(01-62) Copper Options Expiration Operational Procedures ,
 Notice No. 01-62
February 16, 2001

TO:
All COMEX Members/Member Firms
All COMEX Clearing Members
All COMEX Floor Traders
All COMEX Operations Managers

FROM:
Michael Campanelli, Vice President
Floor Operations / COMEX Division

RE:
Options Expiration Operational Procedures for the Trading Floor and Clearin=
g
Members
___________________________________________________________________________=
___

The expiration date for the March 2001 options contract for Copper (HXH01) =
is=20
Friday, February 23, 2001.

 GENERAL OPERATIONAL PROCEDURES

All Clearing Members and Qualified Floor Traders that carried an options=20
position as of the close of business day prior to the expiration day, or=20
engaged in trading activity on Expiration Day in the expiring options=20
contract will be required to have a knowledgeable, duly authorized on-line=
=20
trade entry (=01&OLTE=018) system trained representative available until re=
leased=20
by the Exchange staff.  All adjustments  and/or corrections, must be=20
accompanied by relevant supporting documentation prior to being incorporate=
d=20
into expiration processing, in essence making the expiration processing an=
=20
extension of the afternoon trade resolution procedures.

Exchange Clearing (299-2110) and Trade Processing (299-2465 and 299-2044)=
=20
personnel will be available to assist with the processing of notices of=20
Exercise and Abandonment, position transfers, trade corrections and other=
=20
questions or problems you may have.

Failure by any Clearing Member or qualified Floor Trader to comply with=20
procedures as outlined herein may result in severe disciplinary action by t=
he=20
Exchange and potential financial liability to customers or members for=20
failure to exercise diligence in the processing of information.

TRADING FLOOR OPERATIONAL PROCEDURES

Trading in the March 2001 Copper Options Contract will cease at 2:00 P.M. o=
n=20
February 23, 2001. All Brokers and Traders must inform their Clearing Membe=
rs=20
of their intentions to exercise or abandon such Options by 4:00 P.M.

On Friday, February 23, 2001, all Brokers and Clearing Members must have a=
=20
duly authorized, On-Line Trade Entry (=01&OLTE=018) system trained represen=
tative=20
available until such time as the Exchange deems necessary.

NOTE: After 4:30 P.M. all expiring option trade data must be inputted on=20
special =01&OLTE=018 terminals located in the Trade Processing Room.  Any o=
ther=20
means of submission will be rejected by the Exchange.  Members will be able=
=20
to submit all other trade data until 5:00 P.M.

After the Unmatched Trade Reports and the Preliminary Spot Month Matched=20
Trade Reports are displayed, Clearing Member representatives will be able t=
o=20
pick up their Preliminary Clearing Reports at the Clearing Department.

A final review of all submissions will be made.  The Supervisor of the Trad=
e=20
Processing Room will detain only those Clearing Members and/or Broker=20
representatives involved.  All final corrections will be made at this time=
=20
and upon determination of the Supervisor that all option processing is=20
complete, all representatives will be released.

Exchange Reports based on Friday=01,s submissions and processing will be=20
available on Monday morning February 26, 2001.

In the event that you have any questions regarding the foregoing trading=20
floor procedures please contact Michael Campanelli at (212) 299-2072 or Dav=
id=20
Sherman at (212) 299-2061.


CLEARING DEPARTMENT OPERATIONAL PROCEDURES

1. OPEN POSITION CONFIRMATION (=01&OPC=018) - The OPC should reflect as acc=
urately=20
as possible all futures and options gross positions as of close-of business=
=20
on the business day prior to expiration.  Review the estimated current gros=
s=20
positions as shown and make appropriate adjustments.  The OPC must be=20
submitted not later than 9:00 A.M.

2.   OPTIONS EXERCISE/ABANDONMENT REQUESTS FORM (=01&E/A=018) - An expiring=
 option=20
with a strike price in-the-money by one tick or more will be subject to=20
automatic exercise unless an Option Abandonment Request form is submitted=
=20
advising that a Clearing Member (=01&CM=018) elects to abandon some or all =
of its=20
position in that strike price (i.e., for the option series).  All other=20
options series in the expiring month will be subject to automatic abandonme=
nt=20
unless an Option Exercise Request form is submitted.  When submitting an E/=
A=20
form, please note the following:

(a) An E/A form must be submitted not later than 5:00 PM.
(b) Do not submit an Exercise form for positions in strike prices which are=
=20
subject to automatic
Exercise nor submit an Abandonment form for positions in strike prices whic=
h=20
are subject to automatic abandonment.
(c) If a CM wishes to submit an E/A form to abandon a position in a strike=
=20
price subject to automatic exercise or wishes to exercise a position in a=
=20
strike price which is out of the money, it is necessary to notify Clearing =
by=20
telephone of such anticipated action.  The CM must have an officer availabl=
e=20
to confirm such intention.
(d) CMs may secure from Clearing a time-stamped receipt of the CM copy to=
=20
assure submission  of the CM=01,s E/A forms.

3. OPTION POSITION REDUCTION REQUEST FORM (=01&OPRR=018) - As a general rul=
e,=20
purchases and sales of option contracts are presumed to be new business.   =
If=20
some or all of your purchases and sales are in fact undertaken for position=
=20
liquidation purposes, OPRR forms may be submitted on the day of expiration=
=20
and will be used in conjunction with trade data to reduce your projected=20
position in an expiring contract.  OPRR requests in excess of actual traded=
=20
volume will be rejected.  Exception: Cabinet trades and cancel correction=
=20
trades will automatically liquidate existing positions, therefore do not=20
submit an OPRR form for cabinet or cancel correction trades.
The OPRR form must be submitted not later than 5:00 PM.

4. HOUSE/CUSTOMER POSITION TRANSFER REQUEST FORM (=01&H/C=018) - H/C forms =
may be=20
used only to transfer previously cleared contracts between a CM=01,s house =
and=20
customer accounts.  Problem trades (those which have not cleared prior to=
=20
expiration day) must be corrected using COMEX=01,s on-line trade entry syst=
em=20
under the direct supervision of the Trade Audits Department of COMEX (=01&T=
rade=20
Audits=018).  The H/C form must be submitted not later than 3:30 PM.

5. EX-PIT POSITION TRANSFER REQUEST FORM (=01&Ex-Pit=018) - Ex Pit forms ma=
y be=20
used only to transfer previously cleared contracts between CMs.  Problem=20
trades (those which have not cleared prior to expiration day) must be=20
corrected on the on-line trade entry system under the direct supervision of=
=20
Trade Audits.  The Ex-Pit form must be submitted not later than 3:30 PM.

 *****
A) At approximately 4:15 PM, two PRELIMINARY reports of the expiration=20
process will be available for distribution at the NYMEX Clearing Department=
:

1. OPTION EXPIRATION REPORT AND CONFIRMATION - The purpose of this report i=
s=20
to project the CM=01,s present position going into the expiration based upo=
n the=20
transactions which have already been submitted to Clearing.  CMs should=20
review and modify their adjusted gross positions as of close-of-business on=
=20
the business day prior to expiration.  Further adjustments may be submitted=
=20
not later than 5:00 PM.  The projected ending gross positions will reflect=
=20
transactions accepted or rejected for clearance on expiration night,=20
inclusive of Ex-Pit, H/C and OPRR transactions which have been submitted to=
=20
Clearing prior to 3:30 PM, and trade information submitted to COMEX prior t=
o=20
3:45 PM.  Normally, this report will also reflect manually submitted Exerci=
se=20
and Abandonment instructions, the projected number of exercises and maximum=
=20
potential assignments for each strike price, the type of exercise (manual o=
r=20
automatic), whether the strike is In, At or Out of the money, and the=20
exercise val!
ue!
 associated therewith based on settlement prices established by COMEX on th=
e=20
day of expiration.

2. TRANSACTION LISTING - This listing will include in detail all expiring=
=20
option trades submitted to COMEX prior to 3:45 PM on expiration day, and al=
l=20
H/C, ExPit, OPRR and E/A transactions submitted to Clearing Prior to 3:30 P=
M.

Please note: Trade information reflected on the option expiration report an=
d=20
transaction listing are trades submitted only. To inquire whether trades ha=
ve=20
matched, each CM must review the trade reports provided by COMEX=01,s On-Li=
ne=20
Trade Entry (=01&OLTE=018) system.

B) At approximately 5:30 PM, FINAL reports of the expiration process,=20
including all submissions to Clearing and trade information submitted to=20
COMEX made by 5:00 PM, will be available for distribution at the NYMEX=20
Clearing Department.

C) At 5:45 PM, Preliminary In The Money Abandonment and Out Of The Money=20
Exercise information will be announced on Fast Facts.

D) At Approximately 7:30 PM, a Final Notice of Exercise/Assignments will be=
=20
available in each CM=01,s lockbox located at the NYMEX Clearing Department.=
 =20
Each CM which has exercised or been assigned one or more options will recei=
ve=20
a separate statement showing exercises and/or assignments for each option=
=20
series.  Please check this statement carefully.  Although long options=20
positions in-the-money by one tick or more will be automatically exercised,=
=20
not all short option positions will be assigned if there are any options=20
manually abandoned at such strike prices.  Please note that there also may =
be=20
some at or out-of-the money options being exercised.

E) At approximately 9:00 PM, the final set of clearing sheets will be=20
available in each CM=01,s lockbox located at the NYMEX Clearing Department.

It is strongly recommended that each CM have a representative(s) that is=20
properly trained to handle the option expiration process available beginnin=
g=20
at 4:15 PM and who will receive the CM=01,s reports at the specific times. =
 It=20
is solely the responsibility of the CM to review these reports and to notif=
y=20
the Clearing staff immediately of any discrepancies.

To obtain the exact time of the availability for each report, clearing=20
members should call (212) 513-7405, access code 702.  The announcement time=
=20
will occur 1/2 hour prior to availability.

Attached please find a Clearing Member Procedure Summary for ease of=20
reference.  Please contact John Ramos at (212) 299-2142 (Members 001-500) o=
r=20
Mel Garcia at (212) 299-2144 (members 501-999) if you have any questions.

OPTION EXPIRATION PROCESSING CLEARING MEMBER PROCEDURE SUMMARY

Time: 3:30 PM
Activity: Expits, H/C transfers, Option Position Reduction and=20
Exercise/Abandon notices
Event: Submission to Clearing cutoff time.
Notes: Final cutoff for Expits and H/C tranfers

Time: 3:45 PM
Activity: Call Fast Facts to obtain availability time of Preliminary Option=
=20
Expiration Reports.
Event: Fast Facts notice of Availability

Time: 4:15 PM
Activity: Preliminary option expiration reports available to clearing membe=
rs=20
at NYMEX Clearing Department

Time: 5:00 PM
Activity: Options Position Reduction, Exercise/Abandon notices and Gross=20
Position Adjustments
Event: Submission to Clearing Cutoff Time
Notes: Final cutoff for Option Position Reduction, Exercise/Abandon notices=
=20
and Gross Position Adjustments

Time: 5:05 PM
Activity: Call Fast Facts to obtain availability time of Final Preliminary=
=20
Option expiration Reports
Event: Fast Facts notice of Availability

Time: 5:30 PM
Activity: Final Preliminary option expiration reports available to clearing=
=20
members at NYMEX Clearing Department.

Time: 5:45 PM
Activity: Call Fast Facts to obtain Preliminary In the Money Abandonment an=
d=20
Out of the Money Exercise Information
Event Fast Facts notice of information
Notes: New Event

Time: 6:00 PM
Activity: Corrections to previously Submitted Adjustments or Notices
Event: Correction period cutoff time (30 minutes after final preliminary=20
report is distributed)
Notes: Final cutoff for corrections

Time: 7:00 PM
Activity: Call Fast Facts to obtain availability of final expiring option=
=20
position and Exercise/Assignment report
Event: Fast Facts notice of Availability

Time: 7:30 PM
Activity: Final expirating options position and Exercise/Assignment report=
=20
available in clearing member's lockbox at NYMEX Clearing Department

Time: 8:30 PM
Activity: Call Fast Facts to obtain availability of final clearing reports.
Event: Fast Facts notice of Availability

Time: 9:00 PM
Activity: Final clearing reports available in clearing member's lockbox at=
=20
NYMEX Clearing Department.

Please contact John Ramos at (212) 299-2142 (Members 001-500) or Mel Garcia=
=20
at (212) 299-2144 (members 501-999) if you have any questions.




__________________________________________________
Please click on the link below to indicate you have received this
email.

"http://208.206.41.61/email/email_log.cfm?useremail=3Dtana.jones@enron.com&=
refdo
c=3D(01-62)"

Note: If you click on the above line and nothing happens, please copy
the text between the quotes, open your internet browser,
paste it into the web site address and press Return.
tana.jones@enron.com