The Board of Directors approved the attached amendments to NYMEX Rules 6.17, Errors and Omissions in Handling Orders, 6.17A, Spread Transaction to Rectify an Error, COMEX Rule 104.71, Resolution of Errors, Out- and “Who” Trades; and 104.71A, Spread Transaction to Rectify an Error. The amendments expand the definition of an “Error Trade” to include the failure to properly execute placed customer orders due to a bona fide clerical error in transposing a GLOBEX® order while on the Exchange floor or in an office off of the Exchange floor. These amendments will be effective November 21, 2007.
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(Bold/italics indicates additions; strikethrough indicates deletions.)
Rule 6.17, Errors and Omissions in Handling Orders
NYMEX Rule 6.17, Resolution of Errors, Out-and "Who" Trades.
(A) Errors. If a Floor Member or Member Firm has failed to execute an order placed by a customer or has made an error in handling a customer order, including failures to properly execute placed customer orders due to a bona fide clerical error in transposing a GLOBEX order, such as by under buying or under selling, and the order cannot be executed in the market at a price which is equal to that which the order should have received, the Floor Member or Member Firm may take one of the following actions:
(Remainder of the Rule is unchanged.)
Rule 6.17A, Spread Transaction to Rectify an Error
(A) In the event that a CTI Type 4 Customer order is executed in the wrong month or at the wrong strike price, including errors in execution due to a bona fide clerical error in transposing a GLOBEX order, the trade shall be referred to as an out-trade. In the event of an out-trade, a Floor Member may use a spread transaction to re-execute the order and liquidate the position created by the out-trade, provided that the Floor Member or Member Firm follows the procedures set forth in Section (B) of this Rule.
(Remainder of the Rule is unchanged.)
Rule 104.71, Resolution of Errors, Out- and "Who" Trades
(a) Errors. If a floor Member or Member Firm has failed to execute an order placed by a customer or has made an error in handling a customer order, including failures to properly execute placed customer orders due to a bona fide clerical error in transposing a GLOBEX order, such as by under-buying or under-selling and the order cannot be executed in the market at a price which is equal to that which the order should have received, the floor Member or Member Firm may take one of the following actions:
(Remainder of the Rule is unchanged.)
Rule 104.71A, Spread Transaction to Rectify an Error
(A) In the event that a CTI Type 4 Customer order is executed in the wrong month or at the wrong strike price, including errors in execution due to a bona fide clerical error in transposing a GLOBEX order, the trade shall be referred to as an out-trade. In the event of an out-trade, a Floor Member may use a spread transaction to re-execute the order and liquidate the position created by the out-trade, provided that the Floor Member or Member Firm follows the procedures set forth in Section (B) of this Rule.
(Remainder of the Rule is unchanged.) |
