July 7, 2005

Via E-Mail

Office of the Secretariat

Commodity Futures Trading Commission
Three Lafayette Centre

1155 21st Street, N.W.

Washington, D.C. 20581

a

ZO ch Wd Z- we GUC

Re: Rule Certification. NYMEX Submission 05.116: Notification of

Amendments to NYMEX Rule 6.90, Trading Card Procedures.

Dear Ms. Jean Webb:

The New York Mercantile Exchange ("NYMEX" or the "Exchange") is notifying the

Commodity Futures Trading Commission (“CFTC” or “Commission”) of amendments to
NYMEX Rule 6.90, Trading Card Procedures.

Effective Monday, July 11, 2005, the amendments delineate the guidelines whereby
clerks will be permitted to record and submit EFP and EFS transactions on behalf of a floor
broker. Pursuant to Section 5c(c) of the Commodity Exchange Act (“Act”) and CFTC Rule 40.6,

the Exchange hereby certifies that the attached rule amendment complies with the Act, including
regulations under the Act.

Should you have any questions concerning the above, please contact Nancy Minett, Vice
President, Compliance, at (212) 299-2940.

Very truly yours,

Nancy M. Minett
Vice President
Compliance Department
ce: Brian Regan
Thomas LaSala


(Underlining in bold indicates additions; strikethroughs in bold indicate deletions.)
NYMEX Rule 6.90, Trading Card Procedures

(A) A Floor Member shall regularly and promptly record all transactions that he executes on a
sequentially numbered trading card pre-printed and issued by the Exchange. The Exchange shall
maintain a record of all trading cards issued to such Floor Member. Each member shall be
accountable for maintaining the original soft ply of all trading cards issued to such member in
exact numerical sequence, including soft plies which are not used by the Floor Member or

collected by the Exchange. Where the transaction is an EFP or EFS, not executed by the
Floor Member, the Floor Member’s clerk may record the transaction on a separate trading
card, provided that the trading card is clearly marked “EFP/EFS only.”

(B) All trading cards shall show the Member's symbol, the date, price differential or premium,
quantity, commodity, delivery month or expiration date, the opposite Floor Member, and, for
options, the strike price, and whether the transaction involved a put or a call. With the exception
of trades executed during the opening or closing ranges, members shall record the exact time of
execution to the minute of the first trade made on each trading card. Members shall identify on
their trading cards all trades executed during the opening and closing ranges by marking a line
across the card below all transactions executed during the opening and above all transactions
executed during the closing range. All transactions must be recorded in exact chronological order
of execution on sequential lines of the trading card without skipping lines between trades. If any
lines remain after the final transaction has been recorded on a trading card, they shall be marked

through by the Floor Member. EFP/EFS transactions may be recorded on a separate non-
sequentially numbered trading card.

(C) Trading Cards may be collected by the Exchange, at such times and pursuant to such
procedures as may be adopted by the Board.

(D) The hard ply of the trading card shall be used to report the sale of futures and options
contracts within 1 minute of execution in accordance with Exchange Rule 6.10. Additionally, if
any hard ply contains only purchases of futures or options contracts, the Floor Member must
submit the hard copy ply of the trading card to the Exchange prior to using the next sequentially

numbered trading card. EFP/EFS transactions must be promptly submitted to the Exchange
and may be submitted by a clerk provided however, that submission by a clerk must be
made to the corrections area only. No transaction other than an EFP/EFS may be recorded
or submitted by a clerk.

(E) Members (or for EFS/EFP transactions, their clerks) shall use non-erasable ink when
recording transactions on trading cards. Errors on trading cards may be corrected by placing a
single line through the erroneous information such that the erroneous information remains plainly
readable, or by rewriting the trading card; provided, however, that Members shall be required to
maintain all trading cards, including trading cards containing EFP/EFS transactions recorded
by clerks and those that have been rewritten. Floor Members may be exempt from personally
retaining their trading cards if written notice, from their FCM or Member Firm employer, is



given to the Compliance Department acknowledging that it is the custodian of a Floor Member's
daily trading records (i.e. trading cards, and customer order memoranda).

(F) Notwithstanding the foregoing, the Board of Directors of the Exchange may approve for use
by a Floor Member a handheld electronic trading pad (“Approved Handheld’) to regularly and
promptly record all transactions that he executes, which produces a sequential, unalterable record
of trades executed by the Floor Member and which complies with the information and record
retention rules and requirements of the Exchange.

(G) If the Compliance Department determines that Members or their clerks have failed to
comply with any subdivision of Rule 6.90 it may summarily implement the following
disciplinary procedures:

1. A Warning Letter may be issued for a first infraction, informing the Member that there was a
tule violation.

2. A Second infraction in a 12 month period may subject the Member to a $100.00 summary fine.
3. A third infraction in an 18 month period may subject the Member to a $500.00 summary fine.

4. A fourth infraction in a 24 month period will be sufficient basis for a Compliance Department
referral to the Business Conduct Committee for formal Disciplinary Action.

5. Subdivisions 1-4 will not apply when the Compliance Department determines that a Member
has committed a substantive violation of Exchange rules in addition to a trading card infraction.

(H) Any fine imposed in accordance with Rule 6.90(D) may be appealed to a subcommittee of
the Compliance Review Committee ("Subcommittee"). The Subcommittee shall consist of a
Chairman, two additional Subcommittee members and two alternates. The Subcommittee
members and alternates shall be appointed by the Chairman of the Compliance Review
Committee. To appeal a fine, a Member shall file a typewritten request with the Exchange's
Compliance Counsel within five (5) business days after receipt of the notice of such fine. The
letter of appeal should set forth the reason for the requested appeal and attach any relevant
documents. The Subcommittee shall meet at such times as it deems appropriate, and shall reach
its decision based upon the letter of appeal and any other documents furnished by the Member
subject to the fine with the appeal letter or by the Compliance Department. The Subcommittee in
its sole discretion may permit or require personal appearances by the Member and/or the
Compliance Department. The Subcommittee shall affirm, modify or reverse the fine appealed
and shall issue its Decision in writing within thirty (30) days of meeting to consider the appeal.