(1) Light Sweet Crude Oil (CL). An IXA Trade in CL may be submitted for a minimum quantity of
50 contracts and only in connection with a spread transaction against an economically equivalent
sized trade in a crude oil futures contract traded on or subject to the rules of another board of trade.
Both legs of such spread transaction must be submitted to the relevant exchange within five (5)
minutes of each other, or within 15 minutes of the commencement of such time that the relevant
exchanges will accept trade submissions. Complete information regarding such spread transaction,
including all of the information listed in paragraph (B)(9) pertaining to the corresponding
transaction on such other board of trade, must be recorded on an order ticket by a Member or

Member Firm submitting a CL [XA Trade.


(8) Floor brokers submitting [XA Trades during RTH must record such [XA Trades on their trading
cards along with the time of execution. All submitted IXA Trades must be cleared through clearing

members.

(9) Each Member and/or Member Firm, as applicable, that submits an IXA Trade shall record the
following details on an order ticket for such IXA Trade: the contract (including the delivery month);
that the trade is an [XA Trade; the number of contracts; the price of execution; the price differential
between the two markets; the identity of the counterparty; and, if applicable, details regarding the
customer for which the [XA Trade was executed and submitted. Such order ticket must also be

time-stamped at the time the LXA Trade order was received and at the time the order was executed.

(10) (a) Each party to an IXA Trade including, where applicable, a customer, must satisfy the
Exchange, at its request, that the transaction conforms to the requirements of this Rule 6.21B. Upon
the request of the Exchange, all documentary evidence relating to the IXA Trade including, without
limitation, the order ticket referred to in paragraph (B)(9) of this Rule, the documentation referred to
in paragraph (B)(5) of this Rule, and any additional records required to be created under section (C)
of this Rule, shall be obtained by the Clearing Member from the party and made available by the
Clearing Member for examination by the Exchange. Additionally, if the party is a Member or

Member Firm, the Exchange may obtain the information directly from such party.

(b) Failure by a party, or its Clearing Member to satisfy the Exchange that the IXA Trade conforms
with this Rule 6.21B shall subject such party, if a Member or Member Firm, or the party’s Clearing
Member to disciplinary action. Such disciplinary action, depending on the gravity of the offense,
may be deemed to be a Major Offense under the Exchange's rules. Further, if the party is not a
Member or Member Firm, the Exchange may conduct a hearing before the Business Conduct

Committee to limit, condition or deny that party access to the market.

(C) The following contracts have been designated as contracts eligible for [XA Trade transactions

with the corresponding minimum transaction sizes and other conditions indicated:



August 16, 2005

Via E-Mail

Office of the Secretariat

Commodity Futures Trading Commission
Three Lafayette Centre

1155 21st Street, N.W.

Washington, D.C. 20581

Re: Rule Certification. NYMEX Submission 05.146: Notification of
New NYMEX Rule 6.21B, Inter-Exchange Arbitrage (“IXA”) Trades.

Dear Ms. Jean Webb:

The New York Mercantile Exchange ("NYMEX" or the "Exchange" is notifying the
Commodity Futures Trading Commission (“CFTC” or “Commission”) of new NYMEX Rule
6.21B, Inter-Exchange Arbitrage (“IXA”) Trades.

This new Rule would permit sophisticated market participants to post a negotiated
transaction of 50 contracts or more in the Crude Oil (“CL”) futures contract solely in connection
with a contemporaneous arbitrage transaction against an opposite but economically equivalent
futures transaction on another board of trade. This new rule would address the legitimate needs of
market participants who maintain exposure in the various physical markets for Crude Oil
worldwide. This new rule will be effective as of Monday, August 22, 2005. 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 me at (212) 299-2897.

Very truly yours,

Thomas F. LaSala
Senior Vice President
Compliance and Risk Management

ce: Brian Regan
Nancy Minett


PROPOSED NEW NYMEX RULE 6.21B
(Entire Rule is New)

NYMEX Rule 6.21B — Inter-Exchange Arbitrage Transactions

(A) The Board of Directors may designate any contract as eligible for Inter-Exchange Arbitrage
Trade transactions under this Rule 6.21B and shall determine the minimum transaction size
thresholds, and such other conditions as it deems necessary or desirable, for the contracts in which
Inter-Exchange Arbitrage Trade transactions are permitted. Those designated contracts and their

corresponding minimum size thresholds and other conditions are listed in section (C) below.

(B) Members may execute privately negotiated transactions away from the centralized market with
respect to contracts designated by the Exchange for such purpose (hereinafter referred to as “Inter-

Exchange Arbitrage” or “IXA Trades”), provided that all of the following conditions are satisfied:

(1) Subject to any further restrictions listed in section (C), below, for a relevant contract, each IXA
Trade must only be submitted in connection with an intermarket spread transaction against an
economically equivalent sized trade in a futures contract traded on or subject to the rules of another

board of trade.

(2) Each buy or sell order underlying an IXA Trade must:
(a) state explicitly that it is to be, or may be, executed by means of an IXA Trade; and
(b) be for at least the applicable minimum quantity specified in section (C), below, for the
relevant contract. Orders from different accounts may not be aggregated in order to achieve
the minimum transaction size, provided that only a CTA, including without limitation any
investment adviser registered with the Securities and Exchange Commission that is exempt
from regulation under the Act or Commission regulations, with total assets under
management exceeding US$25 million or a foreign entity performing a similar role or
function to a CTA or investment advisor that is subject to foreign regulation with total assets
under management exceeding US$25 million, may satisfy this requirement by aggregating

orders for different accounts.


(3) Each party to an IXA Trade transaction, other than a NYMEX Division Member, must qualify
as an “eligible contract participant” (“ECP”) as that term is defined in Section 1a(12) of the
Commodity Exchange Act, provided that, if any LXA Trade is entered into on behalf of customers
by acommodity trading advisor registered under the Act, including without limitation any
investment advisor registered as such with the Securities and Exchange Commission that is exempt
from regulation under the Act or Commodity Futures Trading Commission Regulations thereunder,
or a foreign person performing a similar role or function subject as such to foreign regulation, with

total assets under management exceeding $25 million, the individual customers need not so qualify.

(4) Each [XA Trade submitted subject to this Rule 6.21B must be executed between separate

persons or legal entities whose accounts are under separate control.

(5) The price at which an IXA Trade is executed must be fair and reasonable in light of (a) the size
of such [XA Trade, (b) the price and size of other trades in the same contract at the relevant time; (c)
the price and size of trades in other relevant markets, including without limitation the underlying
futures markets, at the relevant time, and (d) the circumstances of the parties to such [XA Trade.
Members and Member Firms submitting an IXA Trade at a price that is away from the competitive
market price prevailing at the time of the transaction must retain documentation as to how the

requirements of this paragraph are satisfied.

(6) IXA Trades shall not set off conditional orders, including but not limited to, stop orders, limit

orders or market-if-touched orders, or otherwise affect orders or prices in the regular market.

(7) All IXA Trades transacted during Regular Trading Hours must be reported by the selling
member to a designated Exchange official within five (5) minutes of the time of execution or, in the
case of IXA Trades executed after the close of NYMEX Regular Trading Hours, within fifteen (15)
minutes from the commencement of the opening range in the relevant Exchange contract on the next
Exchange business day. The report must include the contract, contract month, price and quantity of

the trade.