Notice 01-18
January 17, 2001

TO:  ALL COMEX DIVISION MEMBERS

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

SUBJECT: Proposed Amendment to COMEX Rule 4.94, "Settlement Price Procedures 
for Copper Contracts".

Attached please find a proposed amendment to COMEX Rule 4.94, "Settlement 
Price Procedures for Copper Contracts" which would eliminate the use of 
discretion in establishing the settlement price in the current delivery month 
and the most active month.  The most active month is defined as the base 
month that is not the current delivery month with the greatest reported open 
interest on the official COMEX daily open interest report.  The base months 
are defined as the March, May, July, September and December delivery months.

The proposed amendment to COMEX Rule 4.94, "Settlement Price Procedures for 
Copper Contracts" 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 Dawn Lowe at 212-299-2370 or Albert 
J. Getz at 212-299-2608.

Proposed Rule Amendments
(Underlining indicates additions: bracketing indicates deletions)

Rule 4.94 Settlement Price Procedures for Copper Contracts.

 (A)(i) The term "base month" shall mean the March, May, July, September, and 
December delivery months; (ii) the term "most active month" with respect to 
this rule and the rules of COMEX Chapters 11 and 17 shall mean the base month 
that is not the current delivery month, with the greatest reported open 
interest on the official COMEX daily open interest report.

 (B)  The settlement price for the current delivery month and the most active 
month shall be the weighted average price (rounded to the nearest minimum 
fluctuation) of all outright transactions that occur in the closing range.  
If no outright transactions occur in the closing range of either the current 
delivery month and the most active month, the settlement price for the 
applicable month shall be the last trade price, unless during the closing 
range a bid higher or offer lower than the last trade price is made.  In such 
event, such higher bid or lower offer shall be the settlement price.

 (C)  In all other delivery months, the settlement prices shall be determined 
based upon spread relationships between and among contract months, which 
relationships shall be determined in the judgment of the Settlement Price 
Committee with:  (a) greater weight given to spreads executed late in the 
trading day in large volumes, and (b) lesser weight given to (i) spreads 
traded in lesser volumes, (ii) spread bids and offers actively represented 
late in the trading day, and (iii) spread transactions, bids and offers from 
earlier in the trading day.  Notwithstanding the foregoing, no settlement 
price shall be established that would be lower than the best outright bid, or 
higher than the best outright offer, that:  (a) was for at least 20 
contracts, and (b) had been posted with the Exchange and had remained 
available for execution and unfilled for the final 30 minutes of trading of 
that trading day.

 (D)  If any settlement price, determined pursuant to Paragraph[s] [(B)] [or] 
(C), is inconsistent with transactions that occurred during the closing range 
for other delivery months of the same futures contract or with other market 
information known to the Committee, the Committee may establish a settlement 
price at a level consistent with such other transactions or market 
information.  In such event, the Committee shall prepare a written record of 
the basis for any settlement price so established.  (Rule 4.94 Amended 
02/01/98)


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