Notice to Members
Notice No. 231 05/23/2003
Revision to Rule 6.20 — Transfer Trades, Office Trades
The following revision to NYMEX Rule 6.20, Transfer Trades, Office Trades, which governs ex-pit transactions, was recently approved by the Board of Directors, and is effective immediately. Presently, the Rule allows trades to be transferred (provided they meet the criteria set out in the Rule) only at "the original date and price, or premium" of the original trade. The revision gives Staff discretion to approve the transfer with other terms, giving Staff the flexibility to approve transfers at the settlement price, for instance. The revised Rule is as follows: (A) Transfer trades are limited to trades made upon the books of a Member or Member Firm for the purpose of: (i) transferring existing trades from one account to another within the same office, or between different offices of such Member or Member Firm, where no change in ownership is involved. The transferred trade must be recorded and carried at the original date and price, or premium, or as otherwise approved in advance by the exchange, on the books of the receiving Member or Member Firm; or (ii) transferring existing trades from the record of one Member or Member Firm to the record of another futures commission merchant when no change in ownership is involved, provided that no such transfer shall be made after receipt from the Clearing House of notice of intention to deliver on such trades or the issuance by such Member or Member Firm of a Notice of Intention to Accept, or in the case of options contracts after receipt from the Clearing House of notice of exercise and assignment on such trades. The transferred trade in the transferee's office must be recorded and carried at the original date and price or premium. (B) Every person handling, executing, clearing, or carrying trades or contracts which are not competitively executed, shall identify and mark by appropriate symbol or designation all such transactions or contracts and all orders, records, and memoranda pertaining thereto.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com