Notice to Members
Notice No. 132 03/24/2003
Broker Incentive Program (NX)
The following program originated with Chairman, Vincent Viola, during a meeting with various voice brokers and other intermediaries. It is intended to build liquidity on the NYMEX ClearPortsm clearing and execution facilities by providing financial incentives to third party intermediaries to place business with NYMEX. The terms of the program are as follows: 1. Eligible Participants Intermediaries on the NYMEX ClearPortsm execution and clearing systems respectively. Intermediaries, as described below, must physically enter orders or transactions into one of the NYMEX ClearPortsm systems in order to be eligible for participation in the program. (a) Voice Brokers, Floor Brokers, IBs, APs, and FCMs who submit matched trades to the NYMEX ClearPortsm clearing systems for 3rd parties (b) CFTC/NFA registrants who submit orders to, and which are executed on, the NYMEX ClearPortsm trading platform. 2. Excluded Participants Principals who submit trades or executed orders for their own, or a proprietary, account, are excluded from participation in the program 3. Excluded Platform(s) NYMEX ACCESS® and its successor with respect to any floor traded products; and any purely bilateral platform (unless intermediaries become allowed to participate), are excluded from this program. 4. Term Three (3) years with two (2) two-year options. 5. Payments (a) Payments shall be made quarterly or at other regular intervals determined by the Exchange (b) For NYMEX ClearPortsm clearing services, an intermediary (on behalf of a 3rd party excluding proprietary accounts) submitting a matched trade, which clears successfully, will receive 50% of the fees charged by the Exchange. The Exchange in its sole discretion will decide any disputes arising about the identity or affiliation of the party entitled to the program fee. (c) For NYMEX ClearPortsm execution services, an intermediary (on behalf of a 3rd party excluding proprietary accounts) submitting an order which is executed will receive 50% of the net fees charged by the exchange for the transaction. In the event both orders to the executed trade were submitted by one or two intermediaries, each will receive 50% of the net fees, and the Exchange will in that case receive no net revenue for the transaction. (d) The Exchange retains the exclusive right to determine its fees; however, the percentages described above will not be reduced during the term of the program.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com