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CME Group, the world’s largest and most diverse derivatives marketplace, today announced the implementation of variable storage rates for the CBOT Wheat futures contract, the world benchmark for wheat prices, will begin with the July 2010 contract expiration pending regulatory approval. These contracts are listed with, and subject to, the rules and regulations of the CBOT.
An amendment was filed with the Commodity Futures Trading Commission (CFTC) to the original request sent this fall to commence variable storage rates with the September 2010 contract.
The exchange has been working closely with the CFTC as well as members of the CFTC Agricultural Advisory Commission and the CFTC Subcommittee on Convergence. Changing the implementation date from the September 2010 contract to the July 2010 contract is agreeable to our customers and regulators and the July 2010 implementation is not materially different from September 2010 implementation.
In addition to the start date change, the amount that triggers an increase in storage rates has been amended from 85 percent of financial full carry to 80 percent of financial full carry.
In order to give the CFTC time to consider these amendments, the exchange has also requested the review period be extended by two weeks until November 27, 2009.
For more information, please see the Special Executive Report.
