06/08/2006
NYMEX Operations and Compliance Staff are aware that software, used by Clearing Members for purposes of making a reallocation permitted by the aforementioned Rule, cannot be supported for Day 1 of the NYMEX contracts on Globex® launch due to the lack of a two-way API. To facilitate permissible reallocations, NYMEX has advised Members and Clearing Members by Notice No. 06-293 dated June 5, 2006 that the "E-Clerk" functionality would be available to facilitate this process until such time as the two-way API becomes available. However, in communications coordinated by the FIA Futures Services Division, relief from the reallocation requirements of Rule 536B was requested due to the manual labor-intensive nature of the operational process.
In response to this request, reallocation of "Bunched Orders" will be permitted in the following fashion:
- The executing firm may send the ultimate clearing member the appropriate executions in the form of a "bulk" reallocation.
- This "bulk" reallocation will not contain specific customer account numbers, but instead make reference to the CTA or account controller who originated the order and which was otherwise eligible for end of day reallocation.
- The receiving firm will generally rely upon the order originator to supply the ultimate customer details for reallocation within their back-office accounting systems.
- As a backup, the executing firms will be available to supply such information to the receiving firms, as they would have had such communication from the order originator.