NYBOT: Adoption Of CSCE Margin Resolution No. 3

Effective Wednesday, December 18, 2002, CSCE Margin Resolution No. 3 will be implemented. The Resolution requires CSCE's Clearing and Margin Committee to set margin requirements which are not less than the minimum margin required by the Clearing Corporation. The Resolution codifies an existing practice followed by the Committee.

The text of the Resolution follows below.

CSCE Margin Resolution No. 3

WHEREAS, in accordance with Rule 2.18, the Margin Rules and Margin Resolution No. 2 of the Exchange, the Board of Managers has delegated the authority to set margin requirements to the Clearing and Margin Committee,

NOW THEREFORE, the Board of Managers of the Coffee, Sugar & Cocoa Exchange, Inc. hereby adopts the following Resolution:

RESOLVED, notwithstanding the provisions of all of the Margin Rules of the Exchange, the Clearing and Margin Committee shall set margin requirements that, at no time, are less than the minimum margin required for all Exchange futures and option contracts set by the Clearing Corporation.