06/17/2003
Identification of Customer on Order Ticket Required
When an order from a customer is received on the Exchange Floor, a written order ticket must be created in accordance with NYMEX Rule 6.18(A)(ii). Please note that the Rule requires that the order "shall identify the customer by symbol or number..." It is unacceptable to use a symbol or number to identify an Account Executive or a Trading Desk. Likewise, if an authorized cash broker or other authorized account manager is relaying orders on behalf of customers who maintain active futures accounts, a symbol or number identifying the beneficial owner of the account (the customer) or allocation scheme is required for each order. The symbol or number must correspond to an individual customer or allocation scheme, not to the person or desk placing orders for customer accounts.
Account Number Necessary for Transfer to TMS; Short Code Exception for Machine Orders
Further, NYMEX Rule 9.04(M) requires that "[t]ransfer information containing a customer account number, clearing member number and customer type indicator code, shall be submitted to the Exchange by the executing Floor Member within one hour after the initial transfer information is supplied by the Exchange." An exception is made when the order in question is a machine order. If acceptable to the receiving clearing member, the executing floor entity may allocate to a general account to effectively bundle the machine orders for purposes of transfer within TMS. The short code and/or general account number must be preceded by the letter "M".
FAILURE TO COMPLY WITH THESE RULES MAY RESULT IN DISCIPLINARY ACTION.
Any questions regarding this Notice should be directed to George Henderson, Vice President, Floor Operations, at (212) 299-2071, or David Schneiderman, Director, Trade Practice Surveillance, at 299-2857.