(ii) Attire: Failure to conform to the Exchange mandatory forms of dress and appearance.
A. For purposes of this Rule, the following forms of dress and appearance are mandatory.
* * *
5. All Clerks must wear a trading jacket.
[REMAINDER OF RULE UNCHANGED]



’

STS INT 21 MO AY Gin) NEW YORK

oe ee BOARD OF TRADE*
OFC. GF The SECRETARIAT World Financial Center
One North End Avenue

New York, New York 10282

PECEIVED

BY ELECTRONIC TRANSMISSION

05-47
November 21, 2005

Ms. Jean A. Webb

Secretary of the Commission

Office of the Secretariat

Commodity Futures Trading Commission
Three Lafayette Centre

1155 21" Street, NW

Washington, DC 20581

Re: Amendments to Rules 4.09, 4.03(a)(ii) and 21.25 -
Submission Pursuant to Section 5c(c)(1) of the Act and Regulation 40.6

Dear Ms. Webb:

Pursuant to Section 5c(c)(1) of the Commodity Exchange Act, as amended, and
Commission Regulation 40.6, the Board of Trade of the City of New York, Inc. (“Exchange”)
submits, by written certification, amendments to Rule 4.09, 4.03(a)(ii) and 21.25, attached as
Exhibit A.

Rule 4.09

In a letter dated September 15, 2005, the Exchange submitted amendments to Rule 4.09
which would allow a floor broker to cross customers’ orders during the post close trading session
when there is a flat market (see Submission 05-36). The amendments addressed problems that
arise under the cross trade rule, Rule 4.19, when there is only one price at which trading can
occur in the post close session. The amendments allowed a floor broker to cross his customer
orders when there is a flat market, i.e., the single price that traded on the close, if there are no
other market participants bidding or offering and both orders are for public customers. The
amendments submitted in this letter remove the requirements concerning public customer orders
and the absence of bids and offers by other market participants. As with cross trades executed
during the regular trading day, such post close transactions would be subject to the requirements
of Rule 4.19 with the exception of making a one tick market. For example, a broker could make
a flat market and take the opposite side of a customer’s order only if the customer granted him
written consent to do so and the order involves a commodity contract for which Exchange rules
permit the members to take the opposite side of their customers’ orders.


Rules 4.03(a)(ii) and 21.25

In Submission 05-36, the Exchange also submitted amendments to Rules 4.03(a)(ii) and
21.25 that made the failure to state a quantity and take ten (10) contracts a violation in all of the
trading rings except for the Cocoa trading rings. The amendments submitted in this letter
temove the Cocoa exception, making it a violation in all rings. Those opposing the amendments
expressed the view that it may be difficult to enforce by the Cocoa Floor Committee members.
However, Floor Committee members from other trading rings stated that the provision has
effectively prevented situations where it appears that a floor broker may be trading size, but, in
fact, only intends to trade one (1) or two (2) contracts. they also stated that it was not difficult to
enforce.

Another amendment to Rule 21.25 will require all floor clerks to wear a trading jacket.
The purpose of this amendment is to give a more uniform and professional appearance to the
trading floor.

The Exchange certifies that the amendments comply with the requirements of the
Commodity Exchange Act and the rules and regulations promulgated thereunder.

The amendments were adopted by the Exchange’s Board of Governors on November 17,
2005. Except for the amendments concerning the failure to state a quantity, no substantive
opposing views were expressed by members or others with respect to the amendments. The
amendments to Rules 4.09, 4.03(a)(ii) and 21.25, will become effective on a date set by the
President after filing with the Commission. The amendment to Rule 21.25, concerning the
trading floor jacket requirement, will go into effect on January 2, 2006.

If you have any questions or need further information, please contact me at

jfassler@nybot.com or 212-748-4084.

Sincerely,

Jill S. Fassler
Vice President
Associate General Counsel

cc: Riva Adriance
CFTC, Division of Market Oversight
Allen Cooper
CFTC, New York Regional Office



(In the text of the amendments below, additions are underlined and deletions are bracketed and
lined out.)

Rule 4.09. Post Close Trading Session

The Exchange will conduct a post close trading session for each Exchange Futures Contract and for
each Exchange Options Contract if the particular Strike Price traded during the day as follows:

* * *

@ Notwithstanding the provisions of Rule 4.19(b)(i), if [duringthe-pest-clese-trading-session, there

ai ag-and] the post close trading session Trade price is limited to
a single price, a Floor Broker may execute a cross trade [a-Cust *s-ord another Cust
erder] at {the} such single Trade price as long as such Transaction is executed [eressed] in accordance
with all of the other [appleable] provisions of Rule 4.19.

[REMAINDER OF RULE UNCHANGED]

Rule 4.03. Transactions, Bids and Offers

(a) Unless otherwise provided in the Rules, each Transaction, bid and offer for Commodity Contracts
shall be:

* * *

(ii) understood to be for ten (10) Commodity Contracts where no quantity is specified and a Floor
Broker who fails to specify a quantity is is obligated to accept a minimum of ten a0) Commodity
Contracts; Provided, however, [tha a

eee] with respect to “Cotton No. 2, FCO), Financial and Index Contracts, a Floor Broker showing t two
(2) hands is obligated to accept a minimum of ten (10) contracts;

[REMAINDER OF RULE UNCHANGED]

Rule 21.25. Floor Committee Summary Action
* * *
(b) Conduct Subject to Summary Action

It shall be a violation of the Rules regarding decorum, attire, or timely submission of accurate records
for a Member to engage in the following practices:

(i) Decorum:

* * *
B. Trading Practices:
* * *
13. [exeept-inthe-C Contracts-trading-+ings,] failing to state a quantity and not taking a
minimum of ten (10) contracts.
* * *

EXHIBIT A