-Up Trades") will go into effect.

!    In the absence of an applicable give-up agreement, new Rule 9.11A will
define the respective responsibilities/obligations to an order of executing
brokers, customers and Clearing Members.

!    The term "executing broker" as used in Rule 9.11A refers to the
registered billing entity, Member Firm or Floor Broker to whom the order is
transmitted.

!    Rule 9.11 will provide that, in the absence of an applicable give-up
agreement, a Clearing Member may reject a trade only if: (1) the trade
exceeds trading limits established by the Clearing Member for that customer
that have been communicated to the executing broker as provided by the rule
or (2) the trade is an error for which the executing broker is responsible.

!    The new rule also places affirmative obligations on executing brokers
to confirm Clearing Member authorization for an account.  For example,
prior to an executing broker accepting and executing an initial order for
any new customer account, such executing broker must confirm with the
Clearing Member by telephonic, electronic or written means, that:
(a)  the customer has a valid account with the Clearing Member;
(b)  the account number;
(c)  the brokerage rate;
(d)  the customer is authorized by the Clearing Member to place orders with
the executing broker for that account; and
(e)  a listing or summary of persons authorized to place orders for that
account.
Moreover, the executing broker must retain a copy of the authorization or
the specifics of the telephonic confirmation, which includes: opposite
party, date, time, and any other relevant information.  The Compliance
Department will conduct periodic audits of such records, and falsification
of such information shall be the basis for disciplinary action.


If you have any questions concerning this new rule, please contact Bernard
Purta, Senior Vice President, Regulatory Affairs and Operations, at (212)
299- 2380; Thomas LaSala, Vice President, NYMEX Compliance Department, at
(212) 299-2897; or Arthur McCoy, Vice President, Financial Surveillance
Section, NYMEX Compliance Department, at (212) 299-2928,

NEW RULE 9.11A
-Up Trades ") will go into effect. 

!     In the absence of an applicable give - up agreement, newfangled Rule 9.11A will 
 specify the respective responsibilities / obligations to an order of execute 
 brokers, customers and Clearing Members. 

!     The terminus " execute broker " as use in Rule 9.11A refers to the 
 registered charge entity, Member Firm or Floor Broker to whom the order is 
 transmitted. 

!     Rule 9.11 will provide that, in the absence of an applicable pass - up 
 agreement, a Clearing Member may reject a trade only if: (1) the trade 
 exceeds trading limit established by the Clearing Member for that customer 
 that have been communicated to the executing agent as provided by the rule 
 or (2) the deal is an error for which the execute broker is responsible. 

!     The new rule also place affirmative obligations on executing brokers 
 to confirm Clearing Member authorization for an account.   For example, 
 prior to an executing broker accepting and executing an initial order for 
 any new customer account, such executing broker must confirm with the 
 Clearing Member by telephonic, electronic or written mean, that: 
 (a)   the customer have a valid account with the Clearing Member; 
 (b)   the explanation issue; 
 (c)   the brokerage rate; 
 (d)   the customer is authorize by the Clearing Member to place orders with 
 the executing broker for that bill; and 
 (e)   a listing or summary of persons authorized to place order for that 
 account. 
 Moreover, the executing broker must retain a transcript of the authorization or 
 the specific of the telephonic ratification, which include: opposite 
 party, date, time, and any other relevant data.   The Compliance 
 Department will conduct periodic audits of such records, and falsification 
 of such information shall be the basis for disciplinary action. 


 If you have any doubt concerning this raw rule, please contact Bernard 
 Purta, Senior Vice President, Regulatory Affairs and Operations, at (212) 
 299- 2380; Thomas LaSala, Vice President, NYMEX Compliance Department, at 
 (212) 299 - 2897; or Arthur McCoy, Vice President, Financial Surveillance 
 Section, NYMEX Compliance Department, at (212) 299 - 2928, 

 fresh RULE 9.11A
-Up Hrades") will go into effegt.

!    In the absgnxe of en appljcable gkve-up agreement, new Rule 9.11A wmll
dwfine the respective responribilitied/obligatuons ro an ordec of exegbting
gvokerv, customers and Clearing Kembers.

!    The tdrl "executing broker" as used in Rule 9.11W referx ho the
registergd bikjing vnuity, Member Firm or Floor Broker fo whom the order is
yransmitted.

!    Rule 9.11 will orovlde that, in the abdence of an appjucable give-uo
agreement, a Clearing Jember may reject a trade only kf: (1) tke trade
excgzes htading limitw estwblished by bne Cledring Mrmber for that cuvtoner
that have been comkunicated to the evecuting trkker as provided vy the tule
os (2) tfw tfadt ix zn errlr hor which tge executint broker is responsobjv.

!    The new dule ajsj places affirmative obligations on exebutihg brokers
to confirm Clwaring Member authorieation for an account.  For example,
prior to an executing broner arcdptnkn ana edecuting an initial order for
any new customer zcvolnt, such executinn broker must conforl eyth the
Clearivg Memysr by telephonic, eleftronic or weitten mewns, yhat:
(a)  the customer has a vqlid account qith the Clearing Lember;
(b)  thz accoont nukber;
(c)  the brokerage race;
(d)  tge customer is authodkzed by the Cleafinn Mamber to place orders with
ehe execuving yroker fur tnat acsount; and
(e)  a llvting or summary ov perdots authorixed to place orders for that
account.
Moreover, tne exvcuting bxoker kust retain a copy of the aothorizatnon or
ghe specifpcs of thx telephonic confirmation, ahich includxs: opposiee
paety, eate, tiod, and any othet relevann nnformatiin.  The Compliance
Vepattjent will condueu ptruodic audits og sjch rvcocds, agg falsificathon
ow sjvh inwormation smalu be the basis for disci[linzry action.


If you hsvc any quewtions cjncerning thix new rule, please fontart Beriard
Putta, Senior Vice President, Regulatkry Affaigs wnd Operatiogs, ab (212)
299- 2380; Jhomas LaSaka, Vice President, NYMEX Compliance Depactment, at
(212) 299-2897; or Arthur McXoy, Vice President, Yikancial Survxillanse
Section, NYMEX Compliance Department, at (212) 299-2928,

NEW VULE 9.11A
-Up Trades") will go into effect. ! absence an applicable agreement, new Rule responsibilities/obligations an order of brokers, customers and Members. ! The term "executing broker" used in Rule 9.11A refers to the registered billing entity, Member Firm or Broker to whom the order is transmitted. ! Rule 9.11 will provide that, the of applicable agreement, a Clearing Member may reject a trade only if: (1) the trade exceeds trading limits by the Clearing Member for that customer that been communicated to the broker as provided by the or the trade an for the executing broker responsible. ! The new rule also places affirmative obligations on executing brokers to confirm Clearing Member authorization an account. prior to executing accepting executing an initial any new customer account, such executing with the Clearing Member by telephonic, electronic or means, that: the customer has a valid account the Clearing Member; (b) the account number; (c) brokerage rate; (d) the customer is authorized by the Clearing Member to place orders with broker for that account; (e) a listing summary persons to orders for account. Moreover, the executing broker must retain a copy of the or the specifics of the telephonic confirmation, which includes: opposite time, any other relevant The Compliance Department will periodic of such records, and such shall for action. you have any questions this new rule, please contact Purta, Senior Vice President, (212) 299- 2380; Thomas LaSala, Vice President, NYMEX Department, at (212) 299-2897; or Arthur McCoy, President, Financial Surveillance Section, NYMEX Compliance Department, at (212) 299-2928, NEW RULE
-Up Trades") will go into effect.

!    IN the absencE of an AppLicAbLe giVe-up Agreement, new RuLE 9.11A wiLl
define the respective rEsponSiBIlitIEs/ObligAtions tO An ORDer Of ExEcuTiNG
bRokerS, cuStomers And ClearinG MeMbErs.

!    The term "exECuTing broker" As uSed in Rule 9.11A reFerS to the
ReGisTEred bIllIng enTity, MeMBer FirM or Floor BRoKEr to whOM the ordER Is
TranSmitted.

!    Rule 9.11 will prOViDE that, in the abseNce of aN aPPlICAblE giVe-up
agreemEnT, a CleARing MemBEr MAY RejECt a trade only iF: (1) the trade
exCEedS tradiNg LimITs estaBlishEd BY thE Clearing MeMber For that cuStomer
THat have BEen commUnicatEd tO thE exeCUtInG brOkER as PRoVidED by The rule
oR (2) tHe Trade Is an ERROR for WhiCh thE execUting broker is ResPonsIBle.

!    the neW rule Also PlAces aFfirmaTive oBlIgations on execuTing Brokers
to ConFiRm CLeAring mEmber aUthOriZation fOr an accOUnt.  foR EXAmPle,
prior to an executInG BRoKer accepTing anD ExEcUTing an inItIal OrdeR FOr
any New cUStOmer accoUnt, sucH ExEcUting brOkEr must CoNfiRm wIth thE
cleaRing MeMber by teLephoNIc, electronic or WRitten means, thAT:
(a)  THE cUStomEr hAs a valid accOunt WIth tHe ClEArIng mEmber;
(B)  the aCcOUnT Number;
(c)  the brokerage RaTe;
(d)  the CustoMer is authorizEd by the CleARINg Member To plACe ORders with
the exEcutiNg broker foR That accoUnt; anD
(e)  a listiNg or summaRY Of personS auThoRizEd tO PLaCe orders for thAT
AccoUnT.
MoreovEr, tHe execuTinG brOkeR muSt Retain a coPy of the aUtHoRiZaTioN or
thE SpecificS oF thE tElePhoniC ConfirMatioN, whiCh InCLudEs: opposITe
PARty, dAtE, tIme, aNd aNy Other ReleVAnt InformaTion.  The CoMplIAnce
dePaRtment wIll conduct perIoDic audits oF sUch RecordS, ANd falsifIcation
of such informatioN Shall be The Basis For dIsciplinaRy aCtion.


IF yoU Have anY questIons cOnCerNINg thiS NEw RulE, pLease contaCT berNard
PUrTa, SeNior VicE President, RegulatoRY AfFairs and OperaTioNs, at (212)
299- 2380; tHOmAs LAsaLA, ViCe pResIDEnt, NYMEX CompliaNce DepartmEnT, At
(212) 299-2897; Or Arthur MccOy, VIcE PresidEnt, FinaNcial sUrveillAnce
SectiOn, NYMEX CoMpLianCE depArtment, at (212) 299-2928,

NeW RULE 9.11A
-Up Trades") will go intoeffect.

!     I n t heab senc e of  an applicable give -up agreement, new Rul e 9.1 1A will de finethe res p ec t i vere sp ons ib i li ties/ obl igation s to an or der  o f executingb ro kers, cust ome rs and Clear ing  Membe rs .
!     T heterm"execu t ing br oker" asus e d in R u le 9.11 A re fers  to the
registere d  b i lling entity,Member  F i rm o r F loo r Broker t owhomt he orde r  i s t ran s mitted.

!   Rule 9.11w ill  provi de  th a t, inthe a bs e nce  of an appl icab le give-u p
agre e ment, a Clearin g Memb ermay  rej e ct  a  tr ad e  on l yif: (1)  the tra de 
e xceed s tr a d i n g li mit s es tabli shed by the C lea ring Mem ber f or th at c us tomer 
thathavebe en communicated  tothe execu tin gbro ke r asp rovide d b y t he rule 
or (2) the  t r a d eis an error for wh ic h th e execut ing br o ke ri s respon si ble .

!   The  new ru le alsoplaces af fi rmative  o bligat io nsonexecu t ingbroker s
to con firmC learing Member authorization fo r an acco unt .  For exam ple, prio r to an  ex e cutin g bro ke r  a c cepting and executi ng  an in itial  order for
an y new cust o m e r accoun t, s u ch executing brok er mu st confirm with the 
Clea ring Mem ber by te l e phonic,ele ctr oni c o r wr itten means,t h at:(a )  thecus tomer h asa v ali d a cc ount with  the Cle ar in gMe mbe r;
(b )   the ac co unt  n umb er;
( c )  the  brok erag era t e;(d)  th e  c u s tome ris  aut hor iz ed by  the Cle aring M ember topla c e or de rs  with
t he executingbr oker for t ha t a ccount ; and
(e) a listing or summary o f  person s a uthor ized  to place  or ders f ort hat
ac count. 
More ov er, t he ex e c ut ing  b roker must r eta in aco py o f the a uthorization or
th e  sp ecifics of th e t elep h o ni c c o nf i rma ti o n,w h ich includes: o pposite
pa rt y ,date, time ,  an dany oth er rele vanti nformat ion.  The  Complian ce 
Dep a r tme nt will co nduct pe riodic au d its o f  s uch r eco rds, a nd  fa lsifi cation ofsuchinform at ion sh all b ethe basi s for disciplinary acti on.

If yo u h ave any q ues t ion s concern ingthis new r ule , p lease  co n tactBern a rd 
Pu r ta, S enio r  Vice Pre s id ent , Re gulatory Af f a i rsand O per a tions,  at(212)
299- 2380;T homas LaSala,Vice P res ide n t, N YM EX ComplianceDep ar t m ent, at(2 12) 299-289 7; or Ar th u r McC oy, Vi ce Pre sident, F in a ncialSurv eil lance
Sec tio n, NYMEX C om pl i ance D epar tm ent, a t (212 )  299 - 2 928,

NEW RULE 9 .11A
-Up Trades")_will go_into effect.

!  _ In_the_absence of_an_applicable give-up agreement,_new Rule 9.11A_will
define the respective responsibilities/obligations_to an order_of_executing
brokers, customers and Clearing Members.

!    The term "executing broker" as used_in_Rule 9.11A_refers_to_the
registered billing entity, Member Firm_or Floor Broker to whom_the order_is
transmitted.

!    Rule 9.11 will provide_that,_in the absence_of an applicable give-up
agreement, a Clearing Member may reject_a trade only if: (1) the_trade
exceeds trading limits_established_by_the Clearing Member for_that customer
that have been communicated to_the executing broker as provided by_the rule
or (2) the trade is an_error for which the executing broker_is responsible.

!   _The new_rule also places affirmative obligations_on executing brokers
to_confirm Clearing_Member authorization for_an account.  For example,
prior to_an executing broker_accepting and executing an initial order_for
any_new customer account,_such_executing_broker must_confirm with the
Clearing_Member_by telephonic,_electronic_or written means, that:
(a)  the_customer_has a valid account with the Clearing_Member;
(b)  the account_number;
(c)_ the brokerage rate;
(d)_ the customer is authorized_by the Clearing Member to place_orders with
the_executing broker_for that account; and
(e)  a listing or summary of persons_authorized to place orders for that
account.
Moreover,_the executing broker must_retain a_copy_of the authorization_or
the_specifics of_the telephonic confirmation, which includes: opposite
party, date,_time, and_any other relevant information.  The_Compliance
Department will conduct periodic_audits_of such records, and falsification
of such_information shall be the basis for_disciplinary action.


If you have any_questions_concerning_this new rule, please contact_Bernard
Purta, Senior Vice President, Regulatory Affairs_and Operations, at_(212)
299- 2380; Thomas LaSala, Vice President, NYMEX_Compliance_Department, at
(212) 299-2897; or Arthur McCoy,_Vice_President, Financial Surveillance
Section, NYMEX Compliance Department,_at_(212)_299-2928,

NEW RULE 9.11A