08/26/2005
Please note that the program summarized below will be applicable only in London and will not apply to trading activity in the Brent contract currently occurring on NYMEX, Inc.’s branch trading floor in Dublin, Ireland.
This program for trading in Brent in London is being specifically created to help offset expenditures that said market makers will incur in helping develop liquidity for contracts listed.
| Name of Program: | NYMEX Europe Limited Brent Market Maker Program |
| Registration Deadline: | Friday, September 2, 2005, 5:00 PM GMT |
| Application Submission Information: | Applications to participate in the Brent market maker program must be submitted to the Chief Compliance Officer. |
| Commencement Date: | COMMENCEMENT TO OCCUR SUBJECT TO RECOGNITION OF NYMEX EUROPE LIMITED
BY THE FSA AND COMMENCING ON THE LAUNCH DATE OF TRADING ON NYMEX EUROPE LIMITED IN LONDON |
| Term: | 2 months, commencing on the Launch Date of NYMEX Europe Limited |
| Any extension of the market maker program to apply following the launch of the NYMEX Europe Limited trading floor in London will be subject to NYMEX Inc. and NYMEX Europe Limited Board of Directors discretion as well as appropriate regulatory review and/or approval. | |
| Eligibility: | Participation will be limited to persons/entities who: |
| (i) have demonstrated a superlative time and resource commitment to the existing NYMEX Brent contract; | |
| (ii) are members of NYMEX Europe Limited; | |
| (iii) have not been reprimanded or sanctioned by any regulatory authority or exchange within the last 5 years, and is generally of good reputation and standing within the business community; | |
| (iv) are able to demonstrate, to the satisfaction of the Board of Nymex Europe Limited, sufficient systems, controls and resources to be able to perform the role; | |
| (v) have at least 5 years' experience of actively trading on own account in energy markets; | |
| (vi) have net capital of not less than one million dollars ($1,000,000) or its equivalent in any other currency, provided that the Board may take into account up to seventy-five per cent (75%) of the fair value of any exchange seat or shares in any exchange for the purposes of determining compliance with this requirement; | |
| (vii) will commit to providing (on each business day that the contract is available for trading) continuous market-making presence on the trading floor and | |
| (viii) will commit to providing a continuous floor presence that, upon request, will make an immediate and firm bid/ask market at a reasonably competitive and justifiable spread. Except when released from their duties by NYMEX Europe Limited due to market conditions, the bid/ask market will be for 15 contracts on either side of a 5 point ($0.05) wide market. | |
| The satisfaction of these criteria in the selection process will be determined by NYMEX Europe Limited in its sole discretion. On applying for this program, applicants should demonstrate to NYMEX Europe Limited anticipated costs and expenses for which they would seek reimbursement for acting as market maker. | |
| The names of the persons selected and a statement that they met the selection criteria will be published as soon as is practicable. | |
| Following selection as market-makers, ongoing compliance with these criteria will be monitored by NYMEX Europe Limited staff. | |
| At its sole discretion, NYMEX Europe Limited will make this program available to either one (1) or a total of up to three (3) market makers, subject to the payment provisions below. | |
| Payment Structure: | NYMEX Europe Limited also reserves the right to periodically review all participants to be certain that they are complying at all times with the above criteria and reserves the right, in its sole discretion, to terminate the participation of any market maker or replace any market maker at any time with another that meets the criteria outlined in this section. |
| Persons/entities who qualify for the program will be eligible for the following payments as follows: | |
| Either: | |
| 1 Market Maker: | |
|
|
| -or- | |
| 2 (or 3) Market Makers: | |
| Payment of up to $100,000 each per month (or any portion thereof) subject to NYMEX Europe Limited’s calculation of the reasonable costs per market maker designation. | |
| The Board of NYMEX Europe Limited will decide how many market makers are to be appointed and who they are depending on their ongoing ability to fulfill the eligibility criteria. | |
| Maximum Payment shall in no case exceed $300,000 per month in aggregate. | |
| All such payments shall be approved by the Board upon written demonstration of costs directly incurred while performing the role. | |
| Limitations: | Up to three (3) Brent Crude Oil Market Makers, subject to payment provisions above. |
Implementation of all market maker programs is subject to regulatory review and/or approval by the FSA.