• Amendments to NYMEX Rule 704.B (Storage of Metals - Storage and Handling Charges) and Administrative Amendments to NYMEX Chapter 7 (Delivery Facilities and Procedures)

      • To
      • Members, Member Firms and Market Users
      • From
      • Market Regulation Department
      • #
      • SER-7009
      • Notice Date
      • 07 February 2014
      • Effective Date
      • 10 February 2014
    • Effective Monday, February 10, 2014, and pending all relevant CFTC regulatory review periods, the New York Mercantile Exchange, Inc. (NYMEX or Exchange) will implement amendments to Chapter 7, Rule 704.B (Storage and Handling Charges) for metal licensed facilities.
      The amendments will: (1) require regular facilities seeking to amend their storage and handling charges to make application to the Exchange for the desired change; and (2) allow the Exchange, in its sole discretion, to approve application of changes to storage and handling charges by regular facilities.  The Exchange will continue to provide the marketplace with a 90-day notice period prior to implementation of changes to storage and handling charges; however the amendments provide that the Exchange shall approve such changes. The amendments are set forth below, with additions underscored and deletions overstruck.  
      In addition, also effective Monday, February 10, 2014, the Exchange will incorporate the current storage and handling charges for regular metal facilities (base and precious metals), which are currently published on the CME Group website, into the Interpretations & Special Notices Relating to Chapter 7 (Delivery Facilities and Procedures). The Exchange is also reformatting the Interpretations & Special Notices Relating to Chapter 7 by providing its contents in Excel format for ease of use for market participants. 
      If you have any questions concerning this matter, please contact Nadine Brown in the Market Regulation Department at 212.299.2223.
      704.                  STORAGE OF METALS
      704.B.    Storage and Handling Charges
      In the event a Licensed Facility wishes to change its fees, the Licensed Facility shall make application for the desired change on a form prescribed by the Exchange. The Exchange, in its sole discretion, may determine to not approve the requested changes.
      Changes to fees shall be effective provide the Exchange with at least ninety (90) days after the Exchange posts a notice that a bona fide application has been approved. prior written notice of any changes and such notice shall itemize each proposed increase. The proposed fee increases may become effective on the first calendar day of the month following the ninety (90) day notification period.
      For media inquiries concerning this Special Executive Report, please contact CME Group Corporate Communications at 312.930.3434 or news@cmegroup.com.