Members Commodity Exchange, Inc., Four World Trade Center, New York, NY 10048 EXHIBIT 5 Notice #80-3(a) January 8, 1980 COMEX ESTABLISHES POSITION LIMITS FOR SILVER At yesterday afternoon's Special Board Meeting the Comex Board of Governors adopted Temporary Emergency Rules for the Comex silver futures market, the text of which is attached. The new rule provides, among other things: (1) Effective Monday, February 18, 1980, Comex member firms may not permit any one customer to establish or increase a silver position if his net position at all Comex member firms is in excess of a total of 2,000 silver futures contracts in all contract months. Any customer with a total net position of more than 2,000 silver futures contracts in all contract months as of the close on Monday, January 7, 1980 must reduce his position in excess of 2,000 lots by at least 10% of the excess each month and must hold no more than 2,000 lots in the aggregate with all Comex member firms in all contract months no later that January 31, 1981. (2) Effective February 18, 1980, Comex member firms may not permit any one customer to hold more than a total gross position of 500 silver futures contracts in the current delivery ("spot") month and a total gross position of 500 contracts in the next calendar month. Effective immediately, no customer may establish or increase positions in January or February 1980 silver futures if the total gross position in either month will exceed 500 lots. (3) Effective February 18, 1980, all Comex member firms must report to the Exchange the name, address and business affiliation of each account holder and the beneficial owner of the account for each account that holds a total net position of 100 or more Comex silver futures contracs and each subsequent change in such account holder's Comex silver positions. Notice #80-3(a) January 8, 1980 (4) Bona fide short hedging transactions where physical inventories or forward purchase (but not futures) contracts offset Comex short positions shall be exempt from the position limits but not from the reporting requirements described above. Any questions concerning the above, should be directed to the Commodity Exchange, Inc. as follows: Richard Fielding, Vice-Pres. & Counsel Ronald Andresen, Administrative Assistant /Attachment 非非非 (a) COMMODITY EXCHANGE, INC. Reportable Account Each member firm that maintains an account either for itself or for a customer that is the record holder of an aggregate of 100 silver contracts or more ("Reportable Account") shall immediately report that fact in writing to such representative of the Exchange or to such person, firm or corporation as may be designated by the Exchange and shall report each change in the position of a Reportable Account. Such report shall set forth the name, address and business affiliation of the Reportable Account and the beneficial owner of the Reportable Account, and shall describe in detail the entire silver position of the Reportable Account by delivery month and number of contracts. For purposes of determining the aggregate number of contracts held by any person, firm or corporation ("Aggregate Contracts") the following rules shall apply: (i) positions shall be evaluated on a net, rather than a gross, basis; and (ii) if a member firm knows, or with the exercise of due care should know, or is advised by the Exchange, that two or more accounts either are controlled by or under common control with the same or related or affiliated persons, or are acting pursuant to an express or implied agreement or understanding, then such accounts shall be aggregated to determine whether a Reportable Account exists (any such two or more accounts are called "Affiliated Accounts"). (b) Maximum Aggregate Contracts No member firm shall allow or permit, itself or any customer, to maintain in excess of 2,000 Aggregate Contracts ("Overall Position Limit"). If any Reportable Account exceeds the Overall Position Limit, the member firm maintaining the Reportable Account shall immediately take such steps as may be necessary to reduce the position of the Reportable Account below the Overall Position Limit. If any Affiliated Accounts that together constitute a Reportable Account exceed the Overall Position Limit, the member firm maintaining the Affiliated Accounts shall immediately take such steps proportionately among the Affiliated Accounts as may be necessary to reduce the Aggregate Contracts of the Affiliated Accounts below the Overall Position Limit. (c) Overall Position Limits at Different Firms In the event the Exchange learns that a Reportable Account maintains positions at more than one member firm such that the Aggregate Contracts at all such member firms exceeds the Overall Position Limit, the Exchange shall notify all member firms maintaining an account for the Reportable Account and shall notify each such member firm of the positions of the Reportable Account at all member firms including, if applicable, a listing of Affiliated Accounts and their respective positions. Such notice shall also request each such member firm to reduce the position of the Reportable Account and, if applicable, of each Affiliated Account, proportionately so that the Aggregate Contracts at all member firms of any Reportable Account shall not exceed the Overall Position Limit. Any member firm receiving such notice shall immediately take such steps as may be necessary to reduce the position of the Reportable Account and, if applicable, each Affiliated Account, to the number of contracts requested by the Exchange. (a) Monthly Position Limits No member firm shall allow or permit, itself or any customer, to maintain a position in silver at any time in the then current month or in the next succeeding month in excess of 500 contracts in each such month ("Monthly Position Limit"). Any contracts in the then current month with respect to which delivery was previously made or received shall be included in counting the number of contracts for that customer in that month. The provisions of Faragraph (c) above relating to positions at several member firms of one Reportable Account and, if applicable, Affiliated Accounts shall apply to Monthly Position Limits. (e) Exemption for Bona Fide Hedge Transactions A bona fide short hedging transaction in which the short position is offset by physical inventory or by a forward |