10/10/2006
Although the NYMEX Board approved this change for membership on both the NYMEX and COMEX Divisions, until further notice from the Exchange, this proposed amendment will be implemented initially only on the NYMEX Division.
All of the rules and requirements currently applicable to other member firms similarly also would apply to these entities as well, including with respect to the number of seats, applicable member rates on Exchange fees, etc. As a note, consistent with the Exchange's practice for other member firms, eligibility would not be restricted by country of domicile or corporate organization of the fund.
The member firm would be the fund itself, and only the taxpayer id number of the named fund would be eligible for member rates. Should another fund that may be affiliated with the designated fund also seek to obtain member rates, that fund would need to apply separately to become a member firm in its own right.
Rule 2.10 MEMBER FIRM PRIVILEGES
(A) Each firm, as a condition of obtaining and maintaining Member Firm privileges, shall be required to own and or have conferred upon it two (2) Exchange memberships in each Division in which it desires Member Firm privileges. The firm shall also be required to designate one or two individuals as its "conferring Members". Conferring Members may individually own the membership(s) and or hold such memberships via ABC Agreement. In addition, until further notice from the Exchange, each NYMEX Division Member Firm shall at all times own or have pledged/conferred upon it at least 180,000 shares in NYMEX Holdings, Inc. common stock.
(B) In the case of one conferring Member, such Member shall be an executive officer, general partner or an executive officer of a corporate general partner of the firm.
(C) In the case of two conferring Members, at least one member shall be an executive officer, general partner or an executive officer of a corporate general partner of the firm; the other conferring Member need only be a bona fide full time employee of the firm.
(D) As used in this Rule, an executive officer, general partner or an executive officer of a corporate general partner must have the power to direct the affairs of the firm with respect to transactions executed on the Exchange or shall be the senior commodity officer of the firm.
(E) Trades done for the account of any parent, subsidiary, affiliate, etc. of a Member Firm, if not itself a Member Firm shall be at non-Member rates; only the firm obtaining Member Firm status hereunder may receive Member rates.
(F) Firms that are registered, or required to be registered as commodity
pool operators, under the Commodity Exchange Act and related Regulations, or
operate as commodity pools but are exempt from registration, shall not be eligible
for Member Firm status.
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NOTE: This change in membership requirements triggers the provisions of the New York Mercantile Exchange, Inc. (the "Exchange") Bylaws that were recently amended in connection with the closing of the General Atlantic transaction in March 2006, which contain new rights for owners of Class A Memberships as well as procedures to be followed for any proposed Bylaw or other changes affecting such rights. (These procedures are similar to the procedures that have been in place for nearly twelve years with regard to certain rule or product changes on the COMEX Division in relation to the NYMEX-COMEX merger agreement.)Section 311 of the Exchange Bylaws contains rights pertaining to NYMEX "Core Products", which are defined to include various listed NYMEX futures and option contracts and also to include "similar or "look-alike" contracts or successor or similar contracts or products." In particular, Section 311 provides that any change in membership requirements of any kind for Core Products is a "Special Matter," subject to approval by the owners of Class A Memberships. This membership rule change therefore constitutes a Special Matter. Accordingly, owners of Class A Memberships have fifteen (15) days from the date of this Notice to submit a petition by the owners of 82 Class A Memberships (representing at least 10% of the 816 outstanding Class A Memberships) requesting a Special Meeting of the owners of Class A Memberships to vote on the membership rule change. If such petition is not received within this time period, or if the membership rule change is approved at such a Special Meeting, the membership rule change will be deemed approved and will subsequently be submitted to the Commodity Futures Trading Commission (CFTC). A special meeting request form is attached to the end of this Notice in satisfaction of Exchange Bylaw Section 202 (B).
Inquiries regarding the aforementioned may be directed to Donna Talamo, Vice
President – Office of the Corporate Secretary, at dtalamo@nymex.com or
by fax to 212-301-4645.
RESPONSE FORM - REQUEST FOR SPECIAL MEETING
My name is _____________________ and I am the owner, either directly or by ABC,
of __________ Class A Membership(s) in the New York Mercantile Exchange, Inc.,
and I hereby request a special meeting in response to the Fee Schedule contained
in this Notice.
Signed By:
_____________________
Print Name: