03/26/2007
Please make note of the following key procedural modifications starting on April 2, 2007.
- COMEX brokers will continue to use the current trading cards, and the card will continue to be the source document for data entry (see new trade recordation procedures).
- COMEX broker clerks will continue to perform data entry functions (sell side only). The buy side will be generated. The broker's staff will also be responsible for account assignment, trade checkout and corrections (in addition, for buy side trades it will be necessary to add the execution time).
* IMPORTANT! The price structure used in TMS for the Data Entry of Gold Futures and Options is as they appear in the Price Reporting System (PRS), for example:
Data Entry ComparisonProductCurrent OLTENew TMSGC659006590OG850850
- Alpha codes only – TMS does not recognize numeric broker codes; therefore use only the appropriate alpha broker codes for trading card recordation and trade processing.
- As-of resolution will be performed by broker clerks instead of clearing members for voids, price changes and as-of omits (trades never processed and/or cleared on trade date). Broker clerks will complete forms and submit them to Exchange staff in the Trade Processing Room.
Note: The movement of a cleared trade from one clearing member to another will continue to be done by clearing members, however instead of the current cancel/as-of procedure, the on--line trade transfer function via TMS will be utilized.
*Please be aware that any unmatched trades from a market that has moved from OLTE to TMS must be processed as an as-of via TMS trade entry by Exchange staff.
- WHO functionality will no longer exist. Verbal checking, e-mails, claims from a buyer, and ring announcements are among the methods used by the NYMEX Division to determine unknown opposite brokers.
- Short codes have been transferred from the OLTE system to the TMS system, and it should be noted that those short codes which contain special characters, for example an asterisk, will be transferred, however, you will need to change any special characters to standard letters and/or numbers.
Note: Short codes from TMS will take precedence over OLTE's short codes, if there are any duplicated short code(s) added to OLTE after the transfer, must be manually added to TMS.
- Average pricing will not be available at this time.
- Brokers who want all their trades to clear at one account, can arrange for this through the Membership Department by asking to be set-up for Auto-Allocate status.
- TMS training sessions are held every Tuesday, Wednesday and Thursdays at 2:00 PM in room 424. If you have any questions regarding the training session, please contract John Lemkan at 212-299-2443.
In accordance with the implementation of TMS, members must use the following new trading card recordation procedures developed to facilitate data input and minimize the occurrence of duplications.
WE ASK THAT ALL MEMBERS begin using these RECORdation procedures immediately, to ensure readiness when TMS implementation takes place.
This will allow members and their staff to familiarize themselves with the new recordation procedures prior to launch. In addition, staff will begin to familiarize members' clerks with TMS functionality.
TMS will process all the legs of a spread as one transaction. To accomplish this it is essential for the broker to clearly designate seller status on the trading card when he/she is the seller of the spread (see recordation procedures noted below). Typically, for futures the seller of the spread is the broker selling the premium or higher priced leg, for options the seller is the broker who is collecting the premium on the trade. This indication will inform the clerk to enter the entire spread (buy and sell components).
For the purpose of standardization within the community, the following trading card recordation procedures must be used by the brokers:
ALPHA CODES ONLY
- TMS does not recognize numeric broker codes; therefore use only the appropriate alpha broker codes for trading card recordation and trade processing.
- Place the value of the spread (differential) in the bottom portion of each entry line's center field. Members must circle the spread value, to denote seller status of a spread (see e.g. 1).
Note: Failure to circle the differential in the spread box will result in the entry of the sell leg only as an outright trade.
- If you are the buyer of the spread. Place a slash through the circled differential if you are the buyer of the spread. This will inform broker clerks to ignore the spread (see e.g. 2 & e.g. 3).
- Place the option components at the beginning. The futures component price must be written on the next line, across the Strike and Premium columns (see e.g. 4).
*Note: When entering the trades, use the appropriate futures/options product codes.
- Draw a line from either of the above mentioned indicators when a multiple leg spread is involved; for example: Hedges; this will convey that all the components are part of one trade (see e.g. 5 & e.g. 6).
Crossing of Orders
The clearing information related to a short code that is data entered by the trader clerk will apply to the contract being sold. The buy side will require subsequent allocation in a typical manner.
Note: The trade recordation procedures for trade types not listed have not been changed but please remember that only the SELLER inputs the trade.
Trade Submission Requirements
Trades must be entered into TMS within 15 minutes of the time of execution. For example a trade executed at 10:10 AM must be submitted no later than 10:25 AM. Submission performance will be monitored by the Exchange and those brokers deemed non-diligent will be subject to disciplinary action.
Audit Trail Timing
Every trade whether buy or sell, must have an accurate trade time. There is no change to the audit trail timing methodology. Just as is current practice, the execution times indicated by the broker on his/her trading cards will continue to be compared to the Exchange Times and Sales as well as the opposite broker’s execution times.