Submission No. 23-132

September 29, 2023

Mr. Christopher J. Kirkpatrick

Secretary of the Commission

Office of the Secretariat

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, NW

Washington, DC 20581

Re: Amendments to Coffee “C”® Futures Contract Rules 

Submission Pursuant to Section 5c(c)(1) of the Act and Regulation 40.6(a)

Dear Mr. Kirkpatrick:

Pursuant to Section 5c(c)(1) of the Commodity Exchange Act, as amended (the “Act”),

and Commodity Futures Trading Commission (“Commission”) Regulation 40.6(a), ICE Futures 

U.S., Inc. (“IFUS” or “Exchange”) hereby certifies the amendments to Rule 8.10 and Appendix II 

of Chapter 8, which are set forth in Exhibit A. As discussed below, the amendments will prohibit 

owners of coffee which has previously been certified for delivery against the Coffee “C” futures 

contract (“Futures Contract”) and subsequently de-certified from re-submitting such coffee for 

Exchange certification. 

In order to be deliverable against the Futures Contract, Arabica coffee must be stored, 

sampled and then graded in accordance with Exchange rules. After grading, coffee which is 

found to have met the standards for the Futures Contract will be issued a “Certificate of Grade”

making it eligible for delivery. The Certificate of Grade does not expire. However, the coffee is 

subject to an age penalty based on the date that the Certificate is issued. The age penalty 

provisions of the contract1 are intended to create a financial incentive to remove “old” coffee from 

Exchange stocks, by discounting their delivery value over time. 

Currently, under the terms of the Futures Contract, certificated coffee may be de-certified 

and subsequently resubmitted for grading.2 Permitting such “re-certification” allows an owner of 

coffee that has accumulated significant age penalties to effectively remove such penalties by 

obtaining a new Certificate of Grade. While this process carries additional costs and a risk that 

the coffee may not pass re-grading, the financial incentives created by removing accumulated 

age penalties can make this “de-cert/re-cert” process attractive, particularly if the owner believes 

the condition of the coffee has not deteriorated during storage. 

The amendments to Rule 8.10(a) and Appendix II(b) will prohibit coffee which has been 

certified for delivery and subsequently de-certified from being re-submitting for Exchange

1 The age penalty provisions are set forth in Appendix V of Chapter 8. 

2 Note: In the event that Arabica coffee is submitted for grading and fails, the owner’s only option is to appeal the 

decision of the grading panel in accordance with the terms of the Futures Contract. The decision of the appeals 

panel will be final. An owner of coffee which has failed grading may not re-submit such coffee for re-grading. 
sampling and grading. These amendments are being made to ensure enforcement of the age 

penalties by eliminating the “de-cert/re-cert” mechanism described above. In addition, these

amendments align the Exchange’s Futures Contract with the Robusta futures contract listed on 

ICE Futures Europe, which also prohibits the “de-cert/re-cert” process, establishing a single 

harmonized process across the world’s to most prominent futures contracts. 

The amendments will become effective on December 1, 2023. This timeline will give 

owners the opportunity to re-submit coffee for sampling and grading prior to the amendments 

becoming effective. Further, we note that the Exchange’s Coffee Committee determined, by 

unanimous votes, to recommend the adoption of the amendments to Rule 8.10 and Appendix II 

of Chapter 8 with the forgoing timeline for implementation. The amendments and timeline were 

subsequently approved by the Exchange’s Board of Directors by unanimous vote. 

The Exchange certifies that the amendments comply with the requirements of the Act and 

the CFTC Regulations promulgated thereunder. The Exchange has reviewed the designated 

contract market core principles ("Core Principles") as set forth in the Act and has determined that 

the amendments comply with the following relevant Core Principles:

COMPLIANCE WITH RULES

The amendments will be enforced by the Exchange in accordance with Core Principle 2. 

AVAILABILITY OF INFORMATION

As required by Core Principle 7, the text of the amended Rules will be codified in the 

Exchange’s Rulebook and made available on the Exchange’s Website. 

CONTRACTS NOT READILY SUBJECT TO MANIPULATION 

The Coffee “C” Futures Contract is not readily susceptible to manipulation as it is based 

on a highly liquid underlying commodity. The Exchange does not anticipate that the 

amendments will impede or otherwise impact physical delivery of coffee against the 

contract. 

The Exchange is not aware of any opposing views with regard to the amendments and 

further certifies that, concurrent with this filing, a copy of this submission was posted on the 

Exchange’s website at https://www.theice.com/futures-us/regulation#rule-filings

If you have any questions or need further information, please contact me at 212-748-4021 

or at jason.fusco@theice.com.

Sincerely,

Jason V. Fusco

Assistant General Counsel

Enc.
EXHIBIT A

 

(In the text of the amendment below, additions are underscored and deletions are bracketed and 

lined through.)

Rule 8.10. Certificate of Grade

(a) Coffee to be delivered under a Coffee “C” Futures Contract must be sampled, graded, weighed, 

and certified in accordance with procedures specified herein or adopted by the Board. Unless 

otherwise determined by the Exchange and except with respect to appeals under Appendix II(m) 

of these Rules, Coffee which has previously been sampled and graded in accordance with these 

Rules may not be re-submitted for sampling and grading at any time.

* * *

(balance of the Rule unchanged.)

APPENDIX II

Procedures for Grading Coffee and Issuance of Certificates of Grade

The following procedures must be followed by Members and Licensees in connection with the grading 

of Coffee "C":

(a) eCOPS Sampling Order.

(1) A Person who wishes to have coffee graded by the Exchange shall first (1st) submit to the 

Exchange a Sampling Order in the form prescribed by the Exchange. eCOPS will assign an Exchange 

identification number to each Sampling Order. 

(2) No Sampling Order will be processed unless it is fully completed.

(b) Prohibition on Resubmissions.

(1) Except with respect to appeals under subparagraph (m) below, and unless otherwise determined 

by the Exchange, [A]a Sampling Order may not be submitted covering coffee previously submitted to 

the Exchange for grading [, only if the Exchange issued a Certificate of Grade with respect to such 

coffee. If the submitter previously submitted such coffee, he must input into the Sampling Order the 

number of the Certificate of Grade under which such coffee was previously graded and the respective 

grade thereof. 

(2) In the event such coffee is found to satisfy the minimum standards for delivery hereunder, the 

Exchange shall issue a new Certificate of Grade (bearing the date of the new Certificate of Grade) 

reflecting the results of the regrading]. 

* * *

(balance of the Rule unchanged.)