Notice No. 01-70
February 27, 2001

TO:
All NYMEX and COMEX Division Members and Member 
Firms                                        All Clearing Member Firms
All Compliance Officers and Operations Managers

FROM: Neal Wolkoff; Executive Vice-President

RE: Margin Credit for Spread Positions with the Goldman Sachs Commodity Index

The NYMEX Board of Directors has approved a margin credit for the NYMEX 
portion of a spread position with the CME Goldman Sachs Commodity Index 
("GSCI"), effective at the close of business Wednesday February 28, 2001.

The GSCI contract is based on a basket of 26 commodities traded on a variety 
of markets. Included within that basket are several NYMEX and COMEX products, 
representing approximately 75% of the index.

Each Clearing Member providing sufficient documentation of a properly 
allocated portfolio between the NYMEX and GSCI contracts will receive an 80% 
credit against the outright margin in effect at that time. This spread credit 
is being adopted by NYMEX independent of any margin imposed by the CME on 
GSCI contracts. The spread credit will be granted in 100 lot increments (ie. 
100 GSCI contracts vs. the basket).

Spread Credit for each 100 GSCI contracts

Contract - Lots      Margin Rate       Outright Margin     *Spread 
Credit*      Net Margin

Crude - 53             $3,000                 $159,000                
$127,200                $31,800

Nat. Gas - 13 (A)  $6,000                 $78,000                   
$62,400                  $15,600

Heating Oil - 12    $3,000                 $36,000                   
$28,800                    $7,200

Unleaded - 8         $3,000                 $24,000                   
$19,200                   $4,800

Gold - 4                  $1,000                  $4,000                     
$3,200                         $800

Copper - 2 (A)       $5,000                  $10,000                   
$8,000                     $2,000

(A) NOTE: Multiple tier margin rates apply for these contracts.

Clearing Members will have the option of passing this reduced rate to their 
customers even if the Clearing Member doesn,t request the credit from NYMEX. 
Under separate cover, the NYMEX Clearing Department will provide a formal 
"Request Form" which will need to be submitted in order to qualify for said 
margin credit.

If you have questions, please contact Artie McCoy at 212-299-2928.



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