Verification of ATOM 2002 Tax Data and 1099 Production Status

Notice to Members

Notice No. 323 12/02/2002


The New York Mercantile Exchange is preparing for ATOM® 2002 TEFRA processing. As part of this preparation firms are given the opportunity to review taxpayer addresses and identification numbers maintained in the ATOM system. It is important that you verify tax information in the ATOM system before it is reported to the Internal Revenue Service (IRS). To verify the firm tax information maintained in the ATOM system a special firm tax information report will be produced: BFR00061 - Firm Tax Data Confirmation This report will be available on December 5, 2002, on hard copy and as an on-line report request in Infopac. Additionally, on December 10, 2002, Firm 1099 — Misc. Information Register (BFR00062) will be made available. The report details firm payer information and reportable and non-reportable payments by broker. The reportable section is listed in dollar amounts under $600.00 and dollar amounts over $600.00. Brokers in either of these two groups may receive a 1099 Misc. Statement. The non-reportable section lists invalid data; brokers listed in this section will not receive a 1099 Misc. Statement. The payer information section provides all tax information currently on file for your firm. This section also provides the firm's ATOM tax status as one of the following categories: Non Exempt - Print 1099 Statements and report all 1099 information to the IRS. Exempt - Do not print 1099 Statements or report 1099 information to the IRS. $600.00 & Over - Print 1099 Statements and report to IRS only brokerage dollar amounts that are $600.00 or more. Please review these reports carefully; sign and date them, and deliver to Carolyn Sterling, Membership Department, Suite 404, no later than December 16, 2002. If all the information is accurate, note 'OK', if there are any changes needed, make the corrections NEATLY on the report. Should you have any questions, please call or e-mail one of the following: David Sherman 212-299-2061 dsherman@nymex.com Gerard Taibi 212-299-2039 gtaibi@nymex.com Carolyn Sterling 212-299-2377 csterling@nymex.com

Should you have any questions or require any further information, please contact exchangeinfo@nymex.com