Notice No. 00-390
November 13, 2000


TO:  All COMEX Division Members

FROM: M. Dawn Lowe, Vice President and Corporate Secretary

RE:  Proposed Amendments to COMEX Division Rule 4.08, "Not Held Orders"
____________________________________________________________

Attached please find amendments to COMEX Division Rule 4.08, "Not Held 
Orders."

  As part of its Report on Gold Options Trading on September 28, 1999 (the 
"Report"), the Commodity Futures Trading Commission ("Commission") reviewed 
the current COMEX Division rules regarding not held orders.  As a result, the 
Commission recommended the Exchange revise its rules to clarify its format 
and more clearly define its characteristics using the corresponding NYMEX 
rules as a model.  NYMEX Rule 6.15(H) provides that if a trading member 
obtains agreement from the customer prior to accepting an order that it is 
being accepted on a not held basis, then the trading member is not 
responsible for failure to execute the order, absent fraud or willful 
misconduct.  NYMEX Rule 6.16 covers orders other than not held orders, which 
applies a due diligence standard to executable orders and a negligence 
standard to contingent orders.  The attached COMEX rule incorporates the 
Commission,s recommendations, based upon the NYMEX rules described herein.

  The COMEX Governors Committee, the Compliance Review Committee, the 
Executive Committee and the Board of Directors have already reviewed and 
approved the proposed amendment.

The proposed amendments to COMEX Rule 4.08 affects a Special Matter under the 
terms of the COMEX By-Laws.  Accordingly, COMEX Division Members have ten 
(10) days to submit a petition signed by owners of at least 155 COMEX 
Division Memberships requesting a vote of the COMEX Division Members to 
disapprove the amendments, pursuant to the procedures set forth under COMEX 
By-Law 205(D).  If a petition is not received, or if the amendment is not 
disapproved, it will be submitted to the Commodity Futures Trading Commission 
(CFTC).

If you have any questions, please contact M. Dawn Lowe at (212) 299-2370, or 
Thomas LaSala at (212) 299-2897.

___________________________________________________________


Brackets [  ] denote deletions, ALL CAPS denote additions:

V4.08 NOT HELD ORDERS.

 [A member may accept and attempt to execute any order in a form not 
specified in Rule 4.07 ("Forms of Orders"), but a member attempting to 
execute such order in a ring shall not be held responsible for his failure to 
execute such order.  No member or member firm may assert a claim against any 
floor member for his failure to execute such order.]

(a) NOT HELD ORDERS FOR EXECUTION ON THE TRADING FLOOR:

(1) A TRADING MEMBER WHO OBTAINS THE AGREEMENT OF HIS CUSTOMER OR HIS 
CUSTOMER,S AGENT PRIOR TO ACCEPTANCE OF ANY ORDER FROM SUCH CUSTOMER, THAT 
SUCH ORDER WILL BE ACCEPTED ONLY ON A "NOT HELD" BASIS, SHALL NOT BE 
RESPONSIBLE TO THE CUSTOMER FOR THE EXECUTION OR FAILURE TO EXECUTE SUCH 
ORDER.  HOWEVER, A CLAIM MAY BE ASSERTED AGAINST THE TRADING MEMBER BY THE 
CUSTOMER AND/OR THE COMPLIANCE DEPARTMENT, IF THE EXECUTION OR THE FAILURE 
THEREOF, WAS DONE FRAUDULENTLY OR BY WILLFUL MISCONDUCT.

(2) ANY ORDER ACCEPTED ON A "NOT HELD" BASIS MUST BE SO DESIGNATED ON THE 
CUSTOMER ORDER TICKET AT THE TIME OF RECEIPT OF SUCH ORDER.

(b) NOT HELD ORDERS FOR EXECUTION ON NYMEX ACCESSc.  AN ELECTRONIC TRADER OR 
A NYMEX ACCESSc OPERATOR MAY ACCEPT ORDERS ON A "NOT HELD" BASIS PROVIDED 
THAT THEY HAVE RECEIVED PRIOR WRITTEN PERMISSION FROM THE ULTIMATE CUSTOMER.

(c) NOTHING IN THIS RULE SHALL BE CONSTRUED AS A LIMITATION OF THE EXCHANGE,S 
DISCIPLINARY AUTHORITY.


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