11/06/2006
The New York Mercantile Exchange "NYMEX" or "Exchange") proposes to implement procedural changes related to NYMEX Rule 6.02, "Hours for Trading," and Rule 6.03, "Call," with respect to certain energy futures contracts. The proposed procedural changes include the following:
- NY Harbor products futures contracts, Heating Oil (HO), Unleaded Gasoline (HU), and Gasoline Blendstock (RB) will open at 10:00 AM, similar to the existing time for Crude Oil (CL). Previously these contracts opened at 10:05 AM.
- Additionally, the opening procedure of all energy futures will be to allow
initial months to remain open while subsequent months are opened (i.e., December
06 CL will remain open while January 07 CL opens). Also, spread trading between
months that have been opened will be permitted.
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NOTE: The proposed changes in procedures for the Hours of Trading and the Opening Call in Open Outcry Trading Sessions for Energy Futures Contracts 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 procedures of any kind for Core Products is a "Special Matter," subject to approval by the owners of Class A Memberships. This procedural 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: