issuance of a warrant. All gold currently in storage at any new depository must be reassayed by
an Exchange Approved Assayer in order to be eligible to be put on warrant.

With respect to platinum and palladium, a similar chain of integrity is required before these
metals may be placed on warrant. Therefore, none of the platinum and palladium bars (ingots)
currently stored in this facility would be eligible for delivery. They would require reassaying by
an Approved Assayer or Assayer/Refiner before becoming eligible for delivery.

G. LICENSED WEIGHMASTER

The application for a Licensed Depository for Gold also requires that the Depository be
designated a Licensed Weighmaster for the Gold. Each warrant issued by a Licensed Depository
for Gold must be accompanied by a weight certificate issued by an Exchange Licensed
Weighmaster certifying the weight of each bar of gold, the serial number of each bar and the
name of the Approved Refiner of each bar.

Each bar of gold must be weighed to the 1/100 of a troy ounce. The procedures require that each
bar be weighed to the nearest 1/1000 of a troy ounce and weights of 4/1000 of a troy ounce or
less are rounded down to the nearest 1/100 of a troy ounce and weights of 5/1000 of a troy ounce
or more are rounded up to the nearest 1/100 of a troy ounce.

MTB has installed a Mettler Toledo scale which is capable of weighing in the increments
required by the Gold Futures Contract. The company has requested the scale manufacturer to re-
calibrate this scale. Upon completion of the recalibration, MTH will represent and warrant to the
Exchange that the scale has been recalibrated. A condition precedent to the effective date will be
the confirmation from MTB that the scale has been professionally recalibrated.

H. CONDITIONS PRECEDENT

A condition precedent to the effective date of the MTB facility in becoming an Exchange
Licensed Depository would be the execution of legal documentation acceptable to the Exchange
and confirmation that the scale has been professionally recalibrated.

II. PROPOSED AMENDMENTS

The proposed amendments are attached.


Proposed Amendment. Underlining indicates additions.

PLATINUM FUTURES CONTRACT
Supplement No. 1

OFFICIAL LIST OF APPROVED DEPOSITORIES

Depository Facility at Computer Code
NEW YORK.

SCOTIAMOCATTA DEPOSITORY,

A DIVISION OF THE BANK OF NOVA SCOTIA 26 Broadway 3001
New York, NY 10004
212-912-8530

HSBC Bank USA 1 West 39th Street 5001
SC 2 Level

‘New York, NY 10018
212-525-6439

BRINK’s INC. 652 Kent Avenue 4001
Brooklyn, NY 11211
718-949-2186
Manfra, Tordella & Brookes, Inc. 90 Broad Street 7001
90 Broad Street New York, New York

New York, New York 10004
(Orders: (212) 981-4518)

DELAWARE

DELAWARE DEPOSITORY SERVICE COMPANY, LLC 3601 North Market Street 6001
Wilmington, DE 19802
302-765-3889


Limit of Liability: USD 100,000,000 each and every loss in respect of bullion and precious
metals of all kinds for NY MEX/COMEX warehouse warrants as defined whilst contained within
the Assured’s vault only.

Warrants Clause: This policy recognizes that the holder of a Warrant (as defined below), duly
issued by Manfra, Tordella & Brooks and properly endorsed, is the legal owner of such precious
metal represented by that Warrant. As such, the holder of such Warrant is identified as a Loss
Payee for the purposes of this Policy.

In the event of a loss covered under this Policy, a check providing loss compensation will be
issued by the Underwriters payable jointly to Manfra, Tordella & Brooks and Loss Payee. In the
event of a recoverable loss hereunder and that Manfra, Tordella & Brooks becomes subject to the
US Bankruptcy Code, it is hereby noted and agreed and that the Warrant holders will be paid
directly by Underwriters hereon.

For the purposes of the foregoing clause, a Warrant shall be defined as:

A document of title issued by Manfra, Tordella & Brooks meeting all applicable local, state and
federal laws and regulations. A Warrant is deemed to be proof of the existence of the property
for which it has been issued. Notwithstanding anything contained in this Warrants Clause, it is
understood and agreed that this Policy provides insurance cover for the actual Property that
maybe detailed on a warrant issued by Manfra, Tordella & Brooks but does not provide cover for
loss or damage to the warrant itself.

Basis of Valuation and Loss Settlement Clause: The basis of valuation and loss settlement
shall be based on either NYMEX or COMEX settlement price on the day following the day of
loss is discovered or as may be declared prior to known loss or damage.

Notice Clause: The Underwriters shall give the New York Mercantile Exchange ninety (90) days
advance written notice, at the address set forth below, in the event of cancellation, non-renewal
or material change in this policy.

The effective date of this attachment is the date on which the Assured receives approval to
become a recognised COMEX and /or NYMEX depository.

F. CURRENT METAL INVENTORY

None of the gold, platinum and palladium currently stored in a vault, which is yet to be approved
as a Licensed Depository for these metals would immediately qualify to be reported as eligible
metal. Under Exchange Rules, in order to be eligible for delivery, gold may only be delivered to
an Exchange Licensed Depository by an Approved Carrier directly from (1) the refiner of the
approved brand, (2) an approved assayer provided that the gold is accompanied by an assay
certificate of the approved assayer, or (3) another licensed depository provided the gold was
placed in the other licensed depository pursuant to (1) and (2) above. Since the gold stocks in
any new facility have not gone through this “Chain of Integrity” they are not eligible for the


Proposed Amendment. Underlining indicates additions.

Gold Supplement
No. 2

COMMODITY EXCHANGE, INC.
LICENSED DEPOSITORIES AND WEIGHMASTERS FOR GOLD

Depository
NEW YORK

SCOTIAMOCATTA DEPOSITORY,

A DIVISION OF THE BANK OF NOVA SCOTIA.
26 Broadway
New York, NY 10004
(Orders: (212) 912-8530)

HSBC Bank USA
1 West 39th Street, SC 2 Level
New York, NY 10018
(Orders: (212) 525-6439)

BRINK’S Incorporated
Suite 400
580 5" Avenue
New York, New York 10036
(Orders: (718) 949-2186)

Manfra, Tordella & Brookes, Inc.
90 Broad Street
New York, New York 10004
(Orders: (212) 981-4518)

Facilities Computer Code
26 Broadway 3001
New York, NY

1 West 39th Street, SC 2 Level 5001

New York, NY

652 Kent Avenue 4001
Brooklyn, NY

90 Broad Street 7001

New York, New York

ADDITIONAL LICENSED WEIGHMASTERS FOR GOLD

Ledoux & Company

359 Alfred Avenue

Teaneck, NJ 07666
(Orders: NJ (201) 837-7160)


Ill. EXCHANGE ACTION

The proposed amendment to Supplement No. 2, “Licensed Depositories and Licensed
Weighmasters” of the COMEX Gold Futures Contract was approved by the Exchange’s Metals
Advisory Committee and Board of Directors at regularly scheduled meetings. As the proposed
amendment to Gold Supplement No. 2 “Licensed Depositories and Licensed Weighmasters”
affects a “Special Matter” under the COMEX By-Laws, notice was provided to the owners of
COMEX Division Memberships who were provided with 10 days to submit a petition signed by
owners of 155 COMEX Division Memberships requesting a vote of the COMEX Division to
disapprove the amendments, pursuant to the procedures set forth under COMEX By-Law 205(D).
No substantive opposing views were expressed and no anti-competitive effects are anticipated or
are apparent.

The Exchange intends to make the amendment the latter of (1) the satisfaction of the conditions
precedent discussed above or (2) upon receipt of Commission approval or notification that prior
approval is not needed. While there are open positions in the Gold, Platinum and Palladium
Futures Contracts, the proposed changes and implementation of the amendment with respect to
Licensed Depositories of the respective futures contracts will allow market participants ample
time to fully evaluate and modify their positions. These proposed rule changes are not believed
to have any impact on market positions or prices since the proposed depository is located within
the region defined by the applicable metals futures contracts.

In addition to the notification of the proposed amendment, pursuant to COMEX By-Law 205(D),
given on September 8, 2005, the Membership will be informed in a Notice to Membership dated
October 18, 2005 that the Exchange intends to amend Supplement No. 2, “Licensed Depositories
and Licensed Weighmasters” of the Gold Futures Contract and Supplement No. 1, “Official List
of Licensed Depositories” for the Platinum and Palladium Futures Contracts as discussed above.


October 18, 2005

Office of the Secretariat

Commodity Futures Trading Commission
Three Lafayette Centre

1155 21st Street, NW

Washington, DC 20581

BY E-MAIL AND FASCIMILE

SUBJECT: Request for Commission Rule Approval: Proposed Amendment to
Supplement No. 2, “Licensed Depositories and Weighmasters for Gold” of
the Gold Futures Contract and Supplement No. 1, “Official List of Approved
Depositories” of the Platinum and Palladium Futures Contracts. Submission
No. 05-188.

Dear Ms. Webb:

Pursuant to Section 5c(c)(2) of the Commodity Exchange Act (the “Act”) and CFTC Rule 40.5
(“Voluntary Submission of Rules for Commission Review and Approval”), the New York
Mercantile Exchange Inc. (“NYMEX” or the “Exchange”) hereby requests on a voluntary basis
CFTC approval for a proposed amendment to Supplement No. 2, “Licensed Depositories and
Weighmasters for Gold” of the Gold Futures Contract and Supplement No. 1, “Official List of
Approved Depositories” of the Platinum and Palladium Futures Contracts.

The proposed amendment and a complete explanation of its operation, purpose and effect are
attached hereto.

Tf you have any questions concerning this submission, please contact the undersigned at 212-299-
2930 or Albert J. Getz at 212-299-2608.

Sincerely,

Robert A. Levin
Senior Vice President

ce: Richard Shilts, Division of Market Oversight
Allen Cooper, Eastern Region


Proposed Amendment. Underlining indicates additions.
PALLADIUM FUTURES CONTRACT
Supplement No. 1

OFFICIAL LIST OF APPROVED DEPOSITORIES

Depository Facility at Computer Code
NEW YORK
SCOTIAMOCATIA DEPOSITORY,
A DIVISION OF THE BANK OF NOVA SCOTIA 26 Broadway 3001
New York, NY 10004
212-912-8530
HSBC Bank USA 1 West 39th Street 5001
SC 2 Level

New York, NY 10018
212-525-6439

BRINK’s INC. 652 Kent Avenue 4001
Brooklyn, NY 11211
718-949-2186
Manfra, Tordella & Brookes, Inc. 90 Broad Street 7001
90 Broad Street New York, New York

New York, New York 10004
(Orders: (212) 981-4518)

DELAWARE

DELAWARE DEPOSITORY SERVICE COMPANY, LLC 3601 North Market Street 6001
Wilmington, DE 19802
302-765-3889


I. EXPLANATION AND PURPOSE

The Exchange proposes to amend Supplement No. 2, “Licensed Depositories and Weighmasters
for Gold” of the Gold Futures Contract and Supplement No. 1, “Official List of Approved
Depositories” of the Platinum and Palladium Futures Contracts.

The proposed amendments add the Manfra, Tordella & Brookes, Inc. (“MTB”) vault facility
located at 90 Broad Street, New York City, New York as a Licensed Depository for the storage
of gold, platinum and palladium deliverable against the Exchange’s Gold, Platinum and
Palladium Futures Contracts.

A. CORPORATE STRUCTURE AND OWNERSHIP

The company is a wholly owned subsidiary of Pamp Ventures SA which is a wholly owned
subsidiary of MKS Finance S.A. (“MKS”) which is incorporated in Switzerland. MKS, a
privately owned company established in 1979, is one of the world’s leading companies
specializing in the refining, fabrication and marketing of a wide range of precious metals
products and services. MKS is a member of the COMEX Division of the Exchange, the Chicago
Mercantile Exchange, The Tokyo Commodity Exchange (“TOCOM”) and is an associate
member of the London Bullion Market Association.

B. CUSTOMER CONFIDENTIALITY

Since MKS, the parent of MTB is a member of various exchanges which trade precious metals,
the confidentiality of customer information is an important part of the Exchange’s due diligence.
In order to mitigate any concerns that market participant’s may have regarding a depository
institution’s policies to ensure that sensitive information known only to the depository operations
personnel is not relayed to other areas of the institution or its affiliated companies, the Exchange
has reviewed MTB’s confidentiality policy.

MTB’s policies and procedures prohibit disclosing any specific information regarding the
identity of customers who have dealings with the vault operations with respect to warrants that
are deliverable against Exchange futures contracts, or inventory, deposits or withdrawals of any
such customer’s Exchange warrants to any firm or person. The MTB accounting system will be
designed to segregate all information pertaining to NYMEX storage customers from the rest of
the MTB accounting/inventory system to assist in enforcing the nondisclosure policy as it
pertains to the MTB Trading Department.

C. LEASE / VAULT CLASSIFICATION / INSPECTION

MTB leases the vault and office space in the subbasement of 90 Broad Street, New York, NY.
The vault is classified as 10R, which is equivalent to a Class 3 vault.


Exchange Staff has inspected the MTB facility at 90 Broad Street, New York City, NY and has
determined that the facility meets all of the Exchange requirements to become a Licensed
Depository for the storage of gold, platinum and palladium.

D. FINANCIAL

The COMEX Depository application requires that the depository institution maintain a net worth
of not less than $250 million at all times, or first loss insurance payable directly to holders of the
depository receipts for the full value of metal stored at the location in the aggregate of not less
than $100 million. Exchange Rules specify that the insurance must be issued by such insurance
companies, and upon such terms and conditions as are satisfactory to the Exchange. Neither
MTB nor its guarantor MKS Finance meets the $250 million net worth requirement. Therefore,
MTB must have first loss insurance payable directly to the holders of the depository receipts.
This insurance is discussed below.

The Exchange has required MTB’s ultimate parent company, MKS, whose tangible net worth is
greater than US$100 million, to provide a guarantee in a format acceptable to the Exchange.
This guarantee is discussed below.

For the fiscal year ending June 30, 2005 MTB had a tangible net worth of US $1.8 million and
working capital of US $1.7 million. In the auditor’s opinion, “the financial statements present
fairly, in all material respects, the financial position of Manfra, Tordella & Brookes, Inc at June
30, 2005 and 2004 and the results of its operations and cash flows for the year then ended, in
conformity with accounting principals generally accepted in the United States of America.”

With respect to MKS Finance, for its fiscal year ending June 30, 2005, shareholder’s equity was
US $123.6 million and working capital was US $83.1 million. In the opinion of the auditor, “the
consolidated financial statements give a true and fair view of the financial position, the results of
its operations and the cash flows in accordance with the International Financial Reporting
Standards (IFRS) and comply with the Swiss law.”

Guarantee: The Exchange has received a guarantee from MKS Finance S.A., the parent of
MTB, in a form acceptable to the Exchange. As guarantor, MKS shall be liable for (1) all
financial obligations of MTB; and (2) the performance by MTB of all obligations, duties and
responsibilities of an Exchange Licensed Depository and Exchange Licensed Weighmaster,
where applicable, imposed by Exchange Rules and all applicable local, state and federal statutes
and regulations.

E. INSURANCE

MTB has in force through Willis with London Underwriters an insurance policy which covers
US$100 million each and every loss in respect of bullion and precious metal of all kinds for
NYMEX /COMEX warehouse receipt owners/bearers and contained within the MTB’s vault
only. This insurance is acceptable to the Exchange.