Notice No. 01-412
November 30, 2001

TO:                 ALL MEMBERS AND MEMBER FIRMS
                       ALL CLEARING FIRMS
                       ALL OPERATIONS MANAGERS
FROM:            J. Robert Collins, Jr., President
SUBJECT:       TIERED MARGIN RATES FOR HENRY HUB SWAP (NN) AND NATURAL GAS
(NG) FUTURES.
Effective Date: 	Monday,  December 3, 2001 (close of business)
Futures Contracts:    Natural Gas (NG), Henry Hub Swap (NN) Futures

Contract Months:      All Months
Rate Change:

NYMEX Division Outright Margins on Natural Gas and Henry Hub Swap Futures
Contracts
				Clearing		      Member

				Member		      Customer
Non-Member
Tier 1 (1st  Nearby Month):			$4,500
$4,950			$6,075
Tier 2 (2nd  Neaby Month):			$4,000
$4,400			$5,400
Tier 3 (3rd  - 6th  Nearby Months):		$3,000
$3,300			$4,050
Tier 4 (7th   - 12th Nearby Months): 		$2,500
$2,750			$3,375
Tier 5 (13th  and greater):			$2,000
$2,200			$2,700
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.  Spreading between
differently margined contracts results in a higher spread margin than
between equally margined contracts.  Below is provided an example where the
legs of a spread are margined differently.
Scan Risk Example at Clearing Member Rates
A spread consisting of one futures leg in Tier 1 and another in Tier 2 will
have its requirement (at the clearing member rates) calculated at $1,000
starting on Monday, December 03, 2001.

One Long Tier 1 NG or NN	(1 * $4,500)			=
$4,500
One Short Tier 2 NG or NN	(1 * $4,000)			=	-
$4,000
Net Scan Risk		($4,500-$4,000)			=		$
500
Spread Rate			(1* $500)			=	+
$   500
Total Requirement						=
$1,000
Scan Risk Example Summary
Margin on a Spread Between a Tier 1 and Tier 2 Futures Contract
Clearing Member (Maintenance Margin):
$1,000
Member Customer (Initial Margin):
$1,100
Non-Member Customer (Initial Margin):
$1,350


 Inter-Month Spread  Margins on Natural Gas and Henry Hub Swap Futures
Contracts
				Clearing			Member

				Member		      Customer
Non-Member
Tier 1 (1st  Nearby Month):			 $500			$550
$675
Tier 2 (2nd  Neaby Month):			 $250			$275
$237
Tier 3 (3rd  - 6th  Nearby Months):		 $250			$275
$237
Tier 4 (7th   - 12th Nearby Months): 		 $250			$275
$237
Tier 5 (12th  and greater):			 $100			$110
$135

The inter-commodity spread margins will be $0 between Natural Gas (NG) and
Henry Hub Swap (NN) futures contracts. Spread credits between Henry Hub Swap
futures and all other NYMEX energy products will be the same as the Natural
Gas spread credits.
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 and spread margins for
the NYMEX Natural Gas (NG).