Amendments to Grades/Grade Differentials Rule for the Oats Futures Contract

Effective Sunday, December 6, 2015 for trade date Monday, December 7, 2015, and pending all relevant CFTC regulatory review periods, The Board of Trade of the City of Chicago, Inc. (“CBOT” or “Exchange”) will amend Rule 15104. (“Grades/Grade Differentials”) of the Oat Futures contract (Globex Code: ZO; Clearing Code: O; Rulebook Chapter 15). The amendments are intended to clarify existing language in the Exchange Rulebook. Specifically, the USDA grading standard for oats states that slightly weathered oats may be graded not better than No. 3 regardless of the other factors.  Thus, the Exchange allows No. 3 oats that are slightly weathered.  However, for all of the other factors included in the USDA standard with the exception of slightly weathered, the deliverer must deliver No. 1 or No. 2 as described in the table in Rule 15104.

If you require any additional information, please contact Alison Coughlin at (312) 338-7171 or Alison.Coughlin@cmegroup.com or Joanna Litchfield at (312) 338-2653 or Joanna.Litchfield@cmegroup.com.

Please click here for complete SER-7510.