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Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: exchangeinfo@nymex.com X-To: tana.jones@enron.com X-cc: X-bcc: X-Folder: \Tanya_Jones_June2001\Notes Folders\All documents X-Origin: JONES-T X-FileName: tjones.nsf Notice # 01-175 May 23, 2001 TO: All NYMEX and COMEX Members and Member Firms FROM: Neal L. Wolkoff, Executive Vice President RE: Implementation of New Specialist Market Maker for Aluminum Futures by Koch =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D The Exchange has executed an agreement with Koch Metals Division (=01&Koch= =018), a=20 division of Koch Carbon, Inc., to serve as the new Specialist Market Maker= =20 (=01&SMM=018) for Aluminum Futures. The new SMM program with Koch in Alumin= um will=20 begin next week on Tuesday, May 29, 2001. Please note that the terms of th= is=20 new SMM program differ from the old SMM program with AIG: ! Unlike the prior SMM program, Koch will not have any responsibilities=20 regarding maintaining a limit order book or otherwise executing customer=20 orders. ! Instead, during the RTH session, Koch must maintain an orderly two-sided= =20 market consisting of a current bid and offer quote for Koch=01,s proprietar= y=20 account on a RFQ basis as provided below. Trading up to Last Trading Day of Month Preceding Current Delivery Month ! Under normal market conditions, Koch must make a two-sided market for: (a) a minimum of 25 contracts at a maximum bid/ask spread of 20 points for= =20 the first 4 listed trading months; (b) any consecutive four-month calendar strip during the first 12 listed=20 contract months for 10 contracts per month at a maximum bid/ask spread of 2= 5=20 points; and © a minimum of 50 spread contracts at a maximum bid/ask spread of 20 poin= ts=20 for any and all inter-month spreads involving the first 12 listed trading= =20 months. ! In abnormal market conditions (as reasonably determined by Koch in good= =20 faith) Koch must make a two-sided market for the quantities listed above bu= t=20 at a bid/ask spread as determined by Koch in good faith. Trading Between First Notice Day and Last Trading Day of Current Delivery= =20 Month ! During this period, Koch will not be required to make quotes but instead= =20 using reasonable discretion must make efforts under normal conditions to=20 provide quotes. SMM Disclosure Statement ! Under the prior SMM program, which required the SMM to maintain a limit= =20 order book of customer orders, Member Firms were required to distribute a= =20 special SMM Disclosure Statement to a customer before that customer could= =20 trade in an Exchange contract that had been designated with a SMM facility,= =20 i.e., Aluminum. ! By contrast, because Koch as the new SMM will not be handling a limit ord= er=20 book, the SMM Disclosure Statement will no longer be relevant, and the=20 Exchange is discontinuing use of this disclosure statement for the new=20 Aluminum SMM program with Koch. If you have any questions concerning this new SMM program, please contact A= l=20 Getz, Director of Metals Research, Research Department, at (212) 299- 2608;= =20 Richard Strait, Director, Metals Marketing, Marketing Department, at (212)= =20 299-2335; or Michael Campanelli, Vice President, Floor Department, at (212)= =20 299-2072. __________________________________________________ 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(01-175)" 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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