Message-ID: <18569597.1075844827960.JavaMail.evans@thyme> Date: Wed, 17 Jan 2001 08:09:00 -0800 (PST) From: exchangeinfo@nymex.com To: sara.shackleton@enron.com Subject: (01-18) Proposed Amendment to COMEX Rule 4.94, "Settlement Price Procedures for Copper Contracts" Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: exchangeinfo@nymex.com X-To: sara.shackleton@enron.com X-cc: X-bcc: X-Folder: \Sara_Shackleton_Dec2000_June2001_2\Notes Folders\Nymex X-Origin: SHACKLETON-S X-FileName: sshackle.nsf Notice 01-18 January 17, 2001 TO: ALL COMEX DIVISION MEMBERS FROM: M. Dawn Lowe Vice President and Assistant Corporate Secretary SUBJECT: Proposed Amendment to COMEX Rule 4.94, "Settlement Price Procedures for Copper Contracts". Attached please find a proposed amendment to COMEX Rule 4.94, "Settlement Price Procedures for Copper Contracts" which would eliminate the use of discretion in establishing the settlement price in the current delivery month and the most active month. The most active month is defined as the base month that is not the current delivery month with the greatest reported open interest on the official COMEX daily open interest report. The base months are defined as the March, May, July, September and December delivery months. The proposed amendment to COMEX Rule 4.94, "Settlement Price Procedures for Copper Contracts" affects a "Special Matter" under the terms of the COMEX By-Laws. Accordingly, COMEX Division Members have ten (10) days to submit a petition signed by owners of at least 155 COMEX Division Memberships requesting a vote of the COMEX Division Members to disapprove the amendments, pursuant to the procedures set forth under COMEX By-Law 205(D). If a petition is not received, or if the amendment is not disapproved, it will be submitted to the Commodity Futures Trading Commission (CFTC). If you have any questions, please contact Dawn Lowe at 212-299-2370 or Albert J. Getz at 212-299-2608. Proposed Rule Amendments (Underlining indicates additions: bracketing indicates deletions) Rule 4.94 Settlement Price Procedures for Copper Contracts. (A)(i) The term "base month" shall mean the March, May, July, September, and December delivery months; (ii) the term "most active month" with respect to this rule and the rules of COMEX Chapters 11 and 17 shall mean the base month that is not the current delivery month, with the greatest reported open interest on the official COMEX daily open interest report. (B) The settlement price for the current delivery month and the most active month shall be the weighted average price (rounded to the nearest minimum fluctuation) of all outright transactions that occur in the closing range. If no outright transactions occur in the closing range of either the current delivery month and the most active month, the settlement price for the applicable month shall be the last trade price, unless during the closing range a bid higher or offer lower than the last trade price is made. In such event, such higher bid or lower offer shall be the settlement price. (C) In all other delivery months, the settlement prices shall be determined based upon spread relationships between and among contract months, which relationships shall be determined in the judgment of the Settlement Price Committee with: (a) greater weight given to spreads executed late in the trading day in large volumes, and (b) lesser weight given to (i) spreads traded in lesser volumes, (ii) spread bids and offers actively represented late in the trading day, and (iii) spread transactions, bids and offers from earlier in the trading day. Notwithstanding the foregoing, no settlement price shall be established that would be lower than the best outright bid, or higher than the best outright offer, that: (a) was for at least 20 contracts, and (b) had been posted with the Exchange and had remained available for execution and unfilled for the final 30 minutes of trading of that trading day. (D) If any settlement price, determined pursuant to Paragraph[s] [(B)] [or] (C), is inconsistent with transactions that occurred during the closing range for other delivery months of the same futures contract or with other market information known to the Committee, the Committee may establish a settlement price at a level consistent with such other transactions or market information. In such event, the Committee shall prepare a written record of the basis for any settlement price so established. (Rule 4.94 Amended 02/01/98) __________________________________________________ Please click on the link below to indicate you have received this email. "http://208.206.41.61/email/email_log.cfm?useremail=sara.shackleton@enron.com& refdoc=(01-18)" Note: If you click on the above line and nothing happens, please copy the text between the quotes, open your internet browser, paste it into the web site address and press Return.