renner etat

February 17, 2006

Via e-Mail

Office of the Secretariat

Commodity Futures Trading Commission
Three Lafayette Centre

1155 21" Street, N.W.

Washington, D.C. 20581

Re: Rule Certification. NYMEX Submission 06.28 — Notification
of Amendments to COMEX Division Rule 104.94,

Dear Ms. Jean Webb:

The New York Mercantile Exchange, Inc. (“NYMEX” or the “Exchange”) hereby notifies
the Commodity Futures Trading Commission (“CFTC”) of amendments to COMEX Division
Rule 104.94, Settlement Price Procedures for Copper Contracts.

Effective February 21, 2006, the amendments revise the hierarchy of factors to be
considered and modify the procedures for determining the settlement price for spot month
copper. Pursuant to Section 5c(c) of the Commodity Exchange Act (“Act”) and CFTC Rule
40.6, the Exchange hereby certifies that the new amendments comply with the Act, including
regulations under the Act.

Should you have any questions concerning the above, please contact me at 212-299-2940.

Very truly yours,

Nancy M. Minett
Vice President
Compliance Department

Attachments
ce: Thomas LaSala
Brian Regan


(Bold/Underlining indicates additions; Bold/Strikethroughs indicate deletions.)

COMEX Rule 104.94 Settlement Price Procedures for Copper Contracts

(A)@) The term "base month" shall mean the March, May, July, September and December
delivery months; (ii) the term "most active month” with respect to this Rule and the Rules in
Chapters 111 and 117 shall mean the base month that is not the current delivery month, with the
greatest reported open interest on the official COMEX daily open interest report.

(B) The settlement price for the current delivery month shall be comprised of the weighted

average price (rounded to the nearest minimum fluctuation) of all outright transactions that occur
in the closing range combined with the weighted average price of all spreads executed between

the current delivery month and the most active month sad-all spread bids-and offers between

th t-delivery th and-th t ly-rep ted during the final
30 minutes of trading. If no outright transactions occur in the closing range or no spreads are
executed th ‘Pp d-bid: <-off ti by P ted-d rt eZ the-fii 130
it f tradi in-th t-deli th—th: tt} t i: hall -bethelasttrad
Ss GOHVEFY 5 P
J auri th. esi bid hich. ffext th thelast-trade

PP i 7 cy cy 5 ie baad 7” Lid i ~ i
made- veh SU igher-bid- or-lower_offer-shall be the settlemen price: during the
final 30 minutes of trading in the current delivery month, or, ifi in the opinion of the
Settlement Committee, the settlement price determined is inconsistent with value indicated
by other spread relationships established during the last thirty minutes of trading, the
spread relationships occurring within the last thirty minutes, between and among contract
months from the current delivery month to the most active month, shall be utilized by the
Settlement Committee in their best judgment _to establish a settlement price at a level

consistent with such other transactions or market information, with greater weight given to
the weighted average of executed spread trades, and lesser weight given to the implied

midpoint of spread bids and offers actively represented during the final 30 minute period
of trading. In such event, the Committee shall prepare a written record of the basis for any
settlement price so established.

(C) The settlement price for the most active month shall be the weighted average price (rounded
to the nearest minimum fluctuation) of all outright transactions that occur in the closing range. If
no outright transactions occur in the closing range of the most active month, the settlement price
shall be the last trade price, unless during the closing range a bid higher or offer lower than the
last trade price is made. In such event, such higher bid or lower offer shall be the settlement
price.

(D) In all other delivery months, the settlement prices shall be determined based upon spread
relationships between and among contract months, which relationships shall be determined in the
judgment of the Settlement Price Committee with: (a) greater weight given to spreads executed
later in the trading day in large volumes, and (b) lesser weight given to (i) spreads traded in lesser
volumes, (ii) spread bids and offers actively represented later in the trading day, and (iii) spread
transactions, bids and offers from earlier in the trading day. Notwithstanding the foregoing, no


settlement price shall be established that would be lower than the best outright bid, or higher than
the best outright offer, that: (a) was for at least 20 contracts, and (b) had been posted with the
Exchange and had remained available for execution and unfilled for the final 30 minutes of
trading of that trading day.

(E) If any settlement price, determined pursuant to Paragraph (D), is inconsistent with
transactions that occurred during the closing range for other delivery months of the same futures
contract or with other market information known to the Committee, the Committee may establish
a settlement price at a level consistent with such other transactions or market information. In
such event, the Committee shall prepare a written record of the basis for any settlement price so
established.