08/08/2008
In order for Palladium (PA) contracts to be deliverable through EDS, the physical paper warrants must be delivered to the respective storage facility via a bonded carrier. The storage facility will convert the physical warrants into electronic warrants. Beginning August 19, 2008, each storage facility will be accepting Palladium (PA) physical warrants for conversion. On August 28, 2008, the first issuance day for Palladium (PA) contracts for the September 2008 delivery period, any physical warrant for this contract not converted to electronic warrant will become undeliverable.
At August 19, 2008 and forward, as your firm is submitting physical warrants to the storage facilities for conversion, you can ascertain the progress of the conversion by reviewing the Migration Report for your firm. On August 28, 2008, the NYMEX Clearing Department will notify each Clearing Member when the August 2008 delivery period has ended and the September 2008 delivery period has commenced. At this point, each Clearing Member must perform the Certification of Electronic Warrants and Customer Information related to each electronic warrant, if necessary in EDS. Certification of these converted warrants must be performed to obtain deliverable status in EDS. Upon signon to EDS, the Dashboard will reflect if your firm has any pending certification of electronic warrants.
Customer Responsibility
Attached are two letters. Your firm's customer must execute the first letter in order to proceed with warrant conversion:
- PHYSICAL WARRANT CONVERSION AUTHORIZATION – this letter authorizes the Clearing Member to endorse the paper warrants to the applicable storage facility for conversion to electronic warrants. (If this letter is not signed, the metal will no longer be deliverable against Exchange contracts once the metal is converted to electronic warrants.)
- OFF EXCHANGE WARRANT CONVERSION AUTHORIZATION
- this letter authorizes the Clearing Member to endorse the electronic warrants to the applicable storage facility for conversion to material held in the account of the customer. (This letter is not mandatory and shall only be used if one wants to make their metal undeliverable against Exchange contracts.)
Platinum, Copper and Aluminum
Beginning September 15, 2008, each storage facility will be accepting Platinum (PL), Copper (HG) and Aluminum (AL) physical warrants for conversion.
On September 29, 2008, the first issuance day for Platinum (PL), Copper (HG) and Aluminum (AL) contracts for the October 2008 delivery period, any physical warrant for these contracts not converted to electronic warrant will become undeliverable.
Gold and Silver
Beginning October 1, 2008, each storage facility will be accepting Gold (GC) and Silver (SI) physical warrants for conversion.
On October 30, 2008, the first issuance day for Gold (GC) and Silver (SI) contracts for the November 2008 delivery period, any physical warrant for these contracts not converted to electronic warrant will become undeliverable.