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New York Mercantile Exchange To Increase Margin Rates On Henry Hub Natural Gas Futures, Swap Futures, And e-miNY<SUP><SMALL>sm</SUP></SMALL> Futures Contracts

Date 14/05/2003

The New York Mercantile Exchange, Inc., announced today that it will increase the margins on Henry Hub natural gas futures, swap futures, and e-miNYsm futures contracts at the close of business tomorrow.

The Exchange will increase the margins on the spot month of natural gas futures to $5,000 from $4,000 for clearing members, to $5,500 from $4,400 for members, and to $6,750 from $5,400 for customers. Margins on the second month will be increased to $5,000 from $3,500 for clearing members, to $5,500 from $3,850 for members, and to $6,750 from $4,725 for customers. Margins on the third through sixth months will be increased to $4,500 from $3,500 for clearing members, to $4,950 from $3,850 for members, and to $6,075 from $4,725 for customers. Margins on the seventh through 12th months will be increased to $4,500 from $2,500 for clearing members, to $4,950 from $2,750 for members, and to $6,075 from $3,375 for customers. Margins on all other months will remain unchanged.

Margins on the spot month of the Henry Hub swaps futures contract will be increased to $1,250 from $1,000 for clearing members, to $1,375 from $1,100 for members, and to $1,688 from $1,350 for customers. Margins on the second month will be raised to $1,250 from $875 for clearing members, to $1,375 from $963 for members, and to $1,688 from $1,181 for customers. Margins on the third through sixth months will be increased to $1,125 from $875 for clearing members, to $1,238 from $963 for members, and to $1,519 from $1,181 for customers. Margins on the seventh through 12th months will be increased to $1,125 from $625 for clearing members, to $1,238 from $688 for members, and to $1,519 from $844 for customers. Margins on all other months will remain unchanged.

The margins on the first month of e-miNYsm natural gas futures will increase to $2,000 from $1,600 for clearing members, to $2,200 from $1,760 for members, and to $2,700 from $2,160 for customers. Margins on the second month will increase to $2,000 from $1,400 for clearing members, to $2,200 from $1,540 for members, and to $2,700 from $1,890 for customers.