Effective for trade date November 10, 2008, the CME Group NYMEX Division is effecting amendments to NYMEX Rule 6.21C, Block Trades, to incorporate block trading at the current day's settlement price and otherwise in conformance with trading at settlement ("TAS") Rules 6.40B and 11G.30. The amendments pertain to all NYMEX Division contracts which dually support both TAS pricing as well as block trades. The eligible contracts are CL, HO, RB, NG and BB. Further, submission of such transactions will be supported on both the trading floor and through the NYMEX ClearPort® Trade Entry Portal.

In connection with the modification to NYMEX Rule 6.21C, certain housekeeping amendments were needed for NYMEX Rules 6.40B and 11G.30. Specifically, both rules were amended to clarify that TAS transactions done either on the trading floor or on Globex® could be done at price increments ranging from 10 (ten) ticks higher or 10 (ten) ticks lower than the current day's settlement price. NYMEX Rule 11G.30 was amended to delete the Unleaded Gasoline Futures contract (HU) that is no longer available for trading. NYMEX Rule 6.40B was further amended to delete the prohibition on TAS crosstrades, which is impractical in light of existing market conditions.

In addition, all parties to a TAS transaction are reminded that in connection with the use of a TAS-related product, NYMEX Market Regulation has issued prior Compliance Advisories regarding use of these instruments and trading done in the underlying market.
Notice No. 07-417 dated August 22, 2007 states:
Members are reminded that misuse of TAS or MO trades to acquire a position in order to unfairly effect or attempt to unfairly effect a settlement price subject the member and/or the customer to disciplinary action for any of a number of rule violations including but not limited to attempted price manipulation, disruptive trading, wash trading, or conduct substantially detrimental to the exchange. Investigation of suspected manipulative pricing involving TAS will focus on the percentage of TAS positions acquired by a trader, group or traders or customer(s) and whether the offset of that position during the close was disruptive, collusive, and/or caused or attempted to cause aberrant price movement in the close.
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Should you have any questions or require any further information, please contact ExchangeInformation@cmegroup.com.