Notice to Members
Notice No. 473 09/01/2006
Amendments to NYMEX Settlement Rules 6.52, 6.52A, 6.52B, 6.53 and 6.51, Settlement Price Committee
On August 30, 2006, the Transition Committee, authorized by the Board of Directors to adopt settlement rules in connection with the launch of side-by-side physical trading on CME GLOBEX® on September 4, 2006 for trade date September 5, 2006, has approved implementation of the attached settlement rules that are relative to all affected markets, including CL, NG, HO, HU, RB, PN, PL and PA (NYMEX Rules 6.52, 6.52A, 6.52B and 6.53). The amendments achieve the following: incorporate electronic trades into the weighted average settlement price in contract months that would qualify for such handling; delete the use of TAS transactions (where applicable) in qualifying a contract month for weighted average price treatment, and otherwise make clear that the spot month will always be settled on a weighted average in CL, NG, HO, HU, RB and PN; and generally rely upon spread values determined on the trading floor for all other months, but if relevant, the Settlement Price Committee may, in its discretion, utilize electronic trade information for such months. Additionally, the Settlement Committee, by way of procedure, will exercise discretion in potentially including or excluding the pricing data between the venues if they believe it to be erroneous or not generally indicative of value. It should be noted that Compliance Staff currently have voting rights and veto authority on the Settlement Committee for both CL and NG, and will have similar authority in HU, HO and RB (NYMEX Rule 6.51) by the implementation date. Click to View Revisions to NYMEX Settlement Rules
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com