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VOLUME 22 - BULLETIN #114
TO:
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ALL CLEARING MEMBERS
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FROM:
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BUSINESS SYSTEMS GROUP
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DATE:
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June 11, 2002
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SUBJECT:
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Banking Procedures for Foreign Currency Deliveries
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The purpose of this bulletin is to review delivery procedures for MidAmerica foreign currency contracts. The Global Multicurrency Service of Bank One International is utilized for the purpose of making foreign currency deliveries under the MidAm’s foreign currency contracts. Attached as Exhibit A is a list which identifies the bank accounts into which foreign currencies must be deposited.
The foreign currency delivery procedures are as follows:
1.
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Trading terminates on the second business day immediately preceding the third Wednesday of the contract month. Delivery occurs on the third Wednesday of the contract month. If Wednesday is a holiday in the country of delivery, then delivery takes place on the following business day.
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2.
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Buyer’s Duties:
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a.
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A Buyer’s currency delivery commitment form must be submitted to the Clearing Corporation no later than 11:00 a.m. on the last day of trading in the contract month. Commitment forms are available from the Clearing Corporation and can be found in the Clearing Manual, Volume 3 - Deliveries.
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b.
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By 1:00 p.m. on the business day preceding the delivery day, the Buyer’s clearing member must make U.S. dollar payments via the Fedwire in immediately available funds to:
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BankOne International, New York
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ABA Routing Number:
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026009797
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For Account:
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Clearing Corporation Foreign Currency Delivery
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Account No.:
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1032652-5001
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Contact individuals at Bank One International, New York:
Mounir Mikhail
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Zelima Woodley
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Trevor Trim
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(212) 373-1550
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(212) 373-1622
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(212) 373-1609
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The sum paid shall be sufficient to pay for the delivery of the foreign currency being purchased. This sum shall equal the value of the contracts based on the settlement price on the last day of trading.
c.
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The Buyer’s clearing member shall have made all provisions necessary to receive delivery within the country of issuance. The receiving bank must be able to accept delivery of the foreign currency from a Clearing Corporation agent bank listed on Exhibit A. At this time, the Clearing Corporation approves all banks that are approved by the Chicago Mercantile Exchange as receiving banks. Firms taking delivery should verify that their bank in the country of issuance can accept delivery from an agent bank.
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a.
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A Seller’s currency delivery commitment form must be submitted to the Clearing Corporation no later than 11:00 a.m. on the last day of trading in the contract month. Commitment forms are available from the Clearing Corporation and can be found in the Clearing Manual, Volume 3 – Deliveries or on the BOTCC.com web page at:
http://www.botcc.com/forms/Treasury/index.html
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b.
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The Seller’s clearing member is responsible for assuring the timely delivery of the foreign currency to the Clearing Corporation delivery account at the appropriate Clearing Corporation agent bank in the country of issuance. A list of agent banks into which the foreign currencies must be delivered is attached as Exhibit A. The foreign currency must be received by the Clearing Corporation agent bank no later than 10:00 a.m. (local time) on the day of delivery. The Seller’s delivering bank must be a bank in the foreign country from which the Seller can make delivery of the foreign currency to a Clearing Corporation agent bank listed on Exhibit A.
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c.
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Bank One International will release the U.S. dollar payment to the Seller’s account in the U.S. pursuant to the Clearing Corporation’s instructions.
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4.
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Costs of Delivery
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The Seller shall bear the costs of transferring the foreign currency into the Clearing Corporation’s agent bank. The Buyer shall bear the costs of transferring the foreign currency out of the Clearing Corporation’s agent bank. Such costs may include, but are not limited to, wire transfer charges, negative interest charges, transportation fees and lifting charges. At this time, the cost of delivery of a foreign currency into and out of the Clearing Corporation’s account is $50.00 for each delivery. The regular charge for delivery of U.S. dollars into and out of the Clearing Corporation’s account via the Fed Wire is $30.00 for each transaction. Any buyer or seller who fails to meet its delivery obligations is subject to a special processing fee of $250.00 per currency plus any interest, fees, or other charges assessed by the Clearing Corporation’s agent bank.
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5.
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European Economic and Monetary Union
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All sellers of EUR contracts MUST deliver EUR to the Clearing Corporation and buyers of EUR contracts will receive EUR from the Clearing Corporation.
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If you have questions concerning actual deliveries, call Craig Holick or Joanne McDarrah of the Clearing Corporation’s Treasury Operations department at 312-786-3860. For general delivery questions, please refer to the currency contract specifications in the Rules and Regulations of the MidAmerica Commodity Exchange.
EXHIBIT A
BOARD OF TRADE CLEARING CORPORATION
List of Foreign Banks into which Foreign Currencies MUST Be Delivered
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Canadian Dollars (CAD)
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City:
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Toronto, Ontario, Canada
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Bank Name:
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The Bank of Nova Scotia, Toronto
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Account Name:
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Bank One, N.A., London
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SWIFT:
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FNBCGB2X
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Account No:
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3174-11
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For Further Credit A/C
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1000802CAD5001
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Credit Confirmation ON:
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Value Date
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All questions relating to foreign currency deliveries into these banks should be directed to:
Bank One International - New York
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Mounir Mikhail, Vice President
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(212) 373-1550
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Trevor Trim, Assistant Vice President
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(212) 373-1609
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Zelima Woodley, Operations Supervisor
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(212) 373-1622
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Should you have any questions, please call or e-mail one of the following Business Systems Analysts:
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