----- Forwarded by Tana Jones/HOU/ECT on 12/20/2000 02:27 PM -----

	exchangeinfo@nymex.com
	12/20/2000 02:13 PM
		 
		 To: tana.jones@enron.com
		 cc: 
		 Subject: (00-431) CFTC Approval and Exchange Implementation of Further 
Amendments to Natural Gas Price Limits


TO:     All New York Mercantile Exchange Members and Member Firms
FROM:  Neal Wolkoff, Executive Vice President
RE:        CFTC Approval and Exchange Implementation of Further Amendments 
to   Natural Gas Price Limits for Last Three Trading Days of Spot Month
DATE:   December 20, 2000

Notice #  00-431
==========================================================

Please be advised that the Exchange has received CFTC approval for further 
amendments to natural gas price limits.  Members were previously advised in 
Notice # 429 (December 18, 2000) that these changes were pending CFTC 
approval.

These changes will become effective as of the start of the RTH session on 
Friday, December 22, 2000. A copy of amended NYMEX Rule 220.08A (SPECIAL 
PRICE FLUCTUATION LIMITS FOR NATURAL GAS FUTURES) is included below in this 
Notice. The amendments to this rule add a new Section (E), which concerns the 
last three days of trading in the spot month; the amendments also make 
related conforming changes.

In view of the recent price movement in the Natural Gas contract, the 
Exchange is amending the applicable price limit rules as follows:

(1) There shall be no price limits for any Natural Gas futures contract month 
during the RTH session on the last three trading days of the current delivery 
month, i.e., spot month.

(2) By comparison, price fluctuation limits shall remain in effect for all 
contract months for the NYMEX ACCESS(r) sessions conducted on these three 
trading days as provided by Exchange rules and as further modified by 
applicable resolutions.

Thus, on Friday, December 22, on Tuesday, December 26, and on Wednesday, 
December 27, 2000, there shall be no price limits in effect for any Natural 
Gas futures contract months during the entire RTH session on those trade 
dates.

In other words, prices shall move on an unrestricted basis during the entire 
floor trading session on those three trade dates, and there shall be no 
trading halts triggered at any time during such sessions.

As a reminder, an Executive Committee Resolution is still in effect that 
amends on a temporary basis existing price limit rules by expanding the price 
limits on NYMEX ACCESS (for all contracts listed for trading on NYMEX ACCESS 
that have price limits). The Resolution will remain in effect until February 
1, 2001, unless Members are notified otherwise by the Exchange. For your 
convenience, a copy of the Resolution is also included in this Notice.

If you have any questions concerning the new rule amendments, please contact 
George Henderson, Vice President, NYMEX Floor Department, at (212) 299-2071; 
Rob Stasi, Manager of Trading Floor Systems, NYMEX Floor Department, at (212) 
299-2067, or Brian Regan, Senior Associate General Counsel, at (212) 299-2207.

NATURAL GAS: APPROVED AMENDMENTS TO NYMEX
RULE 220.08A. SPECIAL PRICE FLUCTUATION LIMITS FOR NATURAL GAS
FUTURES

Rule 220.08A. SPECIAL PRICE FLUCTUATION LIMITS FOR NATURAL GAS
FUTURES
(A) Initial Price Fluctuation Limits for All Contract Months. At the 
commencement of each trading day, there shall be price fluctuation limits in 
effect for each contract month of this futures contract of $1.00 per MMBtu 
above or below the previous day's settlement price for such contract month.

(B)(1) Triggering Event and Temporary Trading Halt. If a market for any 
contract month is traded or, is bid in the case of upward price moves or is 
offered in the case of downward price moves, for five (5) minutes 
consecutively at the upper or lower price limit, as applicable, then a 
Triggering Event will be deemed to have occurred.

(2) Except as otherwise provided in this rule, as a result of such Triggering 
Event, the market will be given notice immediately that in two (2) minutes, 
there will be a fifteen (15) minute temporary trading halt in all contract 
months of that futures contract and the associated option contract 
("Temporary Trading Halt"). The market will remain open during this 
two-minute notice period, and the commencement of the Temporary Trading Halt 
shall not be affected by market activity occurring during this notice period.

(3) Expansion of Limits Following Temporary Trading Halt. Following the end 
of the 15-minute Temporary Trading Halt, the market shall reopen in all 
contract months of this futures contract.  When trading resumes, price 
fluctuation limits for each contract month, except as otherwise provided in 
this rule, shall be expanded to $2.00 per MMBtu above and below the previous 
day's settlement price for such contract month.

(4) Following resumption of trading after a Temporary Trading Halt, there 
shall be no additional trading halts and no further expansion of price limits 
for the remainder of the trading day.

(C) Duration of Session Following Temporary Trading Halt.   When trading 
resumes after a Temporary Trading Halt, trading generally shall continue 
until the regularly scheduled closing time subject to the following 
exceptions:

1) if, at the start of the 15-minute Temporary Trading Halt, there is less 
than 15 minutes before the close, then, when trading resumes after the 
Temporary Trading Halt, the trading session shall be expanded as necessary to 
provide for fifteen (15) minutes of trading following the resumption of 
trading, and the closing period shall be the final two minutes of trading of 
this 15-minute period of trading; and

provided however that if the five-minute Triggering Event is completed 
during  the closing period, there shall be no Temporary Trading Halt for any 
contract month and no expansion of price limits for any contract month.

(D) Application of Price Fluctuation Limits to NYMEX ACCESS(r) The limits 
described in this rule shall apply to trading on NYMEX ACCESS(r), except as 
provided by NYMEX Rule 6.56 and except that:

(1) if the five-minute Triggering Event is completed during the last ninety 
minutes of a NYMEX ACCESS(r) trading session, there shall be no Temporary 
Trading Halt and no expansion of price limits during the remainder of such 
NYMEX ACCESS(r) trading session, and

(2) there shall be no Temporary Trading Halt during a NYMEX ACCESS(r) trading 
session if, in the opinion of the President of the Exchange or his designee, 
either the Triggering Event was not reflective of otherwise prevailing market 
conditions or a Temporary Trading Halt is unwarranted.

(E) Exception for Last Three Trading Days of an Expiring Contract Month.

(1) RTH Session on Last Three Trading Days. Notwithstanding the preceding
sections of this rule, there shall be no limitations on price fluctuations 
for any Natural Gas futures contract month during the entire RTH session of 
the final three trading days in the current delivery month.

(2) NYMEX ACCESS( Session on Last Three Trading Days. Price fluctuation limits
for all Natural Gas futures contract months on these three trading days shall 
remain in effect for the NYMEX ACCESS( session as provided by this rule.

APPROVED RESOLUTION OF THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS 
REGARDING PRICE FLUCTUATION LIMITS FOR EXCHANGE CONTRACTS

The Executive Committee of the Board of Directors hereby

Resolves that, until further notice, the price fluctuation limit rules for 
each futures contract that is listed for trading on NYMEX ACCESS(r) and that 
has such applicable rules shall continue in effect except as amended below 
with regard to market activity occurring on NYMEX ACCESS(r):

The initial and subsequent price fluctuation limits (for each Exchange 
futures contract that has such limits) shall be expanded to 200% of the 
initial and subsequent price fluctuation limits applicable to the first two 
contract months of that futures contract that have price limits under the 
applicable rule.

This expanded limit (200% of the limits for the first two months with limits) 
shall be applicable to all contract months for that futures contract.

In the event that such a price fluctuation limit is reached by a bona fide 
bid at the high price fluctuation limit or a bona fide offer at the low price 
fluctuation limit, trading on NYMEX ACCESS(r) shall be halted immediately 
except as directed otherwise by the President or the President's designee.  
Following resumption of trading, the price limits in effect shall be 200% of 
the limits applicable to RTH trading.  In the event that a limit is touched 
during the last 90 minutes of a NYMEX ACCESS(r) session, the market shall be 
halted briefly, and price limits shall be expanded thereafter

In addition, in the event that a contract trading on NYMEX ACCESS(r) traded 
for five minutes during the NYMEX ACCESS&#61495; session at a price 
fluctuation limit applicable to the Regular Trading Hours session, then the 
RTH session shall open with expanded price fluctuation limits as provided 
under the applicable rule, even though no temporary cessation of trading 
occurred during the NYMEX ACCESS(r) trading session.


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