D) No Bust Ranges

# Ticks
From
Contract Marke
Outrights t
CL 2510
Ne 2540
HO 6025
HU 6025
GR 84
NG 2520
PN 5025
PL 4020
PA 2010
QL 2010
GC 2019
SI 84
HG 2010
AL 105
JM 2432
RS 84
RN 2
# Ticks
Intra- From
Commodity Marke
Spreads t
CL 104
HO 2540
HU 2519
NG 205
PN 2010
PL 2010
PA 105
QL 2010
GC 105
SI 203
HG 42
AL 105

Minimum
Tick Size

0.01
0.01
0.0001
0.0001
.25
0.001
0.0001
0.10
0.05
0.01
0.10
0.005
0.0005
0.0005
0.05
0.25

25.00

Minimum
Tick Size
0.01
0.0001
0.0001
0.001
0.0001
0.10

0.05

0.01

0.10
0.001
0.0005
0.0005

$ per
Tick
10.00
10.00

4.20

4.20
25.00
10.00

4.20

5.00

5.00
15.50
10.00
25.00
12.50
22.00
42.00
25.00
250.0

$ per
Tick
10.00
4.20
4.20
10.00
4.20
5.00
5.00
15.50
10.00
25.00
12.50
22.00


(id whetherthere#
HD ‘any

tien-of. dt ti Jt thereof;
P FARSae! a

(C) Fhe party-requesting that the trade: Hed. t- submit tothe NCSCC-ne-tater than tvo-{2)-h

di i leted Exeh formd tine in writing th
baited P bie eS

for-th + that joush-h i
Feas < at pi y-had-been-provided-verbally_te the NESCC,

@) (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) $258 $500 for each of the first three (3) instances within one calendar year;

(2) $580 $1,000 for each of the next five-{5) three (3) instances within one calendar year; and

(3) $4090 $2,000 for each instance thereafter within one calendar year.

Notwithstanding the above, there shall be no -fee-ch



JM 2432 0.05 42.00

# Ticks
Inter- From
Commodity Marke Minimum $ per
Spreads t Tick Size Tick
CL/HO 255 0.01 10.00
CL/HU 255 0.01 10.00
HO/HU 5025 0.0001 4.20

Products Traded on an Alternative Electronic Trading System (categorized generically by commodity and by unit
size)

# Ticks
From
Product (Unit Size) Market
Crude Oil and Crude Products (1000 2519
Barrels) =
Crude Gil and-Crude Products (42,000
Gallons) 4334
Natural Gas 2016
Electricity 4038
NYMEX miNYTM Crude Oil 156
NYMEX miNYTM Natural Gas 2016
NYMEX miNYTM Heating Oil 10
NYMEX miNYTMUnleaded Gasoline 10



Via E-Mail

Office of the Secretariat

Commodity Futures Trading Commission
Three Lafayette Centre

1155 21 Street, N.W.

Washington, D.C. 20581

Re: Rule Certification. NYMEX Submission 06.31 — Notification of
Amendments to NYMEX Rule 11.63, Electronic Trading Error
Trade Procedures.

Dear Ms. Jean Webb:

The New York Mercantile Exchange, Inc. (“NYMEX” or the “Exchange”) hereby notifies
the Commodity Futures Trading Commission (“CFTC”) of amendments to NYMEX Division
Rule 11.63, Electronic Trading Error Trade Procedures.

Effective March 6, 2006, which begins with the session on Sunday evening, March 5,
2006, the amendments include generally expanding the “No Bust Ranges (NBR)” incorporating
the ability to double the NBRs with notice to the market, increasing penalties for busted or
cancelled trades, and trade “adjusting” an execution which is outside of the NBR to the limits
of the NBR when it is part of an implied execution. Pursuant to Section S5c(c) of the Commodity
Exchange Act (“Act”) and CFTC Rule 40.6, the Exchange hereby certifies that the new
amendments comply with the Act, including regulations under the Act.

Should you have any questions concerning the above, please feel free to contact me at
(212) 299-2897.

Very truly yours,

Thomas F. LaSala
Senior Vice President
Compliance and Risk Management
Attachments
cc: Brian Regan
Nancy Minett


(Underlining in bold indicates additions; strikethroughs in bold indicate deletions.)

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 other than NYMEX
ACCESS® on 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 ACCESS® 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. Ferthe

£4 He; the-t Ad tive Eleet He Deading SyetonsTM shall moan any olectrenie-srading
Purp hit 2

eaenet including CLOBEXS, (B) Except as reid in Section ®) below, ifa ‘potential user Enror i is observed by
or brought to the attention of the NCSCC within ten (10) minutes after the trade occurs, the following procedures

will apply:

B (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. Jess-thanthe number of ticks set-forth below-away-fi the-fair-market-value-as-determined-bythe
NESCC. 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
yolatility 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
NESCC deems _relevant. Je “determining the fai arket_valuey the NCSC wilh ider—th tional

inf : th NCSCC. fed 1

(1) Trade Price Inside the No Bust Range
If the trade price is within the No Bust Range relevant-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 at 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
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

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.

alert-and the alert-t
Hation-of the trade,

.-by the Electroni
y

its-disereti It-with Electronic T: Authorized-TerminalU: ket jeipant
may, atits. O raders, particip:

d idk ket-infe ti ided-by-th: i derins-its-d:
a cS P ¥ HF ee: rs