M E M O R A N D U M

TO:     All New York Mercantile Exchange members

FROM: Neal Wolkoff, Executive Vice President

RE:        Exchange Board Approves Initial Product Slate for enymexsm

DATE:   December 7, 2000

Notice # 00-417
=====================================================

The New York Mercantile Exchange, Inc.,  board of directors last night 
approved a range of energy products for listing on enymex, the Exchange's 
internet-based trading system, intended to be launched during the second 
quarter of 2001.

These products were designed to replicate the most actively traded 
over-the-counter energy instruments, introducing the added benefits of 
clearing services; a neutral, centralized marketplace; and a highly 
sophisticated technological platform.  While there may be additional products 
developed for introduction at launch, including more internationally based 
contracts, and there will certainly be more shortly thereafter, these 
contracts were selected as natural adjuncts to our established markets 
because of their close relationships to these liquid benchmarks.

The contracts include:

   A West Texas Intermediate crude oil calendar swap contract

 A Henry Hub natural gas swap contract based on the final settlement price 
for the Exchange's futures contract

 Spread calendar swap contracts based on the differential between Platts (a 
division of The McGraw-Hill Companies) quoted prices for Gulf Coast unleaded 
87 gasoline and the Exchange light, sweet crude oil and New York Harbor 
unleaded gasoline futures contracts

 Spread calendar swap contracts based on the differentials between the Platts 
quoted price for Gulf Coast Pipeline No. 2 heating oil and the Exchange light 
sweet crude oil and New York Harbor heating oil futures


 Basis swap contracts based on the differential between the final settlement 
price for the Henry Hub natural gas futures contract and Inside FERC's Gas 
Market Report quoted indexes for Henry Hub; El Paso San Juan Basin; Houston 
Ship Channel; and Transco Zone 6

 Basis swap contracts based on the differential between the Exchange Henry 
Hub natural gas futures contract and the Canadian Gas Price Reporter Alberta 
spot month price (based on AECO C/NIT)

 Basis swap contracts based on the differential between the Exchange Henry 
Hub natural gas futures price and the Natural Gas Intelligence quoted index 
prices for Chicago City Gate and the southern California border

  Louisiana Light Sweet and West Texas Sour crude oil contracts

 A Dubai crude oil calendar swap

Terms and conditions include a unit size of 1,000 barrels for each of the 
crude oil and petroleum product/crude oil spread contract; 42,000 gallons for 
each heating oil and gasoline contract; and 5,000 million British thermal 
units (mmBtus) for each natural gas contract.  Prices will quoted in U.S. 
dollars and cents per barrel, gallon or mmBtu.  Other specifications are:

West Texas Intermediate crude oil calendar swap

Termination of Trading:  The last business day of the month prior to the 
contract month.

Delivery:  Financial, based on the average of the settlement price of the 
first nearby light, sweet crude oil futures contract throughout the contract 
month (example: the July 2001 contract will be based upon the average of the 
settlement prices for the August 2001 futures contract during July 2001 until 
it ceases trading and the settlement prices for the September 2001 contract 
for the remainder of the month)

Minimum Price Fluctuation: One cent per barrel

Henry Hub natural gas swap

Termination of Trading:  The third business day prior to the contract month.

Delivery:  Financial, based on the final settlement price of the Exchange 
Henry Hub natural gas futures contract for the corresponding month

Minimum Price Fluctuation:  $0.001 per mmBtu

U.S. Gulf Coast unleaded 87 gasoline crack spread calendar swap

Termination of Trading:  The last business day of the month prior to the 
contract month.

Delivery:  Financial, based on the average of the Platts U.S. Gulf Coast 
unleaded 87 gasoline mean minus the settlement price of the first nearby 
light, sweet crude oil futures contract throughout the contract month

Minimum Price Fluctuation: One cent per barrel

Unleaded 87 gasoline up-down calendar swap

Termination of Trading:  The last business day of the month prior to the 
contract month.

Delivery:  Financial, based on the average of the Platts U.S. Gulf Coast 
unleaded 87 gasoline mean minus the settlement price of the first nearby 
Exchange New York Harbor unleaded gasoline futures contract throughout the 
contract month

Minimum Price Fluctuation:  $0.0001 per gallon

U.S. Gulf Coast No 2 heating oil crack spread calendar swap

Termination of Trading:  The last business day of the month prior to the 
contract month.

Delivery:  Financial, based on the average of the Platts U.S. Gulf Coast 
pipeline No. 2 heating oil mean minus the settlement price of the first 
nearby light, sweet crude oil futures contract throughout the contract month

Minimum Price Fluctuation: One cent per barrel

No. 2 heating oil up-down calendar swap

Termination of Trading:  The last business day of the month prior to the 
contract month.

Delivery:  Financial, based on the average of the Platts U.S. Gulf Coast No. 
2 pipeline mean minus the settlement price of the first nearby Exchange New 
York Harbor No. 2 heating oil futures contract throughout the contract month

Minimum Price Fluctuation:  $0.0001 per gallon

Henry Hub natural gas basis swap

Termination of Trading:  The last business day prior to the contract month.

Delivery:  Financial, based on the Inside FERC Gas Market Report Henry Hub 
index price minus the final settlement price of the Exchange Henry Hub 
natural gas futures contract for the corresponding month

Minimum Price Fluctuation:  $0.001 per mmBtu



San Juan natural gas basis swap

Termination of Trading:  The last business day prior to the contract month.

Delivery:  Financial, based on the Inside FERC Gas Market Report El Paso San 
Juan Basin index price minus the final settlement price of the Exchange Henry 
Hub natural gas futures contract for the corresponding month

Minimum Price Fluctuation:  $0.001 per mmBtu

Houston Ship Channel natural gas basis swap

Termination of Trading:  The last business day prior to the contract month.

Delivery:  Financial, based on the Inside FERC Gas Market Report Houston Ship 
Channel index price minus the final settlement price of the Exchange Henry 
Hub natural gas futures contract for the corresponding month

Minimum Price Fluctuation:  $0.001 per mmBtu

Transco Zone 6 natural gas basis swap

Termination of Trading:  The last business day prior to the contract month.

Delivery:  Financial, based on the Inside FERC Gas Market Report Transco Zone 
6 index price minus the final settlement price of the Exchange Henry Hub 
natural gas futures contract for the corresponding month

Minimum Price Fluctuation:  $0.001 per mmBtu

AECO/NIT natural gas basis swap

Termination of Trading:  The last business day prior to the contract month.

Delivery:  Financial, based on the Canadian Gas Price Reporter Alberta spot 
month price for AECO C/NIT price minus the final settlement price of the 
Exchange Henry Hub natural gas futures contract for the corresponding month

Minimum Price Fluctuation:  $0.001 per mmBtu

Chicago natural gas basis swap

Termination of Trading:  The last business day prior to the contract month.

Delivery:  Financial, based on the bid week price quoted for the Chicago 
Citygate, under the Midwest heading in the Natural Gas Intelligence bid week 
survey, minus the final settlement price of the Exchange Henry Hub natural 
gas futures contract for the corresponding month

Minimum Price Fluctuation:  $0.001 per mmBtu

Socal natural gas basis swap

Termination of Trading:  The last business day prior to the contract month.

Delivery:  Financial, based on the bid week price quoted for the Southern 
California border average, under the California heading in the Natural Gas 
Intelligence bid week survey, minus the final settlement price of the 
Exchange Henry Hub natural gas futures contract for the corresponding month

Minimum Price Fluctuation:  $0.001 per mmBtu

Louisiana Light Sweet crude oil futures

Termination of Trading:  Third business day prior to the 25th calendar day of 
the month preceding the contract month.  If the 25th calendar is a 
non-business day, trading terminates on the third day prior to the last 
preceding business day.

Delivery:  Physical in St. James, Louisiana

Minimum Price Fluctuation: One cent

West Texas Sour crude oil futures

Termination of Trading:  Third business day prior to the 25th calendar day.  
If the 25th calendar is a non-business day, trading terminates on the third 
day prior to the last preceding business day.

Delivery:  Physical in Midland, Texas

Minimum Price Fluctuation: One cent per barrel

Dubai crude oil calendar swap

Termination of Trading:  The last business day of the month prior to the 
contract month.

Delivery:  Financial, based on the average of the Platts Dubai frontline mean

Minimum Price Fluctuation: One cent per barrel

============================================================

Forward Looking and Cautionary Statements
 The New York Mercantile Exchange, Inc.,  has attempted, wherever possible, 
to make statements in good faith by using words such as anticipate, believes, 
expects, and words and terms of similar substance in connection with any 
discussion of its present and future operations within the industry. Any 
forward-looking statements made by, or on behalf of the Exchange, involve a 
number of risks, trends,  uncertainties, and other factors which may cause 
actual results to differ materially, including; the Exchange,s receipt of the 
necessary Commodity Futures Trading Commission approval; timely performance 
and cooperative effort of exchange and technology partners; and changes in 
financial or business conditions at the Exchange.


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