Let's discuss this.
----- Forwarded by Mark Taylor/HOU/ECT on 06/07/2001 11:50 AM -----


	exchangeinfo@nymex.com 06/07/2001 12:20 PM 	   To: mark.taylor@enron.com  cc:   Subject: (01-191) EXCHANGE TO SUBSTITUTE POSITION ACCOUNTABILITY REQUIREMENTS FOR POSITION LIMIT RULES	



June 7, 2001
Notice No. 01-191

TO:
ALL NYMEX DIVISION MEMBERS
ALL NYMEX DIVISION CLEARING MEMBERS / MEMBER FIRMS

FROM:
NEAL WOLKOFF, EXECUTIVE VICE PRESIDENT

RE:
EXCHANGE TO SUBSTITUTE POSITION ACCOUNTABILITY REQUIREMENTS FOR POSITION LIMIT RULES

The board of directors of the New York Mercantile Exchange, Inc., has approved substituting position accountability requirements for the current position limits on all but the last three trading days of its crude oil, heating oil, unleaded gasoline, and natural gas contracts, beginning with the Friday, June 15, trading session.

For the last three days of trading in a particular delivery month, each of those contracts would continue to have a position limit of 1,000 lots.

The current net position limits levels will be reflected in the accountability levels. These are:

			Any one month	        All months
Crude oil		10,000			20,000
Unleaded gasoline	5,000			7,000
Heating oil		5,000			7,000
Natural gas		7,000			12,000



Any market participant with positions exceeding these levels may be contacted by the Exchange with inquiries regarding the participant's hedging requirements or financial condition. The Exchange would reserve the right to require that the position be reduced or capped.

There will no longer be any gross limits on the number of positions that can be held, as long as they are offset by positions on the opposite side of the market (example: a participant with 10,000 long positions in September, October, and November crude oil futures and 10,000 short positions for December and January would be considered to have a net position of 10,000 contracts).

These new rules are also intended to apply to the Brent crude oil futures contract, planned for launch this summer. The board has also approved a minimum reporting level of 100 lots for that contract.

These rules, which closely resemble those in place for metals traded on the COMEX Division, must be approved by the Commodity Futures Trading Commission prior to implementation.


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