Notice to Members No: 01-353
October 23, 2001

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

FROM: 	J. Robert Collins, Jr., President

SUBJECT:	Approved Amendments to COMEX Rule 4.94, "Settlement Price
Procedures for Copper Contracts"


The Exchange has complied with regulatory requirements by filing with the
Commodity Futures Trading Commission amendments to COMEX Rule 4.94,
"Settlement Price Procedures for Copper Contracts".  The approved amendments
to Rule 4.94 modify the settlement price procedure for the current delivery
month by taking into consideration, not only the weighted average price
(rounded to the nearest minimum fluctuation) of all outright transaction
that occur in the closing range, but also the weighted average for all
spreads executed and all spread bids and offers actively represented between
the most active month and the current delivery month during the final thirty
minutes of trading.

A copy of the amended Rule 4.94 is attached.  These Rule amendments will
become effective on Monday, October 29, 2001.

Should you have any questions please contact Michael Campanelli at
212-299-2072, Albert J. Getz at 212-299-2608 or Ploumi Efkarpidis at
212-299-2334.

Approved Rule Amendments
(Asterisk 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 shall be
comprised of the weighted average price (rounded to the nearest minimum
fluctuation) of all outright transactions that occur in the closing range
combined with the weighted average price of all spreads executed between the
current delivery month and the most active month and all spread bids and
offers between the current delivery month and the most active month actively
represented during the final 30 minutes of trading.  If no outright
transactions occur in the closing range or no spreads are executed or there
are no spread bids and offers actively represented during the final 30
minutes of trading in the current delivery month, the settlement price 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. *

	[(B)] *(C) *  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)] *(D)*  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)] *(E)*  If any settlement price, determined pursuant to
Paragraph [(C)] *(D)*, 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.