Notice to Members
Notice No. 481 10/14/2005
Refco, LLC — Reminder of Exchange's Role as Central Counterparty in Clearing
As noted in prior Notice No. 05-480 dated October 13, 2005, Refco, LLC is a Clearing Member of NYMEX and remains in good standing. NYMEX Rule 9.12 ("Substitution") has long established that, upon the Exchange’s acceptance for clearance of contracts offered to it by Clearing Members, the Exchange, in effect, will assume the financial obligations of the buyer to the seller and of the seller to the buyer. In other words, trades processed for clearing at NYMEX from any venue, including RTH, NYMEX ACCESS®, NYMEX ClearPort® Clearing, and NYMEX ClearPort® Trading by parties opposite, for example, an account carried at Refco, LLC, are, upon clearance, effectively opposite NYMEX. The above is also true for any transactions that NYMEX clears under its clearing services agreement with NYMEX Europe Limited.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com