06/04/2004
The proposed amendments to COMEX Division Rules 4.47 and 4.48 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.
(Boldface indicates additions, strikethroughs indicate deletions.)
4.47 Position Limits
(a) Aggregation. The position limits established by this rule and the position accountability levels prescribed pursuant to Rule 4.48 ("Position Accountability") shall apply to all positions held by any person, including positions in any account(s) in which such person has a financial interest of 10% or more and in any account(s) for which such person controls trading (directly or indirectly, by power of attorney or otherwise); and, in the case of positions held by two or more persons acting pursuant to an express or implied agreement or understanding, the same as if all of the positions were held by a single person. For purposes of this rule, the term "person" shall mean any individual or entity.
(b) Applicable Limits. The maximum number of futures contracts, options on such futures contracts, or any combination thereof (collectively referred to as a "position") which any person may own or control is as follows:
| Commodity | Spot Month Net Limit* |
Any One Month/ All Months Net Futures Equivalent Limit |
| Gold | 3,000 | Subject to Position Accountability |
| Silver | 1,500 | Subject to Position Accountability |
| Aluminum | 750** | Subject to Position Accountability |
| Copper | |
Subject to Position Accountability |
*Effective as of the close of business on the second last business day of the calendar month preceding the delivery month.
**To the extent that for a period of three consecutive trading days, there
is either: (1) a backwardation of price between the first month and next most
active month (first month’s price above nearest active month’s price);
or (2) registered stocks which fall below 5,000 contract equivalents, the limits
in place for the first month shall be reduced to 350 contracts at the close
of business three trading days later unless decided otherwise by the Control
Committee.
(The remainder of the rule remains the same.)
4.48 - Position Accountability
The owner or controller of a net futures equivalent position in gold, silver
or aluminum which reaches or exceeds 6000 contracts and in the case of copper
exceeds 10,000 5,000 contracts shall:
(1) promptly supply to the Exchange such information as the Exchange may request pertaining to the nature and size of the position, the trading strategy employed with respect to the position, and the position owner's or controller's hedging requirements, provided, however, that if the position owner or controller fails to supply such information as and when requested, the President or his designee may request, and the Board or, upon delegation, the Control Committee may order the reduction of such position;
(2) agree, upon request by the Board or the Control Committee, not to increase the position owned or controlled as of the time the request was received; and
(3) agree to comply with any prospective limit prescribed by the Board or the
Control Committee which exceeds the size of the position owned or controlled