2.75A: Platinuny/Palladium Permit Program

2.75B: Crack and Spread Options Permit Program

2.75C: Eurotop 100 Permit Program

2.75D: Permian Basin Natural Gas Permit Program

2.75E: Electricity Permit Program

5.36: Awards

6.02 Hours for Trading

6.05: Transactions, Bids and Offers on the Trading Floor

6.06: Transactions Made at Other Than Current Market

6.08C: NYMEX ACCESS7 Spread Transactions

6.12: Resolution of Floor Trading Disputes

6.15: Standard Forms of Orders

6.16: Obligation of Floor Brokers

6.17: Errors and Omissions in Handling Orders

6.23: NYMEX ACCESS Trading Standards

6.25: Trading Work Station Administration

6.30: ACCESS to the Trading Floor

6.31: Trading Prohibition of Certain Persons

6.32: Trading Prohibitions: Representatives of Other Clearing Members
6.37: Attendance by Representatives of Members and Member Firms under
Extraordinary Circumstances

6.40: Simultaneous Buy and Sell Orders on the Exchange Trading Floor
6.41: Trading Standards for Floor Brokers

6.42: Procedures on the Exchange Floor for Simultaneous Buy and Sell Orders
6.43: Floor Broker Registration Requirements

6.43A: Broker Associations

6.44 Registration for Billing of Floor and NYMEX ACCESS Brokerage
6.61: Pre-Arranged Trades

6.92: Surrender of Trading Records for Examination

8.00: Compliance Department

8.25: Cease and Desist Order

8.52: Manipulation

8.54: Payment of Gratuity to Employees of Others

8.55: Classification of Offenses (except to to the extent the prohibited act relates ss solely to decorum or attire, financial
requirements or recordkeeping an @

8.56: Confirmations

8.57: Confidentiality of Exchange Investigations and Proceedings

8.58: Exchange Jurisdiction Over Member, Etc.,

8.60: Obligation of Employee to Respond to Compliance Department Inquiries

8.61: Obligation of Employee to Comply with Rules of Exchange

8.62: Clerk Registration

8.63: Member, Member Firm and Permit Holder Responsibility

8.64: Clerk Badges

8.65: Sanctions

8.66: Billing and Commissions

8.68: Notification of Final Disciplinary Action Involving Financial Harm to a Customer
8.69: Audit Trail Violations

8.99: Member Summary Suspension (except to the extent the Prohibited act t relates solely t to decorum o or attire,
financial requirements or recordkeeping and/e pe g-anddoees-ne a

8.99B: Summary Procedures for Denial of Access to Specified Alternative Electronic Trading System

9.03: Guaranty Fund

9.04B: Use of E-RAV Risk Filter for Trading on Specified Exchange Alternative Electronic Trading Systems
9.10: Trade Refused By Clearing House


4.95: Open Contracts

4.96: Reporting of Positions to Committee

4.97: Written Record of Transactions

8.00: Compliance Department

8.25: Cease and Desist Order

8.52: Manipulation

8.54: Payment of Gratuity to Employees of Others

8.55: Classification of Offenses (except to the extent the Prohibited act telates s solely tc to decorum or attire, financial
requirements or recordkeeping and/or reporting and-dees-ne u g d
ealendaryear):

8.56: Confirmations

8.57: Confidentiality of Exchange Investigations and Proceedings

8.58: Exchange Jurisdiction Over Member, Etc.

8.60: Obligation of Employee to Respond to Compliance Department Inquiries

8.61: Obligation of Employee to Comply with Rules of Exchange

8.62: Clerk Registration

8.63: Member, Member Firm and Permit Holder Responsibility

8.64: Clerk Badges

8.65: Sanctions

8.66: Billing and Commissions

8.68: Notification of Final Disciplinary Action Involving Financial Harm to a Customer (Rule pending approval by
the Commission)

8.69: Audit Trail Violations

8.99: Member Summary Suspension (except to the extent the prohibited act relates solely to decorum or attire,

financial requirements or recordkeeping and/or reporting and-dees-net-result in-ageregate-fines-exceeding $5,000
in-e-ealendaryear);

Additional Rules (except to the extent the he prohibited a act relates °s solely to decorum or attire, financial al requirements or
recordkeeping and/or reporting and-de u es-e d n-aealend en

4.03: Trading Outside Trading Hours

4.05(a): Market Indication and Error Resolution Period-Pre-Opening Market Indication Period
4.09: Decorum on Floor

4.14: Trading Badges

4.25: Prohibited Bids and Offers

4,70: Quantity of Contracts Bid or Offered

(b) any interference or attempt to interfere with an employee of the Exchange in the performance of his duties under
Rules 4.04 ("Conduct of Opening Calls"), 4.05 ("Matched Orders"), and 4.07 ("Conduct at Straddle Calls");

7.01: Minimum Financial Requirements for FCMs

7.02: Minimum Financial Requirements for Members
7.03: Minimum Financial Requirements for Member Firms
7.05: Guaranteed Members

7.07: Reporting Requirements

7.09: Additional Financial Statements


(5) Currently is subject to or has had imposed on him within the prior three years a Commission registration
revocation or suspension in any capacity for any reason, or has been convicted within the prior three years of any of
the felonies listed in section 8a(2)(D)(ii) through (iv) of the Act;

(6) Currently is subject to a denial, suspension or disqualification from serving on the disciplinary committee,
arbitration panel or governing board of any self-regulatory organization as that term is defined in section 3(a)(26) of
the Securities Exchange Act of 1934.

(D) Within thirty days of the end of each calendar year the Exchange shall submit to the Commission a certified list
of any persons who have been removed from its disciplinary committees, oversight panels, arbitration panels or
governing board pursuant to the requirements of this Rule during the prior year.

(E) The Exchange shall submit to the Commission a schedule listing all those rule violations which constitute
disciplinary offenses as defined in paragraph (A)(5)(i) of this Rule and to the extent necessary to reflect revisions
shall submit an amended schedule within thirty days of the end of each calendar year. The Exchange shall maintain
and keep current the schedule required by this section, post the schedule in a public place designed to provide notice
to Members and otherwise ensure its availability to the general public.

The current schedule of violations that constitute a disciplinary offense as defined in paragraph (A)(5)(i) of this Rule
is set forth in Schedule A to this Rule for the Class A Member and Schedule B to this Rule for the COMEX Division.

(F) Whenever the Exchange finds by final decision that a person has committed a disciplinary offense and such
finding makes such person ineligible to serve on the Exchange's disciplinary committees, arbitration panels,
oversight panels or governing board, the Exchange shall inform the Commission of that finding and the length of the
ineligibility in any notice it is required to provide to the Commission pursuant to either Section 17(h)(1) of the Act or
Commission Regulation 9.11.

Schedule A

The current schedule of violations that constitute a disciplinary offense as defined in paragraph (A)(5)(i) of this Rule
is as follows:

Bylaw Sections:

106: Failure to Pay Dues, Assessments and Fees

110: Disclosure of Information

800: Members Subject to Disciplinary Proceedings

802: Failure to Pay Fine

851: Duty to Report Emergency Event

852: Summary Suspension: Action by the President (except to the € extent the Probibited act telates s solely to to decorum
or attire, financial Tequirements or recordkeeping and/e p e

ys
853: Summary Suspension: Action of the Executive Committee (except to the extent the prohibited act relates solely
to decorum or attire, financial requirements or recordkeeping and/or-reporting-and-d t Ht-in-aggregate
fines-exeeeding $5,000 in-a-calendar year):

Exchange Rules:

2.21: Qualification by Clearing Member

2.31: Duties of Guaranteed and Qualified Members

2.32: Duties of Guarantors and Qualifying Clearing Members

2.40: Responsibility of Member for Actions of Member Firms

2.41: Responsibility of Members.and Member Firms for Actions of Employees
2.74, Natural Gas Futures Permit Program

2.75: Platinum Option Permit Program


9.11: Transfer of Trades

9.14: Omnibus Accounts

9.19: Final Day of Trading

9.19A: Transfer to Correct Errors Occurring on the Last Day of Trading

9.28: Exemptions From Position Limits, Etc.,

9.37: NYMEX ACCESS Administrative Work Stations

9.37A: Use of Common AWS Operators by Clearing Members

11.02: Electronic Trader Designation Requirements

11.03: Scope of Trading Privileges

11.04: Responsibilities of Electronic Traders

11.07: Primary Clearing Member Permission for Electronic Trader Accounts with Other Clearing Members and
Additional Authorized Terminal Users and Electronic Trading Privileges

11.08: Non-Member Firms Designated as Electronic Traders, Commodity Trading Advisors and Commodity Pool
Operators

11.09: Duties of Primary Clearing Members to Monitor Electronic Traders

11.25: Acceptance of Orders for Entry into NYMEX ACCESS

11.27: Type Indicator Codes for Trading on NYMEX ACCESS®

11.31: Electronic Trading Privileges for Exchange Alternative Electronic Trading Systems
11.32:Designation Requirements for Users And User Agents Of Exchange’s Alternative Electronic Trading System
11.33: Scope of Trading Privileges for Alternative Electronic Trading System

11.34: Responsibilities of Users on Exchange Alternative Electronic Trading Systems
11.35:Acceptance of Orders for Entry into Exchange Alternative Electronic Trading Systems
11.36: Type Indicator Codes for Trading on NYMEX ClearPort(sm)

11.51: Business Day

11.52: Hours of Trading

11.53: Standard Forms of Orders for Exchange Electronic Trading Systems

11.54: Standard Forms of Orders for Exchange Electronic Trading Systems

11.55: Errors and Omissions in Handling Orders

11.56: Surrender of Trading Records for Examination

11.57: Trading Standards for Electronic Trading Systems

11.59: Use of Passwords

11.61: Limitation of Liability

11.62: NYMEX Personnel-Limitation of Liability

11.64: Trading Prohibition of Certain Persons

11.65: Trading Prohibitions: Representatives of other Clearing Members

11.66: Simultaneous Buy and Sell Orders on Electronic Trading Systems

Additional Rules (except to the extent the prohibited act relates solely to decorum or attire, financial requirements or
recordkeeping and/ porting-and-d t It-in- aggregate fi eding $5,000-i lendar-year):

1, 6.60:

2. Financial - 2.14, 2.15, 2.23, 2.30, 2.33, 2.42, 2.72, 4.00, 4.01, 4.02, 4.03, 4.04, 4.05, 9.05, 9.20, 9.21, 140.22,
300.09 and 300.19;

3. Recordkeeping or Reporting-6.07, 6.07A, 6.08A, 6.08B, 6.10, 6.11, 6.18, 6.19, 6.20, 6.21, 6.24, 6.90, 8.50, 9.04,
9.22, 9.26, 9.27, 9.32, 9.33, 9.34, 9.35, 9.36, 90.08, 90.13, 100.08, 100.13, 140.15, 140.19, 140.20, 150.09, 150.13,
150.14, 150.14A, 190.09, 190.13, 190.14, 190.14A, 200.11, 200.15, 200.17, 200.20, 200.20A, 220.11, 220.14,
220.17, 220.17A, 230.12, 230.17, 230.18, 300.08, 300.11, 300.13 and 300.15.

Schedule B

The current schedule of violations that constitute a disciplinary offense as defined in paragraph (A)(5)(i) of this Rule
is as follows:

Bylaw Sections:


July 12, 2005

Via E-Mail

Office of the Secretariat

Commodity Futures Trading Commission
Three Lafayette Centre

1155 21st Street, N.W.

Washington, D.C. 20581

P=}
3S
A

Re: _—_ Rule Certification. NYMEX Submission 05.119: Notification of
Amendments to Exchange Rule 3.03, Disqualification from Board

and Committee Service. =
p=
Dear Ms. Jean Webb: > nN

The New York Mercantile Exchange ("NYMEX" or the "Exchange") is notifying the Commodity
Futures Trading Commission (““CFTC” or “Commission”) of amendments to Exchange Rule 3.03,
Disqualification from Board and Committee Service.

Effective Friday, July 15, 2005, the amendments to Rule 3.03 put in place an affirmative program
to determine whether a settlement offer should be considered barrable for a member’s repeated failure to
conform to audit trail standards. Compliance staff will make a written recommendation to the
disciplinary panel regarding whether a bar from Board or disciplinary committee service is appropriate in
all cases involving a member with repeated audit trail offenses. The recommendation will take into
account steps taken by a respondent to correct the situation, the reputation and disciplinary history of the
respondent, and whether the repeated failure to conform to audit trail standards is a serious offense. In
making this determination, Staff will look for any indication that customers may have been harmed,
investigations intentionally corrupted or rule violations masked by the pattern of audit trail offenses. The
Department’s recommendation may call for a complete bar, a recommendation of a conditioned
probationary period or a recommendation for no bar. Whether or not the recommendation of Compliance
Staff differs from the settlement to be reviewed by the Board, the recommendation and rationale for the
recommendation will be presented to the Board for their consideration.

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 comply with the Act, including regulations
under the Act.

Should you have any questions concerning the above, please contact Adam Wernow, Compliance
Counsel, at (212) 299-2851.

Very truly yours,

Nancy M. Minett
Vice President

Compliance Department
ce: Brian Regan

Thomas LaSala


106: Failure to Pay Dues, Assessments and Fees

110: Disclosure of Information

800: Members Subject to Disciplinary Proceedings

802: Failure to Pay Fine

851: Duty to Report Emergency Event

852: Summary Suspension: Action by the President (except to the extent the prohibited act relates solely to decorum
or attire, financial requirements or recordkeeping and/er-reperting-and-dees-net-result-in- aggregate fines
exeeeding $5,000 -in-a-calendaryear);

853: Summary Suspension: Action of the Executive Committee (except to the extent the prohibited act relates solely
to decorum or attire, financial requirements or recordkeeping and/er-reperting-and-dees-not result in-aggregate

ding $5,000-in-a-ealendar year):

Exchange Rules:

3.01: Compliance with Bylaws and Rules

3.02: Compliance with Decisions

3.03: Dealing with Employees of Others

3.04: Bucket Shops

3.05: False Statements

3.06: Manipulation

3.07(a): Rumors-Prohibited Dissemination

3.09: Branch Offices

3.10: Registration

3.13: Basis for Disciplinary Proceedings

3.15: Notice of Proceedings

4.05: Market Indication and Error Resolution Periods
4.12(a): Members Eligible to Trade on Floor-Full Floor Privileges
4.15: Trading Privileges for Guaranteed Member
4.16: Visitors

4.17: Persons Permitted to Enter Orders

4.21: Open Outcry

4.22(a): Disclosure of Customer's Order-Prohibited Disclosures
4.23: Solicitation of Orders

4.24: Crossing of Orders

4.26: Wash Trades

4.27: Prearranged Trades

4.29: Errors Discovered After Trading Session

4.31: Dual Trading

4.32: Discretionary Orders

4.33: Priority of Orders and Allocation of Trades
4,34: Withholding Orders

4.35: Trading in Current Month

4.36: Exchanges for Physicals

4,37: Ex-Pits and Transfers of Existing Futures Contracts and Futures Options
4.38: Execution of Straddles

4.40: Futures Options Not Traded on Exchange

4.41: Void Transactions

4.61: Responsibility for Reporting Transactions
4,62: Add-In Trades Which are Promptly Discovered
4.63: Add-In Trades Which are not Promptly Discovered
4.64: Reporting Exercise of Futures Options

4.69: Floor Broker Registration

4.80: Trading Cards

4.81: Order Tickets

4.83: Transcription of Trade Data



[Underlining in bold indicates additions; strikethroughs in bold indicate deletions.]
Rule 3.03, Disqualification from Board and Committee Service

The following provisions of this Rule 3.03 shall apply with regard to the Class A Member of New York Mercantile
Exchange Inc.

(A) Definitions:

(1) "Self-regulatory organization" means a "self-regulatory organization" as defined in Commission regulation
1.3(ee), and includes a "clearing organization" as defined in Commission regulation 1.3(d), except as defined in
paragraph (C)(6) of this section.

(2) "Disciplinary committee" means any person or committee of persons, or any subcommittee thereof or panel that
is authorized by a self-regulatory organization to issue disciplinary charges, to conduct disciplinary proceedings, to
settle disciplinary charges, to impose disciplinary sanctions or to hear appeals thereof.

(3) "Arbitration panel" means any person or panel empowered by a self-regulatory organization to arbitrate disputes
involving such organization's members or their customers.

(4) "Oversight panel" means any panel authorized by a self-regulatory organization to review, recommend or
establish policies or procedures with respect to the self-regulatory organization's surveillance, compliance, rule
enforcement or disciplinary responsibilities.

(5) "Disciplinary offense" means:
(i) Any violation of the rules of a self-regulatory organization except those rules related to:

(A) Decorum or attire,
(B) Financial requirements, or
(C) Reporting or recordkeeping.

(ii) Any rule violation described in paragraphs (A)(5)(i)(A) through (A)(5)(i)(C) of this section which involves fraud,
deceit or conversion or results in a suspension or expulsion, or with respect to repeated violations involving
reporting or recordkeeping, where a disciplinary panel has determined, pursuant to a settlement agreement
or an adjudication on the merits, that the violation, in light of all relevant facts—including but not limited to
evidence as to whether or not steps have been taken by a respondent to correct the situation, the reputation
and disciplinary history of the respondent, and any indication that customers may have been harmed,
investigations intentionally corrupted or rule violations masked by the pattern of audit trail offenses—
warrant disqualification from Board or Disciplinary Committee service.

(iii) Any violation of the Commodity Exchange Act or the regulations promulgated thereunder, or,

(iv) Any failure to exercise supervisory responsibility with respect to acts described in paragraphs (A)(5)(i) through
(A)(5)(iii) of this section when such failure is itself a violation of either the rules of the self-regulatory organization,
the Act or the regulations promulgated thereunder.

(v) Notwithstanding anything tothe eontrary-herein-Except as provided in section (A)(5)(ii), violations of the

following Exchange rules shall not be considered "disciplinary offenses" unless they involve fraud, deceit or
conversion or result in suspension or expulsion:

(A) Decorum and Attire: NYMEX Rules 6.60 and COMEX Rules 4.03; 4.14; 4.25; 4.09; 4.05(a); or 4.70; any rule
violation that results in the interference or attempt to interfere with an employee of the Exchange in the performance
of his duties under COMEX Rules 4.04, 4.05 and 4.07;


(B) Financial-NYMEX Rules 2.14, 2.15, 2.23, 2.30, 2.33, 2.42, 2.72, 4.00, 4.01, 4.02, 4.03, 4.04, 4.05, 9.05, 9.20,
9.21, 140.22, 300.09 and 300.19 and COMEX Rules;

(C) Recordkeeping or Reporting-NYMEX Rules 6.07, 6.07A, 6.08A, 6.08B, 6.10, 6.11, 6.18, 6.19, 6.20, 6.21, 6.24,
6.90, 8.50, 9.04, 9.22, 9.26, 9.27, 9.32, 9.33, 9.34, 9.35, 9.36, 11.27, 11.36, 11.58, 90.08, 90.13, 100.08, 100.13,
140.15, 140.19, 140.20, 150.09, 150.13, 150.14, 150.14A, 190.09, 190.13, 190.14, 190.14A, 200.11, 200.15,
200.17, 200.20, 200.20A, 220.11, 220.14, 220.17, 220.17A, 230.12, 230.17, 230.18, 300.08, 300.11, 300.13 and
300.15 and COMEX Rules 4.80, 4.81, 4.82, 4.84, 4.85, 4.86, 4.87 or 3.11(b).

(vi) A disciplinary offense must arise out of a proceeding or action which is brought by a self-regulatory
organization, the Commission, any Federal or state agency, or other governmental body.

(6) "Final decision" means:

(i) A decision of a self-regulatory organization which cannot be further appealed within the self-regulatory
organization, is not subject to the stay of the Commission or a court of competent jurisdiction and has not been
reversed by the Commission or any court of competent jurisdiction; or,

(ii) Any decision by an administrative law judge, a court of competent jurisdiction or the Commission which has not
been stayed or reversed.

(7) "Settlement agreement" means any agreement consenting to the imposition to the imposition of sanctions by a
self-regulatory organization, a court of competent jurisdiction or the Commission.

(B) No person who, within the prior three years, has become subject to one of the disqualifications set forth in
subsection (C) below, shall be permitted to serve on the Board of Directors, the Business Conduct Committee, the
Adjudication Committee, the Bylaws Committee, the Control Committee, the Compliance Review Committee, the
Floor Committee, the Appeals Committee, the Arbitration Committee, or any Delivery Committee or appeals panel
established in connection with a delivery.

(C) A person shall be disqualified from serving on the Board of Directors and the Committees set forth above, if
such person:

(1) Was found within the prior three years by a final decision of a self-regulatory organization, an administrative law
judge, a court of competent jurisdiction or the Commission to have committed a disciplinary offense;

(2) Entered into a settlement agreement within the prior three years in which any of the findings or, in the absence of
such findings, any of the acts charged included a disciplinary offense;

(3) Currently is suspended from trading on any contract market, is suspended or expelled from membership with any
self-regulatory organization, is serving any sentence of probation or owes any portion of a fine imposed pursuant to
either:

(i) A finding by a final decision of a self-regulatory organization, and administrative law judge, a court of competent
jurisdiction or the Commission that such person committed a disciplinary offense; or,

(ii) A settlement agreement in which any of the findings or, in the absence of such findings, any of the acts charged
included a disciplinary offense.

(4) Currently is subject to an agreement with the Commission or any agreement with the Commission or any self-
regulatory organization not to apply for registration with the Commission or membership in any self-regulatory
organization;