DAILY PRICE LIMITS IN NYMEX COTTON FUTURES

On January 31, 2011, daily price limits were implemented on the NYMEX Cotton futures contract that were consistent with the daily price limits on the physically-delivered ICE-US Cotton No. 2 futures contract. Because the frequency of limit moves was adversely affecting the cotton market’s price discovery function, ICE-US amended their rules on price limits in cotton on February 7, 2010. NYMEX has received CFTC approval to amend NYMEX Rule 932 to maintain daily price limit consistency between the NYMEX and ICEUS cotton markets. Implementation is February 11, 2011.

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