Notice to Members
Notice No. 269 05/23/2006
Proposed Elimination of Price Fluctuation Limit Rules for Listed COMEX Contracts
COMEX price fluctuation limit rules have remained largely unchanged over the last 15 years, even as the prices for commodities have increased during that period and competition has intensified from electronic markets that do not appear to utilize any price limits on daily trading. In order to better facilitate the core functions of price discovery and hedging provided by COMEX products, the COMEX Governors Committee and NYMEX Board of Directors have both recently voted unanimously to eliminate all price fluctuation limits for listed COMEX products. With regard to COMEX rules, this would result in the deletion from the Exchange rulebook of the following COMEX rules that currently establish price limits respectively for gold, silver and copper (Rules 113.10, 112.14 and 111.43). The proposed deletion of these price fluctuation limit rules 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 (CFTC).
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com