• Amendments to Nonfat Dry Milk-Spot Call Contract

      • To
      • Members, Member Firms and Market Users
      • From
      • Research and Product Development
      • #
      • SER-7013
      • Notice Date
      • 31 January 2014
      • Effective Date
      • 02 February 2014
    • Effective Sunday, February 2, 2014 for trade date Monday, February 3, 2014, the Chicago Mercantile Exchange Inc. (CME or Exchange) will implement amendments to the Nonfat Dry Milk-Spot Call contract (Rulebook Chapter: 54S; Trading Floor Code: Grade A (NM)).
       
      The Commodity Futures Trading Commission (CFTC) will be notified of the amendments during the week of February 3, 2014, via the weekly notification procedures set forth in Part 40 of the CFTC Regulations.
       
      Additions to the rules have been underlined and deletions are bracketed and overstriked below. 
       
       
      Chapter 54S
      Nonfat Dry Milk-Spot Call
      54S01.        COMMODITY SPECIFICATIONS
      The nonfat dry milk shall be free flowing and manufactured using the spray process with a low heat treatment classification. It shall not show less than 6.0 milligrams undenatured whey protein nitrogen per gram. On the day of sale, the nonfat dry milk shall be less than 180 days old. All nonfat dry milk shall be certified Kosher by a Rabbinical Service that provides Kosher classification. The methods of analysis shall be those specified by the USDA.
      All nonfat dry milk sold on the Exchange shall have been produced in facilities that at the time of production have been surveyed and approved by the Grading Service of the USDA and are on the eligible list of that Service.
      1.     The "spot call" is the procedure for trading and delivering nonfat dry milk as more fully set forth in this chapter.
      2.     The "day of sale" is the day on which trading on the spot call is conducted.
      3.     A "carlot" consists of between [42,000] 41,000 and 45,000 pounds, net weight, of nonfat dry milk which must be manufactured on or before the day of sale. No carlot shall consist of more than 3 sublots and each carlot shall be manufactured by a single plant.
       
      (Remainder of Rule Language Unchanged)
      54S04.        DEVIATIONS AND ALLOWANCES
      The delivered carlot may vary between [42,000] 41,000 and 45,000 pounds in net weight. Payment shall be made on the basis of the exact net weight delivered.
       
      (Remainder of Rule Language Unchanged)
       
      Questions regarding this Special Executive Report may be directed to Thomas Clark, Director, Ag and Alternative Investment Products at 312-930-4595, Thomas.Clark@cmegroup.com, Heidi Centola, Manager, Ag and Alternative Investment Products at 312-930-1308, Heidi.Centola@cmegroup.com or Charles Piszczor, Director, Commodity Research & Product Development, at 312-930-4536, Charles.Piszczor@cmegroup.com.
       

      For media inquiries concerning this Special Executive Report, please contact CME Group Corporate Communications at 312-930-3434 or news@cmegroup.com.

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