Notice to Members
Notice No. 308 06/08/2006
Appropriate Use of Suspense Accounts for Globex® Order Entry
The Exchange is issuing this Notice as guidance regarding the permissibility of using "suspense accounts" in lieu of actual account numbers when entering orders for NYMEX contracts into Globex®. The following procedures define the permissible use of suspense accounts in NYMEX order entry on Globex®. (This guidance describes procedures for use of suspense accounts that are substantially the same as those described by the CME in its Market Regulation Advisory Notice No. RA-05-01, which was released on February 2, 2005.) Use of suspense accounts is acceptable for clearing firms, for execution operations that give-up orders to other clearing firms, and for entry of bunched orders by Eligible Account Managers which are to be allocated in accordance with CFTC Regulation 1.35(a-1)(5) and NFA's Interpretive Notice related to Compliance Rule 2-10. An order ticket must be created any time an order is received on the NYMEX trading floor, whether such order is for open-outcry execution or for input on Globex®. Any such order (other than orders eligible for post-execution allocation) must contain a complete account identifier, notwithstanding the fact that a suspense account is used for order input on the Globex® system. Further, if an order for NYMEX contracts is received for execution on Globex® off the trading floor and is input on Globex® using a suspense account, an order ticket must be contemporaneously prepared that includes a complete account identifier. Additionally, by the end of the trading day, the ultimate customer account designation must be entered into the clearing system.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com