New York Mercantile Exchange To Introduce Two Natural Gas Basis Futures Today To Trade On NYMEX Clearport^<small>sm</small>

The New York Mercantile Exchange, Inc., will introduce two additional natural gas basis swap futures contracts today for trading on NYMEX ClearPort^sm - one based on the differential between gas in Waha, Texas, and the Exchange's benchmark Henry Hub natural gas futures contract and the other based on the differential between the Colorado Interstate Gas Company (CIG) Rocky Mountains price and the Henry Hub futures contracts.

The contracts will begin trading on the system at 3:15 PM today, the same time trading will begin each Monday through Thursday, and will continue trading through 2:30 tomorrow and each Monday through Friday. On Sundays, trading will begin at 7 PM.

Exchange President J. Robert Collins, Jr., said, "These products have been heavily demanded by our NYMEX ClearPort^sm users and we believe they have tremendous potential to further expand the burgeoning growth of the system, which has seen its heaviest activity in our natural gas products. The new contracts also bring us one step closer to meeting our goal of offering a comprehensive suite of risk management services to every segment of the energy industry."

Other specifications are as follows:

Contract Unit
2,500 mm British Thermal Units

Trading Unit
Must trade in multiple consistent with the number of calendar days in the month

Price Reference
The Platts Inside FERC Gas Market Report for each location minus the Exchange's Henry Hub natural gas futures final settlement price

Trading Months
36 months

Price Quotations
U.S. dollars and cents per mmBTU

Minimum Price Fluctuation
$0.0025 per mmBTU

Symbols
Waha - NW
CIG - CI

Settlement
Financial

Expiration
Last day of the month preceding the contract month

The margins on the Waha contract for the first month will be $650 for clearing members; $715 for members; and $878 for customers. The margins on all other months will be $450 for clearing members; $495 for members; and $608 for customers.

The margins on the CIG contract for the first month will be $1,800 for clearing members; $1,980 for members; and $2,430 for customers. Margins on the second month will be $1,200 for clearing members; $1,320 for members; and $1,620 for customers. On the third through sixth months, the margins will be $1,000 for clearing members; $1,100 for members; and $1,350 for customers. Margins on the seventh through 12th months will be $600 for clearing members; $660 for members; and $810 for customers. Margins on all other months will be $400 for clearing members; $440 for members; and $540 for customers.