Notice to Members
Notice No. 562 12/09/2005
Addition of Exchange Employees to COMEX Settlement Committees
At their respective meetings on November 29 and December 7, 2005, the Executive Committee and Board of Directors approved a proposal from the COMEX Governors Committee to install Staff to serve as a voting member with veto authority over the daily settlement prices in all COMEX Futures markets. This action is similar to the previous recommendation to install Staff in a similar capacity in COMEX Options markets. Implementation of the inclusion of staff on the Settlement Price Committees will start with High Grade Copper Futures and expand to other rings. The proposed amendment to COMEX Division Rule 104.89 affects a "Special Matter" under the terms of the COMEX By-Laws. Accordingly, COMEX Division Members have ten (10) days to submit a petition signed by owners of at least 155 COMEX Division Memberships requesting a vote of the COMEX Division Members to disapprove the amendments, pursuant to the procedures set forth under COMEX By-Law 205(D). If a petition is not received, or if the amendment is not disapproved, it will be submitted to the Commodity Futures Trading Commission. *     *     *     *    * (Additions are italicized in bold; Deletions are in bold strikethrough.) COMEX Division Rule 104.89, Settlement Price Committee (A) The Settlement Price Committee, which shall be a Regular Committee, shall consist of such members and permittees as the Chairman may appoint with the consent of the Board. Additionally, one (1) Exchange employee will be a voting member of the Committee in the Silver Options Contract, and High Grade Copper Futures (additional Futures and Options contracts to be added as Staff is available). The Exchange employees shall have final authority in all instances to veto and override price determinations made by the Committee. The Committee shall be divided into sub-committees for each futures and options contract traded. To the extent possible, each sub-committee shall consist of at least six (6) Members, at least one of whom shall be a Floor Broker, one of whom shall be a Floor Trader, and one of whom shall represent trade interests (either personal, of his employer, or of a substantial customer base). (B) At the conclusion of the RTH trading session on the Exchange Floor each day, settlement prices shall be determined for every contract listed. (C) The Settlement Price Committee, or any subcommittee thereof, shall have the authority to request from any member representing that certain market information should be considered in the determination of a settlement price, such documentation as it deems appropriate including, but not limited to, trading cards and order tickets.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com