The transition of open outcry trading of the Board of Trade of Kansas City, Missouri, Inc. (“KCBT”) Wheat futures and options to CME Group Inc.’s Chicago trading floor will take place on July 1, 2013. In connection with the transition and pending all relevant regulatory review periods, KCBT will adopt a series of revisions to its rules substantially harmonizing them with the rules of the Board of Trade of the City of Chicago, Inc. (“CBOT”).
A list of the significant changes is set forth below. The electronic version of this Special Executive Report contains the text of the changes, with additions underscored and deletions overstruck. The electronic version may be accessed at CME Group Special Executive Reports.
· KCBT is adopting new definitions that are harmonized with the corresponding definitions in the CBOT Rulebook;
· References to the former KCBT trading floor have been modified to reference a trading arcade that will be available for former Class B Members and Permit Holders to trade CME Group products electronically;
· Rules relating to the disciplinary process formerly located in Chapter 14 (“Discipline”) have been revised and harmonized with corresponding CBOT rules relating to the disciplinary process and have been relocated to Chapter 4 (“Enforcement of Rules”);
· Rules formerly located in Chapter 4 (“Admission to Board of Trade Floor”) have been eliminated and relocated in harmonized form to Chapter 5 (“Trading Qualifications and Practices”);
· Rules relating to trading qualifications and practices formerly located in Chapter 11 (“Trading Practice Transactions Subject to Rules”) have been revised and harmonized with corresponding CBOT rules relating to trading qualifications and practices and have been relocated to Chapter 5;
· Rules formerly located in Chapter 5 (“Miscellaneous”) have been eliminated;
· Rules concerning KCBT Customer and Permit Holder arbitration claims formerly located in Chapters 15 (“Customer Arbitration”) and 16 (“Permit Holder to Permit Holder Futures Arbitration”) have been eliminated, revised and relocated in harmonized form to Chapter 6 (“Arbitration”);
· Rules formerly located in Chapter 11A (“Clearing House and Performance Bonds”) have been eliminated and relocated to Chapter 8 (“Clearing House and Performance Bonds”);
· Rules formerly located in Chapter 9 (“Electronic Trading”) have been revised and relocated in harmonized form to Chapter 5;
· Rules formerly located in Chapter 10 (“Commodity Exchange Act”) have been revised and relocated in harmonized form to rules in Chapters 4 and 5; and
If you have any questions concerning the revisions, please contact Robert Sniegowski, Senior Director, Rules & Regulatory Outreach, Market Regulation Department, at 312.341.5991
For media inquiries concerning this Special Executive Report, please contact CME Group Corporate Communications at 312.930.3434 or email@example.com.