03/04/2005
The give-up rules and Clearing Rules applicable to both divisions require use of ATOM by floor brokers and clearing members. They also require that these parties enter into an ATOM agreement. Members may receive ATOM payments both for orders that they personally execute and for orders executed by others given up to their ATOM account. A review of ATOM billing for December 2004, however, indicated that several Option Members did receive payments for futures executed by other brokers. These payments were apparently not part of options lay-ups.
Rule 104.17 presently addresses acceptance of orders and specifically trading by Options Brokers. The suggested wording of the amendment would not prevent an options member from charging for the futures leg of a lay-up, but would prevent his/her receiving funds for outright futures trades. The proposed rule amendment follows.
The proposed amendment to COMEX Division Rule 104.17(f) 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. To view the proposed amendment, click here.