Notice to Members
Notice No. 508 11/20/2007
Amendment to Rule 6.21A, Section (E), Addressing Documentation Requirements
The Board of Directors has approved an amendment to Rule 6.21A, Exchange of Futures for, or in Connection with, Swap Transactions (EFS), Section (E), addressing documentation requirements. With the introduction of NYMEX ClearPort® Clearing, the requirement to make available a master swap agreement in response to an Exchange request to verify the legitimacy of an EFS transaction is no longer universally applicable as many customers do not have such an agreement. The rule was amended to include confirmations supplied by brokers as documentary evidence relating to the legitimacy of the EFS. This amendment is effective on Wednesday, November 21, 2007. * * * (Italicizing indicates additions; strikethroughs indicate deletions (E)(1) Each buyer and seller must satisfy the Exchange, at its request, that the transaction is a legitimate EFS transaction. Upon the request of the Exchange, all documentary evidence relating to the EFS, including a master swap agreement if such agreement exists or confirmations supplied by brokers and any supplements thereto, shall be obtained by the Clearing Members from the buyer or seller and made available by the Clearing Members for examination by the Exchange. Additionally, if the buyer or seller is a Member/Member Firm, the Exchange may obtain the information directly from such person(s).
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com