Amendments to Minimum Financial Requirements for Agricultural Regularity

DATE:            December 12, 2018

MKR#:           MKR12-12-18

SUBJECT:     Amendments to Minimum Financial Requirements for Agricultural Regularity

Effective on December 26, 2018, The Board of Trade of the City of Chicago, Inc. (“CBOT” or “Exchange”) will amend CBOT Chapter 7 (“Delivery Facilities and Procedures”) in connection with minimum financial requirements for agricultural regularity.  

Specifically, the amendment will restrict rough rice facilities from issuing new shipping certificates if, at the time of issuance, the total value of all registered shipping certificates and the new shipping certificates exceeds 100% of the facility’s net worth. Rough Rice facilities wishing to issue shipping certificates greater than net worth must deposit U.S. Treasury securities or other collateral deemed acceptable to the Exchange and must execute a security agreement on a form prescribed by the Exchange. Net worth requirements for all other CBOT agriculture and ethanol products will remain unchanged. This amendment is intended to minimize the financial risk associated with Exchange approved rough rice facilities.

Amendments CBOT Chapter 7 may be viewed in blackline format in Appendix A of CFTC Submission No 18-474.

Please refer questions on this subject to:

Market Regulation

Terry Gehring                            Terry.Gehring@cmegroup.com                           +1 312 435 3644

Research & Product Development

Fred Seamon                            Fred.Seamon@cmegroup.com                          +1 312 634 1587