10/12/2005
The Exchange recently implemented amendments to NYMEX Division Rule 6.90 to permit a broker's clerk to submit EFP and EFS transactions to the Exchange on his or her employer’s behalf. Under the rule, as amended, a clerk may prepare a pit card that is not among the sequentially numbered trading cards used by the broker for the relevant day's trading, indicating the terms of the trade, labeling the pit card as "EFP/EFS only" and submitting the card to the late submissions window. The amendments to NYMEX Division Rule 6.90 enable a floor broker’s clerk to submit "IXA" trades (Inter-Exchange Arbitrage Transactions), as permitted under NYMEX Rule 6.21B, to the Exchange in the same manner as EFP and EFS transactions.
The amendment becomes effective October 12, 2005.
(Additions are in bold/italics; deletions in bold
NYMEX Rule 6.90, Trading Card Procedures
(A) A Floor Member shall regularly and promptly record all transactions that he executes on a sequentially numbered trading card pre-printed and issued by the Exchange. The Exchange shall maintain a record of all trading cards issued to such Floor Member. Each member shall be accountable for maintaining the original soft ply of all trading cards issued to such member in exact numerical sequence, including soft plies which are not used by the Floor Member or collected by the Exchange. Where the transaction is an EFP
(B) All trading cards shall show the Member's symbol, the date, price differential or premium, quantity, commodity, delivery month or expiration date, the opposite Floor Member, and, for options, the strike price, and whether the transaction involved a put or a call. With the exception of trades executed during the opening or closing ranges, members shall record the exact time of execution to the minute of the first trade made on each trading card. Members shall identify on their trading cards all trades executed during the opening and closing ranges by marking a line across the card below all transactions executed during the opening and above all transactions executed during the closing range. All transactions must be recorded in exact chronological order of execution on sequential lines of the trading card without skipping lines between trades. If any lines remain after the final transaction has been recorded on a trading card, they shall be marked through by the Floor Member. EFP/EFS/IXA transactions may be recorded on a separate non-sequentially numbered trading card.
(C) Trading Cards may be collected by the Exchange, at such times and pursuant to such procedures as may be adopted by the Board.
(D) The hard ply of the trading card shall be used to report the sale of futures and options contracts within 1 minute of execution in accordance with Exchange Rule 6.10. Additionally, if any hard ply contains only purchases of futures or options contracts, the Floor Member must submit the hard copy ply of the trading card to the Exchange prior to using the next sequentially numbered trading card. EFP/EFS/IXA transactions must be promptly submitted to the Exchange and may be submitted by a clerk provided however, that submission by a clerk must be made to the corrections area only. No transaction other than an EFP/EFS/IXA may be recorded or submitted by a clerk.
(E) Members (or for EFS/EFP/IXA A transactions, their clerks) shall use non-erasable ink when recording transactions on trading cards. Errors on trading cards may be corrected by placing a single line through the erroneous information such that the erroneous information remains plainly readable, or by rewriting the trading card; provided, however, that Members shall be required to maintain all trading cards, including trading cards containing EFP/EFS/IXA transactions recorded by clerks and those that have been rewritten. Floor Members may be exempt from personally retaining their trading cards if written notice, from their FCM or Member Firm employer, is given to the Compliance Department acknowledging that it is the custodian of a Floor Member's daily trading records (i.e. trading cards, and customer order memoranda).
Remainder of the Rule (Sections F through H) are unchanged.