Nymex Establishes Margins For Weekly And Daily PJM Electricity Futures Contracts

The New York Mercantile Exchange, Inc., today announced the anticipated margins for the financially settled weekly and daily PJM electricity futures contracts when they are launched on the afternoon of June 26 for the June 27 trading session, and changes to the margins on the weekly contract that will apply during the contract week.

Initial margins for the weekly contract will be $2,000 for clearing members, $2,200 for members, and $2,700 for customers. At the close of business each Monday, they will be increased in the front week to $2,500 for clearing members, $2,750 for members, and $3,375 for customers. During the balance-of-week period of the weekly contract, margins will be reduced on a pro rata basis. In a regular week, the balance-of-week margin will be reduced by one-fifth each day. During weeks such as the week of June 30, which is a holiday-shortened week, the margins will be reduced by one-quarter each day.

Margins for the daily contract will be $1,500 for clearing members, $1,650 for members, and $2,025 for customers. Initial margins for this contract will be required prior to initiating any position.