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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Tana Jones X-To: Mary Cook X-cc: X-bcc: X-Folder: \Tanya_Jones_June2001\Notes Folders\All documents X-Origin: JONES-T X-FileName: tjones.nsf ----- Forwarded by Tana Jones/HOU/ECT on 12/20/2000 02:27 PM ----- exchangeinfo@nymex.com 12/20/2000 02:13 PM To: tana.jones@enron.com cc: Subject: (00-431) CFTC Approval and Exchange Implementation of Further Amendments to Natural Gas Price Limits TO: All New York Mercantile Exchange Members and Member Firms FROM: Neal Wolkoff, Executive Vice President RE: CFTC Approval and Exchange Implementation of Further Amendments to Natural Gas Price Limits for Last Three Trading Days of Spot Month DATE: December 20, 2000 Notice # 00-431 ========================================================== Please be advised that the Exchange has received CFTC approval for further amendments to natural gas price limits. Members were previously advised in Notice # 429 (December 18, 2000) that these changes were pending CFTC approval. These changes will become effective as of the start of the RTH session on Friday, December 22, 2000. A copy of amended NYMEX Rule 220.08A (SPECIAL PRICE FLUCTUATION LIMITS FOR NATURAL GAS FUTURES) is included below in this Notice. The amendments to this rule add a new Section (E), which concerns the last three days of trading in the spot month; the amendments also make related conforming changes. In view of the recent price movement in the Natural Gas contract, the Exchange is amending the applicable price limit rules as follows: (1) There shall be no price limits for any Natural Gas futures contract month during the RTH session on the last three trading days of the current delivery month, i.e., spot month. (2) By comparison, price fluctuation limits shall remain in effect for all contract months for the NYMEX ACCESS(r) sessions conducted on these three trading days as provided by Exchange rules and as further modified by applicable resolutions. Thus, on Friday, December 22, on Tuesday, December 26, and on Wednesday, December 27, 2000, there shall be no price limits in effect for any Natural Gas futures contract months during the entire RTH session on those trade dates. In other words, prices shall move on an unrestricted basis during the entire floor trading session on those three trade dates, and there shall be no trading halts triggered at any time during such sessions. As a reminder, an Executive Committee Resolution is still in effect that amends on a temporary basis existing price limit rules by expanding the price limits on NYMEX ACCESS (for all contracts listed for trading on NYMEX ACCESS that have price limits). The Resolution will remain in effect until February 1, 2001, unless Members are notified otherwise by the Exchange. For your convenience, a copy of the Resolution is also included in this Notice. If you have any questions concerning the new rule amendments, please contact George Henderson, Vice President, NYMEX Floor Department, at (212) 299-2071; Rob Stasi, Manager of Trading Floor Systems, NYMEX Floor Department, at (212) 299-2067, or Brian Regan, Senior Associate General Counsel, at (212) 299-2207. NATURAL GAS: APPROVED AMENDMENTS TO NYMEX RULE 220.08A. SPECIAL PRICE FLUCTUATION LIMITS FOR NATURAL GAS FUTURES Rule 220.08A. SPECIAL PRICE FLUCTUATION LIMITS FOR NATURAL GAS FUTURES (A) Initial Price Fluctuation Limits for All Contract Months. At the commencement of each trading day, there shall be price fluctuation limits in effect for each contract month of this futures contract of $1.00 per MMBtu above or below the previous day's settlement price for such contract month. (B)(1) Triggering Event and Temporary Trading Halt. If a market for any contract month is traded or, is bid in the case of upward price moves or is offered in the case of downward price moves, for five (5) minutes consecutively at the upper or lower price limit, as applicable, then a Triggering Event will be deemed to have occurred. (2) Except as otherwise provided in this rule, as a result of such Triggering Event, the market will be given notice immediately that in two (2) minutes, there will be a fifteen (15) minute temporary trading halt in all contract months of that futures contract and the associated option contract ("Temporary Trading Halt"). The market will remain open during this two-minute notice period, and the commencement of the Temporary Trading Halt shall not be affected by market activity occurring during this notice period. (3) Expansion of Limits Following Temporary Trading Halt. Following the end of the 15-minute Temporary Trading Halt, the market shall reopen in all contract months of this futures contract. When trading resumes, price fluctuation limits for each contract month, except as otherwise provided in this rule, shall be expanded to $2.00 per MMBtu above and below the previous day's settlement price for such contract month. (4) Following resumption of trading after a Temporary Trading Halt, there shall be no additional trading halts and no further expansion of price limits for the remainder of the trading day. (C) Duration of Session Following Temporary Trading Halt. When trading resumes after a Temporary Trading Halt, trading generally shall continue until the regularly scheduled closing time subject to the following exceptions: 1) if, at the start of the 15-minute Temporary Trading Halt, there is less than 15 minutes before the close, then, when trading resumes after the Temporary Trading Halt, the trading session shall be expanded as necessary to provide for fifteen (15) minutes of trading following the resumption of trading, and the closing period shall be the final two minutes of trading of this 15-minute period of trading; and provided however that if the five-minute Triggering Event is completed during the closing period, there shall be no Temporary Trading Halt for any contract month and no expansion of price limits for any contract month. (D) Application of Price Fluctuation Limits to NYMEX ACCESS(r) The limits described in this rule shall apply to trading on NYMEX ACCESS(r), except as provided by NYMEX Rule 6.56 and except that: (1) if the five-minute Triggering Event is completed during the last ninety minutes of a NYMEX ACCESS(r) trading session, there shall be no Temporary Trading Halt and no expansion of price limits during the remainder of such NYMEX ACCESS(r) trading session, and (2) there shall be no Temporary Trading Halt during a NYMEX ACCESS(r) trading session if, in the opinion of the President of the Exchange or his designee, either the Triggering Event was not reflective of otherwise prevailing market conditions or a Temporary Trading Halt is unwarranted. (E) Exception for Last Three Trading Days of an Expiring Contract Month. (1) RTH Session on Last Three Trading Days. Notwithstanding the preceding sections of this rule, there shall be no limitations on price fluctuations for any Natural Gas futures contract month during the entire RTH session of the final three trading days in the current delivery month. (2) NYMEX ACCESS( Session on Last Three Trading Days. Price fluctuation limits for all Natural Gas futures contract months on these three trading days shall remain in effect for the NYMEX ACCESS( session as provided by this rule. 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 each futures contract that is listed for trading on NYMEX ACCESS(r) and that has such applicable rules shall continue in effect except as amended below with regard to market activity occurring on NYMEX ACCESS(r): The initial and subsequent price fluctuation limits (for each Exchange futures contract that has such limits) shall be expanded to 200% of the initial and subsequent price fluctuation limits applicable to the first two contract months of that futures contract that have price limits under the applicable rule. This expanded limit (200% of the limits for the first two months with limits) 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 bid at the high price fluctuation limit or a bona fide offer at the low price fluctuation limit, trading on NYMEX ACCESS(r) shall be halted immediately except as directed otherwise by the President or the President's designee. Following resumption of trading, the price limits in effect shall be 200% of the limits applicable to RTH trading. In the event that a limit is touched during the last 90 minutes of a NYMEX ACCESS(r) session, the market shall be halted briefly, and price limits shall be expanded thereafter In addition, in the event that a contract trading on NYMEX ACCESS(r) traded for five minutes during the NYMEX ACCESS session at a price fluctuation limit applicable to the Regular Trading Hours session, then the RTH session shall open with expanded price fluctuation limits as provided under the applicable rule, even though no temporary cessation of trading occurred during the NYMEX ACCESS(r) trading session. __________________________________________________ Please click on the link below to indicate you have received this email. " http://208.206.41.61/email/email_log.cfm?useremail=tana.jones@enron.com&refdoc =(00-431)" 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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