| The Executive Committee approved a pilot program in the PJM ring to test handheld
electronic trading pads scheduled to begin June 1, 2004. NYMEX Rules currently
contain various requirements for Floor Members with respect to the recording and
submission of information on pit cards and trading cards. In connection with the
rollout of the wireless handheld pilot project, various NYMEX Division rules pertaining
to pit cards and trading cards are amended to reflect record recordation and retention
on an approved handheld trading pad. Most significantly, a provision in Rule 6.90
has been added (see text below) that would exempt a Floor Member using an Approved
Handheld from the general audit trail requirements specific to trading card preparation.
This is appropriate given the Approved Handheld’s capability to automatically
satisfy the underlying objectives of these requirements. Other conforming changes,
referenced below, will add the term “Approved Handheld” and specify
that various data that must be noted on trading cards or pit cards, such as spread
differentials or strip transaction prices, must be recorded on an Approved Handheld
by a Floor Member using the device and that the records created using an Approved
Handheld would be treated in the same manner as trading cards and pit cards.
(Bolding indicates additions.)
Rule 6.90 (F) Notwithstanding the foregoing, the Board of Directors of the
Exchange may approve for use by a Floor Member a handheld electronic trading
pad (“Approved Handheld”) to regularly and promptly record all transactions
that he executes, which produces a sequential, unalterable record of trades
executed by the Floor Member and which complies with the information and record
retention rules and requirements of the Exchange.
Other conforming changes will be made to the following rules:
References to pit cards:
6.07(D), 6.07A (B), 6.08A (A)(2), 6.08B (C), 6.10 (F) and 6.18(B)(ii)
References to trading cards:
6.08D (C), 6.10 (F), 6.12 (C), 6.17(C), (F)(1) and (F)(3), 6.40(C), 6.42(A),
6.51(D), 6.57(E) and 6.57A(F)
Note that Rule 6.42, which addresses documentation of cross trades, will require
a member using an approved handheld to prepare a separate written document for
cross trade approval.
|
