----- Forwarded by Sara Shackleton/HOU/ECT on 12/19/2000 02:23 PM -----

	exchangeinfo@nymex.com
	12/19/2000 02:09 PM
		 
		 To: sara.shackleton@enron.com
		 cc: 
		 Subject: (00-430) Margin Rate Change for Natural Gas


Notice No. 00-430
December 19, 2000

TO:
ALL NYMEX MEMBERS AND MEMBER FIRMS
ALL NYMEX CLEARING FIRMS
ALL NYMEX OPERATIONS MANAGERS

FROM: Neal Wolkoff, Executive Vice President

SUBJECT: MARGIN RATE CHANGE FOR BACK MONTH CONTRACTS

Effective Date:    Tuesday, December 19, 2000 (close of business).

Futures Contract:  Henry Hub Natural Gas Futures.

Contract Months: April 2001 Through December 2003;
***FORWARD 3 MONTH MARGINS REMAIN UNAFFECTED BY THIS NOTICE***

Rate Change:

NYMEX Division Margins on Back Month Henry Hub

Natural Gas Futures Contracts

Effective Date: Tuesday, December 19, 2000 (close of business)
Clearing Member (Maintenance Margin):            Old:  $14,000  New:  $7,000
Member Customer (Initial Margin):                Old:  $15,400  New:  $7,700
Non-Member Customer (Initial Margin):            Old:  $18,900  New:  $9,450

Current systems calculate the margin requirement for spread positions by 
first determining the "Scan Risk" and then multiplying the number of spreads 
by a rate set by the Exchange.  Scan Risk is determined by netting the 
outright margin required for each leg of a spread.

Because there is a difference between the outright margin required for the 
January, February, and March 2001 delivery months and other months, each 
spread which includes one leg in either the January, February, or March 2001 
delivery months will have its requirement (at the clearing member rates) 
calculated at $9,500 starting on Tuesday December 19th.  This figure is 
determined as follows:

Example At Clearing Member Rates for December 19th Margin Change:
One Long January, February, or March 2001 NG  (1 x $14,000)   =        $14,000
One Short April 2001 - December 2003 NG     (1 x $7,000)    =   -     $  7,000
Net Scan Risk                         ($14,000-$7,000) =        $  7,000
Spread Rate                          (1x $2,500)     =   +     $  2,500
Total Requirement                                 =        $  9,500

NYMEX Division Margins on Natural Gas Futures Spreads - Requirements for 
Spreads with One Leg in Designated Months

January 2001 ) March 2001
Clearing Member (Maintenance Margin):               $  9,500
Member Customer (Initial Margin):                   $10,450
Non-Member Customer (Initial Margin):               $12,825

NYMEX division margins on Natural Gas Futures spreads comprised exclusively 
of months April 2001 through December 2003 will remain unchanged.

Should you have any questions regarding these changes, please contact Arthur 
McCoy at (212) 299-2928 or Joe Sanguedolce at (212) 299-2855.  This notice 
supersedes all previous notices regarding outright margins for the NYMEX 
Henry Hub Natural Gas Futures Contract.


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