Notice to Members
Notice No. 114
03/14/2005
Revised Broker Incentive Program (NX)
In order to continue to build liquidity and activity in our NYMEX Clearportsm Clearing and Execution facilities and demonstrate the Exchange's long-term commitment to its relationship with the Intermediary community the original terms under the "OTC Broker Incentive Plan" are modified as described herein:
  1. Eligible Participants
    Intermediaries on the NYMEX Clearportsm execution and clearing systems respectively. Intermediaries, as described below, must physically enter orders or transactions into one of the NYMEX Clearportsm systems in order to be eligible for participation in the program.

    • Voice Brokers, Floor Brokers, IBs, APs, and FCMs who submit matched trades to the NYMEX Clearportsm clearing systems for 3rd parties
    • CFTC/NFA registrants who submit orders to, and which are executed on, the NYMEX Clearportsm trading platform.


  2. Excluded Participants
    Principals who submit trades or executed orders for their own, or a proprietary, account, are excluded from participation in the program

  3. Excluded Platform(s)
    NYMEX ACCESSsm and its successor with respect to any floor traded products are excluded from this program.

  4. Term: Six (6) years commencing January 1, 2005

  5. Payments
    • Payments shall be made quarterly.

    • For NYMEX Clearportsm clearing services, an intermediary (on behalf of a 3rd party excluding proprietary accounts) submitting a matched trade, which clears successfully, will receive 25% of the net clearing fees charged by the Exchange. The Exchange in its sole discretion will decide any disputes arising about the identity or affiliation of the party entitled to the program fee.

    • For NYMEX Clearportsm execution services, an intermediary (on behalf of a 3rd party excluding proprietary accounts) submitting an order which is executed will receive 25% of the net clearing fees charged by the exchange for the transaction. In the event both orders to the executed trade were submitted by one or two intermediaries, each will receive 25% of the net fees.

    • Payments shall be made latest 30 days past the end of each quarter.

    • The Exchange retains the exclusive right to determine its fees; however, the percentages described above will not be reduced during the term of the program.

As part of this agreement, all intermediaries shall continue to be required to provide the NYMEX Research Department with daily settlement data for those contracts that are requested. The Exchange retains the right to withhold Incentive plan payments as described under this Notice from those participants that do not comply with the request for data.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com