the Port of Hamburg/Bremen, the Port of Barcelona, the Port of Houston, the Port of New Orleans,
or the Port of Miami accompanied by a consular invoice or a copy of an I.C.O. (International
Coffee Organization) Certificate of Origin (Form O, R OR T), or a bill of lading sufficient to
identify the original port of shipment of the coffee. This information will be retained by the
Exchange and disclosed upon request, but the Exchange will not ascertain the accuracy or validity
of such information.

{REMAINDER OF APPENDIX UNCHANGED]
APPENDIX IV
Coffee "C" Differentials
The differentials for coffees delivered under the Coffee “C” Futures Contract are as follows:
Difference in Value Between Delivery Ports
New York Port District .....
New Orleans Port District

Minus 125 pts.

Miami Port District ...........ccessscssessesssessesssssessesssecsscsnessecseessssuesncesecsssesresecsuesseesesssesreasesreene Minus 125 pts.
Antwerp Port District ... Minus 125 pts.
Hamburg/Bremen Port District .........-sssscssesssessssessseesssessssesssecessecssessseeesseeesveesasesseetsseeeseesenets Minus 125 pts.
Houston Port District......0....cecsccsesseecsesseesseessessssssssnssseesscsneesnesssessessesseesecsesssssseennesssenseneetes Minus 125 pts.
Barcelona Port District .......s:.cssscccssssseessessssscsssesesessstsossscsoscssscssssecesscessccsscesscesescesesssesesese Minus 125 pts.

Rule 8.12. Delivery and Payment

* * *

(f) The Exchange Invoice shall be calculated so that the Receiver is [aHowed-ene-)-Business-Day of
free-storage-andis] charged for any remaining prepaid storage.

[REMAINDER OF RULE UNCHANGED]

Rule 8.10. Certificate of Grade

* * *

(h) A Certificate of Grade shal] automatically become invalid if, after sixty (60) days from the date of
the warehouse notice to the owner, the rebagging indicator remains on the Lot(s).
([A]i) A Certificate of Grade which states that the coffee meets Exchange standards . . . .

([#]i) The Exchange, at any time and in its sole discretion, may order that coffee for which a
Certificate of Grade has been issued... .

(Jk) If coffee covered by a Certificate of Grade is delivered on a contract other than an Exchange
contract, ....

No. 1. Warehouse Procedures and Recordkeeping Requirements for the Storage of Exchange
Coffee

RESOLVED, THAT the following are the minimum acceptable standards and procedures to be
followed by Exchange licensed coffee warehouses in connection with the storage of Exchange-certified
Coffee.


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

Rule 8.14. Storage and Packaging

(a) In addition to other applicable terms and conditions set forth in the Rules, each Lot of coffee shall,
in order to be deliverable under a Coffee “C” Futures Contract, satisfy the following requirements at the
time of delivery:

(1) it shall be stored in a duly licensed warehouse in the Port of New York District, the Port of
New Orleans, the Port of Miami, the Port of Antwerp, [er] the Port of Hamburg/Bremen, the Port
of Barcelona or the Port of Houston or such other port as may be added from time to time upon the
recommendation of the Coffee Committee and the two-thirds vote of the Board;

[REMAINDER OF RULE UNCHANGED]

COFFEE APPENDIXES
APPENDIX!
Procedures for Sampling Coffee

(f) Procedure.

(6) All samples must be delivered to the Exchange within two (2) Business Days following receipt
of the Sampling Order (or three (3) Business Days in the case of coffee stored in Antwerp,
Hamburg/Bremen, Barcelona, Houston, New Orleans or Miami), or within such longer period as
allowed by the Exchange for good cause shown.

(REMAINDER OF APPENDIX UNCHANGED]

APPENDIX I
Procedures for Grading Coffee and Issuance of Certificates of Grade

* * *

(j) Certificate of Grade.
The Exchange shall issue a Certificate of Grade with respect to the Chop of coffee covered by the
Sampling Order, provided that

* * *

(4) if the Sampling Order indicates that the coffee submitted thereunder has been imported from
ports other than the port of origin:

* * *

(ii) such Person shall furnish the Exchange with full particulars of the ports at which the coffee
was located and the ships in which the coffee was transported from the time the coffee was
shipped from the port of origin to its arrival in the Port of New York District, the Port of Antwerp,

EXHIBIT A


IV. Stored Coffee

4.(A) Except with respect to the prompt repair of torn bags, bags from which beans are sifting or
bags which are in peril of coffee beans being spilled therefrom, prior to undertaking any other
maintenance of coffee bags in a Licensed Store, including the rebagging of coffee, the warehouse shall
notify the owner, in writing, of the maintenance to be performed and provide the owner five (5)
Business Days from receipt of the notice within which to respond.

* * *

(D) Notwithstanding the subparagraphs (A)-(C) of this paragraph 4, if in accordance with
subparagraph (A), a warehouse notifies an owner that the bags are in need of rebagging, the
following procedures shall apply:

* * *

(v) If the owner does not want the warehouse to rebag the coffee but would rather have the
rebagging indicator remaining on such Lots in eCOPS, within the five (5) Business Days from
the receipt of the notice, the owner must send written notice to the warehouse and the Exchange
that the owner does not want the coffee rebagged and that the rebagging indicator should remain
on the Lots, provided, however, that, if after sixty (60) days from the date of the warehouse
notice to the owner the rebagging indicator remains on the Lots, the Lots will lose its Certificate
of Grade.

[REMAINDER OF RESOLUTION UNCHANGED]


Gib) NEWYORK

BOARD OF TRADE*

World Financial Center

One North End Avenue, 1 3t* Floor
New York, New York 10282

BY ELECTRONIC TRANSMISSION

06-2
February 9, 2006

Ms. Jean A. Webb
Secretary of the Commission

Office of the Secretariat z

Commodity Futures Trading Commission ‘

Three Lafayette Centre m2

1155 21* Street, NW ~

Washington, DC 20581 ~
vy

Re: Amendments to Rules 8.10(h), 8.12(f) and 8.14(a)(1) and
Appendices I, II and V and Resolution No. 1(1V)(4)(D)(v)-
Submission Pursuant to Section 5c(c)(1) of the Act and Regulation 40.6

Dear Ms. Webb:

Pursuant to Section 5c(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 8.10(h), 8.12(f) and 8.14, Coffee “C”
Appendices I, II and IV and Resolution No. 1(IV)(4)(D)(v), attached as Exhibit A.

Rule 8.14 and Coffee “C” Appendices I, I] and IV

The amendments to Rule 8.14 and Appendices I, II and IV add Barcelona as a delivery
point applying a differential of minus 125 points to the port (New York is the basis). Using
economic data comparing freight, handling and other costs among already designated ports and
Barcelona, the Exchange determined the differential to be applied. This differential is identical
to the one for delivery in Miami, New Orleans, Houston, Antwerp and Hamburg/Bremen.

Rule 8.12(f)

Coffee Rule 8.12(f) requires that the Exchange Invoice be calculated so that the Receiver
is allowed one (1) Business Day of free storage and charged for any remaining prepaid storage.
The purpose of this provision was to give (i) the Deliverer time to advise the warehouse of the
change in ownership and (ii) the warehouse time to update its records. Since eCOPS® provides
immediate electronic title transfer and immediately records the title transfer on the appropriate



records, there is no need to give the Deliverer time to notify the warehouse and the warehouse
time to update its records. Therefore, the amendment to Rule 8.12(f) eliminates the one day of

-2-

free storage given to the Receiver. Paragraph (f) will continue to provide that the Receiver be
charged for any remaining prepaid storage.

Rule 8.10(h) and Resolution No. 1(IV)(4)(D)(v)

Coffee “C” Resolution No. 1(IV)(4)(D)(v) provides that if the owner does not want the
warehouse to rebag the coffee, he must send written notice to the warehouse and the Exchange,
and the warehouse must indicate in eCOPS that the bags are in need of rebagging (“rebagging
indicator’). The placement of the rebagging indicator on the Lot of coffee prevents the Lot from
being noticed for delivery. The original reason for this provision was to allow the owner to use
the coffee commercially and not be liable for the cost of rebagging the Lot in order to make it
deliverable under Exchange rules. However, since the bags are not being repaired, coffee is
spilling out and onto the warehouse floor, which creates a dangerous condition in the warehouse.
In addition, the coffee remains part of certificated stock although it is undeliverable. Therefore,
the amendments to Rule 8.10(h) and Resolution No. 1(IV)(4)(D)(v) provide that a Lot not
authorized for rebagging will lose its Certificate of Grade if, after sixty (60) days from the date
of written notice to the owner, the rebagging indicator remains on the Lot.

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

The Exchange’s Board of Governors approved the amendments at its meeting on
February 8, 2006. No substantive opposing views were expressed by members or others with
respect to the amendments. The amendments to Rule 8.14 and Appendices I, II and IV will go
into effect with the listing of the March 2008 contract; the amendment to Rule 8.12(f) will go
into effect for the March 2006 expiration; and the amendments to Rule 8.10(h) and Resolution
No. 1(IV)(4)(D)(v) will go into effect on February 10, 2006, as follows: (i) for rebagging notices
issued on or after February 10", the coffee lots will lose their certification sixty (60) days after
filing with the Commission as the procedure will require, (ii) for rebagging notices issued prior
to February 10", the owners of noticed coffee will have sixty (60) days to authorize the
rebagging.

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