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Volume 21 – Bulletin #3 introduced the New Electronic Shipping Certificate system, which is scheduled to begin with the May 2001 delivery cycle. It is important for firms to note that beginning with the May 2001 delivery month, paper shipping certificates will no longer be deliverable in satisfaction of a short corn, or soybean futures contract. Current paper certificates may be brought to the issuing shipper’s clearing firm agent for conversion. The agent will have to input the certificate electronically and request registration from the Chicago Board of Trade’s Registrar office. Upon approval, the certificates will become part of the clearing firm agent’s inventory, which will need to be transferred to the appropriate clearing member. Unlike the paper certificates the new electronic certificates do not have an expiration date. Once a certificate has been registered it will reside in the clearing firm’s inventory; only the shipper’s clearing firm agent can cancel a certificate. Delivery payment will be done electronically by Clearing, and will take place on delivery day at 6:45 am as part of the Pay/Collect bank cycle. Firms will be given the option to have all delivery funds taken and deposited to the non-segregated (house) bank account, or, as default, Clearing will use the origin of the delivery tender or long position for payment. Firms choosing to fund and receive all delivery money from the house account should complete the attached form, and return to the Business Systems Group by April 16, 2001. Premium or storage will be automatically calculated and collected and paid as part of the 6:45 a.m. banking cycle on the 18th of every month, and debited / credited against the non-segregated (house) bank account. If the 18th is a Saturday, Sunday or holiday, the debit / credit will be made on the following business day. Any clearing firm holding a certificate will be automatically debited and the shipper’s clearing firm agent will be credited. Pay /Collect details will be provided in two new reports: Delivery Pay/Collect Report (DAR00051) and Main Firm Pay and Collect Summary Report (CLR00069). Delivery pay/collect amounts will not be included in the Banking Summary Report of the Final Daily Trade and Position Register or on the Web pay collect screen. Firms will have to use the electronic invoice created from OTIS for all Corn and Soybean deliveries. Invoices will be automatically confirmed at 7:00 a.m. on the day prior to the delivery. Any invalid invoices will need to be corrected and confirmed by 10 a.m. on the day prior to the delivery. Firms will have the ability to transfer inventory to other clearing member firms. Payment for such transfers will be between the parties, outside of the electronic shipping certificate system. All current inventory in Corn and Soybeans will be deleted from the OTIS system, on Saturday, April 7, 2001. Entry of electronic shipping certificate data by shipper clearing agents will begin on Monday, April 9, 2001. The Clearing Corporation will be holding classes on shipping certificates, the last week in March, and the beginning of April. Please refer to Volume 21 - Bulletin #69. Should you have any questions, please call or e-mail one of the following Business Systems Analysts:
Member Name _________________________________________________________ Member Firm Clearing Corporation Number _____________________________ Telephone Number ______________________________ Selection of Bank Account for Funding of Electronic Shipping Certificates __________ House or Customer based on Origin on Tender (Default) __________ House for all Electronic Shipping Certificates Date ____________ ________________________________________ (Authorized Signature) _________________________________________ (Print Name) _________________________________________ (Title) Please return this original signed form to Business Systems Group, Suite 1430, by April 16, 2001. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
