01/04/2007
Questions regarding this amendment should be directed to NYMEX Customer Service at (800) 438-8616.
(Deletions are in Bold/
Rule 11.63, Electronic Trading Error Trade Procedures
(A) NYMEX Customer Service Call Center Trade Cancellation Authority
The Exchange's trade cancellation policy authorizes the NCSCC to mitigate market disrupting events caused by the improper or erroneous use any electronic trading system authorized by the Exchange system or by system defects by adjusting trade prices or canceling ("busting”) trades. For the purposes of this rule, the term "Alternative Electronic Trading System" shall mean any electronic trading system which NYMEX Division or COMEX Division products are traded. Further, both an "Alternative Electronic Trading System" and NYMEX ACCESS® shall be considered an "Authorized Electronic System" for purposes of this rule. Notwithstanding any other provisions of this rule, the NCSCC may also adjust trade prices or cancel any trade if the NCSCC determines that failure to adjust the price or cancel the trade may have a material, adverse effect on the integrity of the market. The decision of the NCSCC shall be final.
(B) Review of Trades
The NCSCC may review a trade based on its analysis of market conditions or upon a request by a user of an authorized electronic system. Whenever an Electronic Trader or Authorized Terminal User believes that he or she executed a trade through an Alternative Electronic Trading System in error as a result of an error ("Error"), the Electronic Trader or Authorized Terminal User or a representative of the firm that is a party to the trade must contact the NYMEX Customer Service Call Center ("NCSCC") immediately. Except as provided in Section (F) below, if a potential user Error is observed by or brought to the attention of the NCSCC within ten (10) minutes after the trade occurs, the following procedures will apply:
(C) Trade Price Adjustment and Cancellation Process
The NCSCC staff will determine whether the trade price is within the No Bust Range as defined in section (D) of this rule. During fast market conditions, upon the release of significant news events, or in other circumstances in which the NCSCC determines it is appropriate, the NCSCC may temporarily double the published No Bust Range with prior notice to the market. In applying the No Bust Range, the NCSCC shall determine the actual or implied market price for that contract immediately before the trade under review. The NCSCC may consider any relevant information, including but not limited to the existing market conditions, the volatility of the market, the prices of related instruments in other markets, the last trade price on an Authorized Electronic Market, a better bid or offer price, a more recent price in a different contract month, the price of the same or related contract established in open outcry trading and any other factors that the NCSCC deems relevant.
(1) Trade Price Inside the No Bust Range
If the trade price is within the No Bust Range then the trade will stand.
(2) Trade Price Outside the No Bust Range
a. Implied Futures Contract Execution(3) Liability for Losses Resulting from a Price Adjustment or Trade Bust
If the NCSCC determines that a trade price is outside the applicable No Bust Range, the NCSCC will have the option to adjust the trade price to a price that equals the actual or implied market price for that contract at the time of the questioned trade, plus or minus the standard or doubled No Bust Range, as may be applicable. Further, the NCSCC shall maintain the option to bust the leg of the trade where appropriate depending on the circumstances. The NCSCC will promptly issue an alert indicating that the prices of the trades outside the No Bust Range have been busted or adjusted to the No Bust Range limit.
For example, if the standard No Bust Range for Crude Oil is 25 points above and below the market price, all trade prices outside the No Bust Range shall be adjusted to the applicable No Bust Range limit, i.e., 25 points above or below the market price.
b. Non-Implied Contract Execution
If the NCSCC determines that the trade price is outside the No Bust Range, the NCSCC shall have the option to bust the trade or to adjust the trade price where appropriate depending on the circumstance. The NCSCC will promptly issue an alert indicating that trades outside the No Bust Range have been busted or adjusted to the No Bust Range Limit.
A party responsible for entering an order that results in a trade price adjustment shall not be liable for losses incurred by persons whose trade prices were adjusted.
(4) Schedule of Administrative Fees
A fee for each Error trade cancelled in accordance with this rule shall be charged to the party responsible for such Error trade as follows:
(1) $500 for each of the first three (3) instances within one calendar year;
(2) $1,000 for each of the next three (3) instances within one calendar year; and
(3) $2,000 for each instance thereafter within one calendar year.
(D) No Bust Ranges
| Contract Outrights | # Ticks From Market | Minimum Tick Size | $ per Tick |
| Crude Oil (1000 Barrels) | 25 | ||
| Petroleum Products (42,0000 Gallons) | 48 | ||
| Natural Gas | 20 | ||
| Electricity | 40 | ||