• Amendment to NYMEX/COMEX Rule 524 (Trading at Settlement (TAS), Trading at Marker (TAM) and Matched Order (MO) Transactions)

      • To
      • Members, Member Firms and Market Users
      • From
      • Research and Product Development
      • #
      • SER-7387R
      • Notice Date
      • 17 June 2015
      • Effective Date
      • 05 July 2015
    • Please be advised that (pending all relevant CFTC regulatory review periods) information described in this SER related to the elimination of the open outcry trading venue will become effective beginning at 4:46 p.m. (Eastern Time)/3:46 p.m. (Central Time) on July 6, 2015.

      (This SER supersedes SER 7387 dated May 28, 2015 to amend the effective date from trade date June 22, 2015 to trade date July 6, 2015).

      Effective Sunday, July 5, 2015 for trade date Monday, July 6, 2015, and pending all relevant CFTC regulatory review periods, New York Mercantile Exchange, Inc. (“NYMEX”) and Commodity Exchange, Inc. (“COMEX”) (collectively, the “Exchanges”) will implement an amendment to Rule 524 (“Trading at Settlement (“TAS”), Trading at Marker (“TAM”) and Matched Order (“MO”) Transactions”) in order to facilitate TAS trades in spot month Copper futures to be executed on CME Globex for pricing solely at the settlement price (hereinafter referred to as “TAS Flat”) effective on Sunday, July 5, 2015 for trade date Monday, July 6, 2015.  All other TAS-eligible products, including the first and second active months in COMEX Copper futures, may be executed at the settlement price or any valid price increment ten ticks higher or lower than the settlement price. 

      As previously announced, CME Group will close most of its futures trading pits by July 2, 2015.  As a result of this action, MO transactions in Copper futures will be eliminated.  Therefore, COMEX is enabling TAS Flat pricing in spot month Copper futures.  MO Transactions are a pricing convention that allows orders to be executed via open outcry solely in the Copper futures trading pit in the spot month and the next six consecutive contract months at any time during the trading session for pricing at that day’s yet-to-be-determined settlement price. 

      Chapter 5
      Trading Qualifications and Practices
      (additions are underscored)


      The Exchange shall determine the commodities, contract months and time periods during which TAS, TAM and MO transactions shall be permitted.

      524.A.   Trading at Settlement (“TAS”) Transactions

      The following shall govern TAS transactions:

      1.   TAS transactions executed in the pit must be made open and competitively pursuant to the requirements of Rule 521 during the hours designated for pit trading in the particular contract and must be identified as such on the member’s trading records.

      2.   TAS orders may be entered on Globex at any time the applicable contracts are available for TAS trading on Globex and during each TAS contract’s prescribed pre-open time period. The initiation of any TAS order on Globex outside these time periods is prohibited.

      3.   TAS-eligible commodities and contract months may be executed as block trades pursuant to the requirements of Rule 526 except that TAS block trades may not be executed on the last day of trading in an expiring contract.

      4.   Unless otherwise specified by the Exchange, TAS transactions may be executed at the current day’s settlement price or at any valid price increment ten ticks higher or lower than the settlement price.

      [The remainder of the Rule is unchanged.]


      Questions regarding this notice may be directed to:

      Joann Arena                               +1 212 299 2356                         Joann.Arena@cmegroup.com

      Youngjin Chang                          +1 312 466 4637                         Youngjin.Chang@cmegroup.com

      Fred Penha                                +1 212 299 2353                         Frederick.Penha@cmegroup.com

      Sandra Ro                                 +44 203 379 3789                                   Sandra.Ro@cmegroup.com