Notice to Members
Notice No. 452 12/18/2003
Amendments to NYMEX Rules 9.26 and 9.27 Regarding e-miNY Percentages, Language Corrections, and Platinum Position Limits Effective December 30, 2003
At their respective meetings, the Board of Directors and Executive Committee reviewed and approved the following changes to NYMEX Division Rules 9.26, All Month/Any One Month Position Accountability, and 9.27, Expiration and Current Delivery Month Position Limits or Position Accountability. (1) The e-miNY Crude Oil and Natural Gas contracts' size, relative to their respective big contracts, was changed from 40% to 50% effective with the December 2003 contract. Consequently, the appropriate changes are made to Rules 9.26 (2)(C) and 9.27 (B). (2) Rules 9.26 and 9.27 are amended such that the New York Harbor Heating Oil and NY Harbor Unleaded Gasoline Calendar Swap contracts' accountability levels and position limits are combined with those of the respective Heating Oil and Unleaded Gasoline futures contracts. This is consistent with the way the WTI Crude Oil Calendar Swap is currently treated in these Rules. Also, a minor correction was made to the Henry Hub Swap and WTI Calendar Swap wording in Rule 9.26 where the word "limit" was used instead of "level." (3) The current platinum warehouse stocks are 204 warrants. However, the current delivery month position limit for platinum is 700 contracts (Rule 9.27 (D) (ii)). During the past twelve months platinum warehouse stocks were as follows: November 2002 through June 2003, platinum stocks averaged approximately 165 with a sharp increase in July 2003 to 640 until a precipitous decline to 200 in October 2003. Consequently, the above limit is reduced to a more appropriate level of 200 contracts. The Platinum position limit reduction to 200 contracts is effective with the January 2004 contract. The January 2004 spot limit commences close of business December 30, 2003, and continues through the last trading day on January 27, 2004. Any market participant with a net futures position above the new 200-contract limit, but below the previous 700 contract limit, will be grandfathered for the January 2004 contract only. Such participants will, however, be prohibited from increasing that position. Further, any participant at or below the 200-contract limit must remain in compliance of the newly imposed limit. As always, the Exchange will entertain commercial market participants' applications for exemptions, but all applications must be submitted prior to the commencement of the spot month period. A copy of the amended rules is attached.
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