January 11,  2002
Notice No.  02-20
 
TO:                           NYMEX DIVISION MEMBERS AND MEMBER FIRMS
NYMEX DIVISION CLEARING  MEMBERS
 
FROM:                    J. Robert Collins, Jr., President
 
SUBJECT:               AMENDMENTS TO NYMEX RULE 9.05 (MARGINS)
_________________________________________________________________________________          
 
Please  be advised that the Exchange has amended Rule 9.05, which governs Clearing  Members' use of money  market mutual funds to meet original margin requirements on the NYMEX  Division.  The amendments are shown  below and become effective today.   
 
Previously,  a Clearing Member's participation in any approved fund or any group of approved  funds offered by the same issuer was limited to the greater of $250,000 or 25%  of the Clearing Member's total original margin obligations.  
 
By  comparison, the new rule amendments delete this restriction, in effect allowing  a Clearing Member to meet 100% of its margin requirements with shares in one  money market fund.   
 
However,  the Clearing Member's participation in any such fund will be limited to 5% of  that money market fund.    
 
With regard to Rule 9.05, the Exchange continues to require that a money  market fund must be approved by the NYMEX Board and also must comply with CFTC  Regulation ? 1.25. 
 

AMENDMENTS TO NYMEX Rule  9.05 (Margins)
 
(asterisk indicates additions; bracketing indicates  deletion)

 
Rule 9.05             Margins
 
(E) Clearing Members may  meet original margin calls by depositing:
 
(4) Shares in a money  market mutual fund that complies with CFTC Regulation 1.25 and that has been  approved by the Board, subject to the following  conditions:
 
(i)                   for purposes of original margin,  such shares will be valued at 95% of market value:
 
(ii)                a Clearing Member's  participation in any approved fund [or any group of approved funds  offered by the same issuer] shall be limited to [ the greater  of $250,000 or 25% of the Clearing Member's total original margin  obligations ]    *   no more than 5% of that  fund;   *
 
(iii)              no more than 25% of the total assets of  an approved money market mutual fund may be used to meet original margin  obligations at the  Exchange.