licensing Rule 7.64(e).

(2) “Date of Delivery” shall mean the date five (5) Business Days following the date of issue of the
Delivery Notice, except as the Rules may otherwise provide; provided, however, that if the Date of
Delivery is a bank holiday, the Date of Delivery shall mean the next Business Day that is not a bank
holiday.

(3) “Delivery Notice” shall mean the notice of intention to deliver one (1) or more FCOJ contracts
issued to the Clearing Organization by a Clearing Member carrying a short position, in the form, and
by the times, specified by the Exchange.

(4) “Delivery Worksheet” shall_mean an electronic record created _on eCOPS on the day the
Delivery Notice is issued, which shall be maintained and updated, as applicable, during the five (5)
Business Days until the Date of Delivery, as further described in Rule 13.16.

(5) “EWR” shall mean the electronic warehouse receipt record created on eCOPS by a tank facility
concerning FCOJ that is stored in such facility.

(6) “Exchange Invoice” shall mean an electronic record created on eCOPS from data contained on
the Delivery Notice and Delivery Worksheet, showing the amount to be paid by the Receiver for the
delivery of FCOJ identified in such invoice.



of the [Certificate] EWR in such declared batch, and the term “Multiple Demand” means demands by
the same Person for delivery on two (2) or more [Gertifieates] EWRs with identical Dates of Demand.

(A) All other Rules that govern the times of delivery may be suspended if a facility requests the
FCOJ Warehouse and Delivery Committee to determine if an inappropriate number of requests for
delivery during any given period of physical deliveries have been received.

(B) The facility will immediately contact the Exchange. The information regarding delivery
requests will be promptly relayed to the FCOJ Warehouse and Delivery Committee. The
Committee or a Panel of the Committee appointed by the Chairman of the FCOJ Warehouse and
Delivery Committee will decide if an inappropriate number of requests has been made. If they so
decide they will set up a schedule of deliveries that will permit all deliveries to occur during a
period not to exceed thirty (30) Business Days from the Date of Demand.

(ii) In making deliveries within the time period set forth in the [Gertifieate] EWR, the facility shall
use its best efforts to make prompt deliveries in an orderly manner, including, but not limited to, the
making of weekly pro-rata deliveries, beginning during the week within which Day 10 falls, to satisfy
Multiple Demands outstanding.

(iii) In the event that the facility is unable to make available FCOJ specified in the [Certificate]
EWR before the end of Day 10 then:

(A) the facility shall pay as penalty to the holder one hundred fifty dollars ($150) a day for each
Business Day after Day 10 that the facility is unable to fulfill the [Certifieate] EWR;

(iv) The holder and the facility shall use their best efforts to coordinate dates and times within
which the FCOJ specified in the [Gertifieate] EWR will be made available and picked up.

(v) In the event that the facility is unable to make available FCOJ specified in the [Certificate]
EWR before the end of Day 30, then:

(A) the facility shall pay as a penalty to the holder one hundred fifty dollars ($150) a day for each
Business Day after Day 30 that the facility fails to fulfill the [Gerifieate] EWR; and

(B) storage charges incurred through Day 30 remain in effect; however, storage charges arising
after Day 30 shall be waived; provided, however, that if the holder does not adhere to the schedule
called for in subparagraph (b)(iv) of this Rule, then the above penalty shall not apply and a new
Day 10 and/or Day 30 may be commenced on any [Gertifieate] EWR(s) upon which the schedule
was violated.

(vi) In the event that a holder of an [Gertifieate] EWR presents the [Gertifieate] EWR to a facility
for the purpose of taking delivery of FCOJ in accordance with Exchange Rules, and the holder, prior
to delivery, cancels the request for delivery and requests that the facility reissue the [Certificate]
EWR, the facility must reissue the [Gertifieate] EWR as long as the request is made at least forty-
eight (48) hours prior to delivery and may charge an administrative fee no greater than one hundred
fifty dollars ($150) for each [Gertifieate] EWR reissued.

([e]e) The facility agrees to deliver for shipment the FCOJ specified in the [Certificate] EWR at a
maximum temperature of 20 degrees Fahrenheit.

([4] In the event of a failure of the holder of the [Gertifieate] EWR to pay storage for three (3)
months, the facility may reserve the right to sell or dispose of the FCOJ specified in the [Certificate]
EWR and claim a lien against the FCOJ specified in the [Certificate] EWR or against the Person entitled
under the [Gertificate] EWR or on the proceeds thereof in his possession for charges for storage,
transportation, loading, handling (including the demurrage and terminal charges), labor and other charges
present or future in relation to the goods and for expenses necessary for the preservation of the goods or
reasonably incurred in their sale pursuant to law.



fA £ the-afe id-neti fd. d-by-the-tank facilit tor-shall-by jled-te-th
ter Py ef de: y ¥—OPt
Exch: t-thi +h the-netice+ +-+o-the helder-efthe shinpine-certifieat
PPE, 7
(d)-Phe-helder-of the-shippi: ertificate-shall der-it-f i ithin-tventy(20)}-d:
te} PPIRE YAU} Gay
§ the-date-of-th iling-of th ti £- demand, failing whichthe FCOJ-steredintank 3b
ed-and-stered-in-d: for- which her ipt-awill-be-issued-and-exchansed-forthe-shippi
ph wier i> PPIRS

hipping-_certifieateInk ti ived-by_the-Exeh te-th d-addr thi t

ditien-te-thei £ th, h ipt-so-that the FCO rep: ted-by-th 4



Rule 7.70. Inspection of FCOJ

(a) [Prams
Be ti. efFECOLind ‘hall -b de-by- USDA] pH 7 ths alli: Certificat fF
Or Tiey- and-Cenditi hich-shall-sh: +the-dat f£the USDA ti. +h oF de—the-Br: uF the
$s 7 +he-Br: ati thi ber: fF hd: in-thetot—On-the-basi £ the LISDA Certificat f
QOualht d-Coenditi +the-Exch: halli Certificat ty: thatthi ifieati. t-forth i:
y D Age st yng, iP
the USDA Certificat |. ith thi tf +s-fordele derthe Rul
phy og ¥
At the-ti: f deli: a FECOT jn +.
Py t-of title transferred _by-the-seller-to-the-buyer-shall- net bi panied-b: Exel

i} HeweveraJAt the time of the physical delivery of FCOJ upon surrender of an [shipping
certifieate] EWR, the tank facility operator shall cause samples to be made available to USDA

Inspectors from the tank or tanks containing the FCOJ to be delivered so that the USDA Inspectors
may issue a Certificate of Quality and Condition. Said USDA Certificate shall be provided on the spot
to the tank facility and the bearer of the [shipping-eertifieate] EWR.

({e]b) General

(i) Remedies
In the event that any FCOJ delivered pursuant to an [ hy ‘pt Bipp artifieat
EWR fails to pass a grade review, the Clearing Member which took delivery (“Receiver”) shall have
the following remedies against the facility which issued the [ i tpt hipping
certificate] EWR:

(A) Surrender of the FCOJ which failed the grade review and replacement by FCOJ which meets
a grade review, and the facility shall pay all costs associated with such surrender and replacement:
or

(B) In lieu of replacement, the Receiver may demand payment to the Member Firm of the actual
damages suffered by the Member Firm.

[REMAINDER OF RULE UNCHANGED]

Rule 7.71. [Certifi
Gentlemen:
Wh J. hot faCerificat f£ Ovalit <d-Conditi - d-by-+the-h ect fthe United
p Py y-and pi pited
States-D. 3 tof Asricult sit} forthth ifieati Lf its d- dit: d-fe
oF iS iP qpaanity oq
delb -¥ F£ECOLin-d: derthe Rul the Exch; identified fol
USDA Certificate Nk Lett

Date o£ USDA Certificat

BDrum#. A

Bri: Steredts

Fetal Net-Wt-Lbs-



the receiving Clearing Member one hundred fifty dollars ($150) for each contract covered by the notice of
delivery. If payment is not made within such ten (10) Business Day period, the delivering Clearing
Member shall be assessed a late payment penalty of fifty dollars ($50) for each contract covered by the
notice of delivery for each Business Day the Claim remains unpaid. The late payment penalty shall be
assessed by and paid to the Exchange.

[REMAINDER OF RULE UNCHANGED]

Rule 7.61. Licensed Facilities For FCOJ

A [warehouse-facility-and] tank facility may be licensed for the storage, handling and delivery of
FCOJ upon the filing of an application thereof, approved by the FCOJ Warehouse and Delivery
Committee and the Board of Governors.

A license so granted shall be subject to such terms and conditions as are approved by the Board of
Governors.

Rule 7.62. Licensing of Facilities For Storage and Delivery of FCOJ

(a) Definitions

The following words, when used in these Rules, shall have the meanings set forth below:

[4 Hk fa fe ity: A. her hays ek iti £, thi r? es d—deli: ¥ f ECOFJ-i:
drams.]

[2]1. Tank facility: A facility which has the capacity and equipment for the storage and delivery of
FCOJ by tank and the demonstrated ability to make daily tank deliveries equivalent to at least eight
(8) FCOJ Futures Contracts. For purposes of this Rule, the term “Daily Tank Deliveries” means tank

deliveries in the appropriate volume during regular business hours on any day that the Exchange is
open for business.

[3]2. Facility: A [wareheuse-facility-or] tank facility which may be a single facility.
[4]3. Facility operator: One who operates a facility.

[5]4. Facility owner: One who owns a facility.
[6]5. Exchange FCOJ: FCOSJ with respect to which all conditions for delivery have been complied.

[7]6. [Shipping-eertifieates/EWR. [A-negetiable-certifieate- issued] The electronic warehouse receipt
record created on eCOPS pursuant to Rule 7.76 by a tank facility for Exchange FCOJ stored in its

tank. All [shipping-certifieates}] EWRs must be registered on eCOPS. [ai
+h. rf ef rtificat

trati the-shi

thy ted—bythetank facility desi ted
e PPIRE- Pi y ¥ BF
Exch; | £¢ beri: Such v7 +H-al- i Hi his i: if
Be-emprey Se Aprey 4 ipping—cert tet
est that-thetank fe Hity hy tis ed—all-f: ial rt i: ts ith bend Jett £ dit
(b) Licensing

A facility may be licensed for the storage, handling and delivery of FCOJ which meets the
specifications for delivery in accordance with the Rules and possesses the qualifications set forth
therein.

Rule 7.63. Qualifications

(d) USDA Inspection


[(s)- Deli ti hall-be-in-a-form-thaté table+o-the Clearing-O: ization:]
BT 7 ROH P aes F

[4] (g) If,_at_1:00 pm on the day prior to Delivery, the Notice of Delivery Information is inaccurate,
the receiving Clearing Member shall file a written Claim conceming the inaccuracy with the delivering
Clearing Member and the Exchange’s Office of Commodity Operations no later than ten (10) days after
the [day] Date of D[d]elivery. The written Claim shall include the amount of compensation for losses
being sought by the Claimant. Resolution of the Claim shall proceed in accordance with Rule 13.23.

Rule 13.14. Termination of Trading—Holidays

(a) All trading in the current month shall cease one hour and forty-five minutes after the opening of
such contract on the fourteenth (14") Business Day prior to the last delivery day of the month.

(b) Holidays as are prescribed by the Rules or ordered by the Exchange or by the Board shall be
observed as holidays so far as concerns the issuing of notices or the delivery of documents in fulfillment
of contracts for future delivery, except as hereinafter provided.

(i) When the Last Notice Day [last-day hich ti ¥y-bet d-for deli: in-th n
#onth] is declared a holiday or half trading day after 5:00 p.m. of the second (2) trading day prior to
the Last Notice Day, [teetate-fer-the-i e-thereof-on-the-_preceding netice-day,such-notice] a

Delivery Notice may be issued [maybe-given] in the usual manner on such holiday.

Gi) When the last delivery day of the current month is declared a holiday after 5:00 p.m. of the sixth
(6") Business Day prior to the last delivery day [teetate-f tice to-be+ d- requiring deli

on-the-preceding BusinessDay], then the delivery shall be completed on said holiday.

(c) Members having contracts open in the current month must keep their offices open for the purpose
of receiving such notices or of completing such deliveries.

Rule 13.16. Delivery of Invoice and Documents

(a) For purposes of this Rule, and the Exchange's FCOJ Warehouse and Licensing Rules, storage
charges are all those charges set forth in the Licensed Facility's tariff published pursuant to Rule 7.64(f).

ipt ided—for-in-th Rules—issued-te—b: d-sisned—by—th h Th

Pt Pi SF ys 2
deli: £ECO} shall-be idered Jete-when-the-d " bi ided-shalt-h.
ery-ef BG 1p py
b deli: \d-tethe Receiver: ided—h that-th Hts—of-crad, i st-be
P 7 7 oF
{C)Th isht of tract o£ FCOJ-as-fieured-fi the Packer's Manifest-shall_be bindin:
« SF i pe!
(A) On-tankdeli the Del: hall-tender-tothe R befere-+-00- thed. i
tr} 7 Pp YP
to-the-d; £ del: the-folk dé a d t-evid: " harges—paid
throuch-atleast th d-efthe-del: th-and. Jeted. The-Del hall-tend



(7) “Notice of Transfer’’ shall mean an electronic record created on eCOPS that changes the holder
of title of an EWR from a Clearing Member to the Clearing Organization or from the Clearing
Organization to a Clearing Member in connection with a delivery of FCOJ.

one Dielelivery B N[pljotice:
(A) [issued elivery] shall be [tendered+tethe-buyer

the et £theExchange] in a form acceptable to the Clearing Organization and shall be

vend on the fifth 5") Business Day prior to the Date of Delivery; [day-efdelivery:]
2)(Netices] m may be tendered ¢ on and after the first a) Be Business Day ofa a maturing month; [ie shall

tradine-in-th +-deli th-Deli: tices]
¥ 7 7

(3) must be submitted to the Clearing Organization prior to [6]5:00 pm on the Business Day prior to
the date of issue; [notice day]

[@}Whe ti edt the-Clearine-Oreanizati th be-stepped-enlyf
AB -OFE' 5 -tney may PPOs -Onty

(4) shall be for fifteen thousand (15,000) pounds of solids showing the [deliverer's-inveice-number
andthe] facility from which the FCOJ will be delivered and a price per pound equal to the Settlement
Price on the Business Day preceding the date of issue of the Delivery Notice; and

[(4) deli oti bef 4h tracts: ti i: th any
{a7 y x <4 iS €
tract shall-be-referred-te-herei: “Multiple Netice”:]

(5) shall be for [drum-er] tank delivery only.

(6) Notwithstanding the foregoing provisions of this paragraph (b), if a Member transfers any
contracts after the close of trading in accordance with Rule 4.11(e):

(A) the failure of such Member to issue a Delivery Notice with respect to such contracts shall not
be deemed to be a violation of this Rule; and

(B) if any contracts so transferred do not offset any contracts with respect to which the transferee
had issued _a Delivery Notice, the transferee shall issue a Delivery Notice in accordance with this
Rule.

(c) Upon receipt of a Delivery Notice, the Clearing Organization shall issue it in accordance with the
Clearing Organization Rules.

(d) A holder of a “stopped notice” may at the option of the issuer thereof arrange to have such notice
taken back by such issuer upon such terms as are mutually agreed to by such issuer and such holder.

[®-A-Multiple Noti bei d-only-for FCO Hoeated-ata-singleti -facility.

{@)] (e) The specifics of delivery information contained in_a Delivery Notice and the Delivery
Worksheet [that-ge-frem-the-deli -to-the-Clearing-Or ti d-then-te-the Receiver] shall be

referred to in these Rules as “Notice of Delivery Information”.

(f) During the five (5) Business Days between the issuance of the Delivery Notice and the Date of
Delivery, the Delivery Worksheet will be accessible to each Deliverer and Receiver through eCOPS
showing Notice of Delivery Information as to the Delivery Date, Issuer, Stopper, Exchange Registration
Number, EWR Number, Tank Facility, Delivery Port, Weight, Invoice Amount and such other
information as the Exchange shall determine.



PI } wtificate-signed-by-th tati the Exch: ertifying that the specificati "

rs ‘pF tate ei ie Hens-set
ferthinthe USDA Certificate of Quality and Condition comply withthe. i ts-for-deli é:
40Ft ‘x pry Fog 7
the By-k Rul d-Resulati £the Exch:
meny 5 3 Be
\ tral
SREY y 5
<i N, nd Add:
pany
B:
Tith

fat del: ¥ fFECO} ve! the-Exch; aes Lf efthe- USDA
Certifieat til-th: -efth: th-felt: rt eth id-dat
NEW-YORK BOARD OF FRADE
B
Wi P; ident-Cr dity-Op tik ]
P

Rule 7.72. [Charges-forCertification-of FCOJ] Reserved

[(} -The-Ch. £ ECO} Exch: stificati hall -be-fixed d-det ined-by-the-By of

NET i ro fl

S og

Rule 7.74. [Drums-and] Tanks for FCOJ

[(@)- Brvery-unit of FCO} which is ste

The following: iti jfieati hall-b. licabl the-deli: £ PCO) underth
S PP: 7



t fer-which—unl thervi taal -eed- + be-f New Yerkbankth td

a y OB Pons
£ bh ECOFatthe pri + forth in the-deli: ti
Pi Y 7
th) The Recei: hall noth ired-t rt tender ef FCOJ th: isht of whichvark
tay prany o S
than—thi t-(3%) fri $h th d-15-000} ds—of-selid: total icht-te—be
Pt 70} Aad ae a SF
id deli bythe Packer's Manifest
yey *
45 di: + forthe tlot_bi d-seller-shaltal ke-th: +t ided-for-in-thi
ty Spay 7 ORY P’
Rules: ided—h that: ti ith_deliveri deb: wtifieat ioht
PI Z 7 7 Fi isi
diustments-shall-b: de-basis-_the-clesine fut jee-in-the-th the- Busi De
yf S P ry
before the FCOHis loaded -out-to-the Receiver.]

[@] (2) The [buyer] Receiver shall not be charged for containers on any delivery.

Rule 13.17. [Reporting Receipts-and Deliveries-of FCOJ] Reserved

[A-Clearing- Memb: iving FCOI-K ts—of-Cust d-delivering FCO} at-th
time -& ts-of- other Cust: hall-file-a-d nd-on-itself-inth df Pp bedi:
Rule 13-13-in-order that d be-kept ired-by-the Recei f£-a-deli tiee:]

a ‘Prep ‘y P ¢ ry ¥ g

Rule 13.20. [Reinepection Drume] Reserved Reserved

[(} -Fe-thi tentthat di hi the £¢ ath: thisRuh halt |.
oS Pr 7 PPty>
b} Ifthe R. f fatend: f£ECOTin-d: 7 rf pe f£the FCO] +tendered—hi
tlat th: thirhy(3.0} lend: i; 7 tal f deli: 1-+6-+he-B. d-ef-Cit
39} ¥ appt
Advi: f¢ i: ti by ILS DA ti A-R. tbe £¢ f ti shall—at+th
iP 5 alibi 7 PPHRE- iP p
time d £-th +to-the Deli:
7 Py *
fe“ Let-efFECOL 7 st}: +h int ; 7 £ the Ral. + by sected. fit
{ey-”ny 3 og 4
ferdeli db F d-& Letefdel: bh. hits: Such pt ft. +t by ve thin-fourt
Jen ith-all +: h. id id
5 HBS esp 'P
oF +—Thi 4} ted-LetefFECO} shall be billed-backtethe Deli: £ +h,
dat Tf the-Let i ted ts-the Exch, ; ts-fordeli: +h, 7
oa iP Be-Feq Yr
frei i hich inchides-handline-ch: in-th hoe hall be- ed-avainst-th Hant
Pp" 7 & oS 7 iS hal st shes -
Jf the-Lot_is—rejected_the-afk tiened—cests—shal-b nm inst_the-Deli Phe-Vi
a) z ei -
Be? ident—Ci dit: Om tis hall Exeh: Certificate fe Let i: ted. in-th
D y OP Bi iP p
fa Loti tedfordeli: the basi fthe LS DA Certificat J
p ¥ SDA. 3
Rule 13.21. [Damaged FCOJ] Reserved
[tafe the extent that di jew has-net- been-perfermed-then this Rule shall appl
€ oF pe o PPI
fb A wtificated- ECOJin-d: 4. ed: hich-affectsth: Hit: £ th. duet
WT eA zo PA “st J So
‘halt tb 2 d-deli 3 +-The-deeisi f£ Exch. f ts ted-t di

dul
v . > app

Sheuld-any-Lot-of certificated FCOLin-d be-declared-net-deli ble-by-Exeh i: y
; hall-mak d-deli: fa-certifieated Let-withi {2 Busi Days.]
x OF y

Rule 13.23. Delivery Claims

(a) All non-disputed delivery Claims filed with the Exchange pursuant to Rules 13.13([]g) [er
43-16(6)ii)] shall be paid by the delivering Clearing Member to the receiving Clearing Member within
ten (10) Business Days of receipt of the written notification. The delivering Clearing Member shall pay to


GI NEW, NORK.

World Financial Center
One North End Avenue
New York, New York 10282

BY ELECTRONIC TRANSMISSION
06-9 s
April 6, 2006 a

Ms. Jean A. Webb

Secretary of the Commission

Office of the Secretariat <
Commodity Futures Trading Commission =
Three Lafayette Centre Ee
1155 21" Street, NW

Washington, DC 20581

Re: Definition of “eCOPS®” and Amendments to Rules 7.61-7.64, 7.66-7.77, 7.79, 13.01,
13.05, 13.06, 13.09, 13.13, 13.14, 13.16, 13.17, 13.20 and 13.21 -

Submission Pursuant to Section 5c(c)(2) of the Act and Regulation 40.4(a)
Dear Ms. Webb:

Pursuant to Section 5c(c)(2) of the Commodity Exchange Act, as amended, and
Commission Regulation 40.4(a), the Board of Trade of the City of New York, Inc. (“the
Exchange”) submits for Commission approval the definition of “eCOPS” and amendments to
Rules 7.61-7.64, 7.66-7.77, 7.79, 13.01, 13.05, 13.06, 13.09, 13.13, 13.14, 13.16, 13.17, 13.20
and 13.21, attached as Exhibit A.

eCOPS

The amendments provide for the use of the Exchange’s web-based commodity operations
system, eCOPS®. The eCOPS is a web-based tool that will permit FCOJ market participants to
manage their inventory and make Exchange deliveries through a standard internet connection. In
addition, coinciding with the implementation of eCOPS, the amendments will eliminate the
provisions allowing delivery of FCOJ stored in drums.

The eCOPS is now used for the delivery of the Exchange’s Coffee “C”® and Cocoa
futures contracts (see Coffee, Sugar & Cocoa Exchange, Inc. Submission No. 03-53 and
NYBOT® Submission No. 04-47). Similar to Coffee “C”, Cocoa and Cotton No. 2 deliveries,
which use electronic warehouse receipts (“EWRs”), the Clearing Corporation will act as the
agent for the deliverer and receiver. The deliverer will transfer the EWR and the invoice to the
Clearing Corporation, and the receiver will wire the Clearing Corporation the necessary funds.


by providing a specific separate policy limit with respect to the interests of holders of [shipping
eertificates] EWRs which limit is sufficient to fully cover such interests;

(D) agree in writing that in the event that any loss or damage is paid in full or in part to the tank
facility by the insurer, such payment, in preference to any and all other claims, shall be assigned
first to any and all claims for FCOJ for which an EWR has been issued;

(PIB assure that in the event that any loss or damage sustained by a holder of an [shipping
certificate] EWR is not payable, or is not payable in full, by the insurer, by reason of any
deductible set forth in any such policy, or otherwise, the facility operator will promptly pay such

amount.

[48 Thi ts f sh. faciht shalt ty jred-to-: the FCO}-stered-in-di

fat} P ¥ sf
foravhich hi ipt-has-been-issued-but_shall_furnish_tothe-depositer-of said FCOMthe
fer eceipt
}: ts Hicabletoth. hi deh. ;: +h te—t, ble-the-helderof-the

PP v S* 7
shy tpt +94 +h dt ke Hef. + forhi “3

(d) Liability Insurance

The owner or operator of a licensed facility shall carry legal liability and/or fidelity insurance in
such form and in such amount as shall be approved by the Exchange.

(e) Performance Bond: Letter of Credit. Limitation of Issuance of [Warehouse Receipts-and Shipping
Certifieates] EWRs

(1) The owner or operator of a licensed facility shall maintain:
(A) a performance bond with a principal amount of one million dollars ($1,000,000); or
(B) a letter of credit in the amount of one million dollars ($1,000. °,000).

(2) [AYP tor-efadi ed-facilitywh int ini ” bond
Pt y PB
£-eredit-shall-_be-entitled-_te+: ahi tstanding hundred(1-00)-certificat
(BYHE+th ater-ef-a-ti d-facility intends-te-i thy ber-oefissued-and
7 Pt x
tstandi i ertificat ipts_he-shall-be-required-to4 hi fe bond

3)] Performance bonds shall be in such form as shall be approved by the Exchange and shall be
issued by sureties satisfactory to the Exchange.

([4]3) Letters of credit shall be in such form as shall be approved by the Exchange, shall be in favor
of the Exchange, and shall be issued by a bank or financial institution satisfactory to the Exchange.
Such letters of credit shall be unconditional and irrevocable and shall be available to be drawn upon
by the Exchange by clean sight drafts.

[Phe Chart bel ts-forth the Revised Schedule for Shippine- Certificates/\Vareh: Receipts)
© PPE, PRS)

EXCHANGE SCHEDULE FOR ISSUANCE-OF
SHIPPING-CERTFIFICATESAVAREHOUSE

=

RECEIPTS



* * *

(2) In the conduct of continuous inspection, the USDA may conduct such tests, as they deem
necessary, to provide assurance that the FCOJ meets the requirements set forth in Rule 13.02 for
FCOJ-A and FCOJ-B. The FCOJ-A includes the origin designation of “Florida”, “Brazil” or
“Florida/Brazil” in the following manner:

(A) Tank delivery. On the day of physical delivery of FCOJ by tank delivery, the USDA shall
issue a USDA Certificate to the Receiver.

[(8)}Dr: Deli Fh USDA-shalt-+ USDA-Cerifieateto- Del: + ti. d
packaging ofthe drums. ]
[REMAINDER OF RULE UNCHANGED]
Rule 7.64. Agreements by Facility Operator and Owner
(a) [Complianee-with-Rules] License and eCOPS Participant Agreements

(i) To be eligible for an Exchange license, the operator and owner of the facility must execute:

(A) an agreement, in the form prescribed by the Exchange, agreeing therein to be subject to:

(1) [Fh pes it, vel ff thet: Hity hall -abid: by ve ply ith] the Rules. including
specifically, the applicab[le]ility [te] of the Arbitration Rules to the resolution of any controversy
between _a_Licensee_and_a Member, the storage, handling, inspection and delivery [ef]
requirements of Exchange FCOJ, and amendments thereto; and

(2) the jurisdiction of the courts of the State of New York and the applicability of the laws of
the State of New York to all disputes between the Licensee and the Exchange; and

(B) the applicable eCOPS Participant Agreement.
(b) [Haren Receipis-and-Shipping-Certifieates] EWRs
[@ Th, 7 ea sh facilit ball 3. tiabl he inte Exch;

P y e PA ie

ECOI stored-by-itin-d: in-the-f d-by-the-Exeh: i]
ry ‘PP os Be

[4] The operator of a tank facility shall issue an [negetiable-shipping-certifieate] EWR for
Exchange FCOJ stored by it in tanks in the form approved by the Exchange.

(c) Property Insurance

(i) The operator of a tank facility shall:

(A) insure the FCOJ stored by it for the benefit of the holder of an [shipping-certifieate] EWR
issued by it against the perils covered in an All-Risk policy for the full value thereof and shall
furnish evidence thereof to the Exchange and upon request, to any holder of an [eertificate] EWR
issued by it;

(B) assure that All-Risk policies will be in effect at each tank facility for which it is licensed and
that such policies shall continue in full force and effect with respect to the interests of the holders of
[shipping-certifieates] EWRs for the term of each such policy and shall be renewed or replaced for
such period that any of said [shipping-eertifieates] EWRs are outstanding, and that the Exchange is
named in such policies as either an insured party or loss payee with regard to FCOJ for which
EWRs have been issued;

(C) assure that the amount of insurance coverage provided in each such policy will at all times be
in an amount adequate to fully cover the interests of the holders of [shipping-certificates] EWRs,
either by maintaining overall limits adequate to cover all insured property at each tank facility, or



befere-2:00. the-day-of-deli hippi: rtifieat ided-forin-these Rules d

PP P:
te-b d-sicned-by-the tank facilit
SF y y Opes
B)-The-deli: £ECO}-shall-be- idered lete-when-the-d " yi ided
te} y 'P Pi
hall-have-been-delivered tothe Receiver;-provided,h that-th Its-of grad i $

(b) All FCOJ deliveries shall be made by the transfer of EWRs, which have been issued a Certificate
of Registration, through Clearing Members that have executed eCOPS Participant Agreements in the form

specified by the Exchange.
(c) On the day prior to the Date of Delivery at 1:00 p.m, all information, including current storage

fees, contained on the Delivery Worksheet for each Deliverer and Receiver shall be deemed complete.
correct and final and may not be changed in any respect by a Deliverer or Receiver.

(d) On the Date of Delivery at 9:00 a.m., on the basis of the information contained in such final
Delivery Worksheet, the Exchange, through eCOPS, shall issue a Notice of Transfer causing the Clearing
Organization to be identified in eCOPS as the Title Holder of the EWRs corresponding to the FCOJ
identified in each final Delivery Worksheet. The Clearing Organization shall thereafter debit the account
designated by the Receiver for delivery purposes and credit the account designated by the Deliverer for
such purposes for the full amount of the Exchange Invoice, and issue a Notice of Transfer causing the
Receiver to be identified in eCOPS as the Title Holder of the corresponding EWRs.

[€] () The weight of a contract of FCOJ as weighed by the tank facility operator immediately after
delivery into the Receiver's truck, tanker or other conveyance shall be binding upon all parties. Weight
adjustments shall be made basis the closing futures price in the then current month on the Business Day
before the FCOJ is loaded out to the Receiver.

[Gi Tf the-Del: failstetend te-the Rk rf the-d t<o_listed i: ith, bp. 2: ph
yaNvenve.ey {6G A) ofthis Rul the-d: + +o-the-d: £ del: ut-tend, the d, ts
CEA) OH GAY YP y ¥
the-day-of delivery-and the deliveryi Jetedi d ith this Rule, the Receiver-shall fil

itten-Clai ing such-fail ith the Deli: d-the Exehange’s Office of C dity
QObperati Jat +h; 4, £10)-4d: e:3 the-d: f£ del: Th itt Cla: hol inclide th,
pel {10} day y ;
tof tionfor-t bei ht_by_the-Claimant-Resolution-_of the -Claim-shall
Ps ig -seught by -

ed-+: di ith Rule 13.23. ]

Pi 23.
[4] (NG) The Exchange [i]Invoice [tenderedby+theDeli +e-the-Receiver] shall include if

applicable, an adjustment charge for storage for each day beyond the [d]Date of [d]Delivery (not in
excess of thirty (30) days) which has been prepaid by the Deliverer.

(ii) Such adjustments shall be based upon the published rates of the licensed facility in effect on the
first (1) Business Day of the delivery month.

[()-A-weitt tice-of demand (of the holding of a Noti £ Deli: Jaf tien) shall-be-gi by
the-holder-th: £-before-4:00-p.m—onthe-day hich th ti ; d--te-the-Clearing Memb:
; the-deli ti d-te-the Exch: Deli £th. ti fd d-shall-b de-by-hand
S ¥ Ee: 7 a
facsimile-+ ssi E-mailand-shalb pred Jegald d-forthe FCO}

fe} -d-shall-be-kept-by the Exch £the-d ds-deli d-each-day—The-total ber-of

Fail the-part-of-a-helder-of Neti £ Delivery taf tien-te-deliver hi ti fd d
hall subject him-t lty-0f -brentyfive-dellars($25.00). tract_te-be-paid-te-the-Deli: £
t Pt y ¥ WOEDUT Pr D pa
the FCOI-th tract fall &
(2) The Ch Memb: d a ired-to-be-deli: dt lete-del hal-at
<8} S bbe
k t-1o-the-Clearine- Member tine-the » Official -Teller’s-check
pay S Pi S y


f [te} Phe Certificate is subject-+ jon-t hy
ECOL i fied-in the Certificat a -of the facility

date-of-the-Certificate—I £- such-demand—the facilit

([£]g)(i) The [Gertifieate] EWR may not be tendered in satisfaction of an Exchange contract under the
Rules unless the [Gertifieate] EWR has been registered and assigned a number by [the-Exehange’s Office

of Commodity Operations] eCOPS.

(ii) The Rules limit the number of [Gertifieates] EWRs that the Exchange is obligated to register.

i) [Ural the -Certificate+ + ad. istered vel at v7 .ed-by-the- Exch. Ys OFF, f
(sli) E > Fees ad-_properly y i
fal dit: Op ti iththe-Exch: 4, it th d-ferExch:;
y r= ¥ se purpt
€)] The [Certificate] EWR may only be cancelled [up ticeto—the Exch, “5—-OFA yf

Commodity Operations] in accordance with eCOPS procedures.

Rule 7.77. Registration of [Shipping Certificate] EWR

[Shipping-certifieates] EWRs, in order to be eligible for delivery, must be registered and assigned a
number by [the- Exch; ei iththe—Exch: r 2s OFF FC lity Op tis ] eCOPS. [Shipping
eertificates] EWRs shall be subject to the following:

(a) when an [shipping—certifieate] EWR has been registered and assigned a number by the
[Exchange’s-Ofh £Commedity Operations] eCOPS, said [eertifieate] EWR shall be considered to be
“outstanding” until its registration is cancelled by the Exchange licensed facility which issued the
[eertifieate] EWR. The Exchange’s Office of Commodity Operations shall maintain a current record of
the number of [shipping-certificates] EWRs outstanding and shall post this record on the Exchange's web
site. In the event of a cancellation of an [eertifieate] EWR the following procedures must be adhered to:

(1) when the facility pumps out Exchange FCO) in satisfaction of an [shipping-certifieate] EWR,
the [certificates] EWRs must be cancelled by the Exchange licensed facility [and+hey-must-provide

itten-notice-to- the Exchange's Office of G dity_ Operations] on eCOPS;

(2) when an Exchange licensed facility regains control of an outstanding [shipping-certifieate] EWR
issued by it, for its own proprietary account, such [shipping-eertifieates] EWRs may be cancelled

[onlyup tice tothe _Exchange’s-Office of dity-Operations] by the licensed facility on
eCOPS.

[@} Aj} dat Hati +#—he- Hted—te—the—Exeh: ?5_ OFF. fC dit

NOT re Sw PUr > ey

Ovperations-dait: 4 di d-by-the Exch: 5 Office of Ci dity Operations.]
Pt y oP



(In the text of the amendments below, additions are underlined and deletions are bracketed and
lined out.)

The following definition will be added to Definitions Chapter of the Rule Book.
eCOPs®

The term “eCOPS” shall mean the electronic commodity operations system utilized by the Exchange.

th ve! rf +ethe—b: +h, itis f th, I}, d-te—th I. the-pesiti: _-efthe-bi =
7 iS x P Pr yer
ided-h that said-Clearing Organization shall have no tiability te the-buyer or the seller on-any
y 7 > iS Vee
h- at to ft, netic ff del+ thi derhas-b: } ve dst, vi
Pa PP"

€6)] All contracts for the future delivery of FCOJ shall be in the following form:
NEW YORK BOARD OF TRADE®
FROZEN CONCENTRATED ORANGE JUICE CONTRACT

New York, N. Y. 20
A.B. have this day (bought) (sold) and agree to (receive from) (deliver to) C.D. 15,000 pounds of
orange solids at the price of cents per pound for U.S. Grade A frozen concentrated orange juice

(“FCOYJ’) in accordance with the Rules of the New York Board of Trade, deliverable from a licensed
public warehouse or a licensed tank facility

in (point of delivery) between the first (1") and last

delivery days of. inclusive, and the delivery within such time to be at

seller's Option upon notice to buyer, as provided by the Rules of the New York Board of Trade.
[Bither-party-may-eallfor-a-Margin_as-th jati £ the-market-or-like -deliveri 5
: : |

This contract is made in view of, and in all respects subject to, the Rules of the New York Board of
Trade.

For and in consideration of one dollar ($1.00) to the undersigned, in hand paid, receipt whereof is
hereby acknowledged, the undersigned accepts this contract with all its obligations and conditions.

Delivery of FCOJ on contract may be made at delivery points designated by the Board of Governors.
The designated delivery points may be added to or subtracted from at the discretion of the Board of
Governors after clearance with the CFTC and proper notice to the Membership.

EXHIBIT A


other change which would be likely to lower the qualifications of the facility for the continuation of its. status
as a licensed facility.

({Flq) Reports of Irregularities
The facility operator shall report to the Exchange in writing any irregularity or fraud, or neglect or
infraction of the Rules by any Member, or any Licensee, that may come to its knowledge, and shall appear
before the Exchange, upon request, to give testimony concerning any such irregularity, fraud, neglect or
infraction.
([s]£) Reports, etc. to Government Agencies

The facility shall make such reports, keep such records and permit such visitations as the Secretary of
Agriculture or the CFTC may prescribe, and shall comply with all applicable rules and regulations and orders
promulgated by the Secretary of Agriculture and the CFTC. The facility and the aforesaid books and records
shall be open at all times to inspection by any representatives of the Secretary of Agriculture, the CFTC, the
United States Department of Justice and the Exchange.

([¢]s) Alternate Compliance

(i) In the event that the Exchange licensed facility operator is not also the owner of the facility, the
Licensee may notify the Exchange that in fulfilling its insurance and financial requirement standards under
these Rules it is relying on an unlimited guarantee in a form satisfactory to the Exchange from the owner
of the facility and/or insurance purchased by the owner of the facility; provided, however, that nothing in
this alternative compliance arrangement shall be deemed to lessen the duties of a Licensee under the
Rules.

(ii) Any licensed facility in meeting these Working Capital, net worth and letter of credit (but not
performance bond) requirements may provide substituted compliance by an affiliate of the licensed
facility provided that such affiliate executes and delivers an unconditional guarantee in such form and
with such safeguards as are satisfactory to the FCOJ Warehouse and Delivery Committee.

([#]t) Non-Operating Owners

To the extent that the facility operator licensed by the Exchange is a Person other than the owner of
the facility, the Exchange, and parties claiming under the Rules, shall look first (1") to the operator to
perform his duties under the Rules. In the event that the operator fails to perform those duties, then the
owner of the facility shall assume responsibility for assuring that such duties are performed.

Rule 7.66. Cancellation of License

(a) The Exchange may cancel the license of the facility operator on written notice, effective on any
date specified by the Exchange, for violation by the facility operator of any Rule, for any
misrepresentation or misstatement in its application for a license, for any impairment of its financial
condition in the opinion of the Exchange, or for any other reason which, in the opinion of the Exchange,
would make such cancellation advisable.

(b) In the event a license is cancelled by reason of a notice from the facility operator, the effective
date of the cancellation shall be fixed by the Exchange at any time within ninety (90) days from the date
of the written notice of cancellation by the facility operator.

(c) Hath t-of-thi ellati fai by-th ter-ef- her facilit by-th
Y¥AC-OP er ty OF ey
Exch the-facilit tor-shall to-transfer the FCOin di ted-by-it: h
nge;the-facility-eperater s} ei P. y
ipts—t ther—licensed. i facility-which—shall-i its hi ipts—and—the
pt x ‘P
facilit tor-transfering FCOLin di hall l-ch. hich bet ed-in-said-transk
pera iS ‘Pay > ‘y

€d)] In the event of a cancellation of a license by the operator of a tank facility, or by the Exchange,
the facility operator shall arrange to transfer the FCOJ in tanks represented by its [shipping-certifieates]


((FJG that they are wis to disciplinary es for the violation of any Rule of the
Exchangel- The 4, “Pula” _Fule-regulation, lution, .
ts pH -etati f the B, dof. 6 att, £§the-Exch: 2e- ie

Exchange’ 's Disciplinary Rules shall govern such disciplinary proceedings.

The following documents are enclosed:

(1) A copy of the financial statement as of the end of the last fiscal period
» 20 ) certified by an independent public accountant.

(2) A copy of the liability insurance policy which terminates on

(3) A copy of the performance bond which terminates on :
(4) A copy of the All Risk policy which terminates on . [FFhis is requiredtor

tank facilities but-net facilities (See Rule 7.64(e)].

(5) A copy of the current tariff listing the detailed charges applicable to the handling, storage,
sampling, inspection, delivery of FCOJ and other charges.

(6) [A-copy-of th Hh ipt-or shipping certificate, pplicable-

9] Original letters of credit in the principal amount of $

We agree that at least thirty (30) days before the expiration date or prior termination of the liability
insurance policy or the performance bond (and for tank facilities, the All Risk policy) in effect at any
time, we will furnish to you copies of the replacement policy or bond so that insurance or such bond shall

be in effect at all times during which [: a +pe hipping-certificates] EWRs issued by us
while licensed by you are outstanding.
Dated: Dated:
Print Name of Facility Owner Print Name of Applicant
By: By:
Title Title

The foregoing application is approved by the FCOJ Warehouse and Delivery Committee.

Dated: By:

Chairman
Approved by the Board of Governors.

Dated: By:

Corporate Secretary



respect to the definition and amendments. The Exchange anticipates that the eCOPS amendments
will become effective during the second quarter of 2006, and the performance bond and

3-

insurance amendments will become effective on a date set by the President after approval by the
Commission. The Exchange intends that the definition and amendments will go into effect for
all listed and subsequently listed delivery months as the definition and amendments will not
effect the value of such contracts and have no impact on price.

If you have any questions or need further information, please contact me at

jfassler@nybot.com or 212-748-4084.

Sincerely,

Jill S. Fassler
Vice President
Associate General Counsel

ce: Riva Adriance
Thomas Leahy
CFTC, Division of Market Oversight
Allen Cooper
CFTC, New York Regional Office


Upon receipt of the documents and funds from both sides, the Clearing Corporation will transfer
the EWR to the receiver and the money to the deliverer.
-2-

By deleting the obsolete and unnecessary provisions for delivery of FCOJ in drums, the
delivery process will become current with existing practice. The Exchange has not had a drum
delivery for more than a decade.

Performance Bond and Insurance Requirements

The amendments to Rule 7.64 also include revisions to the performance bond and
insurance requirements for Exchange licensed tank facility operators. The amendments set the
amount of the performance bond or letter of credit required to be maintained by the operator of
each licensed facility at $1,000,000 and eliminate the provisions for a schedule of graduated
amounts based upon the number of outstanding shipping certificates, i.e., EWRs, issued by the
facility. The amendments also add two new provisions to existing insurance requirements for
operators of licensed facilities:

(i) the required All-Risk insurance policies must include a provision naming the
Exchange as an insured party or loss payee with regard to FCOJ for which EWRs have
been issued; and

(ii) licensed facility operators must agree in writing that, in the event that any loss or
damage is paid in full or in part to the tank facility by the insurer, such payment, in
preference to any other claims, shall be assigned first to any and all claims for FCOJ for
which an EWR has been issued.

By replacing the sliding scale with a fixed amount for the performance bond/letter of
credit, unnecessary costs imposed upon operators of licensed facilities will be eliminated and
make the delivery system more cost efficient. In addition, the two additions to the insurance
provisions will enhance the ability of the Exchange and the holders of EWRs to recover from a
loss of product at an Exchange licensed facility. A poll of all currently licensed tank facility
operators showed that all such facilities were in favor of and could implement the new
provisions.

The performance bond and insurance amendments are commensurate with the Chicago
Board of Trade’s performance bond and insurance requirements for rough rice and oats. Those
commodities are stored in silos, similar to FCOJ tanks, with one owner’s rough rice or oats
commingled with another’s, identical to FCOJ.

The Exchange certifies that the definition and amendments comply with the requirements
of the Commodity Exchange Act and the rules and regulations promulgated thereunder.

The definition and amendments were adopted by the Exchange’s Board of Governors on
April 5, 2006. No substantive opposing views were expressed by members or others with


{6-Th ired. ufc
WT ae | ee
bendowh +h by fF 5: ed d- istandi: hippi ertificat i5ts—hi by lad:
S-SHEPPIBE. iP 5
ided—hi +h -educti a Ret ti]—eith: thirty {30} 4: ry $f; lead. 7 ha?
el db final-deci: ai Cla: inst-th: ty £ thel. dfaeihe ith
S iP ¥
4 h-shippine-certificat ipts-have-been-issued-and-th £ bond-d +-fall
PPS pet
belowth ired-rini t-as-stated-in-subpa he) of this Rule]
“T Pr hed te SACI F.
(f) Tariffs
xk  *

(2) For purposes of this Rule, the ninety (90) day period shall be deemed to begin on the date that
the [Vice-President] Office of Commodity Operations receives the written tariff increase request.

(3) Thereafter, the Exchange shall cause the written tariff increase request to be:
(A) delivered promptly to each member of the Board of Citrus Advisors; and
(B) posted on the Exchange Website.

(4) Any such tariff increase request shall be considered by the Board of Citrus Advisors during the
ninety (90) day period if any member thereof so requests.

(5) All such written tariff increase requests shall become effective from and after the ninetieth (90")
day after receipt unless:

(A) such request has been considered by the Board of Citrus Advisors during that period in the
manner set forth in subparagraph (f)(4) of this Rule; and

(B) a majority of the whole Board of Citrus Advisors finds such tariff increase unsatisfactory.

In the latter event, notice of the determination that a proposed tariff increase is unsatisfactory shall

be given to the Person who requested the tariff increase, posted on the Exchange’s Website [and-filed
ith th CEP» t-to-H: Regulati i].

* os *
(h) Exchange Surveillance

The Exchange shall have the authority but not the obligation:
(i) to observe and inspect the weighing, sampling and other handling of Exchange FCOJ, and


EWRs to another licensed tank facility which shall issue its own [shipping-certificates] EWRs and the
facility operator transferring FCOJ in tanks shall pay all charges which may be incurred in said transfer.

Rule 7.67. Arbitration

There shall be submitted to arbitration under the Rules, at the election of either party, any controversy
between a facility operator or facility owner and a Deliverer or Receiver of an [areheuse-receipt-or
shipping-certifieate] EWR for Exchange FCOJ issued by said facility operator. For the purpose of this
Rule, a controversy shall include any Claim, grievance or dispute relating to the storage handling, quality
or delivery of Exchange FCOJ involving a former or present facility operator granted a license by the
Exchange provided, however, that the Claim is made within one (1) year of the alleged grievance, Claim
or dispute. Notwithstanding the provisions of this Rule, all Claims relating to the delivery of Exchange
FCOJ against a facility operator or facility owner must be made no later than thirty (30) days after load-
out.

Rule 7.68. Inconsistent Provisions

If any agreement between a facility operator and the owner of Exchange FCOJ or if any provisions of
any [: hy ipt-er shipping certificate] EWR is inconsistent with the provisions of the Rules, the
provisions of these Rules shall control.

Rule 7.69. Application for a License as a Warehouse Facility and/or Tank Facility

The application shall be in the following form, provided that where the applicant has more than one
(1) location, a separate application is required for each location:

Application for License as [Warehouse Facility and/or] Tank Facility
TO: THE NEW YORK BOARD OF TRADE®

Gentlemen:

We operator and owner of the facility located
at do hereby make application to the New York Board of Trade (the
“Exchange”) for a license as a [warehouse-facility-and/er] tank facility for the storage, handling and
delivery of frozen concentrated orange juice (“FCOJ”) pursuant to futures contracts made on the
Exchange. By signing this Agreement, the operator, and (in cases in which the owner of the facility is a
different Person than the operator) the owner agree:

(A) that they have read the Rules of the Exchange and acknowledge that they are bound by such
By-Laws and Rules, and any amendments thereto; the term “Rule,” as used herein, means any by-law.
tule, regulation, resolution, order, procedures or interpretation of the Board of Governors or any

committee of the Exchange; and specifically
(B) that they are bound by the results of grade reviews performed by the USDA;

(C) that representatives of the Exchange shall have full access to all records of USDA inspections
and grade reviews;

(D) that they are subject to the Exchange's arbitration jurisdiction and bound by any decision
respecting them thereunder;

(E) that they consent to the jurisdiction of the courts of the State of New York and the applicability
of the laws of the State of New York to all disputes between the operator and owner and the
Exchange;

([EJE) that they acknowledge that financial requirements are subject to change by the Exchange's
Board of Governors from time to time; and