Grain Journal - July/August 2008 - (Page 94) FUTURES MGEX Changes HRSW Futures Settlement Process The Minneapolis Grain Exchange (MGEX) on July 14 changed the official closing period for the Hard Red Spring Wheat (HRSW) futures contract and modified the settlement price process for futures contracts. Official closing period. The HRSW official closing period was changed to match the options contracts from the last 30 seconds of trading to the last 60 seconds of trading. Settlement price process. The settlement price process has been changed to be more inclusive by taking into consideration bids, offers, and trades from the final trading minute from both the open outcry and MGEXpress® platforms. In addition, MGEX futures con- MARKETS mitted jointly by the Chicago Mercantile Exchange Inc. (CME) and the Chicago Board of Trade (CBOT), in connection with certain over-the-counter (OTC) contracts to be listed for clearing-only on the CBOT and cleared through the CME. CME and CBOT are requesting that the CFTC issue an order under Section 4(c) of the Commodity Exchange Act (CEA) that would permit qualified participants who enter into OTC corn basis swaps and OTC calendar swaps for corn, wheat, and soybeans to submit those contracts to CME for clearning. CME and CBOT also are requesting that the CFTC issue an order under Section 4(d) of the CEA that would permit CME and clearing member futures commission merchants to commingle customer funds used to margin, secure, or guarantee these contracts with other funds held in segegrated accounts. Comments should be sent to secretary@cftc.gov by Aug. 21. tracts settlement prices—which have both open outcry and MGEXpress sessions—will be determined by the combined weighted average of the trades and applicable bids and offers made in the closing period. According to MGEX officials, the exchange will be moving toward a combined volume weighted average settlement which will include the applicable prices from the “pit” and electronic market, in order to formulate a combined settlement price for all contracts. The settlement price, MGEX says, then will be consistent with the minimum fluctuations of the contract. CFTC Seeks Comments on Clearing of OTC Grain Swaps The Commodity Futures Trading Commission (CFTC) is requesting public comments on a petition sub- CME Group Acquires Funding For NYMEX Purchase The CME Group’s bid to purchase NYMEX Holdings, Inc. got a boost July 22, when CME secured a $3.2 billion bridge financing facility from Bank of America and UBS. CME announced May 17 its intent to purchase NYMEX, the New York, NY-based energy and precious metals exchange, in a deal valued at over $9.5 billion. In addition to the financing, Standard & Poors (S&P) assigned CME an “AA” rating in its long-term counterparty credit rating, and S&P and Moody’s reaffirmed the company’s short-term credit ratings of A-1+ and P-1, respectively. “We are pleased to have secured committed bank financing for our important NYMEX transaction,” said CME Group Chief Financial Officer Jamie Parisi. Response No. 941 94 GJ J/A http://agvisionsoftware.com http://agvisionsoftware.com http://agvisionanytime.com http://agvisionanytime.com
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