Docstoc

NEW YORK MERCANTILE EXCHANGE

Document Sample
NEW YORK MERCANTILE EXCHANGE Powered By Docstoc
					                            INTERCONTINENTAL EXCHANGE

                    SPOT MONTH EXEMPTION REQUEST FORM

               FOR SIGNIFICANT PRICE DISCOVERY CONTRACTS




Information for Applicant

   a. The participant submitting this application shall be deemed to be the “applicant”.

   b. Spot month limits apply for ICE contracts deemed significant price discovery contracts
      by the Commodity Futures Trading Commission. Limits on these contracts will
      commence at the opening of trading on the third business day prior to, and including, the
      expiration day of the significant price discovery contract. Also, limits are effective on an
      intra-day basis. In other words, anytime during the last three days of trading a participant
      may not hold a position above the position limit for that contract without having an
      exemption.

   c. The position limits for significant price discovery contracts specified in Chapter 6 of ICE
      OTC Rulebook do not apply to bona fide hedging positions as defined in Section 1.3
      (z)(1) or arbitrage, spread, risk management or independently controlled positions for
      which an exemption has been granted by the Exchange.

   d. To be eligible for an exemption to the position limit a participant must submit an
      application on its own behalf no later than 5 business days prior to exceeding the position
      limit.
                                                                                                2
            INTERCONTINENTAL EXCHANGE REQUEST
     FOR EXEMPTION FROM SPOT MONTH POSITION LIMITS FOR
           SIGNIFICANT PRICE DISCOVERY CONTRACTS




1.    Name of Applicant:________________________________________________________

2.    Address:________________________________________________________________

      City:______________________________           State:_______________________________

      Zip Code:__________________________ Country:____________________________

      Telephone Number: (_____)______________________________________________

      Fax Number: (_____)____________________________________________________

      E-Mail:_________________________________________________________________

3.    Clearing Member(s) where accounts will be maintained (attach additional sheet if
      necessary):

      Name: ________________________________________________________________

      Account Executive: ______________________________________________________

      Account Number: ________________________________________________________

4.    Indicate exemption level requested (i.e., the maximum number of significant price
      discovery contracts, long and/or short, which will be established related to physical
      exposure and/or exposure from commodity swap transactions):

      Current Expiration Month       Long SPDC: _________          Short SPDC: _____________


5.    a) Attach a statement documenting the hierarchy of the risk management/trading
      department identifying the risk manager/ head trader and each person in the
      department(s), and/or in the company, who has authority to trade significant price
      discovery contracts for the applicant (include his/her name, title, telephone number, and e-
      mail address).
                                                                                                           3

      b) The system of internal controls administered in the supervision of the applicant's risk
      management programs, i.e., describe the risk assessment policies and procedures in place
      for evaluation and supervision of risk management programs, including "stress testing"
      for extraordinary price volatility, and state frequency such supervision is conducted.


6.   a) If the applicant is a public corporation, attach a copy of the most recent annual report. If
     the applicant is privately owned, supply the most current audited financial statement.

     b) If the applicant is privately owned, attach a list setting forth each principal owner by
     percent of ownership.

7.     Nature of Applicant’s Business:

     Enclose a summary describing the nature of the applicant’s physical business. Be specific as
     to exposure associated with different segments of the business. A reference to these details
     in an annual report, if applicable, may be used to satisfy this requirement.


In the following questions #8 and 9, be specific in stating the commodity and respective units in
barrels, mmbtu, or short tons. The volumes stated should be the foundation for the applicant's
request to obtain the exemption levels specified in question #4.

Physical Exposure (if applicable)

8.   a) The applicant currently has a spot month cash market exposure of ____________
                                                                                              (quantity)

               long and/or ____________ short ______________ of _____________________.
                               (quantity)             (unit)                      (commodity)



       Should the applicant's current request be predicated all or in part on its past year's cash
       market exposure, please complete section "b".

     b) During the previous fiscal year, the applicant maintained a spot month cash

        market position of as much as ____________ long and /or__________ short
                                                    (quantity)                   (quantity)

               _________________ of ____________________.
                      (unit)                      (commodity)
                                                                                                     4
Swap Exposure (if applicable)

9.     This question applies only to an applicant whose risk/exposure is related to swap
       transactions.

       Enclose a summary describing the nature of the applicant's swap exposure. This
       summary should include the gross long and/or short swap exposure currently on its books
       (and/or anticipated exposure, if applicable), and a broad characterization of the
       applicant's counterparties (i.e., producer, distributor, financial institution which includes
       which counterparties are predominant) .

       ____________________________________________________________________



       This exemption shall not be effective unless approved in writing by the Exchange and
expires pending renewal one year after the date of its approval.

       Approval of this application shall not in any way limit the authority of the Exchange to
take emergency or discretionary non-emergency action.

        The Exchange, by order of the President, may condition or revoke an exemption based
on the applicant's business needs, financial status and integrity, or on the liquidity, depth and
volume of the market for which the exemption is sought.

       The undersigned certifies that this application is executed by an officer of the applicant,
or by one of its duly authorized representatives, as of the date shown below.


Date:___________________________              Applicant:________________________________

By:__________________________________________________________________________
                     (Signature)

(Print Name):__________________________________________________________________

Position:______________________________________________________________________

Telephone Number: _____________________________________________________________

E-Mail:_______________________________________________________________________


Submit the completed application to the Compliance Department of the
IntercontinentalExchange, Inc., 55 West Monroe, Suite 3430, Chicago, IL, 60604, Fax #: (312)
214-2001. Any questions regarding the use of this form should be directed to Edward Dasso,
                                                                                    5
Manager, Market Surveillance, at (312) 214-2046 or via email Ed.Dasso@theice.com.

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:9
posted:2/26/2010
language:English
pages:5