Nymex Makes Statement Regarding Clearing Member Refco, LLC

The New York Mercantile Exchange, Inc., has been closely monitoring the activities of Refco, LLC, a clearing member on both its NYMEX and COMEX Divisions. Refco, LLC, a subsidiary of Refco, Inc., has met and continues to meet all of its obligations at NYMEX and is in good standing. All customer positions and funds held by Refco, LLC, are specifically segregated from firm assets in compliance with Commodity Futures Trading Commission regulations and NYMEX rules.

NYMEX has restricted the withdrawal of any capital (including any excess capital) by Refco, LLC, without the Exchange's prior approval. The financial surveillance and risk management staff at NYMEX has been and is still in continuous contact with the firm regarding its clearing member obligations at the Exchange. The administration of the system of financial and risk safeguards at NYMEX, which is designed to ensure the financial protection of all clearing members and their customers, is of the highest importance to NYMEX.