06/26/2003
At its meeting on May 15, 2003, the NYMEX Board of Directors determined to implement a COMEX Division Proprietary Fee Reduction Program ("Program") for the time period of May 1, 2003 through July 31, 2003. Notice No. 03-227 issued May 16, 2003 announcing the Program omitted certain information regarding the operation of the Program. Please disregard Notice No. 03-227 and use the more complete information below.
COMEX Division Member Firms and individual members who own or ABC Full seats will have their COMEX Division fees reduced by 12 cents per round turn (6 cents per trade side). The aggregate amount to be paid under the Program for the period May 1, 2003 through July 31, 2003 is capped at $100,000. In the event that the number of transactions eligible for the Program causes the cap to be exceeded, the actual fee reduction per transaction side will be reduced from 6 cents to an amount that causes the aggregate payment under the Program to equal $100,000.
Because of the aggregate cap, payments to members under the Program cannot be made until the actual rate per transaction side is determined. Payments for the Program will be made on or about August 31, 2003. Accordingly, Clearing Members who clear Member Firm trades should NOT adjust their billing systems as directed in Notice No. 03-227. The Exchange will issue payment to such Clearing Members either through a credit to their clearing bill or through a check, whichever is deemed more expeditious when the actual amount of the rate per transaction side is determined.
Clearing Members clearing floor members' accounts also should NOT adjust their billing systems for such individual members. The Exchange issues payments directly to individual members based upon their trading activity.
To ensure proper credit for Type 3 trades, floor members who execute Type 3 trades are reminded that it is required that the executing member report the proper account number of the receiving member on the OLTE trade input.
Should you have any questions regarding this matter, please contact M. Dawn Lowe or Donna Talamo at (212) 299-2370.