Notice No. 00-400
November 20, 2000

MEMORANDUM

TO:  ALL NYMEX AND COMEX MEMBERS

FROM: Neal L. Wolkoff
  Executive Vice President

DATE:  November 20, 2000

RE:  Notice of CFTC Approval of New COMEX Rule 4.36A and Related
Implementation of Aluminum EFS Program
____________________________________________________________________

Please be advised that the CFTC has approved new COMEX Rule 4.36A ("EXCHANGE
OF ALUMINUM FUTURES FOR, OR IN CONNECTION WITH, SWAP TRANSACTIONS").  The
new rule, which is shown below, permits the exchange of futures for swaps
("EFS") for Aluminum futures contracts.  The EFS program for Aluminum
futures has been approved on a three-year pilot basis and will go into
effect on Monday, November 27, 2000.

Under the terms of the rule, only "commercial market participants" are
eligible to enter into Aluminum EFS transactions.  In addition, a person or
entity seeking to participate in an EFS transaction must qualify as an
eligible swap participant under the terms of Part 35 of the CFTC's rules.

 Until the switch of COMEX to TMS and Clearing 21 is completed, no
Exchange computer records, including clearing records, will distinguish
Aluminum EFS transactions from Aluminum EFP transactions.  The Exchange will
use an existing Exchange information slip to assist in distinguishing
Aluminum EFS transactions from Aluminum EFP transactions at the time of
execution.  This slip must be submitted to COMEX Division floor staff by the
COMEX Division Floor Member as part of the responsibility of reporting the
EFS transaction to the Exchange.  The slip will indicate that the
transaction being reported involved an exchange of Aluminum futures for
aluminum swaps.  In addition to reporting the pertinent details of the
trade, such as contract month, quantity and price, the slip will identify
the Clearing Member(s) to the transaction and will further identify the
buyer and seller in the transaction.

 Brokers are further required to identify these transactions as an
"EFS" on their trading cards.  As noted, though, these transactions will be
entered into and processed in OLTE as EFPs.

The Exchange's Daily Futures Summary, which includes EFP volume and which is
provided both to the Commission and to the public, will not include a
separate column for EFS volume. Instead, a footnote on this report will
indicate that EFP volume for Aluminum contracts may also include EFS
transactions.   In addition, please be advised that COMEX Division EFP data
transmitted to market participants via the Exchange's Price Reporting System
may include data for both Aluminum EFP and Aluminum EFS transactions.

Please note that, in addition to Rule 4.36A, it is also necessary for market
participants to comply with the CFTC's EFP-related reporting and
recordkeeping regulations as if these regulations applied to EFS
transactions.  Specifically, the Exchange will require:

  1) Each Exchange member, futures commission merchant
("FCM"), and introducing broker ("IB") to comply with the requirements of
Commission Regulation 1.35(a) as if this regulation applied to EFS
transactions and will further require each Exchange member, FCM, and IB to
provide the required records to the Exchange for inspection upon request;

  2) Each customer to comply with the requirements of
Commission Regulation1.35(a-2)(2) as if this regulation applied to EFS
transactions and will further require each customer to provide the required
records to the Exchange for inspection upon request;

  3) Each Exchange clearing member, FCM, and foreign
broker to comply with the requirements of Commission Regulations 17.00(a)(1)
and (2) as if these regulations applied to EFS transactions, and NYMEX will
further require each Exchange clearing member, FCM, and foreign broker to
file the required records with the Exchange;

  4) Each trader who holds or controls a reportable
futures position to comply with the requirements of Commission Regulation
18.05 as if this regulation applied to EFS transactions, and NYMEX will
further require each trader to provide the required records to the Exchange
for inspection upon request; and

  5) Upon the request of the Commission, each FCM, IB,
foreign broker, and trader to comply with the requirements of Commission
Regulations 24.03(e)(1)(iii) and (e)(2)(iv), and NYMEX will further require
each FCM, IB, foreign broker, and trader to file the required records at the
place and within the time frame specified by the Exchange.

  If you have any questions concerning the operation of this program,
please contact Tom LaSala, Vice President, Compliance Department, at (212)
299-2897, or Michael Campanelli, Vice President of COMEX Floor Operations,
Floor Department, at (212) 299-2072.


    Approved New COMEX RULE 4.36A
(Pilot Program)

     (Entire rule is new.)

Rule 4.36A. EXCHANGE OF ALUMINUM FUTURES FOR, OR IN CONNECTION WITH,
SWAP TRANSACTIONS

(a) (1) An exchange of Aluminum futures for, or in connection with, a swap
(EFS) consists of two discrete, but related, transactions; a swap
transaction and a futures transaction.  At the time such transaction is
effected, the buyer and seller of the futures must be, respectively, the
seller and the buyer of the swap.

(2) The pilot program is available only to commercial market participants.
For purposes of this rule, a Acommercial market participant@ shall include a
person or entity that transacts business in the normal channels of commerce
in the cash commodity or related commodity underlying the EFS posted on the
Exchange and also shall include an entity that regularly maintains a book of
and acts as a dealer in swap transactions.

(b) The swap component shall involve the commodity underlying the futures
contract (or a derivative, by-product or related product of such commodity).
The quantity covered by the swap must be approximately equivalent to the
quantity covered by the futures contracts.  The swap component of an EFS
transaction must comply with the requirements of Commission Regulation Part
35 (Exemption of Swap Agreements).  The initial term of the pilot program
shall be three years from the effective date of this Rule 4.36A.

(c)  (1) The report of an Aluminum EFS transaction shall be given on the
Floor of the Exchange during the hours of futures trading.  (2) Aluminum EFS
transactions are permitted until 12:00 p.m. on the day following the last
day of trading of an expiring futures contract.

(d)  A report of such Aluminum EFS transaction shall be submitted to the
Exchange by each Clearing Member representing the buyer and/or seller.  Such
report shall identify the EFS as made under this Rule and shall contain the
following information: a statement that the swap component of the EFS
complied with the requirements of Part 35 at the time the EFS was entered
into between the buyer and seller, a statement that the EFS has resulted or
will result in a change of payments or other such change, the kind and
quantity of the futures, the price at which the futures transaction is to be
cleared, the names of the Clearing Members and customers and such other
information as the Exchange may require.  Such report (form) shall be
submitted to the Compliance Department by 12:00 noon, no later than two (2)
Exchange business days after the day of posting the EFS on the Floor of the
Exchange.

(e)  Each buyer and seller must satisfy the Exchange, at its request, that
the transaction is a legitimate Aluminum EFS transaction.  Upon the request
of the Exchange, all documentary evidence relating to the EFS, including a
master swap agreement and any supplements thereto, shall be obtained by the
Clearing Members from the buyer or seller and made available by the Clearing
Members for examination by the Exchange.

(f)  A report of each Aluminum EFS transaction shall be given, and notice
thereof shall be posted on the Floor of the Exchange, on the day that the
transaction thereto was made, or if such agreement was made after the close
of trading, then on the next business day.  EFS transactions shall be
cleared through the Exchange in accordance with normal procedures, shall be
clearly identified and marked in the same manner as EFP transactions, and
shall be recorded by the Exchange and by the Clearing Members involved.

(g)  All omnibus accounts and foreign brokers shall submit a signed EFS
reporting agreement in the form prescribed by the Exchange to the Exchange=s
Compliance Department.  Such Agreement shall provide that any omnibus
account or foreign broker identified by a Clearing Member (or another
omnibus account or foreign broker) as the buyer or seller of an EFS pursuant
to this rule, shall supply the name of its customer and such other
information as the Exchange may require.  Such information shall be
submitted to the Exchange=s Compliance Department by 12:00 noon no later
than two (2) Exchange business days after the day of posting the EFS on the
Floor of the Exchange.  Failure by an omnibus account or foreign broker to
submit either the agreement or the particular EFS information to the
Exchange may result in a hearing by the Business Conduct Committee to limit,
condition or deny access of such omnibus account or foreign broker to the
market.