06/12/2002
The parameters of the SMM program are as follows:
During Regular Trading Hours ("RTH"), Koch must maintain an orderly two-sided market consisting of a current bid and offer quote for Koch's proprietary account on a RFQ basis as provided below.
I. Trading up to Last Trading Day of Month Preceding Current Delivery Month
Under normal market conditions, Koch must make a two-sided market for:
(a) A minimum of 25 contracts at a maximum bid/ask spread of 20 points for the first 4 listed trading months;
(b) Any consecutive four-month calendar strip during the first 12 listed contract months for 10 contracts per month at a maximum bid/ask spread of 25 points; and
(c) A minimum of 50 spread contracts at a maximum bid/ask spread of 20 points for any and all inter-month spreads involving the first 12 listed trading months.
In abnormal market conditions (as reasonably determined by Koch in good faith), Koch must make a two-sided market for the quantities listed above but at a bid/ask spread as determined by Koch in good faith. Koch will be required to announce with explanation if abnormal market conditions exist and when such conditions have ceased.
II. Trading Between First Notice Day and Last Trading Day of Current Delivery Month
During this period, Koch will not be required to make quotes but instead will use reasonable discretion to make efforts under normal market conditions to provide quotes.