12/13/2002
The proposed amendments seek to increase the Grade 1 Copper Futures Contract spot month position limit from 2,500 to 5,000 contracts provided, however, that the limit would return to 2,500 contracts should either: a) the market go into backwardation for three consecutive business days; or b) COMEX Copper stocks be reduced to a level of 10,000 COMEX contract equivalents. Currently, COMEX stocks of Grade 1 Copper are approximately 30,000 contract equivalents.
With respect to Rule 4.48, the any one month/all months accountability level for the Exchange’s Grade 1 Copper Futures Contract is recommended to be increased from 6,000 to 10,000 contracts.
Proposed amendments to COMEX Division Rules 4.47 and 4.48 affect 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.
If you have any questions concerning these procedures, please contact Thomas F. LaSala, Senior Vice President, Compliance and Risk Management, at (212) 299-2897, or Nicholas Galati, Director, Market Surveillance, at 299-2920.
[Brackets] indicate deletions; bold indicates additions. Rule 4.47 "Position Limits" (b) Applicable Limits. The maximum number of futures contracts, options on such futures contracts, or any combination thereof (collectively referred to as "position") which any person may own or control is as follows:
| Commodity | Spot Month Limit* | Net Futures Equivalent Limit |
| Gold | 3000 | Subject to Position Accountability |
| Silver | 1500 | Subject to Position Accountability |
| Aluminum | 350 | Subject to Position Accountability |
| Copper | [2500] 5,000** | Subject to Position Accountability |
* Effective as of the close of business on the second last business day of the calendar month preceding the delivery month.
**To the extent that for a period of three consecutive trading days there is either (1) a backwardation of price between the first month and next most active month (first month's price above nearest active month's price); or (2) registered stocks which fall below 10,000 contract equivalents, the limits in place for the first month shall be reduced to 2500 contracts at the close of business three trading days later unless decided otherwise by the Control Committee.