The following amendment to Exchange Rule 11.63, Electronic Trading Error Trade Procedures, has been reviewed and approved by the Board of Directors at its August meeting, and is effective immediately. Presently, any error on a NYMEX electronic trading system must be reported within ten minutes in order to be reviewed and addressed by the NYMEX Error Trade Committee. This time restriction may be unduly limiting in situations where a trade is so far away from the market that its existence would call into question the integrity of the overall market and would tend to distort the trade register information disseminated to the public. The rule amendment gives the Exchange a mechanism to rectify these "clearly erroneous trades" whose discovery falls outside of the 10-minute window for reporting an error.
Amendment to Rule 11.63 - Electronic Trading Error Trade Procedures
(F) Clearly Erroneous Trades Brought to the NCSCC Attention Outside 10 Minute Window. If any transaction is brought to the attention of or is otherwise identified by NCSCC Staff as clearly erroneous and thus inconsistent with the maintenance of overall integrity in the marketplace, Staff shall be authorized to assemble an Error Trade Committee for the purpose of determining whether to cancel or bust such transaction regardless of whether the notification occurred outside the prescribed 10-minute notification period.
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