11B00.              SCOPE OF CHAPTER

This chapter is limited in application to mini-sized soybean futures. The procedures for trading, clearing, inspection, delivery and settlement of mini-sized soybean futures, and any other matters not specifically covered herein or in Chapters 7 and 11 shall be governed by the rules of the Exchange.

11B01.              CONTRACT SPECIFICATIONS 

Each futures contract shall be for 1,000 bushels of No. 2 yellow soybeans at par, No. 1 yellow soybeans at 6 cents per bushel over contract price, or No. 3 yellow soybeans at 6 cents per bushel under contract price provided that all factors equal U.S. No. 2 or better except for foreign material (refer to Rule 11B04.). Every delivery of soybeans may be made up of the authorized grades for shipment from eligible regular facilities provided that no lot delivered shall contain less than 1,000 bushels of any one grade from any one shipping station.

11B02.              TRADING SPECIFICATIONS

Trading in mini-sized soybean futures is regularly conducted in seven months – September, November, January, March, May, July and August. The number of months open for trading at a given time shall be determined by the Exchange.

11B02.A.           Trading Schedule

The hours for trading of mini-sized soybean futures shall be determined by the Exchange.

On the last day of trading in an expiring future, the close of the expiring future shall begin at 12 o'clock noon and trading shall be permitted thereafter for a period not to exceed one minute.  Quotations made during this one minute period shall constitute the close. 

11B02.B.           Trading Unit    

The unit of trading shall be 1,000 bushels of soybeans. 

11B02.C.           Price Increments

The minimum fluctuation for mini-sized soybean futures shall be 1/8 cent per bushel ($1.25 per contract), including spreads.

11B02.D.           Daily Price Limits

There shall be no trading in mini-sized soybean futures at a price more than $0.70 per bushel ($700 per contract) above or below the previous day’s settlement price. Should two or more soybean futures contract months within the first seven listed non-spot contracts (or the remaining contract month in a crop year) close at limit bid or limit offer, the daily price limits for all contract months shall increase to $1.05 per bushel the next business day. Should two or more soybean futures contract months within the first seven listed non-spot contracts (or the remaining contract month in a crop year) close at limit bid or limit offer while price limits are $1.05 per bushel, daily price limits for all contract months shall increase to $1.60 per bushel the next business day. If price limits are $1.60 per bushel and no soybean futures contract month closes limit bid or limit offer, daily price limits for all contract months shall revert back to $1.05 per bushel the next business day. If price limits are $1.05 per bushel and no soybean futures contract month closes limit bid or limit offer, daily price limits for all contract months shall revert back to $0.70 per bushel the next business day.  There shall be no price limits on the current month contract on or after the second business day preceding the first day of the delivery month.

 

11B02.E.           Position Limits

For the purposes of this rule, one mini-sized soybean contract is equivalent to one-fifth of a corresponding full-sized soybean contract, and positions in soybeans and mini-sized soybeans will be aggregated for the purpose of determining compliance with the contracts’ position limit.   

In accordance with Rule 559., Position Limits and Exemptions, no person shall own or control positions in excess of:

1.                   3,000 contracts net long or net short in the spot month. 

2.                   32,500 futures-equivalent contracts net long or net short in any single contract month excluding the spot month. Additional futures contracts may be held outside of the spot month as part of futures/futures spreads within a crop year provided that the total of such positions, when combined with outright positions, does not exceed the all months combined limit.

3.                   50,000 futures-equivalent contracts net long or net short in all months combined.

      Refer to Rule 559. for requirements concerning the aggregation of positions and allowable exemptions from the specified position limits. 

 

11B02.F.           Termination of Trading

No trades in mini-sized soybean futures deliverable in the current month shall be made after the business day preceding the 15th calendar day of that month. Any contracts remaining open after the last day of trading must be either:

(a)     Settled by delivery no later than the second business day following the last trading day (tender on business day prior to delivery).

(b)     Liquidated by means of a bona fide Exchange of Futures for Related Position, no later than the business day following the last trading day. 

10B03.              SETTLEMENT PRICES

Settlement prices of mini-sized soybean futures contracts shall be set equal to the settlement prices of the corresponding contracts in the primary market.  Where a particular contract has opened on the Exchange for which the primary market has established no settlement price, the Clearing House shall set a settlement price consistent with the spread relationships of other contracts; provided, however, that if the contract is not subject to daily price fluctuation limits then the settlement prices shall be set at the fair market value of the contract at the close of trading. 

11B04.             GRADES / GRADE DIFFERENTIALS  

A futures contract for the sale of mini-sized soybeans shall be performed on the basis of United States origin only.

 

*All factors equal to U.S. No. 2 grade or better (including splits; heat damage; brown, black and/or bicolored soybeans in yellow soybeans) except foreign material (maximum 3%).

A contract for the sale of mini-sized soybean futures shall be performed on the basis of the grades officially promulgated by the Secretary of Agriculture as conforming to United States Standards at the time of making the contract. If no such United States grades shall have been officially promulgated, then such contract shall be performed on the basis of the grades established by the Department of Agriculture of the State of Illinois, or the standards established by the Rules of the Exchange in force at the time of making the contract.

11B05.              LOCATION DIFFERENTIALS

Soybeans for shipment from regular shipping stations located within the Chicago Switching District or the Burns Harbor, Indiana Switching District may be delivered in satisfaction of mini-sized Soybean futures contracts at contract price, subject to the differentials for class and grade outlined above. 

Soybeans for shipment from regular shipping stations located within the Lockport-Seneca Shipping District may be delivered in satisfaction of mini-sized soybean futures contracts at a premium of 2 cents per bushel over contract price, subject to the differentials for class and grade outlined above. 

Soybeans for shipment from regular shipping stations located within the Ottawa-Chillicothe Shipping District may be delivered in satisfaction of mini-sized soybean futures contracts at a premium of 2 1/2 cents per bushel over contract price, subject to the differentials for class and grade outlined above. 

Soybeans for shipment from regular shipping stations located within the Peoria-Pekin Shipping District may be delivered in satisfaction of mini-sized soybean futures contracts at a premium of 3 cents per bushel over contract price, subject to the differentials for class and grade outlined above. 

Soybeans for shipment from regular shipping stations located within the Havana-Grafton Shipping District may be delivered in satisfaction of mini-sized soybean futures contracts at a premium of 3 1/2 cents per bushel over contract price, subject to the differentials for class and grade outlined above. 

Soybeans for shipment from regular shipping stations located in the St. Louis-East St. Louis and Alton Switching Districts may be delivered in satisfaction of mini-sized soybean futures contracts at a premium of 6 cents per bushel over contract price, subject to the differentials for class and grade outlined above.

11B06.              DELIVERY POINTS

Soybean Shipping Certificates shall specify shipment from one of the warehouses or shipping stations currently regular for delivery and located in one of the following territories:

(A)     Chicago and Burns Harbor, Indiana Switching District - When used in these Rules and Regulations, the Chicago Switching District will be that area geographically defined by Tariff ICC WTL 8020-Series and that portion of the Illinois Waterway at or above river mile 304 which includes the Calumet Sag Channel and the Chicago Sanitary & Ship Canal.  When used in these Rules, Burns Harbor, Indiana Switching District will be that area geographically defined by the boundaries of Burns Waterway Harbor at Burns Harbor, Indiana which is owned and operated by the Indiana Port Commission.  

 

(B)    Lockport-Seneca Shipping District - When used in these Rules, the Lockport-Seneca Shipping District will be that portion of the Illinois Waterway below river mile 304 at the junction of the Calumet Sag Channel and the Chicago Sanitary & Ship Canal and above river mile 244.6 at the Marseilles Lock and Dam.  

 

(C)     Ottawa-Chillicothe Shipping District - When used in these Rules, the Ottawa-Chillicothe Shipping District will be that portion of the Illinois Waterway below river mile 244.6 at the Marseilles Lock and Dam and at or above river mile 170 between Chillicothe and Peoria, IL.  

 

(D)    Peoria-Pekin Shipping District - When used in these Rules, the Peoria-Pekin Shipping District will be that portion of the Illinois Waterway below river mile 170 between Chillicothe and Peoria, IL and at or above river mile 151 at Pekin, IL.  

 

(E)    Havana-Grafton Shipping District - When used in these Rules, the Havana-Grafton Shipping District will be that portion of the Illinois Waterway below river mile 151 at Pekin, IL to river mile 0 at Grafton, IL.  

 

 

(F)     St. Louis-East St. Louis and Alton Switching Districts - When used in these Rules, St. Louis-East St. Louis and Alton Switching Districts will be that portion of the upper Mississippi River below river mile 218 at Grafton, IL and above river mile 170 at Jefferson Barracks Bridge in south St. Louis, MO.

11B07.              DELIVERIES BY MINI-SIZED SOYBEAN CERTIFICATES

Deliveries of CBOT mini-sized soybeans shall be made by delivery of mini-sized Soybean Certificates created by the Exchange from Soybean Shipping Certificates issued by Shippers designated by the Exchange as regular to issue Shipping Certificates for Soybeans, utilizing the Clearing House electronic delivery system. In order to effect a valid delivery, each Certificate must be endorsed by the holder making the delivery, and transfer as specified above constitutes endorsement. Such endorsement shall constitute a warranty of the genuineness of the Certificate and of good title thereto, but shall not constitute a guaranty, by an endorser, of performance by the shipper. Such endorsement shall also constitute a representation that all premium charges have been paid on the commodity covered by the Certificate, in accordance with Regulation 11B08.

Mini-sized Soybean Certificates may not be cancelled for load-out. Upon the return of five (5) mini-sized Soybean Certificates to the Exchange, a registered Soybean Shipping Certificate will be delivered by the Exchange to the holder of the five (5) mini-sized Soybean Certificates, utilizing the Clearing House electronic delivery system.

                       (Refer to Rule 713., Delivery Procedures.)

11B08.              PREMIUM CHARGES

To be valid for delivery on futures contracts, all shipping certificates covering mini-sized soybeans under obligation for shipment must indicate the applicable premium charge. No certificate shall be valid for delivery on futures contracts unless the premium charges on such soybeans shall have been paid up to and including the 18th calendar day of the preceding month, and such payment is endorsed on the certificate. Unpaid accumulated premium charges at the posted rate applicable to the facility shall be allowed and credited to the buyer by the seller up to and including date of delivery.

The premium charges on mini-sized Soybeans shall not exceed 15/100 of one cent per bushel per day.