The relevant provisions of the Rule are triggered whenever a cotton futures contract month ends the trading day locked at either limit-up or limit-down; the alternate price is derived from the respective futures contract month's corresponding options contract at the market close.
Under the Resolution, Clearing Members must use this same alternate price for purposes of collecting margins as required by margin rules.
The Cotton No. 2 futures and options contract months for which NYCC will utilize an alternate price, the futures contract settlement price and the alternate price for business day March 9, 2004, are as follows:
Contract Month | Settlement Price | Alternate Price For Settllement Purposes |
May '04 | 64.01 | 63.95 |
July '04 | 65.40 | 65.30 |
(All other months listed for trading not shown above will be margined at their Settlement Price.)
The New York Clearing Corporation (NYCC) is a subsidiary of the New York Cotton Exchange (NYCE) and is the designated clearinghouse for all the exchange markets of the New York Board of Trade (NYBOT), the world's largest "soft" commodities exchange. The Clearing Corporation provides clearing services and financial stability for its clearing members.
The New York Board of Trade (NYBOT) is the parent company of the Coffee, Sugar and Cocoa Exchange, Inc. (CSCE) and the New York Cotton Exchange (NYCE). Through its two exchanges, NYBOT offers an expanding range of agricultural and financial products. Information about the New York Board of Trade can be found at www.nybot.com and www.nybotlive.com.