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

Date 21/03/2003

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

The Exchange will decrease margins on the spot month of Henry Hub natural gas futures to $8,000 from $10,000 for clearing members, to $8,800 from $11,000 for members, and to $10,800 from $13,500 for customers. Margins on the second month will decrease to $6,000 from $8,000 for clearing members, to $6,600 from $8,800 for members, and to $8,100 from $10,800 for customers. Margins on all other months will remain unchanged.

Margins on the spot month of the Henry Hub swaps futures contract will decrease to $2,000 from $2,500 for clearing members, to $2,200 from $2,750 for members, and to $2,700 from $3,373 for customers. Margins on the second month will decrease to $1,500 from $2,000 for clearing members, to $1,650 from $2,200 for members, and to $2,025 from $2,700 for customers. Margins on all other months will remain unchanged.

The margins on the first month of natural gas e-miNYsm futures will decrease to $3,200 from $4,000 for clearing members, to $3,520 from $4,400 for members, and to $4,320 from $5,400 for customers. Margins on the second month will decrease to $2,400 from $3,200 for clearing members, to $2,640 from $3,520 for members, and to $3,240 from $4,320 for customers.

The rates on intra-month spreads in the Henry Hub natural gas futures contracts involving the first two months will be reduced to $1,500 from $2,000 for clearing members; to $1,650 from $2,200 for members; and to $2,025 from $2,700 for customers. The rates on spreads involving all other months will remain unchanged.

The rates on intra-month spreads in the Henry Hub swap futures contract involving the first two months will decrease to $375 from $500 for clearing members; to $413 from $550 for members; and to $506 from $675 for customers. The rates on spreads involving all other months will remain unchanged.

The intra-month spread margin rates for e-miNYsm natural gas futures will be lowered to $600 from $800 for clearing members; to $660 from $880 for members; and to $810 from $1,080 for customers.