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Nymex To Increase Margins On Financially Settled PJM Monthly Electricity Futures Back Months

Date 09/07/2004

The New York Mercantile Exchange, Inc., said that it will increase the margins on certain back months of its financially settled PJM monthly electricity futures contract at the close of business today.

Margins on the third month will increase to $2,500 from $2,000 for clearing members, to $2,750 from $2,200 for members, and to $3,375 from $2,700 for customers.

Margins for the fourth month will increase to $2,000 from $1,500 for clearing members, to $2,200 from $1,650 for members, and to $2,700 from $2,025 for customers.

Margins for the ninth through 14th months will increase to $1,500 from $1,000 for clearing members, to $1,650 from $1,100 for members, and to $2,025 from $1,350 for customers.

Margins for all other months are unchanged.

Intra–commodity spread margins will decrease for all months to $500 for clearing members, $550 for members, and $675 for customers from $2,000 for clearing members, $2,200 for members, and $2,700 for customers for the first and second month; from $2,500 for clearing members, $2,750 for members, and $3,375 for customers for the third month; from $1,500 for clearing members, $1,650 for members, and $2,025 for customers for the fourth through sixth and ninth through 14th months; and from $2,000 for clearing members, $2,200 for members, and $2,700 for customers for all other months.