08/08/2003
Specifically, Section (C) of Rule 11.03 addresses the trading privileges and duties and obligations of non-members that have been designated by the Exchange as "Electronic Traders" and the restrictions on such non-member firms' terminal operators ("Authorized Terminal Users") with respect to entering orders into NYMEX ACCESS®.
In general, to restate the basic principle noted above from the perspective of a non-member, the Authorized Terminal Users of a non-member Electronic Trader are restricted to proprietary trading for that non-member firm.
The limited exceptions apply to Commodity Trading Advisors, Commodity Pool Operators, and certain persons related to the Sydney Futures Exchange and the Hong Kong Futures Exchange as defined in Section (D). Absent these exceptions, non-member Electronic Traders trading on NYMEX ACCESS® are prohibited from executing orders on behalf of others.
Market users are reminded that violation of NYMEX Rules could lead to disciplinary action or denial of access to such electronic systems as described in the NYMEX System User Agreement, which is executed by all Electronic Traders for NYMEX ACCESS®.
If you have any questions concerning these procedures, please contact Thomas LaSala, Senior Vice President, Compliance and Risk Management, at (212) 299-2897, Nancy Minett, Vice President, Compliance, at 299-2940, or Bob Dagistino, NCSCC Help Desk at 1-800-438-8616.
11.03 Scope of Trading Privileges
Only Electronic Traders and their Authorized Terminal Users may enter orders on NYMEX ACCESS®, as follows:
(A) Except as otherwise provided in this rule, an Electronic Trader may enter orders on NYMEX ACCESS® for that Electronic Trader's own account or for the account of others.
(B) Except as otherwise provided in this rule, or unless an Authorized Terminal User is also an Electronic Trader, an Authorized Terminal User may enter orders on NYMEX ACCESS® only for an account of his employer, his employer's firm or customers of his employer or employer's firm. Authorized Terminal Users who do not otherwise qualify as an Electronic Trader may not enter orders on NYMEX ACCESS® for any account in which the Authorized Terminal User has an ownership interest.
(C) An Authorized Terminal User for a Non-Member Firm, commodity trading advisor or commodity pool operator may enter orders on NYMEX ACCESS® only for the account(s) of such firm, commodity trading advisor or commodity pool operator that employs him or for the accounts managed by such commodity trading advisor or commodity pool operator that employs him. Except as provided in subsection (D), an Electronic Trader that is not a Member or Member Firm or employed by a Member, Member Firm, Clearing Member, commodity trading advisor or commodity pool operator may enter orders on NYMEX ACCESS® only for her or his own account and an Authorized Terminal User employed by such Electronic Trader may enter orders only for the account of the Electronic Trader that employs him or her.
(D) (1) For Class A Member Electronic Trading Privileges-A person who is an authorized:
(a) SYCOM trader that is a Floor Member or Local of the Sydney Futures Exchange ("SFE") or employed by a Floor Member or Local of SFE; or
(b) Member of the Hong Kong Futures Exchange ("HKFE") or employed by a Member of the Hong Kong Futures Exchange;
and is, or is employed by, an Electronic Trader who is authorized to trade the contracts available to Class A Members may enter orders for his own account, the account of his customer(s), the account of his employer or the account of customers of his employer in the contracts of the Exchange , subject to the terms of the Energy Products Access Agreement between the Exchange and SFE (the "EPAA"), or the Agreement between the Exchange and the HKFE, as applicable.
(2) For COMEX Division Electronic Trading Privileges-A person who is an authorized:
(a) SYCOM trader that is a Floor Member or Local of the Sydney Futures Exchange ("SFE") or employed by a Floor Member or Local of SFE; or
(b) Member of the Hong Kong Futures Exchange ("HKFE") or employed by a Member of the Hong Kong Futures Exchange;
and is, or is employed by, a designated holder of electronic trading privileges in the COMEX Division may enter orders for his own account, the account of his customer(s), the account of his employer or the account of customers of his employer in the contracts of the COMEX Division, subject to the terms of the EPAA, or the Agreement between the Exchange and the HKFE as applicable.
(c) Any other grant of electronic trading privileges to enter customer orders in gold, silver, copper or Eurotop contracts to any person that is not a Member or employed by a Member, Member Firm, Clearing Member, NYMEX ACCESS® Trading Firm of the COMEX Division, commodity trading advisor or commodity pool operator, including by any renewal, or extension of the EPAA or any agreement with any other exchange (but excluding the grant of option trading rights to option members contemplated by Section 5.17 of the Merger Agreement) shall be treated as a Special Matter, in accordance with New COMEX By-Law 205(D)(6).
(d) The adoption of, and any amendment to, this Rule 11.03(D)(2), or the adoption of any new rule or amendment to any other rule that limits, modifies or otherwise alters this Rule 11.03(D)(2), and that permits customer trading rights in gold, silver, copper or Eurotop contracts shall be treated as a Special Matter, in accordance with New COMEX By-law 205(D)(6).