Notice No. 00-394
November 14, 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 NOVEMBER 17th, 22nd, 29th, 2000



MARGIN RATE CHANGE  FOR NOVEMBER 17, 2000

Effective Date:      Friday, November 17, 2000  (close of business)

Futures Contract:    Palladium Futures

Contract Months:    November and December 2000 Only
NYMEX Division Margins on Palladium Futures Contracts
Effective Date:      Friday, November 17, 2000  (close of business)

Clearing Member (Maintenance Margin):           Old:  $15,000   New:  $25,000
Member Customer (Initial Margin):               Old:  $16,500   New:  $27,500
Non-Member Customer (Initial Margin):           Old:  $20,250   New:  $33,750

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 margin required for the November 
and December 2000 delivery months and other months, each spread which 
includes either one leg in the November or December delivery month will have 
its requirement (at the clearing member rates) calculated at $10,250 starting 
on November 17th.  This figure is determined as follows:

Example At Clearing Member Rates for November 17th Margin Change:
One Long December Palladium   (1 x $25,000)          =        $25,000
One Short March Palladium         (1 x $15,000)          =   -     $15,000
Net Scan Risk                  ($25,000-$15,000)       =        $10,000
Spread Rate                   (1x $250)             =   +     $   250
Total Requirement                                 =        $10,250

NYMEX Division Margins on Palladium Futures Spreads - Requirements for 
Spreads with One Leg in Designated Months
                                                                          
November and December           Back Months
Clearing Member (Maintenance Margin):         
$10,250                                      $250
Member Customer (Initial Margin):                  
$11,275                                      $275
Non-Member Customer (Initial Margin):         
$13,838                                       $338



MARGIN RATE CHANGE  FOR NOVEMBER 22, 2000
Effective Date:      Wednesday, November 22, 2000  (close of business)

Futures Contract:    Palladium Futures

Contract Months:    November and December 2000 Only
NYMEX Division Margins on Palladium Futures Contracts
Effective Date:      Wednesday, November 22, 2000  (close of business)

Clearing Member (Maintenance Margin):           Old:  $25,000   New:  $35,000
Member Customer (Initial Margin):               Old:  $27,500   New:  $38,500
Non-Member Customer (Initial Margin):           Old:  $33,750   New:  $47,250

Each spread which includes either one leg in the November or December 
delivery months will have its requirement (at the clearing member rates) 
calculated at $20,250 starting on November 22nd.  This figure is determined 
as follows:
Example At Clearing Member Rates for November 22nd Margin Change:
One Long December Palladium   (1 x $35,000)          =        $35,000
One Short March Palladium         (1 x $15,000)          =   -     $15,000
Net Scan Risk                  ($35,000-$15,000)       =        $20,000
Spread Rate                   (1x $250)             =   +     $   250
Total Requirement                                 =        $20,250

NYMEX Division Margins on Palladium Futures Spreads - Requirements for 
Spreads with One Leg in Designated Months
                                                                           
November or December        Back Months
Clearing Member (Maintenance Margin):         
$20,250                                  $250

Member Customer (Initial Margin):                  
$22,275                                  $275

Non-Member Customer (Initial Margin):         
$27,338                                   $338



MARGIN RATE CHANGE  FOR NOVEMBER 29, 2000
Effective Date:      Wednesday, November 29, 2000  (close of business)

Futures Contract:    Palladium Futures

Contract Months:    November and December 2000 Only
NYMEX Division Margins on Palladium Futures Contracts
Effective Date:      Wednesday, November 29, 2000  (close of business)

Clearing Member (Maintenance Margin):           Old:  $35,000   New:  $45,000
Member Customer (Initial Margin):               Old:  $38,500   New:  $49,500
Non-Member Customer (Initial Margin):           Old:  $47,250   New:  $60,750

Each spread which includes either one leg in the November or December 
delivery months will have its requirement (at the clearing member rates) 
calculated at $30,250 starting on November 29th.  This figure is determined 
as follows:
 Example At Clearing Member Rates for November 29th Margin Change:
One Long December Palladium   (1 x $45,000)          =        $45,000
One Short March Palladium         (1 x $15,000)          =   -     $15,000
Net Scan Risk                  ($45,000-$15,000)       =        $30,000
Spread Rate                   (1x $250)             =   +     $   250
Total Requirement                                 =        $30,250
NYMEX Division Margins on Palladium Futures Spreads - Requirements for 
Spreads with One Leg in Designated Months
                                                                           
November or December  Back Months
Clearing Member (Maintenance Margin):         
$30,250                           $250

Member Customer (Initial Margin):                  
$33,275                           $275

Non-Member Customer (Initial Margin):         
$40,838                             $338

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


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