Notice No. 01-409
November 29, 2001

TO:		All Exchange Members / Member Firms
		All Clearing Members

FROM:	J. Robert Collins, Jr., President

RE:		TEMPORARY EXCHANGE OF OPTIONS FOR OPTIONS TRANSACTIONS IN
ENERGY MARKETS

The Exchange will introduce a temporary program beginning tomorrow that will
allow participants in its energy markets to exchange over-the-counter (OTC)
options positions for options positions on the Exchange (EOO).

This program will have a fixed 30-day time limit and will end on December
28.

EOO transactions will work similarly to exchange of futures for physical and
exchange of futures for swaps transactions.  Two parties are allowed to
privately negotiate the execution of on- and off-exchange options positions
on pricing terms agreed upon by the involved parties. The transactions must
involve approximately equal but opposite side-of-market quantities of
options exposures in the same or related commodities.

These transactions will be permitted to liquidate, initiate, and transfer
options market positions between the two parties involved in the
transaction. The clearing member representing each party will be responsible
to notify the Exchange of the amount and type of options contracts involved,
the price at which the transaction should be cleared, and the identity of
the parties involved.