07/11/2003
Generally, the revised Rule clarifies the definitions of the Customer Type Indicator (“CTI”) codes. A change to the Rule applies to Type Indicator Code 2 and allows for clear recognition that such code is for the benefit of a clearing member or member firm. This change will make it clear that an unaffiliated non-employee floor broker or Authorized Terminal User may give up a trade for the benefit of a clearing member on the house side or a member firm on the customer side – both applied a member rate. These changes will clear up the language which currently implies that the executing member had to be an employee of the clearing member, and also alleviate the processing of member credits. Another change to the Rule integrates the revised term of “Authorized Terminal User” as it relates to NYMEX ACCESS® and replaces the old reference to NYMEX ACCESS® operator or electronic trader.
Proposed amendments to COMEX Division Rule 4.82 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.
Proposed Revisions to COMEX Division Rule 4.82-Submission
of Trade Data
(Strikethrough indicates deletions, [brackets] indicate additions.)
(
Rule 4.82 - Submission of Trade Data
(a) General Requirements. [Floor Trading Members shall be responsible for reporting]
(1) all information recorded on a floor member's trading card pursuant to Rule 4.80(b) and order tickets pursuant to Rule 4.81(a) and (b);
(2) a[n appropriate] customer type indicator [(CTI) and indicator code] reflecting [as described in section (b) below;]
(i) the floor member's own account or an account which he controlled;
(ii) his clearing member's house account;
(iii) another member present on the floor of the Exchange or an account controlled by such other member; or
(v) any other type customer.
(3) the clearing member and account in which the trade will clear; and
(4) such other information as the Exchange may require to match and/or clear a trade.
[(b) Customer Type Indicator Codes. Floor Trading Members shall be responsible for reporting to the Exchange on the Paperless Transfer System (PTS), appropriate CTI and indicator codes for transactions executed on the Exchange Floor. Authorized Terminal Users shall be responsible for reporting to the Exchange and on NYMEX ACCESS®, appropriate CTI and indicator codes for transactions executed on NYMEX ACCESS®. Appropriate CTI and indicator codes shall include a combination from sections (1) and (2) below:
(1) CTI Codes:
(A) Floor Trading Members and Authorized Terminal Users who execute trades for their personal account, whether owned in whole or in part, or for an account which they control or have the right to initiate trades in, regardless of whether or not they have an ownership interest in the account, or whether they are an employee, partner, or a customer of a Clearing Member, shall designate the trades as CTI 1.
(B) When a Floor Trading Member or Authorized Terminal User executes trades for the trading account of a Member Firm or Clearing Member, he/she must designate the trades as CTI 2. However, if the executing Floor Trading Member or Authorized Terminal User has either an interest in or discretionary control over such Member Firm or Clearing Member trading account, the indicator codes of subdivision A shall apply.
(C) (i) When a Floor Trading Member executes trades for the personal account of another Floor Trading Member, or for an account that the Floor Trading Member knows is controlled by another Floor Trading Member, he/she shall designate the trades as CTI 3.
(ii) When an Authorized Terminal User enters orders for execution on NYMEX ACCESS® for the account of a floor trading member, or for an account that the Authorized Terminal User knows is controlled by a floor trading member, he/she must designate such orders as CTI 3.
(D) When a Floor Trading Member or Authorized Terminal User executes trades for any account, other than those listed in subdivision (A), (B), (C), he/she shall designate the trades as CTI 4.
(2) Indicator Codes. All of the above CTI codes summarized in section (1) of this Rule must be used in combination with one of the following indicator designations:
(A) C or Customer - if the account owner is not affiliated with the Clearing Member; or
(B) H or House - an account affiliated with the Clearing Member, including parent and subsidiary corporations, or Principals or authorized employees, trading for their own account at the Clearing Member in which they have an ownership interest in or by whom they are employed.
It shall be a Major Offense for Floor Trading Members or Authorized Terminal Users to knowingly assign false indicator codes to trades executed on the Exchange Floor or on NYMEX ACCESS®.]
[(c)]
[(d)]
[(e)]
[(f)]
[(g)]
(h) Average Price Data Input. {The remainder of the rule remains the same.}