Notice #00-331
October 12, 2000

TO:
ALL NYMEX DIVISION MEMBERS
ALL NYMEX DIVISION CLEARING MEMBERS
ALL MEMBER FIRMS

FROM: Neal Wolkoff, Executive Vice-President

SUBJECT: PROPOSED RULE TO ALLOW STRIP TRADING IN PROPANE
______________________________________________________________________________
___

The NYMEX Board of Directors has voted to allow strip trading in the Propane 
Contract.  The proposed amendment to Rule 6.08D must be reviewed by the 
Commodity Futures Trading Commission (CFTC) prior to implementation.  The 
proposed rule amendment is attached below.

This rule amendment will become effective after CFTC approval is received.  
The Membership will be notified when strip trading will begin.

If you have any questions, please contact Daniel Brusstar at (212) 299-2604.

PROPOSED RULE AMENDMENT
(*Asteriks* surrounding a word or phrase represent an addition, and 
[brackets] a deletion)

NYMEX Floor Rules
Rule 6.08D.   STRIP TRANSACTIONS

(A) Definition:  A strip transaction shall consist of either the simultaneous 
purchase or sale of an equal number of contracts in each of two or more 
consecutive contract months for crude oil futures, natural gas futures, 
heating oil futures, gasoline futures, *propane futures,* or electricity 
futures for a single account that is quoted and traded at a single price.

(B) Floor Members executing strip transactions shall properly record them in 
writing so as to permit the identification of the strip transactions and the 
parties thereto.  All strip transactions for futures contracts for crude oil, 
natural gas, heating oil, gasoline, *propane,* or electricity on the Exchange 
trading floor must be made by open outcry in the trading rings for crude oil, 
natural gas, heating oil, gasoline, *propane,* or electricity, as 
applicable.  All strip transactions must be in line with prevailing contract 
prices for strip transactions and the prices of futures contracts for crude 
oil, natural gas, heating oil, gasoline,  *propane,* or electricity, as 
applicable, comprising the strip transaction shall be within the permissible 
price limits of the contract months traded.

(C) The seller in each strip transaction must report on the hard copy ply of 
his or her trading card the price of the strip transaction to the Exchange.  
The Exchange shall then assign the prices for each of the crude oil, natural 
gas, heating oil, gasoline, *propane,* or electricity futures contracts 
months comprising the strip transaction pursuant to a methodology as 
established by the Exchange.

(D) Except as provided in Rule 6.08C(C), strip transactions shall not set off 
stops in any contract.



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