03/18/2003
The first change to the Rule, as it applies to Type Indicator Code 2, allows for clear recognition that such I.D. is for the benefit of a clearing member or non-clearing member firm. This change will make it clear that a floor broker or Authorized Terminal User on NYMEX ACCESS® may give-up a trade for the benefit of a clearing member on the house side as a 2-H, and also for the benefit of a non-clearing member firm on the customer side by using the 2-C type indicator. The ability to input a type 2-C will be useful in conjunction with changes to TMS and the billing system which will allow for billing at a member rate for non-clearing member firms, by processing such transactions as 2-C, and eliminate much of the credit requests by clearing member firms.
On Tuesday, March 18, 2003, each clearing member will be provided in its lock box, a summary list of all short codes and associated information for accounts that clear that particular clearing member. Two presentations are provided - one sorted by account number, and the second by floor member. Clearing Member representatives are asked to review the documentation, and where appropriate for an account which is a member firm, coordinate with relevant floor members and their clerks in order to make the adjustment of the CTI code to a type 2-C. By doing so, the adjusted short codes with newly available 2-C coding will then effect a member rate for such member firms. The clearing system via TMS will be available to accept the 2-C trade type information on Friday, March 28, 2003, at the commencement of the RTH session in conjunction with the effective date of the rule revisions. CTI Type 2-C will be available for use on NYMEX ACCESS® on Sunday, March 30, 2003 for trade date March 31, 2003.
Another change applies to Type 3 transactions, which will now be applicable to a trade executed for the benefit of a floor member, whether that member is in the building, on the trading floor or phoning an order in directly or indirectly to the trading floor or an upstairs desk.
Additionally, the revised term of "Authorized Terminal User" as it relates to NYMEX ACCESS® replaces the old reference to NYMEX ACCESS® operator or electronic trader.
Lastly, general language has been modified to more clearly and accurately represent the intent of the Type Indicator Codes.
Rule 6.19 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. 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 A and B below:
(A) CTI Codes:
(1) 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.
(2) When a Floor Trading Member or Authorized Terminal User executes trades for the trading account of a Member Firm/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/Clearing Member trading account, the indicator codes of subdivision (1) shall apply.
(3) (a) 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.
(b) 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 must designate such orders as CTI 3.
(4) When a Floor Trading Member or Authorized Terminal User executes trades for any account, other than those listed in Subdivisions (A), (B), (C), he/she shall designate the trades as CTI 4.
(B) Indicator Codes. All of the above CTI codes summarized in Section (A) of this Rule must be used in combination with one of the following indicator designations:
(i) C or Customer -- if the account owner is not affiliated with the Clearing Member; or
(ii) 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.
(C) It shall be a Major Offense for Floor Trading Members and Authorized Terminal Users to knowingly assign false indicator codes to trades executed on the Exchange Floor or on NYMEX ACCESS®.