The minimum financial requirements for firms which are regular to deliver agricultural and ethanol products are:

1.         Working Capital - (current assets excluding current receivables from affiliates/parent company less current liabilities) must be greater than or equal to $2,000,000 or $1,000,000 for firms regular for delivery in Rough Rice and Denatured Fuel Ethanol futures.  All current assets must be readily marketable. Firms which do not have $2,000,000 ($1,000,000 for rice and ethanol) in Working Capital must deposit with the Exchange treasury securities or other collateral deemed acceptable to the Exchange, in such sum and subject to such conditions as the Exchange may require.  Any such sums shall be reduced by SEC haircuts, as specified in SEC Rule 15c3-1(c)(2)(vi), (vii), and (viii). If the warehouseman/shipper deposits treasury securities, it must execute a security agreement on a form prescribed by the Exchange.  The Exchange may grant an exemption from the working capital requirements described above, in its sole discretion.

2.        Net Worth - (Total assets less total liabilities) divided by the firm's allowable capacity (measured   in contracts) must be greater than $5,000. The net worth of a firm regular to deliver corn, soybeans, South American Soybeans or ethanol must be greater than or equal to $5,000,000. The operator of a facility issuing corn, soybean, South American Soybean or ethanol shipping certificates may only issue new shipping certificates when the total value of all registered shipping certificates and the new shipping certificates, at the time of issuance of the new shipping certificates, does not exceed 50% of net worth; 

3.       Each firm which is regular to deliver agricultural or ethanol products is required to file a yearly certified financial statement within 90 days of the firm's year-end.  Each firm is also required to file within 45 days of the statement date unaudited quarterly financial statements for each of the three quarters which do not end on the firm’s year-end.  In addition, the Exchange may request additional financial information as it deems appropriate.  All financial statements are to be submitted in English.

4.       A Letter of Attestation must accompany all unaudited financial statements.  The Letter of Attestation must be signed by the Chief Financial Officer or if there is none, a general partner, executive officer, or managerial employee who has the authority to sign financial statements on behalf of the firm and to attest to their correctness and completeness.

5.        Any firm that has been approved to deliver against a CBOT contract must notify the Exchange in writing within two business days of any event or series of events, including any withdrawal, advance, loan or loss that, on a net basis, causes a twenty percent (20%) or more reduction of its net worth as last reported by submission of a financial statement.

6.       Any change in the organizational structure of a firm that is regular for delivery requires that the firm notify the Exchange prior to such change. Changes in organizational structure shall include, but not be limited to, a corporation, limited liability company, general partnership, limited partnership, or sole proprietorship that changes to another form. Prior to any such change occurring, the firm is also required to notify the Exchange in writing of any name change.

For other applicable provisions, see “Letter of Credit and Bond Standards” in the Interpretations section of this chapter. (11/29/07)