10/06/2000
By significantly expanding the price fluctuation limits applicable to trading activity occurring on NYMEX ACCESS® , the Resolution reduces the possibility that a price limit would be triggered by the implied functionality. The Resolution amends the Exchange’s price fluctuation limit rules with regard to trading on NYMEX ACCESS® in three ways:
(1) The initial and subsequent price fluctuation limits (for each Exchange futures contract that has such limits) would be expanded to 200% of the initial and subsequent price fluctuation limits applicable to the first two contract months for energy contracts, or to the first contract month with limits in effect for metals contracts, of that futures contract under the applicable rule.
(2) This expanded limit (e.g., 200% of the limits for the front two months for energy contracts) would be applicable to all contract months for that futures contract.
(3) In the event that an expanded price limit was touched by a bid or offer, trading on NYMEX ACCESS® generally would be halted immediately, rather than requiring the market to trade at that price for five minutes. During the last 90 minutes of a NYMEX ACCESS® session, the market would be halted only far as long as it takes for the system to incorporate expanded price limits.
Finally, notwithstanding the changes noted above, in the event that a contract trading on NYMEX ACCESS® traded for five minutes at a price fluctuation limit applicable to RTH trading, then the RTH session would open with expanded price fluctuation limits as provided under the applicable rule, even though there had been no temporary cessation of trading during the NYMEX ACCESS® trading session.
If you have any questions concerning these procedures, please contact < a href=mailto:exchangeinfo@nymex.com">nymex.com
APPROVED RESOLUTION OF THE EXECUTIVE COMMITTEE
OF THE BOARD OF DIRECTORS REGARDING PRICE
FLUCTUATION LIMITS FOR EXCHANGE CONTRACTS
The Executive Committee of the Board of Directors hereby
Resolves that, until further notice, the price fluctuation limit rules for each futures contract that is listed for trading on NYMEX ACCESS® and that has such applicable rules shall continue in effect except as amended below with regard to market activity occurring on NYMEX ACCESS®:
The initial and subsequent price fluctuation limits (for each Exchange futures contract that has such limits) shall be expanded to 200% of the initial and subsequent price fluctuation limits applicable to the first two contract months of that futures contract that have price limits under the applicable rule.
This expanded limit (200% of the limits for the first two months with limits) shall be applicable to all contract months for that futures contract.
In the event that such a price fluctuation limit is reached by a bona fide bid at the high price fluctuation limit or a bona fide offer at the low price fluctuation limit, trading on NYMEX ACCESS® shall be halted immediately except as directed otherwise by the President or the President’s designee. Following resumption of trading, the price limits in effect shall be 200% of the limits applicable to RTH trading. In the event that a limit is touched during the last 90 minutes of a NYMEX ACCESS® session, the market shall be halted briefly, and price limits shall be expanded thereafter
In addition, in the event that a contract trading on NYMEX ACCESS® traded for five minutes during the NYMEX ACCESS® session at a price fluctuation limit applicable to the Regular Trading Hours session, then the RTH session shall open with expanded price fluctuation limits as provided under the applicable rule, even though no temporary cessation of trading occurred during the NYMEX ACCESS® trading session.