Effective April 13, 2010, the New York Mercantile Exchange, Inc. (NYMEX) and the Commodity Exchange, Inc. (COMEX, and collectively the Exchanges) are implementing an amendment to Chapter 7A, Rule 7A.04 (“Metals Rules for Electronic Warrants – Warrants”) by extending the time frame provided to an Exchange Licensed Facility for its assessment of the commodity and issuance of a warrant, pending the result of the assessment, from “one business day” to “three business days”. This amendment is intended to provide an Exchange Licensed Facility with a more reasonable schedule to conduct the assessment of the commodity.
(Strikethrough indicates deletion; underscore indicates addition)
Metals Rules for Electronic Warrants
(A) Existing Paper Warrants Issued by Licensed Facilities. At the date of conversion and implementation of the electronic delivery system, those paper warrants issued by licensed facilities will no longer be acceptable for delivery against the respective Exchange contracts. Existing paper warrants will be converted to electronic warrants at the date of conversion upon written approval by the owner of such warrant. Once the date of conversion occurs, existing paper warrants will no longer be deliverable on the Exchange and therefore are not subject to the Rules of the Exchange.
(B) Procedures for the Issuance of Warrants. All Warrants issued by a Licensed Facility must be issued in the name of an Exchange Clearing Member and must be in a format approved by the Exchange.
one three business days from receipt of any Commodity at a Licensed Facility, the Licensed Facility must (a) determine such Commodity's Eligibility, (b) advise the owner if the Commodity is determined to be not Eligible, and (c) if requested by the owner and provided the Commodity meets the Contract specifications, issue a Warrant. If, due to capacity limitations or any other reason, a Licensed Facility is unable to meet such requirements, the Licensed Facility shall notify the Exchange and shall describe the reason(s) for such delay.
[remainder of rule chapter is unchanged]
Please refer questions on this subject to:
Energy & Metals Research:
Robert Levin firstname.lastname@example.org 212.299.2390
Joann Arena email@example.com 212.299.2356