(01-10) Henry Hub Natural Gas Margin Rate Change for Back Month ,
 ----- Forwarded by Tana Jones/HOU/ECT on 01/08/2001 02:56 PM -----

	exchangeinfo@nymex.com
	01/08/2001 02:09 PM
		 
		 To: tana.jones@enron.com
		 cc: 
		 Subject: (01-10) Henry Hub Natural Gas Margin Rate Change for Back Month 
Contracts:


Notice No. 01-10
January 8, 2001

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 BACK MONTH CONTRACTS

Effective Date:    Monday, January 8, 2001 (close of business).

Futures Contract:  Henry Hub Natural Gas.

Contract Months: April 2001 and all Subsequent Contract Months.

Rate Change:

NYMEX Division Margins for the April 2001 Contract and all Subsequent
Henry Hub Natural Gas Futures Contracts

Effective Date:    Monday, January 8, 2001 (close of business)

Clearing Member (Maintenance Margin):            Old:  $7,000  New:  $5,000

Member Customer (Initial Margin):                Old:  $7,700  New:  $5,500

Non-Member Customer (Initial Margin):            Old:  $9,450  New:  $6,750

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 outright margin required for the 
February 2001 and March 2001 delivery months and other months, each spread 
which includes one leg in either the February 2001or March 2001 delivery 
months will have its requirement (at the clearing member rates) calculated at 
$11,500 starting on Monday, January 8, 2001.  This figure is determined as 
follows:

Example at Clearing Member Rates

One Long February 2001 or March 2001 NG    (1 x $14,000)   =        $14,000
One Short April 2001 - January 2004 NG       (1 x $5,000)    =   -     $  
5,000
Net Scan Risk                         ($14,000-$5,000) =        $  9,000
Spread Rate                          (1x $2,500)     =   +     $  2,500
Total Requirement                                 =        $11,500

NYMEX Division Margins on Natural Gas Futures Spreads:
Requirements for Spreads with One Leg in February 2001 or March 2001 
Contract,  and One in the April 2001 Contract or Subsequent Contracts

Clearing Member (Maintenance Margin):               $11,500

Member Customer (Initial Margin):                   $12,650

Non-Member Customer (Initial Margin):               $15,525

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 margins for the NYMEX 
Henry Hub Natural Gas Futures Contract.



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