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3
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Is
iS
IS

Contract Expira- | Expiration Expiration | Repor
Name Rule | Commodity | Month Limi tion ting

‘Account:
Chapter ode. ability

‘Account. ‘Account.
Month | abilitytevel_| abilitytevel_| Level | Aggregate | Aggregate

lo

Penultimate Last Day
Level imit_ | __and Metals Into (1) Into (2)

Rule ‘Contracts. Contracts Rule
Rule 9.26 9.27 9.

Rules

COMEX
Division -
Silver
Futures
Options
Rules 116 so 150 SI

COMEX
miNY
Silver
Future 912 Qi 6,000 4,500 1,500 150 SEQI

Platinum
Futures
Contract 90. PL 1,500 200 50 PL

NYMEX
Platinum
Option

Contract 360 PO 20,000 200 50 PL

Palladium’
Futures

Contract 100 PA 1,000 650 25 PA

EUROPE

COMEX
London
Primary
Aluminum
Futures 918 LA 6,000 1,500 25 LA

COMEX
London
Copper
Grade A
Futures 917 LK 5,000 1,500 25 LK

COMEX
London
SHG Zinc
Futures 919 14 4,000 1,500 25 LZ

ASIA

COMEX
Asian
Gold

Futures 914 Qs 6,000 3,000, 3,000 200 GEQS

NYMEX
Asian

Palladium
Futures 916 QT 1,000 650 650 50 PA QT

NYMEX 91S QR 1,500 200 200 200 PLOR



AllAny | Any/All

Contract ‘One Month | Expira- | Expiration | Expiration | Repor
Name Rule _| Commodity |_Month Limit tion ting

‘Account: | Rule ‘Account: ‘Account.
Code ability | 926A | Month | ability Level | abilityLevel | Level

Aggregate
Penultimate Last Day

Level and Metals Into (1) Into (2)

Contracts Contracts | Rule

Rule 9.26

9.34
Rule9.27A | Rule 927A

Metals

USA

Metals

USA

COMEX
Division -
Aluminum
Futures
Rules 123 AL 6,000 350 25 AL

COMEX
Division -
Aluminum
Futures
Options
Rules 124 OA 2s AL

COMEX
Division -
Copper
Contract
Rules int HG 5,000 400 25 HG

COMEX
Division -
Grade |
Copper
Futures
Options
Rules U7 HX 25 HG

COMEX
miNY

Copper
Futures 913 Qc 5,000 400 400 2s_|_wcoc

COMEX
Division -
Gold
Rules 3 GC. 6,000 3,000 200 GC.

COMEX
Division -
Gold
Futures
Options
Rules us 0G 200 Gc

COMEX
miNY
Gold
Futures out QO 6,000 3,000 3,000 200 GEQO

COMEX
Division -
Silver M2 SI 6,000 1,500 150 SI



‘All/Any | AnyiAit
Contract ‘One Month | Expira- | Expiration | Expiration | Repor
Name Rule | Commodity |__Month Limit _| tion ting
ccount: | Rule ‘Account. ‘Account-
Code ability | 926A | Month | abilityLevel | abilityLevel | Level | Aggregate | Aggregate
Penultimate | Last Day
Level Limit_| and Metals Into (1) Into (2)
Rule Contracts | Rule
Rule 9.26 927 9.34
Asian
Platinum

Futures



January 9, 2007
OFG.Gr Tic SECRETARIAT

Via E-Mail

Office of the Acting Secretary
Commodity Futures Trading Commission
Three Lafayette Centre

1155 21st Street, N.W.

Washington, D.C. 20581

Re: —_ Rule Certification. NYMEX Submission 07.02: Notification of Compliance Interpretive
Notice 01-07 Regarding Trading in COMEX Metals Contracts, and Amendments to
Position Limit/Accountability Rules for Certain Cash-Settled COMEX Metals Contracts.

Dear Ms. Eileen Donovan:

The New York Mercantile Exchange ("NYMEX" or the "Exchange") is notifying the Commodity
Futures Trading Commission (“CFTC” or “Commission”) of Compliance Interpretive Notice 01-07
regarding trading in COMEX Metals markets as well as various amendments to Position
Limit/Accountability Rules related to certain cash-settled COMEX Division metals contracts.

The Compliance Interpretive Notice 01-07 (attached Notice No. 07-11) informs Members that
monitoring of the markets by the Compliance Department includes reviewing whether market users,
trading in the closing range of physical delivery contracts while holding open positions in cash contracts
that are settled at the same settlement price, are trading in an orderly and commercially reasonable
manner. Members are also advised that such activity may subject the Member to Exchange disciplinary
action, as well as possible referrals to the CFTC and/or various law enforcement authorities.

Amendments to NYMEX Rule 9.27A, Expiration Position Accountability Levels, incorporate
certain cash-settled COMEX Division metals contracts, and also define the timing that such levels would
be in effect. Lastly, Chapter 9, Appendix A is amended to include the Expiration Position Accountability
Levels for certain cash-settled COMEX Division metals contracts and details the actual levels. The Rule
amendments and Interpretive Notice 01-07 will be effective January 11, 2007.

Pursuant to Section 5c(c) of the Commodity Exchange Act (“Act”) and CFTC Rule 40.6, the
Exchange hereby certifies that the attached rule amendments and notification filing complies with the
Act, including regulations under the Act.

If you have any questions, please contact Nancy Minett, Vice President, Compliance, at (212)
299-2940, and Anthony V. Densieski, Senior Director, Market Surveillance, at (212) 299-2881.

Sincerely,

Thomas F, LaSala
Chief Regulatory Officer
ce: Brian Regan
Nancy Minett


Notice No. 07-11
January 11, 2007

TO: All Exchange Members, Member Firms and Clearing Members
FROM: James E. Newsome, President
RE: Compliance Interpretive Notice 01-07 - Trading Activity in Physically-

Delivered COMEX Metals Contracts in Relation to COMEX Cash-Settled
Metals Contracts

It is the responsibility of market users to conduct trading in an orderly manner in
compliance with NYMEX and COMEX Division (collectively the “Exchange”) rules. The
Compliance Staff monitors the markets to ensure that trading is orderly. Monitoring includes
reviewing whether market users, trading in the closing range of physical delivery (“physical”)
contracts while holding open positions in cash contracts that are settled at the same settlement
price, are trading in an orderly and commercially reasonable manner.

The Compliance Department will closely review trading in the closing range of the
physical contracts with special attention to any open cash-settled contracts. Where it appears that
a market user is attempting (either through its own trading or in coordination with, or with the
assistance of others) to effect market movement in the physical contracts to benefit an open cash-
settled contract position, an investigation will commence.

To the extent that such activity is deemed by Compliance Staff to have been undertaken
by a person or firm subject to the disciplinary jurisdiction of the Exchange, the Compliance
Department will seek action through the existing disciplinary channels. Such actions may
constitute violations of Exchange rules that are major offenses, including but not limited to, Rule
8.55(A)(3) (dishonest conduct), Rule 8.55(A)(8) (manipulation or attempted manipulation), and
Rule 8.55(A)(18) (conduct substantially detrimental to the interest of the Exchange).

Should such activity be deemed by Compliance Staff to have been conducted by a
party(s) who is outside the direct jurisdiction of the Exchange, if deemed appropriate, the matter
will be referred to the Commodity Futures Trading Commission or other regulatory agencies, and
could additionally result in referrals to various law enforcement authorities as well.

Questions regarding this Notice should be directed to Thomas Lasala, Chief Regulatory
Officer, at (212) 299-2897, Nancy Minett, Vice President, Compliance, at (212) 299-2940, and
Anthony Densieski, Senior Director, Market Surveillance, at (212) 299-2881.


(Additions are in bold/underline, and deletions in bold/strikethrough.)
Rule 9.27A, Expiration Position Accountability Levels

(A) Any person who owns or controls positions in excess of the levels cited in Chapter 9, Appendix (A)
below, under heading 9.27A Expiration Position Accountability Levels, shall be subject to the following
provisions pursuant to position accountability levels:

(1) promptly supply to the Exchange such information as the Exchange may request pertaining to the
nature and size of the position, the trading strategy employed with respect to the position, and the
hedging requirements (if any), provided, however, that if the principal or controller fails to supply such
information as and when requested, the President or his designee may order the reduction of such
position;

(2) agrees, upon request by the President or his designee, not to increase the position owned or controlled
as of the time the request was received;

(3) agrees to comply with any limit prescribed by the President or his designee, and to decrease any open
position if directed upon review of the information cited in item 1 above.

(4) The Expiration Position Accountability Levels for designated energy contracts are effective on the
open of trading of the last three (3) trading days of the related physically delivered futures contracts. The
expiration position limits shall be calculated on a net futures-equivalent basis and will aggregate
appropriate contracts as identified in Chapter 9, Appendix A.

(5) The Expiration Accountability Levels for designated metals contracts are effective on the open
of trading on the last three (3) trading days of such contracts.

5) (6)Trading in the underlying physically delivered contract that is the basis for the settlement prices
for all contracts subject to this rule shall additionally be subject to NYMEX Interpretive Notices 01-06
and 01-07.