Notice to Members
Notice No. 306 06/08/2006
Preparation of Floor Order Tickets in the Context of Side-by-Side Trading
The Exchange is issuing this Notice as guidance regarding the preparation of floor order tickets in the context of side-by-side trading. For all orders received on the trading floor, a written hard-copy memorandum must be contemporaneously prepared that conforms to the order ticket preparation requirements of CFTC Regulation 1.35 and NYMEX Rule 6.18 (see below). This requirement shall apply to any order received on the floor, regardless of whether it is for execution in the ring or on Globex® (including an order that can be immediately input). Further, in the case of a Globex® order, a notation must be made on the memorandum indicating that it is for execution on Globex®. Also, if discretion over venue is given by a customer, this must be indicated on the order ticket by adding the notation "DV." The venue on which the order was ultimately executed must be included in the endorsement of the fill. *     *     *     * NYMEX Rule 6.18 - Numbering and Time Stamping Orders (A)(i) When an FCM receives an order from a customer a memorandum of the order shall be made in non-erasable ink which shall identify the customer by symbol or account number and shall be time stamped when received and time stamped when a report of the execution is made, and, in addition, in the case of option customers' orders, the memorandum shall be time stamped to the nearest minute the order is transmitted for execution on the floor. (ii) When a Floor Member, FCM, Member Firm, or Floor Brokerage Business receives an order, on the Exchange Floor, from a customer, a memorandum of the order shall be made in non-erasable ink which shall identify the customer by symbol or number and which shall be time stamped when received and time stamped when a report of the execution is first made. The Floor Member, FCM, Member Firm or Floor Brokerage Business shall indicate the customer account number, clearing member number and customer type indicator code on transfer information furnished to the Exchange. (B)(i) When an order is received from a Member who is on the floor of the Exchange and trading for his own account or an account controlled by such Member (a Type 3 trade), a memorandum of the order shall be made by the executing broker in non-erasable ink which shall be numbered, or identified by symbol and shall identify the Member initiating the order by symbol or account number and which shall be time stamped when received and time stamped when the report of execution is made. (ii) The requirements of paragraph (B)(i) shall not apply to transactions that are executable as part of intermarket spread transactions or options offset transactions, provided that the Member initiating the order personally executes one or more legs of the transaction and the transaction is recorded on a pit card or an Approved Handheld that is submitted to the Exchange within one minute of execution in accordance with the requirements of Rule 6.10(A). However, with respect to all Type 3 trades, the executing floor broker shall indicate on the transfer information required by the Exchange to be submitted in conjunction therewith, the alpha code (badge symbol) of the Member on whose behalf the trade was executed. (C) Floor Members who execute customer and Type 3 orders on the Exchange floor must retain one ply or copy of the customer order memorandum or Type 3 order memorandum, if applicable, in accordance with Exchange Rule 8.50(A). Floor Members may be exempt from this requirement if written notice, from an FCM or Member Firm, is given to the Compliance Department acknowledging that it is the custodian of a Floor Member's daily trading records.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com