|
|
Enron Mail |
< Notice No. 01-350
< October 22, 2001 < < < < TO: All COMEX Division Members/Member Firms < All COMEX Division Clearing Members < All COMEX Division Floor Traders < All COMEX Division Operations Managers < < FROM: Michael Campanelli, Vice President < Floor Operations / COMEX Division < < RE: Options Expiration Operational Procedures for the Trading < Floor and Clearing Members - Shortened Hours < __________________________________________________________________________ < ____ < < The expiration date for the November 2001 options contract for Copper (HX < X1) is Friday, October 26, 2001. < < GENERAL OPERATIONAL PROCEDURES < < All Clearing Members and Qualified Floor Traders that carried an options < position as of the close of business day prior to the expiration day, or < engaged in trading activity on Expiration Day in the expiring options < contract will be required to have a knowledgeable, duly authorized on-line < trade entry ("OLTE") system trained representative available until < released by the Exchange staff. All adjustments and/or corrections, must < be accompanied by relevant supporting documentation prior to being < incorporated into expiration processing, in essence making the expiration < processing an extension of the afternoon trade resolution procedures. < < Exchange Clearing (299-2110) and Trade Processing (299-2465 and 299-2044) < personnel will be available to assist with the processing of notices of < Exercise and Abandonment, position transfers, trade corrections and other < questions or problems you may have. < < Failure by any Clearing Member or qualified Floor Trader to comply with < procedures as outlined herein may result in severe disciplinary action by < the Exchange and potential financial liability to customers or members for < failure to exercise diligence in the processing of information. < < TRADING FLOOR OPERATIONAL PROCEDURES < < < The following schedule of operational procedures is based on shortened < trading hours as described in Notice to Members # 01-333 < (http://www.nymex.com/refernce/notices/2001/ntm_333.htm) < < Trading in the November 2001 Copper Options Contract will cease at 1:00 < P.M. on October 26, 2001. All Brokers and Traders must inform their < Clearing Members of their intentions to exercise or abandon such Options < by 3:00 P.M. < < On Friday, October 26, 2001, all Brokers and Clearing Members must have a < duly authorized, On-Line Trade Entry ("OLTE") system trained < representative available until such time as the Exchange deems necessary. < < NOTE: After 3:30 P.M. all expiring option trade data must be inputted on < special "OLTE" terminals located in the Trade Processing Room. Any other < means of submission will be rejected by the Exchange. Members will be < able to submit all other trade data until 4:00 P.M. < < After the Unmatched Trade Reports and the Preliminary Spot Month Matched < Trade Reports are displayed, Clearing Member representatives will be able < to pick up their Preliminary Clearing reports at the Clearing Department. < < A final review of all submissions will be made. The Supervisor of the < Trade Processing Room will detain only those Clearing Members and/or < Broker representatives involved. All final corrections will be made at < this time and upon determination of the Supervisor that all option < processing is complete, all representatives will be released. < < Exchange Reports based on Friday's submissions and processing will be < available on Monday morning October 29, 2001. < < In the event that you have any questions regarding these trading floor < procedures please contact Michael Campanelli at (212) 299-2072 or David < Sherman at (212) 299-2061. < < CLEARING DEPARTMENT OPERATIONAL PROCEDURES < < 1. OPEN POSITION CONFIRMATION ("OPC") - The OPC should reflect as < accurately as possible all futures and options gross positions as of < close-of business on the business day prior to expiration. Review the < estimated current gross positions as shown and make appropriate < adjustments. The OPC must be submitted not later than 9:00 A.M. < < 2. OPTIONS EXERCISE/ABANDONMENT REQUESTS FORM ("E/A") - An expiring < option with a strike price in-the-money by one tick or more will be < subject to automatic exercise unless an Option Abandonment Request form is < submitted advising that a Clearing Member ("CM") elects to abandon some or < all of its position in that strike price (i.e., for the option series). < All other options series in the expiring month will be subject to < automatic abandonment unless an Option Exercise Request form is submitted. < When submitting an E/A form, please note the following: < < (a) An E/A form must be submitted not later than 4:00 PM. < (b) Do not submit an Exercise form for positions in strike prices which < are subject to automatic < Exercise nor submit an Abandonment form for positions in strike < prices which are subject to automatic abandonment. < © If a CM wishes to submit an E/A form to abandon a position in a < strike price subject to automatic exercise or wishes to exercise a < position in a strike price which is out of the money, it is necessary to < notify Clearing by telephone of such anticipated action. The CM must have < an officer available to confirm such intention. < (d) CMs may secure from Clearing a time-stamped receipt of the CM copy < to assure submission of the CM's E/A forms. < < 3. OPTION POSITION REDUCTION REQUEST FORM ("OPRR") - As a general rule, < purchases and sales of option contracts are presumed to be new business. < If some or all of your purchases and sales are in fact undertaken for < position liquidation purposes, OPRR forms may be submitted on the day of < expiration and will be used in conjunction with trade data to reduce your < projected position in an expiring contract. OPRR requests in excess of < actual traded volume will be rejected. Exception: Cabinet trades and < cancel correction trades will automatically liquidate existing positions, < therefore do not submit an OPRR form for cabinet or cancel correction < trades. < The OPRR form must be submitted not later than 4:00 PM. < < 4. HOUSE/CUSTOMER POSITION TRANSFER REQUEST FORM ("H/C") - H/C forms < may be used only to transfer previously cleared contracts between a CM's < house and customer accounts. Problem trades (those which have not cleared < prior to expiration day) must be corrected using COMEX's on-line trade < entry system under the direct supervision of the Trade Audits Department < of COMEX ("Trade Audits"). The H/C form must be submitted not later than < 2:30 PM. < < 5. EX-PIT POSITION TRANSFER REQUEST FORM ("Ex-Pit") - Ex Pit forms may < be used only to transfer previously cleared contracts between CMs. < Problem trades (those which have not cleared prior to expiration day) must < be corrected on the on-line trade entry system under the direct < supervision of Trade Audits. The Ex-Pit form must be submitted not later < than 2:30 PM. < < ***** < A) At approximately 3:15 PM, two PRELIMINARY reports of the expiration < process will be available for distribution at the NYMEX Clearing < Department: < 1. OPTION EXPIRATION REPORT AND CONFIRMATION - The purpose of this < report is to project the CM's present position going into the expiration < based upon the transactions which have already been submitted to Clearing. < CMs should review and modify their adjusted gross positions as of < close-of-business on the business day prior to expiration. Further < adjustments may be submitted not later than 4:00 PM. The projected ending < gross positions will reflect transactions accepted or rejected for < clearance on expiration night, inclusive of Ex-Pit, H/C and OPRR < transactions which have been submitted to Clearing prior to 2:30 PM, and < trade information submitted to COMEX prior to 2:45 PM. Normally, this < report will also reflect manually submitted Exercise and Abandonment < instructions, the projected number of exercises and maximum potential < assignments for each strike price, the type of exercise (manual or < automatic), whether the strike is In, At or Out of the money, and the < exercise value associated therewith based on settlement prices established < by COMEX on the day of expiration. < < 2. TRANSACTION LISTING - This listing will include in detail all < expiring option trades submitted to COMEX prior to 2:45 PM on expiration < day, and all H/C, ExPit, OPRR and E/A transactions submitted to Clearing < Prior to 2:30 PM. < < Please note: Trade information reflected on the option expiration report < and transaction listing are trades submitted only. To inquire whether < trades have matched, each CM must review the trade reports provided by < COMEX's On-Line Trade Entry ("OLTE") system. < < B) At approximately 4:30 PM, FINAL reports of the expiration process, < including all submissions to Clearing and trade information submitted to < COMEX made by 4:00 PM, will be available for distribution at the NYMEX < Clearing Department. < < C) At 4:45 PM, Preliminary In The Money Abandonment and Out Of The < Money Exercise information will be announced on Fast Facts. < < D) At Approximately 6:30 PM, a Final Notice of Exercise/Assignments < will be available in each CM's lockbox located at the NYMEX Clearing < Department. Each CM which has exercised or been assigned one or more < options will receive a separate statement showing exercises and/or < assignments for each option series. Please check this statement < carefully. Although long options positions in-the-money by one tick or < more will be automatically exercised, not all short option positions will < be assigned if there are any options manually abandoned at such strike < prices. Please note that there also may be some at or out-of-the money < options being exercised. < < E) At approximately 8:00 PM, the final set of clearing sheets will be < available in each CM's lockbox located at the NYMEX Clearing Department. < < It is strongly recommended that each CM have a representative(s) that is < properly trained to handle the option expiration process available < beginning at 3:15 PM and who will receive the CM's reports at the specific < times. It is solely the responsibility of the CM to review these reports < and to notify the Clearing staff immediately of any discrepancies. < < To obtain the exact time of the availability for each report, clearing < members should call (212) 301-4871, access code 701. The announcement < time will occur 1/2 hour prior to availability. < < Attached please find a Clearing Member Procedure Summary for ease of < reference. Please contact Anthony DiBenedetto at (212) 299-2152 or John < Ramos at (212) 299-2142 if you have any questions. < < <<OPTIEXPI(ShortndSchdl).xls<< - OPTIEXPI(ShortndSchdl).xls
|