(00-419) CFTC Approves Amendments to Natural Gas Price Limit Rules ,
 TO: All New York Mercantile Exchange Members

FROM: Neal Wolkoff, Executive Vice President

RE: CFTC Approves Amendments to Natural Gas Price Limit Rules

DATE: December 7, 2000

Notice # 00-419

______________________________________________

The New York Mercantile Exchange, Inc., has received permission from the=20
Commodity Futures Trading Commission to expand the initial price limits of=
=20
its natural gas futures contracts; create uniform limits across all months =
of=20
trading; abbreviating the trading halt; and expand the new limits by 200%=
=20
when the initial limit is reached.

The amended rules, which are attached, will take effect for the opening of=
=20
the open outcry tading session at 9:30 AM tomorrow.

The Exchange announced this morning that the board last night voted to amen=
d=20
the procedures so the new natural gas limit will be $1.000 per million=20
British thermal unit and if any contract month is traded, bid, or offered a=
t=20
the limit for five minutes, the market is halted for 15 minutes.  When=20
trading resumes, expanded limits are in place that allow the price to=20
fluctuate by $2.000 in either direction of the previous day's settlement=20
price.

Currently, the market is halted for one hour if the price in one of the fir=
st=20
two months is traded at $.750 for five minutes.  When the market reopens,=
=20
those limits are extended to all months, but are moved to surround the=20
previous limit in place in the direction of the move.

Under the amended rules, if a halt occurs during the last two days of tradi=
ng=20
in a contract, when the market reopens, there are no price limits placed on=
=20
either of the first two nearby contract months.

NATURAL GAS: APPROVED AMENDMENTS TO PRICE FLUCTUATION LIMIT RULES

The rules below reflect the provisions that are being implemented.  A copy =
of=20
the rules reflecting the changes made from the prior version of these rules=
=20
can be obtained from the Exchange=01,s Legal Department.

Rule 220.08. PRICES AND MINIMUM FLUCTUATION SIZE

(A) Prices shall be quoted in dollars and cents per million British thermal=
=20
units (MMBtu). The minimum price fluctuation shall be $.001 per MMBtu.

Rule 220.08A. SPECIAL PRICE FLUCTUATION LIMITS  FOR NATURAL GAS FUTURES

(A) Initial Price Fluctuation Limits for All Contract Months. At the=20
commencement of each trading day, there shall be price fluctuation limits i=
n=20
effect for each contract month of this futures contract of $1.00 per MMBtu=
=20
above or below the previous day=01,s settlement price for such contract mon=
th.

(B)(1) Triggering Event and Temporary Trading Halt. If a market for any=20
contract month is traded or, is bid in the case of upward price moves or is=
=20
offered in the case of downward price moves, for five (5) minutes=20
consecutively at the upper or lower price limit, as applicable, then a=20
Triggering Event will be deemed to have occurred.

(2) Except as otherwise provided in this rule, as a result of such Triggeri=
ng=20
Event, the market will be given notice immediately that in two (2) minutes,=
=20
there will be a fifteen (15) minute temporary trading halt in all contract=
=20
months of that futures contract and the associated option contract=20
("Temporary Trading Halt"). The market will remain open during this=20
two-minute notice period, and the commencement of the Temporary Trading Hal=
t=20
shall not be affected by market activity occurring during this notice perio=
d.

(3) Expansion of Limits Following Temporary Trading Halt. Following the end=
=20
of the 15-minute Temporary Trading Halt, the market shall reopen in all=20
contract months of this futures contract.  When trading resumes, price=20
fluctuation limits for each contract month, except as otherwise provided in=
=20
this rule, shall be expanded to $2.00 per MMBtu above and below the previou=
s=20
day=01,s settlement price for such contract month;

provided that if such Temporary Trading Halt occurs on either of the last t=
wo=20
days of trading in the current delivery month, when trading resumes, there=
=20
shall be no price fluctuation limits in effect for the remainder of the=20
trading day both for the current delivery month and for the next nearest=20
contract month to delivery.

(4) Following resumption of trading after a Temporary Trading Halt, there=
=20
shall be no additional trading halts and no further expansion of price limi=
ts=20
for the remainder of the trading day.

(C) Duration of Session Following Temporary Trading Halt.   When trading=20
resumes after a Temporary Trading Halt, trading generally shall continue=20
until the regularly scheduled closing time subject to the following=20
exceptions:

1) if, at the start of the 15-minute Temporary Trading Halt, there is less=
=20
than 15 minutes
before the close, then, when trading resumes after the Temporary Trading=20
Halt, the trading session shall be expanded as necessary to provide for=20
fifteen (15) minutes of trading following the resumption of trading, and th=
e=20
closing period shall be the final two minutes of trading of this 15-minute=
=20
period of trading;

2) provided however that if the five-minute Triggering Event is completed=
=20
during  the
closing period (on any day other than the last day of trading in the curren=
t=20
delivery month), there shall be no Temporary Trading Halt for any contract=
=20
month and no expansion of price limits for any contract month; and

3) provided further that if the five-minute Triggering Event is completed=
=20
during  the
closing period on the last day of trading in the current delivery month,=20
following the 15-minute Temporary Trading Halt, trading shall resume for=20
thirty (30) minutes for all contract months. In such circumstances, the=20
closing range for the current delivery month shall include both the period=
=20
from the start of the closing range to the start of the Temporary Trading=
=20
Halt as well as the 30-minutes of trading following resumption of trading.

(D) Application of Price Fluctuation Limits to NYMEX ACCESSc  The limits=20
described in this rule shall apply to trading on NYMEX ACCESSc, except as=
=20
provided by NYMEX Rule 6.56 and except that:

(1) if the five-minute Triggering Event is completed during the last ninety=
=20
minutes of a NYMEX ACCESSc trading session, there shall be no Temporary=20
Trading Halt and no expansion of price limits during the remainder of such=
=20
NYMEX ACCESSc trading session, and

(2) there shall be no Temporary Trading Halt during a NYMEX ACCESSc trading=
=20
session if, in the opinion of the President of the Exchange or his designee=
,=20
either the Triggering Event was not reflective of otherwise prevailing mark=
et=20
conditions or a Temporary Trading Halt is unwarranted.


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