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Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: Tana Jones X-To: John Zufferli, Dana Davis, Rogers Herndon, Mike Swerzbin X-cc: X-bcc: X-Folder: \Tanya_Jones_Dec2000\Notes Folders\All documents X-Origin: JONES-T X-FileName: tjones.nsf ----- Forwarded by Tana Jones/HOU/ECT on 10/09/2000 10:11 AM ----- =09exchangeinfo@nymex.com =0910/06/2000 03:55 PM =09=09=20 =09=09 To: tana.jones@enron.com =09=09 cc:=20 =09=09 Subject: (00-347) CFTC Approval to Amend Price Fluctuation Limits fo= r=20 Trading on NYMEX ACCESS Notice No. 00-347 October 6, 2000 MEMORANDUM TO: ALL NYMEX AND COMEX MEMBERS FROM: Neal L. Wolkoff, Executive Vice President DATE: October 6, 2000 RE: Notice of CFTC Approval of Executive Committee Resolution Amending Price=20 Fluctuation Limits for Trading on NYMEX ACCESSc ____________________________________________________________________ Please be advised that the CFTC has approved a Resolution of the Executive= =20 Committee of the Board of Directors. The Resolution amends on a temporary= =20 basis a number of Exchange price fluctuation limit rules for trading on NYM= EX=20 ACCESSc so as to ensure the successful implementation of the new implied=20 order functionality on NYMEX ACCESSc. (The price fluctuation limit rules th= at=20 are now in effect for the Exchange=01,s contracts will remain the same for= =20 trading occurring during Regular Trading Hours ("RTH") on the trading=20 floor.) The Resolution is attached and will become effective with the=20 commencement of the NYMEX ACCESSc session on Sunday, October 8, 2000. By significantly expanding the price fluctuation limits applicable to tradi= ng=20 activity occurring on NYMEX ACCESSc, the Resolution reduces the possibility= =20 that a price limit would be triggered by the implied functionality. The=20 Resolution amends the Exchange=01,s price fluctuation limit rules with rega= rd to=20 trading on NYMEX ACCESSc in three ways: (1) The initial and subsequent price fluctuation limits (for each Exchange= =20 futures contract that has such limits) would be expanded to 200% of the=20 initial and subsequent price fluctuation limits applicable to the first two= =20 contract months for energy contracts, or to the first contract month with= =20 limits in effect for metals contracts, of that futures contract under the= =20 applicable rule. (2) This expanded limit (e.g., 200% of the limits for the front two months= =20 for energy contracts) would be applicable to all contract months for that= =20 futures contract. (3) In the event that an expanded price limit was touched by a bid or offer= ,=20 trading on NYMEX ACCESSc generally would be halted immediately, rather than= =20 requiring the market to trade at that price for five minutes. During the la= st=20 90 minutes of a NYMEX ACCESSc session, the market would be halted only far = as=20 long as it takes for the system to incorporate expanded price limits. Finally, notwithstanding the changes noted above, in the event that a=20 contract trading on NYMEX ACCESSc traded for five minutes at a price=20 fluctuation limit applicable to RTH trading, then the RTH session would ope= n=20 with expanded price fluctuation limits as provided under the applicable rul= e,=20 even though there had been no temporary cessation of trading during the NYM= EX=20 ACCESSc trading session. If you have any questions, please contact Stu Homler, Director, NYMEX ACCES= Sc=20 Operations, NYMEX ACCESSc Department, at (212) 299-2754, Matt Morano, NYMEX= =20 ACCESSc Department, at (212) 299-2679, or Brian Regan, Senior Associate=20 General Counsel, at (212) 299-2207. APPROVED RESOLUTION OF THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS REGARDING PRICE FLUCTUATION LIMITS FOR EXCHANGE CONTRACTS The Executive Committee of the Board of Directors hereby Resolves that, until further notice, the price fluctuation limit rules for= =20 each futures contract that is listed for trading on NYMEX ACCESSc and that= =20 has such applicable rules shall continue in effect except as amended below= =20 with regard to market activity occurring on NYMEX ACCESSc: The initial and subsequent price fluctuation limits (for each Exchange=20 futures contract that has such limits) shall be expanded to 200% of the=20 initial and subsequent price fluctuation limits applicable to the first two= =20 contract months of that futures contract that have price limits under the= =20 applicable rule. This expanded limit (200% of the limits for the first two months with limit= s)=20 shall be applicable to all contract months for that futures contract. In the event that such a price fluctuation limit is reached by a bona fide= =20 bid at the high price fluctuation limit or a bona fide offer at the low pri= ce=20 fluctuation limit, trading on NYMEX ACCESSc shall be halted immediately=20 except as directed otherwise by the President or the President=01,s designe= e. =20 Following resumption of trading, the price limits in effect shall be 200% o= f=20 the limits applicable to RTH trading. In the event that a limit is touched= =20 during the last 90 minutes of a NYMEX ACCESSc session, the market shall be= =20 halted briefly, and price limits shall be expanded thereafter In addition, in the event that a contract trading on NYMEX ACCESSc traded f= or=20 five minutes during the NYMEX ACCESSc session at a price fluctuation limit= =20 applicable to the Regular Trading Hours session, then the RTH session shall= =20 open with expanded price fluctuation limits as provided under the applicabl= e=20 rule, even though no temporary cessation of trading occurred during the NYM= EX=20 ACCESSc trading session. __________________________________________________ Please click on the link below to indicate you have received this email. 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