upon request. Additionally, if the buyer or seller is a Member/Member Firm, the Exchange may
obtain the information directly from such persons.

* * * *

Rule 200.20A, Exchange of Futures for, or in Connection with, Swap Transactions

(A) An exchange of futures for, or in connection with, a swap (EFS) consists of two discrete, but
related, transactions; a swap transaction and a futures transaction. At the time such transaction is
effected, the buyer and seller of the futures must be the seller and buyer of a quantity of the swap.
The swap component shall involve the commodity underlying the futures contract (or any
derivative, by-product or related product). The swap component of an EFS transaction must

comply with the applicable CFTC swap regulatory requirements.

(QB) Except as provided below, an EFS must take place during the hours of futures trading for the
Light Sweet Crude Oil futures contract. An EFS is permitted at any time before 2:00 p.m. of the
first business day following termination of trading in an expired futures contract, provided,
however, that an EFS which establishes a futures position for both the buyer and the seller shall
not be permitted on the first business day following the expired contract.

(C) Any Exchange of Futures for, or in Connection with, Swap (EFS) shall be governed by the
provisions of Rule 6.21A.

(@) Each buyer and seller must satisfy the Exchange, at its request, that the transaction is a
legitimate EFS transaction. All documentary evidence relating to the EFS, including a master swap
agreement and any supplements thereto, shall be obtained by the Clearing Members from the
buyer or seller and made available by the Clearing Members for examination by the Exchange
upon request. Additionally, if the buyer or seller is a Member/Member Firm, the Exchange may
obtain the information directly from such persons.

* * * *

Rule 200.20AB, Alternative Delivery Procedure

A seller or buyer may agree with the buyer or seller with which it has been matched by the Exchange
under Rule 200.15(E) to make and take delivery under terms or conditions which differ from the terms
and conditions prescribed by this Chapter. In such a case, Clearing Members shall execute an Alternative
Notice of Intention to Deliver on the form prescribed by the Exchange and shall deliver a completed
executed copy of such Notice to the Exchange. The delivery of an executed Alternative Notice of
Intention to Deliver to the Exchange shall release the Clearing Members and the Exchange from their
respective obligations under the Exchange contracts.

In executing such Notice, Clearing Members shall indemnify the Exchange against any liability, cost or
expense it may incur for any reason as a result of the execution, delivery, or performance of such
contracts or such agreement, or any breach thereof or default thereunder. Upon receipt of an executed
Alternative Notice of Intention to Deliver, the Exchange will return to the Clearing Members all margin
monies held for the account of each with respect to the contracts involved.

* * * *


Rule 11G.30, Trading at Settlement

Contracts Eligible for Trading at Settlement or “TAS” Transactions on GLOBEX®.

Until further notice, the Board has authorized the availability of Trading at Settlement transactions in
such delivery months as specified by the Board for the following futures contracts available on

GLOBEX.

Contracts available include:

Commodity Code
on Globex® Name Cleared Product
WST WTI Crude Oil Financial TAS Ws
RTT RBOB Gasoline Financial TAS RT
BHT Heating Oil Financial TAS BH
HPT Natural Gas Financial TAS HP
HHT Natural Gas Financial (Last Day) TAS HH
BBT Brent Crude Oil Financial TAS BB
CLT Light Sweet Crude Oil TAS CL
HOT Heating Oil TAS HO
NGT Natural Gas TAS NG
HUT Unleaded Gasoline TAS HU
RBT RBOB Gasoline TAS RB
RET REBCO TAS RE

The front #we-(2) three (3) trading months of the products listed above shall be available for trading
(except on the last trading day in the physically delivered contracts). Until further notice, the hours for
trading shall be the hours that the applicable contracts are available for trading on GLOBEX®.


Exchange. Additionally, if the buyer or seller is a Member/Member Firm, the Exchange may obtain the
information directly from such person(s).

(2) Failure by a buyer or seller, or its Clearing Member to satisfy the Exchange that an EFS transaction is
bona fide shall subject such buyer or seller, if a Member/Member firm, or the clearing member to
disciplinary action. Such disciplinary action, depending on the gravity of the offense, may be deemed to
be a major offense of the Exchange’s rules. Further, if the buyer or seller is not a Member/Member Firm,
the Exchange may conduct a hearing before the Business Conduct Committee to limit, condition or deny
access to the market.

(EF) All omnibus accounts and foreign brokers shall submit a signed EFS reporting agreement in the
form prescribed by the Exchange to the Exchange’s Compliance Department. Such Agreement shall
provide that any omnibus account or foreign broker identified by a Clearing Member (or another omnibus
account or foreign broker) as the buyer or seller of an EFS pursuant to Rule 6.21A(C), shall supply the
name of its customer and such other information as the Exchange may require. A report of EFS
transactions shall be submitted to the Exchange by each omnibus account and foreign broker representing
the buyer and/or seller. Such submission shall be made by its inclusion with EFP transactions in the daily
Large Trader Reporting to the Exchange, pursuant to Rule 9.33, within the Large Trader file format. The
reporting of EFS transactions via Large Trader shall identify the reportable customer who executed the
EFS and the kind and quantity of the futures cleared. Failure by an omnibus account or foreign broker to
submit either the agreement or the particular EFS information to the Exchange may result in a hearing by
the Business Conduct Committee to limit condition, or deny access of such omnibus account or foreign
broker to the market.

Rule 150.14A, Exchange of Futures for, or in Connection with, Swap Transactions

(A) An exchange of futures for, or in connection with, a swap (EFS) consists of two discrete, but
related, transactions; a swap transaction and a futures transaction. At the time such transaction is
effected, the buyer and seller of the futures must be the seller and buyer of a quantity of the swap.
The swap component shall involve the commodity underlying the futures contract (or any

derivative, by-product or related product). The swap component of an EFS transaction must
comply with the applicable CFTC swap regulatory requirements.

(B) Except as provided below, an EFS must take place during the hours of futures trading for the
NY Harbor No. 2 Heating Oil futures contract. An EFS is permitted at any time before 2:00 p.m.
of the first business day following termination of trading in an expired futures contract, provided,
however, that an EFS which establishes a futures position for both the buyer and the seller shall
not be permitted on the first business day following the expired contract,

(C) Any Exchange of Futures for, or in Connection with, Swap (EFS) shall be governed by the
provisions of Rule 6.21A.

() Each buyer and seller must satisfy the Exchange, at its request, that the transaction is a
legitimate EFS transaction. All documentary evidence relating to the EFS, including a master swap
agreement and any supplements thereto, shall be obtained by the Clearing Members from the
buyer or seller and made available by the Clearing Members for examination by the Exchange


Rule 220.17, Exchange of Futures for or in Connection with Product

(A) An exchange of futures for or in connection with the product (EFP) consists of two discrete, but
related, transactions; a cash transaction and a futures transaction. At the time such transaction is effected,
the buyer and seller of the futures must be the seller and buyer of the quantity of the physical product
covered by this Section (or any derivative, by-product or related product.) The quantity of physical
product must be approximately equivalent to the quantity covered by the futures contracts.

(B) Except as provided below, an EFP must take place during the hours of futures trading for the Natural
Gas futures contract. An EFP is permitted in the expiring futures contract until two hours after trading
terminates on the last day of trading of the expiring futures contract. An EFP which establishes a futures
position for both the buyer and the seller shall not be permitted during the two hour period following the
termination of trading of expired futures contract.

© ) Any Exchange of Futures for, or in Connection with Product (EFP) er Exehange-of Futures-for,or
ith Swap-F tiens-{EFS) shall be governed by the provisions of Rule 6.21and

6.244, respectively,

(D) Each buyer and seller must satisfy the Exchange, at its request, that the transaction is a legitimate
EFP transaction. All documentary evidence relating to the exchange, including, without limitation,
evidence as to change of ownership of the cash commodity or a commitment therefore shall be obtained
by the Clearing Members from the buyer or seller and made available by the Clearing Members for
examination by the Exchange upon request.

(E) A report of such EFP transaction shall be given, and notice thereof shall be posted on the floor of the
Exchange, on the day that the transaction thereto was made or if such agreement was made after the close
of trading, then on the next business day. EFP transactions shall be cleared through the exchange in
accordance with normal procedures, shall be clearly identified as EFP transactions, and shall be recorded
as such by the Exchange and by the Clearing Members involved.

* * * *

Rule 220.17A, Exchange of Futures for, or in Connection with, Swap Transactions

(A) An exchange of futures for, or in connection with, a swap (EFS) consists of two discrete, but
related, transactions; a swap transaction and a futures transaction. At the time such transaction is
effected, the buyer and seller of the futures must be the seller and buyer of a quantity of the swap.
The swap component shall involve the commodity underlying the futures contract (or any
derivative, by-product or related product). The swap component of an EFS transaction must
comply with the applicable CFTC swap regulatory requirements.

(B) Except as provided below, an EFS must take place during the hours of futures trading for the
Natural Gas futures contract. An EFS is permitted in the expiring futures contract until two hours
after trading terminates on the last day of trading of the expiring futures contract. An EFS which
establishes a futures position for both the buyer and the seller shall not be permitted during the
two hour period following the termination of trading of expired futures contract.

C) Any Exchange of Futures for, or in Connection with, Swap (EFS) shall be governed by the
provisions of Rule 6.21A.


February 22, 2007
Via E-Mail

Office of the Acting Secretary

Commodity Futures Trading Commission i
Three Lafayette Centre z
1155 21st Street, N.W. :
Washington, D.C. 20581

UI ls

Re: _—_ Rule Certification. NYMEX Submission 07.33: Notification of Amendments to NYMEX
Rule 6.21A, “Exchange of Futures for, or in Connection With, Swap Transactions,” and
Rules 6.40B and 11G.30, “Trading at Settlement”

Dear Ms. Eileen Donovan:

The New York Mercantile Exchange ("NYMEX" or the "Exchange" is notifying the Commodity
Futures Trading Commission (“CFTC” or “Commission”) of amendments to NYMEX Rule 6.21A,
“Exchange of Futures for, or in Connection With, Swap Transactions,” to permit use in NYMEX Crude
Oil and Heating Oil Futures Contracts, and to NYMEX Rules 6.40B and 11G.30, “Trading at
Settlement,” to allow for the trading of the third contract month in all eligible contracts permitted on the
trading floor and through GLOBEX®.

Effective February 26, 2007, NYMEX Rule 6.21A will be amended to include additional
NYMEX “core” energy Futures Contracts, namely Crude Oil (CL) and Heating Oil (HO). EFS
transactions in NYMEX CL and HO will be permitted via submission to either the trading floor or via
NYMEX ClearPort® Clearing (“CPC”). Further, please note that conforming revisions have been made
to contract terms in Chapters 200 (CL) and 150 (HO), as well as housekeeping changes in Chapter 220
(NG) related to EFS transactions. Additionally, NYMEX Rules 6.40B, “Trading at Settlement,” and
11G.30, “Trading at Settlement,” will be amended to allow for the trading of the third contract month in
all eligible contracts permitted on the trading floor and through GLOBEX®. Lastly, a housekeeping
amendment to include NYMEX REBCO pursuant to Rule 11G.30 has been made.

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.

If you have any questions, please contact Nancy Minett, Vice President, Compliance, at (212)
299-2940, or myself at (212) 299-2897.

Sincerely,

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


(@) Each buyer and seller must satisfy the Exchange, at its request, that the transaction is a
legitimate EFS transaction. All documentary evidence relating to the EFS, including a master swap
agreement and any supplements thereto, shall be obtained by the Clearing Members from the
buyer or seller and made available by the Clearing Members for examination by the Exchange
upon request. Additionally, if the buyer or seller is a Member/Member Firm, the Exchange may
obtain the information directly from such persons.

* * * *

Rule 6.40B, Trading at Settlement Piet Pregram)

(A) Trading at Settlement Procedure. A floor member may enter into a transaction at the settlement price
through open outcry with another floor member in any futures contract and delivery month specified in
Section (C) of this rule. Any such trade (collectively referred to as a trading at settlement or "TAS") shall
be made by open outcry no later than 2:30 p.m. New York Time or such other time as designated by the
Board on that same trading day in the trading ring designated for trading in the particular contract.

(B) Prohibition on TAS Cross Trades. A Floor Member who has in hand buy and sell TAS orders of
different principals for the same eligible commodity for future delivery in the same eligible delivery
month shall not execute such orders directly between such principals. Fhis-prehibition-dees-net-apply
te-Brent-Crude-Oil-and-Gaseilfutures-contracts,

(C) Reporting and Recordation. All TAS transactions shall be identified as such on the executing
member's trading records prepared in accordance with Rule 6.10 ("Reporting of Trades Executed on the
Trading Floor").

(D) Transactions Eligible for Board Approval For Trading at Settlement Procedures.

The Board may, by resolution, authorize the execution of transactions in any or all of the futures
contracts and delivery months specified below pursuant to the TAS order procedures set forth in this

Rule 6.40B.

Futures Contract Delivery Month

Light Sweet Crude Oil Spot Month (except on the last trading day) and also Second and Third Nearby
Month

Heating Oil Spot Month (except on the last trading day) and also Second and Third Nearby Month
Natural Gas Spot Month (except on the last trading day) and also Second and Third Nearby Month

RBOB Gasoline Spot Month (except on n the Tast trading aay) ‘and also Second and Third Nearby Month

ii i hall +f the folk rt date Rute Cont + Exnirati Dat
(©) Phis pilot progrant-¢ P 5 s: a pi



(Additions are in bold/underline; deletions are in bold/strikethrough.)
Rule 6.21A, Exchange of Futures for, or in Connection with, Swap Transactions

(A) & An exchange of futures for, or in connection with, a swap (EFS) consists of two discrete, but
related, transactions; a swap transaction and a futures transaction. At the time such transaction is
effected, the buyer and seller of the futures must be, respectively, the seller and the buyer of the swap.
The swap component shall involve the commodity underlying the futures contract (or a derivative, by-
product or related product of such commodity). The quantity covered by the swap must be approximately
equivalent to the quantity covered by the futures contracts. The swap component of an EFS transaction
must comply with the applicable CFTC swap regulatory requirements.

(B) Eligible Contracts and Transactions.

€% Eligible contracts shall include Natural Gas futures, New York Harbor Gasoline Blendstock (RBOB)
futures, New York Harbor No. 2 Heating Oil futures, Light “Sweet” Crude Oil futures, New-¥erk
Harbor Unleaded Regular Gasoline futures, any contract executed off the Exchange that the Exchange

has designated as eligible for clearing at the Exchange, and any contract | that i is listed for trading on on
NYMEX. X ClearPort® S Trading. a

eo) Posting/Submission Procedures for. EFS Transactions. EFS-transactions-maybe-pested

dinc-te-the-follewi: di
eS SP?

(iJ) Natural Gas, New York Harbor Gasoline Blendstock (RBOB) futures and-New-¥ork-Harbor
Unleaded Regular-Gaseline New York Harbor No. 2 Heating Oil futures and Light “Sweet” Crude
Oil futures. The posting of any Natural Gas, New York Harbor Gasoline Blendstock (RBOB) futures,
New-York Harber Unleaded-Regular- Gasoline New York Harbor No. 2 Heating Oil futures, Light
“Sweet” Crude Oil futures, EFS transaction shall be given on the floor of the Exchange by the Floor
Members during the hours of futures trading for such contract and otherwise in accordance with Rule
6.90. Each EFS transaction shall be posted, immediately when the relevant swap terms are determined,
but in no event later than the earlier of the next business day or the end of the following permissible
posting periods for EFS transactions (following the expiration of the underlying futures contract).
Additionally, EFS transactions in the above-cited contracts may be accomplished by submission of
reports to the NYMEX Customer Service Center in accordance with its procedures.

(a) EFS transactions involving the New York Harbor Gasoline Blendstock (RBOB) futures or the New
York Harbor No. 2 Heating Oil futures or the Light “Sweet” Crude Oil,futures contract are
permitted until 2:00 PM on the day after the close of trading on the last trading day in the expiring
contract month; and

(b) EFS transactions involving the Natural Gas contract are permitted until two hours after trading
terminates on the last day of trading in the expiring contract month.

These EFS transactions will be cleared through the Exchange in accordance with normal procedures and
by the Clearing Members involved.


submission of reportste-the NYMEX Cust Serviee Cent di ith-it dues:

ied- thelast-t 1 th tat traet th.
P jast-trade-da: piring

B)(2)4i¥-EFS Procedures for Futures Contracts Listed Only for Trading on an-Alternative-Electronie
Frading System NYMEX ClearPort® Trading. The posting of any EFS transaction for contracts listed
for trading only on “Alternative Electronic Trading System"NYMEX ClearPort® Trading shall be
accomplished by submission of reports to the NYMEX Customer Service Center in accordance with its
procedures. Such EFS transactions must be posted no later than the close of the posting period on the last
trade date on the expiring contract month, except as noted below for cash-settled natural gas basis
contracts.

For cash-settled natural gas basis contracts, EFS transactions for the expiring contract can be posted until
2:30 pm on the second business day following the last trade date.

For cash-settled natural gas swing contracts, EFS transactions for the expiring contract can be posted
until 2:30 p.m. on the business day following the last trade date.

For cash-settled natural gas index contracts, EFS transactions for the expiring contract can be posted
until 2:30 p.m. on the first business day following the contract month.

(¥3) PJM Electricity Futures Contracts Listed for Trading on the Exchange. EFS transactions in PJM
electricity futures contracts listed for trading on the Exchange may be posted on the Floor of the
Exchange during the hours of futures trading or may be posted by submission of reports to the NYMEX
Customer Service Center in accordance with its procedures. EFS transactions in these contracts
transacted must be posted on the Exchange within one business day of the EFS transaction. With regard
to the final deadline for EFS transactions in PJM electricity futures contracts in an expiring contract
month, such EFS transactions must be posted no later than the close of the posting period on the last
trade date of the expiring contract month.

(ED) A report of EFS transactions shall be submitted to the Exchange by each Clearing Member
representing the buyer and/or seller. Such submission shall be made by its inclusion with EFP
transactions in the daily Large Trader Reporting to the Exchange, pursuant to Rule 9.33, within the Large
Trader file format. The reporting of EFS transactions via Large Trader shall identify the reportable
customer who executed the EFS and the kind and quantity of the futures cleared.

(BE)(1) Each buyer and seller must satisfy the Exchange, at its request, that the transaction is a
legitimate EFS transaction. Upon the request of the Exchange, all documentary evidence relating to the
EFS, including a master swap agreement and any supplements thereto, shall be obtained by the Clearing
Members from the buyer or seller and made available by the Clearing Members for examination by the