Pending CFTC approval, the exchange plans to amend NYMEX rule 932 specifying daily price limits for NYMEX Cotton futures.
The NYMEX Cotton futures contract is cash settled with its daily and final settlement price set to the value of the corresponding ICE Cotton futures contract. Currently, the NYMEX Cotton futures contract has no daily price limits. However, ICE Cotton futures have a 3 cent per pound daily price limit, which is subject to expansion in certain circumstances. To maintain market consistency with the primary market, the Exchange has proposed that daily price limits, consistent with ICE Cotton futures, be applied to NYMEX Cotton futures.
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