David:

Attached is a draft confirm for a natural gas EFS under the new NYMEX rules.  Please review the redlined language.

The new NYMEX amendment permitting EFS transactions was originally part of a pilot program for Brent Crude contracts (NYMEX Rule 6.21) effective September 5, 2001.

NYMEX Notice No. 01-372 effective November 1, 2001discusses the application of the EFS for natural gas futures contracts but I cannot find a specific reference to a NYMEX rule (I assume it is NYMEX Rule 6.21).  Thus, I didn't know whether it was necessary to cite a particular rule.

I also didn't know if I need to reference the number of NYMEX contracts in my "Special Provisions" section.

Further, if Rule 6.21 is applicable to the natural gas futures contracts, then I suppose that the confirm should (?) recite the information required of the Clearing Member by the Exchange.  On the other hand, maybe the Clearing Member's report should contain information such as appearing in Rule 6.21A(C), if applicable, and it need not be repeated in the confirmation.

Can you give this a quick review?  Trading in the nat gas contract terminates in a day or so.  Thanks.

 

Sara Shackleton
Enron Wholesale Services
1400 Smith Street, EB3801a
Houston, TX  77002
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