Notice to Members
Notice No. 274
08/27/2001
On-Time Trade Submissions for Spread Trades
NYMEX Division Members were advised, through Notice to Members No. 01-174 dated May 30, 2001, that spreads would be incorporated into the one-minute trade time statistics for the NYMEX Division (the COMEX Division has incorporated spreads since 1994). Weekly and monthly statistics showing Members how spreads effect their on-time percentages have been posted since the beginning of June 2001. Spread on-time percentages, in isolation, are running well below 90%. Please note that these spread percentages will soon be incorporated into monthly on-time statistics which, to date, have only reflected the on-time accuracy of outright transactions. Members falling below 80% will be issued warning letters or fines for sub-standard pit card submission.

In past reviews of pit card submission statistics, Compliance Staff has noted that certain habits improve pit card submission percentages. These include:

  • Throwing in pit cards for each sale trade rather than waiting until a card is filled. Staff has noted that the more trade lines used per pit card submitted, the lower the on-time percentage.


    • Throwing in a pit card before executing legs to offset a spread or a crack trade.


    • Throwing in a pit card bearing the spread differential before receiving prices for the individual legs of a spread or a crack. Note that spreads will be processed if the differential is submitted. Clerks can change prices provided the differential is maintained, using an on-line broker correction.


  • Making sure that all prices are reported by the Exchange. Buyers as well as sellers should ensure that all prices and differentials are heard and recorded by ring reporters.


    • The attached pictorial demonstrates three methods of recording the sale of a spread (no prices-A, one leg price-C, and both leg prices-D), as well as a purchase of a spread (B). If your posted weekly statistics indicate that your on-time percentage is less than 90%, please make an effort to identify the problem and correct it.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com