12/09/2005
In connection with this new Rule, any Member in the Crude Oil ring who is qualified for position on a particular step which is higher than the one he/she occupies, such Member may alert Exchange Floor Operations Staff of their desire not to move up. Vacancies on steps based on a Member's decision not to move up will be filled on the basis of calculations as prescribed in NYMEX Rule 8.21A. Further announcements regarding a cut-off date for re-allocation of available space where an eligible Member elects not to move up will be made in the Crude Oil ring.
Questions regarding this matter should be directed to George Henderson, Vice President, Trading Floor Operations, at (212) 299-2071, Robert Stasi, Director, Trading Floor Operations, at (212) 299-2067, Thomas LaSala, Senior Vice President, Compliance and Risk Management, at (212) 299-2897, or Nancy Minett, Vice President, Compliance, at (212) 299-2940.
NEW NYMEX RULE 8.21A
("Maintenance of Health and Safety in Exchange Trading Rings")
A) No Floor Member may stand on the top step, second step (or as necessary lower steps) of a NYMEX Division trading ring unless such Floor Member is presently authorized to occupy such step of the applicable trading ring by NYMEX staff. For each trading ring, NYMEX staff, in consultation with the Facilities Committee, and as may be phased in on a ring-by-ring basis in the sole discretion of the Exchange, shall initially determine the maximum number of actual Floor Members who can reasonably and safely occupy the top step, second step and as necessary any other step of that ring.
B) (1) Based upon such safety calculations, Exchange staff then will determine those Floor Members who may stand on the applicable rings based solely upon the following criteria (reviewing, on a monthly basis, trading volume (including TAS transactions but not including any non-competitive transactions such as EFP, EFS or IXA) data for the immediately preceding three-month period or such other period as may be set by Exchange staff):
(a) for the top step, total customer volume executed by a Floor Member except that no Member Firm and no billing entity may have more than three affiliated Floor Members on either of the two sides of a ring;In relation to the top step, for any ring where the Exchange has implemented the provisions of this rule, no Floor Member thus will be authorized to stand on the top step if such Member's trading is limited to trading solely for his own proprietary account.
(b) for the second step, total trading volume executed by a Floor Member;
(c) as necessary, for lower steps in the applicable ring, total trading volume executed by a Floor Member.
(2) While the calculation for top step volume will be made on the basis of customer volume executed by individual brokers, the Exchange will permit reasonable substitutions for a broker by a Member Firm or billing entity with whom the broker is affiliated, provided that either the broker or the Member Firm or billing entity has for purposes of this rule given notice to the Exchange of such affiliation.
(3) Floor Members shall have the right to request a further review or reconsideration by Exchange staff of any determination affecting them or their Member Firm or billing entity, and any such requests must be submitted in the form and manner as provided by the Exchange, provided, however, that the filing of any such request for reconsideration will not excuse or justify any noncompliance with this rule.
C) No Floor Member may stand on a step after being notified by the Floor Committee that the Floor Member is not authorized to stand on that step.
D) The Floor Committee may impose summarily on any Floor Member in violation of this rule a Warning Letter and/or a fine of not less than $1,000 dollars but not more than $2,500 for each violation of this Rule, and violation of this Rule 8.21A for each new trading session shall constitute a separate violation, provided that, in the event of repeated violations by a Floor Member, the Floor Committee may determine to refer such Floor Member to the Business Conduct Committee for further action. Any fines issued pursuant to this Rule may be appealed in the same manner and under the same procedures set forth in Rule 8.21.