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orc. OF THE SECRETARIAT

BY ELECTRONIC TRANSMISSION

05- 24
June 9, 2005

Ms. Jean A. Webb

Secretary of the Commission

Office of the Secretariat

Commodity Futures Trading Commission
Three Lafayette Centre

1155 21" Street, NW

Washington, DC 20581

Re: Amendments to Rule 10.34 —
Submission Pursuant to Section 5c(c)(2) of the Act and Regulation 40.4(b)(6)

Dear Ms. Webb:

In accordance with Section 5c(c)(2) of the Commodity Exchange Act, as amended, and
Regulation 40.4(b)(6), the Board of Trade of the City of New York, Inc. (the “Exchange”)
submits an amendment to Rule 10.34, attached as Exhibit A.

Rule 10.34 provides for a year of growth penalty being assessed on cotton delivered
under the Cotton No. 2 futures contract that is more than two years old. The year is measured
from January 1 through December 31. The application of the Rule made it unclear as to how the
penalty would be applied in an instance where delivery of cotton under delayed certification
provisions is made against a contract month in one calendar year but is not completed until a date
in the next calendar year. For example, the delivery of cotton delivered under delayed
certification against the December 2006 contract may not be completed until some time in
January 2007. Under the current Rule, it was not clear if the penalty should be calculated using
the year 2007 or 2006.

The amendment to Rule 10.34 is to cure the ambiguity by providing that, for the
determination of the year of growth penalty, it is the calendar year of the delivery month against
which cotton is being delivered and not the month when the delivery process is completed.


-2-

The Exchange deems the amendment to be a non-material change as the amendment
meets the requirements of Regulation 40.4(b)(6) because it will have no effect on the economic
characteristics of the product.

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

The amendment was approved by the Exchange’s Board of Governors on June 8, 2005.
No-substantive opposing views were expressed by members or others with respect to the
amendments. The amendments will become effective on June 24, 2005, more than ten days after
receipt of this Submission by the Commission.

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

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


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

Rule 10.34. Penalty on Age of Cotton
* * *

(e) Notwithstanding paragraphs (a) through (d) of this Rule, Cotton delivered by “delayed
certification” in accordance with Rule 10.26 shall be subject to the Year of Growth penalty for the
calendar year of the delivery month for which the “delayed certification” is being made.

({e]f) The following procedures shall apply when imposing a Year of Growth penalty as stated in this
Rule:

[REMAINDER OF RULE UNCHANGED]

EXHIBIT A