A party responsible for entering an order that results in a trade price adjustment shall not be liable for losses
incurred by persons whose trade prices were adjusted.

(4) Schedule of Administrative Fees

A fee for each Error trade cancelled in accordance with this rule shall be charged to the party responsible for
such Error trade as follows:

(1) $500 for each of the first three (3) instances within one calendar year;
(2) $1,000 for each of the next three (3) instances within one calendar year; and
(3) $2,000 for each instance thereafter within one calendar year.

(D) No Bust Ranges

# Ticks From Minimum $ per

Contract Outrights Market Tick Size Tick
Gk 25 0.04 40-00
$c 25 0.04 40-00
HO 60 6.0004 A420
HY 60 0.0004 420
GR 8 25, 25.00,
NG 25 0.004 40-00
RN 59 9.0004 420
PL 49 040 5-00
RA 20 005 8.00
Qk 20 0.04 15.80
GS 20 040 40,00
St 8 0.005 25.00,
HG 20 9-0005 4250
AL 49 0.0005, 22,00
JM 24 0.05 42.00
RS 8 025 25.00
RN 4 25.00 260-00

bitra-Gontmodity #ticks From Minimum $ por

Spreads Market Fick Size Fick
Ck 49 0.04 40-00
HO 25 0.0004 420
HY 25 9.0004 420
NG 20 0.004 49:00
RN 20 8.0004 420
RPL 20 040 5.00
PA 49 6.05 5.00
Qk 20 ud 15.80
GG 49 040 40,00
Ss 20 0.004 25.00,
HG 4 8.0005, 42.50
AL 40 0.0005 22.00
JM 24 005 42.00


11.63 Electronic Trading Error Trade Procedures
(A) NYMEX Customer Service Call Center Trade Cancellation Authority

The Exchange's trade cancellation policy authorizes the NCSCC to mitigate market disrupting events
caused by the improper or erroneous use any electronic trading system authorized by the Exchange system
or by system defects by adjusting trade prices or canceling (“busting”) trades. For the purposes of this rule,
the term "Alternative Electronic Trading System” shall mean any electronic trading system etherthan
NYMEX-AGCESS@-0n which NYMEX Division or COMEX Division products are traded. Further, both an
“Alternative Electronic Trading System” and NYMEX ACCESS@® shall be considered an “Authorized
Electronic System” for purposes of this rule. Notwithstanding any other provisions of this rule, the NCSCC
may also adjust trade prices or cancel any trade if the NCSCC determines that failure to adjust the price or
cancel the trade may have a material, adverse effect on the integrity of the market. The decision of the
NCSCC shall be final.

(B) Review of Trades

The NCSCC may review a trade based on its analysis of market conditions or upon a request by a user of
an authorized electronic system. Whenever an Electronic Trader or Authorized Terminal User believes that
he or she executed a trade through NYMEX AGGCESS@ or through an Alternative Electronic Trading System
in error as a result of an error ("Error"), the Electronic Trader or Authorized Terminal User or a
representative of the firm that is a party to the trade must contact the NYMEX Customer Service Call Center
("NCSCC") immediately. Except as provided in Section (F) below, if a potential user Error is observed by or
brought to the attention of the NCSCC within ten (10) minutes after the trade occurs, the following
procedures will apply

(C) Trade Price Adjustment and Cancellation Process

The NCSCC staff will determine whether the trade price is within the No Bust Range as defined in section
(D) of this rule. During fast market conditions, upon the release of significant news events, or in other
circumstances in which the NCSCC determines it is appropriate, the NCSCC may temporarily double the
published No Bust Range with prior notice to the market. In applying the No Bust Range, the NCSCC shall
determine the actual or implied market price for that contract immediately before the trade under review. The
NCSCC may consider any relevant information, including but not limited to the existing market conditions,
the volatility of the market, the prices of related instruments in other markets, the last trade price on an
Authorized Electronic Market, a better bid or offer price, a more recent price in a different contract month,
the price of the same or related contract established in open outcry trading and any other factors that the
NCSCC deems relevant.

(1) Trade Price Inside the No Bust Range
If the trade price is within the No Bust Range then the trade will stand

(2) Trade Price Outside the No Bust Range

a. Implied Futures Contract Execution

If the NCSCC determines that a trade price is outside the applicable No Bust Range, the NCSCC will have
the option to adjust the trade price to a price that equals the actual or implied market price for that contract
al the time of the questioned trade, plus or minus the standard or doubled No Bust Range, as may be
applicable. Further, the NCSCC shall maintain the option to bust the leg of the trade where appropriate
depending on the circumstances. The NCSCC will promptly issue an alert indicating that the prices of the
trades outside the No Bust Range have been busted or adjusted to the No Bust Range limit.

For example, if the standard No Bust Range for Crude Oil is 25 points above and below the market price, all
trade prices outside the No Bust Range shall be adjusted to the applicable No Bust Range limit, i.e., 25
points above or below the market price.

b. Non-Implied Contract Execution

If the NCSCC determines that the trade price is outside the No Bust Range, the NCSCC shall have the
option to bust the trade or to adjust the trade price where appropriate depending on the circumstance. The
NCSCC will promptly issue an alert indicating that trades outside the No Bust Range have been busted or
adjusted to the No Bust Range Limit.

(3) Liability for Losses Resulting from a Price Adjustment or Trade Bust


Inter-Commodity dicks From Minimum

Spreads Market Tick-Size
GHG 25 OOF
GE 25 CoO
HOW 50 0004

Crude Oil (1000

Barrels) 2s
Petroleum Products 48
(42,000) Gallons _
Natural Gas 20
Electricity 49
Cocoa 40 1.00
Coffee 20 0005
Cotton 80 0001
Orange Juice 50 0005
No. 114 Sugar 35 00014
No. 14 Sugar 35 0001
Products Traded. jtornative Electronic Trading Sy 9 m odity-and-b:
unitsize)
#Ticke From
Product {Unit Size) Market
Grude-Giland. Cride Predicts 4080
Barrels) 2
Crude Products-(42,000 Gallons) 48
NaturalGas 20
Electricity 49
NYMEX miNY "Crude Oil 46
om 20
NYMEX miINYTM Heating Ot 40
49

Th


December 20, 2006
Via E-Mail

Office of the Acting Secretary
Commodity Futures Trading Commission
Three Lafayette Centre : .
1155 21st Street, N.W. i" >
Washington, D.C. 20581 ‘

Re: Rule Certification. NYMEX Submission 06.153: Notification of: Dow
Amendments to NYMEX Chapter 9-Appendix A, Rule 9.27A,
and Rule 11.63.

Dear Ms. Eileen A. Donovan:

The New York Mercantile Exchange ("NYMEX" or the "Exchange") is notifying the
Commodity Futures Trading Commission (““CFTC” or “Commission”) of amendments to
NYMEX Chapter 9-Appendix A, Rule 9.27A, Expiration Position Accountability Levels, and
Rule 11.63, Electronic Trading Error Trade Procedures.

Effective for trade date December 21, 2006, these amendments include the following: 1)
defining the reportable levels, Expiration Position Accountability Levels, Any one month/All
month Accountability Levels for six new futures contracts (Chapter 9-Appendix A); 2) defining
the applicable timing of the Expiration Position Accountability Levels for the six new futures
contracts (Rule 9.27A); and 3) deleting all reference to NYMEX ACCESS as the electronic
trading system that is no longer in use, and adding appropriate ‘“‘no bust ranges” and associated
information for the six new futures contracts. Pursuant to Section 5¢(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 the undersigned at
(212) 299-2897.

Very truly yours,

Thomas F. LaSala
Chief Regulatory Officer

ce: Brian Regan
Nancy Minett


9.27A Expiration Position Accountability Levels

A) Any person who owns or controls positions in excess of the levels cited in Chapter 9, Appendix (A)
below, under heading 9.27A Expiration Position Accountability Levels, shall be subject to the
following provisions pursuant to position accountability levels:

(1) promptly supply to the Exchange such information as the Exchange may request pertaining to
the nature and size of the position, the trading strategy employed with respect to the position, and
the hedging requirements (if any), provided, however, that if the principal or controller fails to supply
such information as and when requested, the President or his designee may order the reduction of
such position;

(2) agrees, upon request by the President or his designee, not to increase the position owned or
controlled as of the time the request was received;

(3) agrees to comply with any limit prescribed by the President or his designee, and to decrease
any open position if directed upon review of the information cited in item 1 above.

(4) The Expiration Position Accountability Levels for designated energy contracts are effective on
the open of trading of the last three (3) trading days of the related physically delivered futures.
contracts. The expiration position limits shall be calculated on a net futures-equivalent basis and
will aggregate appropriate contracts as identified in Chapter 9, Appendix A.

(5) Trading in the underlying physically delivered contract that is the basis for the settlement prices
for all contracts subject to this rule shall additionally be subject to NYMEX Interpretive Notice 01-
06.
(6) The Expiration Position Accountability Levels for designated “Soft” futures contracts are
effective as of the open of trading on the First Notice Day through expiration as defined by the New
York Board of Trade for the related physically delivered contracts and are summarized in Chapter 9
Appendix A.



Comm Expira- | Expiration | Expiration
ContractName | Rute | o-dity tion Reporting
Chapte ‘Account.
a Code Month | ability Level Level Aggregate Aggregate
Limit_| Penultimate Into (1) Into (2)
Rule Contracts Contracts
Rule 9.26 9.27 Rule 9.34
Rule 927A | Rule 927A
Soft
Commodities
NYMEX
Cocoa 930 cy 6,000 750 25 CJ
NYMEX
Coffee 934 KT 5,000 500 25 KT
NYMEX
Cotton 932 Aan 5,000 300 25 um
NYMEX
Orange Juice | 933 FJ 3,200 300 25 FJ
NYMEX No.
41 Sugar 934 yo 9,000 5,000 25 yo
NYMEX No.
935 FT 1,000 1,000 25, FT

** for purposes of NYMEX Rule 9.27A, the Expiration Accountability Levels for Soft Commodities
shall be in effect as of the open of trading on the First Notice Day through expiration as defined by
the New York Board of Trade for the related physically delivered contracts.