Clearing House Advisory Notice
To | Back Office Personnel
From | Clearing House - Deliveries Unit
Subject | Live Cattle Affidavit
Effective Date | 04/05/01
Notice Number | 01-27
Beginning Monday, April 9, 2001, the Exchange will require each delivering short to certify that cattle delivered against the CME Live Cattle futures contract have not been fed any protein derived from mammalian tissues (such as meat and bone meal) that is prohibited by the Food and Drug Administration as described in 21 CFR 589. The affidavit also allows authorized CME representatives, as well as authorized officials of CME-approved slaughter facilities, to inspect feed records and feed facilities at the locations at which these cattle have been fed. This FDA-imposed ban on the feeding of animal proteins to cattle, as well as related record keeping and inspection requirements, have been in effect since June 1997. At least one leading food service company and most major packers now require similar certification from their suppliers. Therefore, CME�s action is consistent with these industry practices, and is necessary to maintain the integrity of the Live Cattle contract. This affidavit, a copy of which is attached, will become part of the required Certificate of Delivery documents for Live Cattle effective Monday, April 9, 2001. Please be advised that a copy of the original affidavit, dated as of the date of tender, will be required with each Certificate of Delivery tendered for the April 2001 and all subsequent contract months. In addition, the following procedures will apply: The delivering short must complete this affidavit, dated as of the date of tender, and provide it to his/her clearing firm. Faxed copies are acceptable, but the original affidavit should be promptly sent to and retained by the clearing firm. If a delivering short makes deliveries through more than one clearing firm, separate affidavits must be filed with each clearing firm. Similarly, if a delivering short makes deliveries from more than one feedlot, separate affidavits are required for each feedlot. However, if multiple deliveries are tendered on the same day from the same feedlot and through the same clearing firm, the delivering short is required to complete, and fax to his/her clearing firm, only one affidavit. When tendering a Certificate of Delivery to the CME Clearing House, the clearing firm must attach a copy of the delivering short�s completed affidavit with each Certificate. The date, feedlot, and all other information on the affidavit must match those on the Certificate. The CME Clearing House will provide a copy of the affidavit to the clearing firm of the receiving long, provided that he/she has not re-tendered the Certificate of Delivery. If you have any questions regarding this matter, please contact Paul Peterson, Director, Commodity Product Development, at (312) 930-4587, or John Broderick, Director, Clearing Operations, at (312) 930-3190