Notice to Members
Notice No. 69 02/02/2006
Reminder of Exchange Rules Regarding Reporting of Metal Warehouse Stocks
On January 20, 2006 the Exchange issued Notice to Members Number 06-39 which announced the effective date for the Panama City Port Authority, Panama City, Florida to become an Exchange Licensed Warehouse for copper. This Notice to Members informed the Membership that commencing February 6, 2006 the Exchange would be reporting official copper stocks, both Warranted and Not on Warrant, for this facility. In this Notice to Members, the Exchange also reported on the tons of copper housed in that facility as of January 20, 2006. Certain market participants have informed the Exchange that some copper at this facility is "in-transit" and that it should not be reported since it may not acceptably represent the level of material that might be delivered against the Grade 1 Copper Futures Contract. However, in accordance with Exchange Rules 7.07 and 7.11, outlined below, "all metals must be reported even though they are not weighed into contract units or indications given by the storer that they are intended for Exchange delivery." These rules will be reviewed at the February 15, 2006 meeting of the Exchange's Non-ferrous Metals Committee. Please be reminded that the following New York Mercantile Exchange, Inc. Rules 7.07 and 7.11 apply to the reporting of stocks in Exchange licensed metals warehouses. 7.07 What Constitutes One Warehouse For purposes of delivery of metals upon contract by warehouse or vault receipts, one warehouse or vault shall be understood to mean a single warehouse or vault; or, a number of contiguous warehouses or vaults comprising one system of warehouses or vaults under one name or management; or warehouses or vaults or systems of warehouses or vaults that are in juxtaposition to each other, though bearing different names, when such warehouses or vaults are adjoining and contiguous to each other and are all managed or operated by one firm or warehouseman. 7.11 Reporting Receipts and Withdrawals All warehouses licensed by the Exchange shall report all receipts and deliveries of metals tenderable against Exchange contracts on forms furnished by the Exchange, or facsimiles thereof, prior to the time designated by the Exchange. All metals bearing an approved brand included in the official lists of the Exchange should be included in the report, including cathodes of an approved refiner. Copper in bond must be reported. All metals must be reported even though they are not weighed into contract units or indications given by the storer that they are intended for Exchange delivery. The report shall be sent on the day any change occurs in the stock. REPORTS SHOULD NOT BE WITHHELD AND ACCUMULATED WITH ANOTHER DAY'S RECEIPTS OR WITHDRAWALS. The tonnage actually received in or withdrawn from the warehouse each day must be reported the same day. For warehouses outside the Port of New York, transmission of the reports by fax is required. A check on the 15th of each month of your records against actual inventory should be made to uncover any possible error or omission in previous reports. These rules explicitly do not distinguish either metals in transit or separate parts of a warehouse facility. These rules will be reviewed at the Exchange's February 15, 2006 Non-ferrous Committee meeting.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com