Notice to Members
Notice No. 391 11/21/2001
Emergency Rules - ScotiaMocatta Warrants
As a result of the attack on the World Trade Center and the inaccessibility of the precious metals stored at ScotiaMocatta Depository ("SMD"), an Exchange Licensed Depository, located in Four World Trade Center ("4WTC"), the NYMEX Board of Directors implemented emergency rules pertaining to the warrants issued by SMD. In summary, these emergency rules permitted an individual or firm taking delivery the option to reject a warrant for metal on deposit at the SMD vault at 4WTC. SMD has successfully relocated, using an Exchange Approved Carrier, all of the precious metals stored at 4WTC to an SMD custodial account at the Brink's Inc Exchange Licensed Depository and has applied to the Exchange to establish a new Licensed Depository in New York City. Therefore, the Exchange has, effectively immediately, rescinded the emergency rules pertaining to the warrants issued by SMD. As a result, the Exchange Rules relating to warrants are those which were in effect prior to the declaration of the emergency. Prior to the establishment of its new facility as an Exchange-licensed depository, SMD will offer its clients the options of leaving the metal in storage; selling it to SMD; exchanging depository receipts for those of another Exchange-licensed depository acceptable to ScotiaMocatta, with any ounce differential cash-settled on the basis of a published price determined by SMD; or delivering replacement metal to a mutually agreeable location, in exchange for the metal at the ScotiaMocatta depository, subject to payment by the client of the current price differential, as quoted by SMD.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com