Notice to Members
Notice No. 162 03/22/2006
Proposed Amendments to Exchange Rules 7.07, What Constitutes One Warehouse, and 7.11, Reporting Receipts and Withdrawals
At its meeting on March 21, 2006, the Executive Committee reviewed and approved a request by the COMEX Governors Committee regarding proposed amendments to Exchange Rules 7.07, What Constitutes One Warehouse, and 7.11 Reporting Receipts and Withdrawals. The Non-Ferrous Metals Advisory Committee voted to recommend these rule changes at its February 15, 2006 meeting. The purpose of the rule changes is to provide a more representative reporting of unwarranted material. The proposed amendments to Exchange Rules 7.07 and 7.11 affect 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. *     *     *     * Proposed Amendments to Exchange Rules 7.07 and 7.11 (Strikethrough indicates deletions; bold italics indicate additions.) Rule 7.07, What Constitutes One Warehouse For purposes of delivery of metals upon contract by warehouse or vault receipts, one an approved 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 which have been specifically identified in the application for approval and all managed or operated by one firm or warehouseman. Rule 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 held by a warehouse as identified in and in compliance with Rule 7.07 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.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com