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Enron Mail |
Notice No. 00-353
October 11, 2000 TO: COMEX Division Floor Community FROM: Michael Campanelli, Vice President, Floor Operations, COMEX Division RE: New Trading Card Recordation Procedures Related to the Implementation of th= e=20 Trade Management System (TMS) on COMEX For trading card images mentioned as examples in the text below, please ref= er=20 to: http://www.nymex.com/refernce/notices/ntm_353.htm Introduction As you are aware, in the near future, the Exchange plans to merge the two= =20 divisions onto one trade processing platform. The COMEX Division will=20 replace its On-Line Trade Entry (OLTE) system with the NYMEX Trade Manageme= nt=20 System (TMS). While final details are being determined; certain procedural aspects of the= =20 transition process can begin. Therefore, effective immediately, the followi= ng=20 should be considered: Single Sided Concept The source document for TMS will be the trading card. Floor staff will=20 collect the original white copies and forward them to the Exchange Trade Da= ta=20 Entry area where operators will key the sell side trades. The trading card= s=20 will no longer be forwarded to the Primary Clearing Members (PCM=01,s); ins= tead=20 they will be retained by the Exchange (THIS WILL BEGIN WITH TMS=20 IMPLEMENTATION ON COMEX). Each sell side will generate a buy side. The=20 broker=01,s staff will be responsible for Account Assignment, Trade Checkou= t and=20 Corrections (in addition, for buy side trades it will be necessary to add t= he=20 execution time). Implementation In accordance with the implementation of TMS, members must begin to use new= =20 trading card recordation procedures developed to facilitate data input. Implementation Schedule The COMEX Division will implement TMS for ALL COMMODITIES in the near futur= e. WE ASK THAT ALL MEMBERS BEGIN USING THESE RECORDATION PROCEDURES IMMEDIATEL= Y,=20 to ensure readiness when TMS implementation takes place. This will allow members to familiarize themselves with the new recordation= =20 procedures and enable the Exchange=01,s Trade Processing staff to review th= e=20 handwriting/recordation techniques of the COMEX Division=01,s membership pr= ior=20 to launch. During this interim period, if necessary staff will contact=20 members regarding their handwriting or lack of adherence to procedures. In= =20 addition, staff will begin to familiarize members=01, clerks with TMS=20 functionality. Spread Processing TMS will process all the legs of a spread as one transaction. To accomplis= h=20 this it is essential for the broker to clearly designate seller status on t= he=20 trading card when he/she is the seller of the spread (see recordation=20 procedures noted below). This indication will inform data entry personnel t= o=20 enter the entire spread (buy and sell components). Opposite buy spreads (n= ot=20 keyed by the Exchange) that are linked to a seller status will be generated= =20 by the system. NOTE: When submitting cards for data entry, the differential must be=20 indicated or it will be rejected. If the differential is noted without=20 prices for either leg, the system will assign the appropriate market pricin= g=20 to both legs based on the most recent price reports. If the differential i= s=20 noted along with the price of one of the legs, the system will assign an=20 appropriate price to the other leg. Recordation Procedures For the purpose of standardization within the community, the following=20 trading card recordation procedures must be used by the brokers: ALPHA CODES ONLY *TMS does not recognize numeric broker codes, therefore use only the=20 appropriate alpha broker codes for trading card recordation and trade=20 processing. SPREADS (MULTIPLE LEG TRADES) *Place the value of the spread (differential) in the bottom portion of each= =20 entry line=01,s center field. Circle the spread value. This will inform da= ta=20 entry personnel that the trade is a spread (see e.g. 1). NOTE: Failure to place a circled differential in the spread box will result= =20 in the entry of the sell leg only as an outright trade. *Place a slash through the circled differential if you are the buyer of the= =20 spread. This will inform data entry personnel to ignore the spread (see e.= g.=20 2). *Attach a line to either of the above mentioned indicators when a multiple= =20 leg spread is involved; for example: Butterflies; this will convey that al= l=20 the components are part of one entity (see e.g. 3). CABINET TRADES *Place "CAB" or "C" in the premium column (see e.g. 4). CONVERSIONS *Place the option components on one line. The futures component price must= =20 be written on the next line, across the Strike and Premium columns (see e.g= .=20 5). MATCHED ORDERS *Place "MO" in the price column (see e.g. 6). Trades submitted to the Exchange as MO transactions will initially receive= =20 the previous day=01,s settlement prices until the current day=01,s settleme= nt=20 prices are determined and immediately applied. EXCHANGE FOR PHYSICAL "EFP=01,S" *Place "EFP" or "E" in the (SPD) box (bottom portion of each entry lines=20 center field) (see e.g. 7). Crossing of Orders Place a "Y" in the spread (SPD) box (see e.g. 8 line A), except when crossi= ng=20 an EFP, at which time the letters "EFP" must be indicated instead. (see e.= g.=20 8 line B). Additionally, it will not be necessary to denote a "Y" for cros= s=20 trades that require the recordation of a differential. Note: The clearing information related to a short code that is data entere= d=20 by the Exchange will only apply to the sell portion of the cross trade. Th= e=20 buy side will require subsequent allocation in a typical manner. Strip Trades Place the beginning and ending months in the month columns of successive=20 trade lines, with the average price indicated in the price column. Write= =20 *STRIP* adjacent to the bracketed trade data to highlight the trade type fo= r=20 data entry personnel. (see e.g. 9). Note: The reccommended recordation procedures for various additional types = of=20 trades are shown in examples 10 through 20. Short Codes When it is possible the account area on the card should be used to indicate= =20 the appropriate short code. The Exchange will data enter the sellers short= =20 code and the corresponding account assignment information will be generated= . Note: When a short code is provided as part of spread sellers sell leg=20 information, the allocation will be applied to both the sell leg and the bu= y=20 leg. If the buy is intended for the same customer but a different clearing= =20 member, a reallocation will be necessary. Trading Months 1st occurrence - month symbol 2nd occurrence - circled month symbol Beyond 2nd occurrence - month symbol plus the last digit of the appropriate= =20 year. Trading Card Submission Requirements Cards must be submitted within 15 minutes of the time of execution of the= =20 first trade (buy or sell) recorded on the card. For example a trade execut= ed=20 at 10:15 a.m. must be submitted no later than 10:30 a.m. Submission=20 performance will be monitored by the Exchange and those brokers deemed=20 non-diligent will be subject to disciplinary action. Note: Cards that include trades executed during either the close or=20 post-close, must be submitted within 5 minutes of the bell marking the end = of=20 each period. Trading Ring Change Submission Procedure Cards must be submitted to the ring in which the trades appearing on them= =20 were executed. Therefore, in cases when a broker intends to leave one ring= =20 to trade in another, prior to leaving if he/she has a partially completed= =20 card it must be submitted in the ring he/she is departing. Trading in a Multiple Commodity Ring Trades that are recorded on a trading card that differ from the commodity= =20 indicated on the heading of the card, should include the commodity name, fo= r=20 example: ALUMINUM, written adjacent to the trade details on the same entry= =20 line (see e.g. 21). Audit Trail Timing Every trade whether buy or sell, must have an accurate trade time. There i= s=20 no change to the audit trail timing methodology. Just as is current=20 practice, the execution times indicated by the broker on his/her trading=20 cards will continue to be compared to the Exchange Times and Sales as well = as=20 the opposite broker=01,s execution times. Questions?????? If you have questions regarding the new trading card=20 procedures please call Michael Campanelli at (212) 299-2072 or David Sherma= n=20 at (212) 299-2061. THE EXCHANGE WILL BE CONDUCTING PROCEDURAL DIFFERENCES CLASSES IN THE NEAR= =20 FUTURE. ATTENDANCE WILL BE MANDATORY FOR BOTH BROKERS AND THEIR CLERKS. A= =20 SCHEDULE WILL BE FORTHCOMING. __________________________________________________ Please click on the link below to indicate you have received this email. "http://208.206.41.61/email/email_log.cfm?useremail=3Dtana.jones@enron.com&= refdo c=3D(00-353)" Note: If you click on the above line and nothing happens, please copy the text between the quotes, open your internet browser, paste it into the web site address and press Return.
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