11/11/2003
COMEX Rule 4.47 is being amended to increase the spot month position limit for the Aluminum futures contract from 350 contracts to 750 contracts. The increased limit is in compliance with CFTC Regulation 150.5(1) which states that spot month position limits should not exceed 25% of deliverable supply. The current warranted aluminum warehouse stocks are greater than 138,000 short tons, or over 6,000 contract equivalents. Also, as a safeguard, the following footnote, similar to that already in place for Copper, will be added to the proposed rule:
To the extent that for a period of three consecutive trading days there is either (1) a backwardation of price between the first month and next most active month (first month's price above the nearest active month's price); or (2) registered stocks which fall below 5,000 contact equivalents, the limits in place for the first month shall be reduced to 350 contracts at the close of business three trading days later unless decided otherwise by the Control Committee.COMEX Rule 4.47 for Copper futures is also being amended to conform with CFTC Regulation 150.5(1). The Rule, as presently written, would not mandate reduction in the spot month level until after Copper stocks had been reduced to a level where the spot month position limit represented 50% of deliverable supply (5,000 contract limit effective until the market falls to 10,000 contracts, deliverable supply). Currently, COMEX stocks of Grade 1 Copper are approximately 24,800 contract equivalents.
Lastly, COMEX Rule 4.46, Reporting Requirements, is being amended to convert the reporting levels for Gold, Silver and Copper options contracts to the CFTC's file format for daily Large Trader reporting.
With the exception of the amendments to COMEX Rule 4.47 for Aluminum Futures, the proposed amendments to COMEX Division Rules 4.47 and 4.46 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.
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Rule 4.47, "Position Limits"
(bold indicates additions;strikethrough indicates deletions)
Rule 4.47, "Position Limits"
(bold indicates additions;
(b) Applicable Limits. The maximum number of futures contracts, options on such futures contracts, or any combination thereof (collectively referred to as "position") which any person may own or control is as follows:
| Commodity | Spot Month Limit | Net Futures Equivalent Limit |
| Gold | 3,000 | Subject to Position Accountability |
| Silver | 1,500 | Subject to Position Accountability |
| Aluminum | Subject to Position Accountability | |
| Copper | 5,000*** | Subject to Position Accountability |
* Effective as of the close of business on the second last business day of the calendar month preceding the delivery month.
** To the extent that for a period of three consecutive trading days, there is either: (1) a backwardation of price between the first month and next most active month (first month's price above nearest active month's price); or (2) registered stocks which fall below 5,000 contract equivalents, the limits in place for the first month shall be reduced to 350 contracts at the close of business three trading days later unless decided otherwise by the Control Committee.
*** To the extent that for a period of three consecutive trading days, there I either: (1) a backwardation of price between the first month and next most active month (first month's price above nearest active month's price); or (2) registered stocks which fall below
Rule 4.46, "Reporting Requirements"
(b) Reporting Levels. All positions which equal or exceed the levels prescribed below ("reportable positions") shall be reported to the Exchange:
| Future | # of contracts long or short in any one contract month |
| Gold | 200 |
| Silver | 150 |
| Copper | 100 |
| Aluminum | 25 |
| Option | # of any one type of contract (long call, short call, long put, short put) in any one expiration |
| Gold | |
| Silver | |
| Copper | |