Rule 7.64. Agreements by Facility Operator and Owner

* * *

(® Tariff

(1) The operator of a licensed facility shall submit to the Exchange in detail its tariff showing its
charges for storage, handling (FCOJ Only, Exchange tariffs for NFC shall not include handling
charges), authorized interest and insurance premiums, where applicable, and other charges payable to
it (hereinafter “storage charges”) at the time it applies for a license from the Exchange which tariff
shall be published and not increased without ninety (90) days written prior notice to the Exchange;
provided, however, that storage charges shall be calculated at a minimum Brix value of not less than
62.5 degrees.

{REMAINDER OF RULE UNCHANGED]


EW YORK
sd BOARD OF TRADE®
World Financial Center
One North End Avenue

New York, New York 10282

BY ELECTRONIC TRANSMISSION
06-27
October 12, 2006
Ms. Eileen A. Donovan
Acting 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 Licensing Rules 7.63 and 7.64 and
NFC Rules 25.15 and 25.33
Submission Pursuant to Section 5c(c)(1) of the Act and Regulation 40.6

Dear Ms. Donovan:

Pursuant to Section 5ce(c)(1) of the Commodity Exchange Act, as amended, and
Commission Regulation 40.6, the Board of Trade of the City of New York, Inc. (“Exchange”)
submits, by written certification, amendments to Rules 7.63, 7.64, 25.15 and 25.33, attached
hereto as Exhibit A.

The amendments to Rule 25.15 provide that, in Exchange Deliveries of NFC, the
Deliverer shall be responsible for storage charges for sixty (60) days following the date of
delivery under the contract, with the Receiver becoming liable for storage only (and not for
handling) after the end of such sixty (60) day period. The payment of storage and handling by
the Deliverer will enhance the delivery process by clarifying the potential costs of making and
taking delivery. The amendment to Rule 7.64 removes handling charges from the list of tariffs
which Licensed NFC Facilities must provide to the Exchange. This amendment is consistent
with the amendments to Rule 25.15.

The amendment to Rule 7.63 eliminates the requirement that all Licensed NFC Facilities
be under continuous inspection of the USDA. The elimination of continuous inspection with the
retention of the USDA’s role in sampling and grading of product at loadout maintains the
integrity of the NFC futures contract while reducing the cost of being a Licensed Facility.

The amendment to Rule 25.33 corrects a mathematical error by reducing the price of an
NFC Options cabinet trade from fifteen cents (15¢) to twelve cents (12¢).

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

EINER EN


-2-

The Exchange’s Executive Committee approved the amendments on October 6, 2006 by
Unanimous Written Consent pursuant to By-Law Section 505(d) and Rule 3.17. The
amendments to Rules 7.63, 7.64 and 25.15 will become effective on October 20, 2006 with the
listing of the NFC futures contracts; the amendment to Rule 25.33 will become effective on
October 23, 2006 with the listing of the NFC options contract. No substantive opposing views
were expressed by members or others with respect to the amendments.

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 through.)
Rule 25.15. Delivery of Invoice and Documents

(a) For purposes of this Rule, and the Exchange's NFC 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).

* * *

(fi) The [E: h. es J; 4 hallinchideit- ppl le. el} 3 t-chi es £, 4 es £, hd;
beyond -the Date-ef Delivery_{noti -of thirty (30) days} hich has be prepaid by the Deli
Deliverer shall be responsible for the storage charges for sixty (60) days following the Date of Delivery
and shall have paid such storage charges prior to the Date of Delivery. After sixty (60) days, the Receiver

shall be responsible for the storage charges. The Receiver shall not be responsible for handling or load
out charges.

[Gi)-Such-adjustments-shall-be-based the-published-rates-_of the Hi d-facility-in-effect
{34} 2 iP P x
“) Busi Dp £the-deli: th
+ ¥ zi
(2) The Recei hall net be chareed-f tai deli: i]
{8} 8 ry *

Rule 25.33. Premium Quotations

For the purposes of this Chapter, the term “Point” shall mean the value equal to one hundredth of one
cent so that 100 points shall equal one cent (1¢). NFC Option Premiums shall be quoted in cents and five
one-hundredths of a one cent per pound. The minimum fluctuation in NFC Option Premiums shall be five
one-hundredths of a cent; provided, however, that an Options Trade may be executed at a price of one-
thousandth of a cent per pound ([45]12¢ per contract) if the Trade will result in the liquidation of
Positions for both parties to the Trade.

Rule 7.63. Qualifications

(d) USDA Inspection

(1) The facility shall be equipped to handle FCOJ [and/er NEG] under continuous inspection of the
USDA. Inspections will be provided without any undue delay.

(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[s] 13.02 for
FCOJ-A and FCOJ-B [and25-02-fer NFG]. The FCOJ-A includes the origin designation of “Florida”,
“Brazil” or “Florida/Brazil” [and+he-NEC-inehidesth i ienah. 1 Florid 47] in the
following manner:

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

[REMAINDER OF RULE UNCHANGED]

EXHIBIT A