02/05/2003
The proposed amendments to Rule 4.02(c) conform the post-close COMEX Division procedures to the procedures of the NYMEX Division. The revised Rule allows for post-close trading in the first 12 consecutive futures months, as well as the corresponding options (if listed), at price levels which incorporate specific tick increments up or down from the entire day's trading range.
Proposed amendments to COMEX Division Rule 4.02(c) 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.
PROPOSED AMENDMENTS TO COMEX RULE 4.02(c)
(bold indicates additions;strike-outs indicate deletions.)
(bold indicates additions;
(c) Post-Settlement Session.
After the close of trading in all futures and option contracts on the COMEX Division, a post-settlement session shall commence and all applicable contracts shall resume trading for a period of three (3) minutes (the "Session"), subject to the following conditions:
(A) Trading during the Session shall be limited to the first twelve (12) listed futures delivery months and their corresponding options, if listed.
(B) Futures and corresponding options will commence trading during the Session at the same time;
(C) Except as provided in Paragraph (D) below, trades occurring during the Session for a particular contract shall be executed openly and competitively at a price within the daily trading range of the applicable contract and as further expanded above the daily high and below the daily low only for the contracts listed below provided however that no such expanded trading range may exceed the price fluctuation limits in effect for the applicable contract as of the end of the RTH session:
(D) Futures and options contracts with no daily trading range shall not be eligible for trading unless they are executed on the basis of an aggregate transaction price.
Contract Additional Ticks
Grade 1 Copper Futures and Options 3 ticks
Gold Futures and Options 4 ticks
Silver Futures and Options 3 ticks
Aluminum Futures and Options 3 ticks
(E) During the Session, Floor Members, Floor Brokers and their customers may participate in the same manner as futures trading occurring during the regular RTH session, except that any order submitted during the RTH session, including but not limited to resting orders such as stop orders, limit orders and good until cancelled (GTC) orders, will be deemed to have expired as of the end of RTH for purposes of this Session. Accordingly, in the event that a market participant with such an expired order seeks to participate in the Session, a new order must be submitted.
(F) Prices for trades executed during the Session shall be reported on public ticker services as current market prices and trades executed during the Session shall not be considered in determining any settlement price; and
(G) Floor Members executing trades during the Session shall mark a line across their trading cards prior to the entry of a Session trade.
(1) A floor member may execute trades for his own account, for the account of his member firm employer or for any affiliate of his employer, provided that the affiliate is a member firm, and for the account of another member present on the trading floor without further limitation of section (c)(2) of this Rule;
(2) During the post-settlement session, a floor member shall bid or offer all non-discretionary orders received and time-stamped on order tickets on the trading floor prior to the close of the market which, (A) with respect to futures options, were executable at the settlement price and (B) with respect to futures, were executable during the price range established by section (c)(4) and which have not been expressly withdrawn;
(3) The trade prices of all options transactions executed during the post-settlement session shall be the settlement price established for the futures option traded;
(4) Futures trades occurring during the post-settlement session shall be executed openly and competitively at a price within the following minimum price fluctuations ("ticks") above and below the settlement price of the applicable futures contract;
(A) Grade 1 Copper Futures............3 ticks
(B) Gold Futures..............................4 ticks
(C) Silver Futures............................3 ticks
(D) Aluminum Futures.....................3 ticks
In the event the range of prices during the closing range is narrower than the ranges set forth above, then the range of prices for trades executed during the post-settlement session shall be limited to the range of prices during the closing range, Furthermore, if the range of ticks set forth above exceeds the high or low price established during the post-settlement session shall be limited by either the high or low price of the closing range which was exceeded.
In the event the settlement price as determined in accordance with COMEX Rules 6.15 and 6.18 is outside the range of prices established during the closing period, all trades occurring during the post-settlement session shall be executed within the range of minimum price fluctuations above and below the settlement price of the applicable futures contract.
(5) Prices for trades executed during the Post Settlement Session shall not be reported on public ticker services as current market prices and trades executed during the Post Settlement Session shall not be considered in determining any settlement price; and
(6) Floor Members executing trades during the Post Settlement Session shall mark a line across their trading cards prior to the entry of a Post Settlement Session trade. (Rule 4.02 Amended 05/18/00).