Reuters: Regulatory News: Liffe backs planned softs, wheat delivery limits

Reuters: Regulatory News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Liffe backs planned softs, wheat delivery limits Jun 25th 2012, 18:03 LONDON, June 25 | Mon Jun 25, 2012 2:03pm EDT LONDON, June 25 (Reuters) - Major commodity exchange NYSE Liffe is sticking with a plan to introduce delivery limits on its cocoa, robusta coffee, white sugar and feed wheat contracts although it has added a new exemption, the exchange said in a market notice. The proposal to cap the size of deliveries is designed to curb speculative squeezes, with European commodity markets under pressure to tighten regulation. The exchange notice followed a request for feedback on its plan which was issued in February. Responses showed its proposal to limit deliveries "has general member and user support," according to the notice, which was dated June 22. Rival U.S.-based exchange ICE, where coffee, cocoa and sugar are also traded, enforces position limits while the London-based NYSE Liffe markets have been more lightly regulated. The proposed limits capped robusta coffee deliveries at 75,000 tonnes from November 2012, cocoa deliveries at 75,000 tonnes as of December 2012, white sugar at 250,000 tonnes from December 2012 and feed wheat at 200,000 tonnes from January 2013. Liffe said some feedback sought higher limits but the exchange had determined they would remain as proposed, noting they would have permitted the vast majority of deliveries over the last 10 years, would not unnecessarily inhibit current commercial activity and could be adjusted when necessary. The new "stock holder" exemption rule is for market participants holding short positions who have the relevant commodity available to deliver and are prepared to commit that it will be delivered. The exchange announced it is seeking feedback on proposed rules by the close of business on Friday, July 13. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions