Notice to Members
Notice No. 180 04/08/2003
Compliance Advisory: Implementation of New Exchange Rule 6.59 "All or None (AON) Rule for PJM Monthly Futures – Procedural Guidelines"
In connection with the launch this Friday morning, April 11, 2003, of the Exchange's new financially-settled monthly PJM electricity futures contract, the Exchange is also implementing at the same time new NYMEX Rule 6.59, which is summarized below and which will be implemented on a pilot basis. The full text of the new pilot Rule may be found in the online NYMEX rulebook located on the Exchange website. AON transactions may be executed only in whole number multiples of 20 contracts, at a single trade price. AON transactions MUST be preceded by an AON Request for Quote (RFQ). The initiating floor member must announce interest by requesting an AON bid or offer and must specify the total quantity and contract month of the RFQ. Any floor member may respond to the RFQ. Bids and/or Offers responding to the RFQ will be posted on a separate wallboard. AON bids or offers may be at, above or below the prevailing bid or offer for non-AON contracts for that futures contract month. AON Bids and Offers will expire thirty (30) seconds after being announced in the ring. AON Bids or Offers from several counterparties may be aggregated to comprise the AON RFQ transaction size. A Floor Broker may include Non-AON orders in response to the AON RFQ. If the floor broker's total of orders is less than the requested amount, the responding broker may include contracts for the broker's his own account to make up the difference between orders and the requested AON quantity. Members may join together for their proprietary accounts in bidding or offering in response to an AON RFQ. All AON orders will be accepted on a Not Held basis. AON executions must be marked on a member's trading cards with the designation "R" and the associated pit card must be signed by a Floor Committee Member. AON trades will be disseminated by outside vendors as a type "B" trade. AON orders may be crossed in accordance with Exchange cross trade procedures. AON orders or executions will not affect non-AON orders. AON's will not elect stops, violate limits etc. of non-AON orders, bids or offers. AON trades are not permitted during the opening, closing or post-close periods. AON trades will not be considered in establishing Average Weighted Price (AWP) settlement prices. Please call David Schneiderman, Director Trade Practice Surveillance at (212) 299-2857, Nancy Minett, Vice President Compliance, at (212) 299-2940, or Thomas LaSala, Senior Vice President, Compliance and Risk Management at (212) 288-2897 if you have any questions.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com