Per CFTC approval, the exchange will amend NYMEX rule 932 specifying daily price limits for NYMEX Cotton futures effective trade date January 24, 2011.
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 is imposing daily price limits, consistent with ICE Cotton futures, to NYMEX Cotton futures. CFTC has approved this proposal and price limits will be implemented on January 24, 2011 for all contract expirations.