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Nymex To Decrease Margin Rates On Henry Hub Natural Gas Futures, Swap Futures, And e-miNY<SUP>sm</SUP> Futures Contracts

Date 16/01/2004

The New York Mercantile Exchange, Inc., announced today that it will decrease the margins on its Henry Hub natural gas futures, swap futures, and e-miNYsm futures contracts at the close of business on January 20.

The Exchange will decrease the margins on the spot month of the standard-sized futures contract to $8,500 from $10,000 for clearing members, to $9,350 from $11,000 for members, and to $11,475 from $13,500 for customers. Margins on the second month will be decreased to $7,500 from $8,500 for clearing members, to $8,250 from $9,350 for members, and to $10,125 from $11,475 for customers. Margins on the third month will be decreased to $5,000 from $8,000 for clearing members, to $5,500 from $8,800 for members, and to $6,750 from $10,800 for customers. Margins on the fourth to 10th months will be decreased to $3,500 from $5,500 for clearing members, to $3,850 from $6,050 for members, and to $4,725 from $7,425 for customers. Margins on the 11th to 15th months will be decreased to $2,500 from $4,500 for clearing members, to $2,750 from $4,950 for members, and to $3,375 from $6,075 for customers. Margins on all other months will be decreased to $2,000 from $2,500 for clearing members, to $2,200 from $2,750 for members, and to $2,700 from $3,375 for customers.

Margins on the spot month of the Henry Hub swaps futures contract will be decreased to $2,125 from $2,500 for clearing members, to $2,338 from $2,750 for members, and to $2,869 from $3,375 for customers. Margins on the second month of the Henry Hub swaps futures contract will be decreased to $1,875 from $2,125 for clearing members, to $2,063 from $2,338 for members, and to $2,531 from $2,869 for customers. Margins on the third month of the Henry Hub swaps futures contract will be decreased to $1,250 from $2,000 for clearing members, to $1,375 from $2,200 for members, and to $1,688 from $2,700 for customers. Margins on the fourth to 10th months of the Henry Hub swaps futures contract will be decreased to $875 from $1,375 for clearing members, to $963 from $1,513 for members, and to $1,181 from $1,856 for customers. Margins on the 11th to 15th months of the Henry Hub swaps futures contract will be decreased to $625 from $1,125 for clearing members, to $688 from $1,238 for members, and to $844 from $1,519 for customers. Margins on all other months will be decreased to $500 from $625 for clearing members, to $550 from $688 for members, and to $675 from $844 for customers.

The margins on the first month of e-miNYsm natural gas futures will be decreased to $4,250 from $5,000 for clearing members, to $4,675 from $5,500 for members, and to $5,738 from $6,750 for customers. Margins on the second month will be decreased to $3,750 from $4,250 for