04/13/2003
Rule 6.05(A)(1) states that:
Except as otherwise specifically provided in the Bylaws and Rules, all purchases, sales, bids and offers for futures and options contracts: (1) shall be executed openly and competitively by open outcry in the appropriate trading ring during the authorized hours of trading;There may be times (such as the closing range, when crossing of orders is not permitted) when the execution by open outcry trading of balanced buy and sell quantities of market-on-close ("MOC") orders results in both buy and sell executions occurring opposite one Member offering a two-sided market.
Other than exceptions specifically noted in Exchange Rules (such as EFPs), Rule 6.05(A)(1) applies to ALL open outcry trading. This includes the situation described above.
Buy and sell trades for balanced quantities of MOC orders occurring as described above MUST be executed openly and competitively at the prevailing prices in the ring at the time the trades are consummated.
Such trades that are executed in any other fashion (for example, as contingent transactions at a bid/ask spread value, with actual prices determined after the closing range is established) are noncompetitive trades that violate Rule 6.05(A)(1).
Violation of Rule 6.05(A)(1) in any circumstance, including without limitation the situation described above, may result in disciplinary action being taken against the involved Members.