(01-70) Margin Credit for Spread Positions with the Goldman Sachs ,
 Notice No. 01-70
February 27, 2001

TO:
All NYMEX and COMEX Division Members and Member=20
Firms                                        All Clearing Member Firms
All Compliance Officers and Operations Managers

FROM: Neal Wolkoff; Executive Vice-President

RE: Margin Credit for Spread Positions with the Goldman Sachs Commodity Ind=
ex

The NYMEX Board of Directors has approved a margin credit for the NYMEX=20
portion of a spread position with the CME Goldman Sachs Commodity Index=20
("GSCI"), effective at the close of business Wednesday February 28, 2001.

The GSCI contract is based on a basket of 26 commodities traded on a variet=
y=20
of markets. Included within that basket are several NYMEX and COMEX product=
s,=20
representing approximately 75% of the index.

Each Clearing Member providing sufficient documentation of a properly=20
allocated portfolio between the NYMEX and GSCI contracts will receive an 80=
%=20
credit against the outright margin in effect at that time. This spread cred=
it=20
is being adopted by NYMEX independent of any margin imposed by the CME on=
=20
GSCI contracts. The spread credit will be granted in 100 lot increments (ie=
.=20
100 GSCI contracts vs. the basket).

Spread Credit for each 100 GSCI contracts

Contract - Lots      Margin Rate       Outright Margin     *Spread=20
Credit*      Net Margin

Crude - 53             $3,000                 $159,000               =20
$127,200                $31,800

Nat. Gas - 13 (A)  $6,000                 $78,000                  =20
$62,400                  $15,600

Heating Oil - 12    $3,000                 $36,000                  =20
$28,800                    $7,200

Unleaded - 8         $3,000                 $24,000                  =20
$19,200                   $4,800

Gold - 4                  $1,000                  $4,000                   =
 =20
$3,200                         $800

Copper - 2 (A)       $5,000                  $10,000                  =20
$8,000                     $2,000

(A) NOTE: Multiple tier margin rates apply for these contracts.

Clearing Members will have the option of passing this reduced rate to their=
=20
customers even if the Clearing Member doesn=01,t request the credit from NY=
MEX.=20
Under separate cover, the NYMEX Clearing Department will provide a formal=
=20
"Request Form" which will need to be submitted in order to qualify for said=
=20
margin credit.

If you have questions, please contact Artie McCoy at 212-299-2928.



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