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NYBOT Announces Synthetic Prices Used To Margin Cotton Positions

Date 12/07/2005

The New York Board of Trade® (NYBOT®) announced today that in accordance with its New York Clearing Corporation (NYCC) rules, it will utilize an alternate price for purposes of margining outstanding positions at the clearing member level today, July 12, 2005.

The relevant rule provisions are triggered whenever a Cotton futures contract month ends the trading day locked at either limit-up or limit-down. Under the Resolution, Clearing Members must use this same alternate price for purposes of collecting margins as required by margin rules.

The Cotton No. 2sm futures and options contract months for which NYCC will utilize an alternate price, the futures contract settlement price and the alternate price for business day July 12, 2005, are as follows:

Contract Month Settlement Price Alternate Price For Settlement Puroses
Oct ’05 50.15 49.50
Dec ’05 52.01 51.15
Mar ’06 54.00 53.30
May ’06 54.90  54.15
July ’06 55.80 55.00
Oct ’06 56.75 56.20
Dec ’06 57.85 57.40
Mar ’07 59.70 59.60

All other months listed for trading not shown above will be margined at their Settlement Price.

The New York Board of Trade (NYBOT) is New York’s original futures exchange, where the world trades food, fiber and financial products. For well over a century, the New York Board of Trade has provided reliability, integrity and security in a global marketplace for cocoa, coffee, cotton, ethanol, orange juice, pulp and sugar, as well as currency and index futures and options. Information about the New York Board of Trade can be found at www.nybot.com and www.nybotlive.com.