News Release

Exchange to Change Margins for Natural Gas Swing Swap Futures Contracts

Wed Jan 05 2005
NEW YORK, N.Y., January 5, 2005 — The New York Mercantile Exchange, Inc., announced today that it will change the margins on its natural gas daily swing swap futures contracts at the close of business tomorrow.

The margins on the Henry Hub daily swing futures contract for the spot and second day contracts will increase to $1,875 from $900 for clearing members, to $2,063 from $990 for members, and to $2,531 from $1,215 for customers. Margins on all other contracts will increase to the same levels from $500 for clearing members, from $550 for members, and from $675 for customers.

The margins on the Chicago city gate, El Paso–Permian, Waha, and Panhandle daily swing futures contracts for the spot and second day contracts will increase to $1,875 from $1,000 for clearing members, to $2,063 from $1,100 for members, and to $2,531 from $1,350 for customers. Margins on all other contracts will increase to the same levels from $500 for clearing members, from $550 for members, and from $675 for customers.

The margins on the Houston Ship Channel daily swing futures contract for the first and second day contracts will increase to $1,875 from $800 for clearing members, to $2,063 from $880 for members, and to $2,531 from $1,080 for customers. Margins on all other contracts will increase to the same levels from $400 for clearing members, from $440 for members, and from $540 for customers.

Intra-commodity spread margins for the Henry Hub, Chicago city gate, El Paso–Permian, Houston Ship Channel, Waha, and Panhandle daily swing futures contracts for the spot and second day contracts will decrease to $50 from $100 for clearing members, to $55 from $110 for members, and to $68 from $135 for customers. Margins on all other contracts are unchanged.

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Forward Looking and Cautionary Statements
This press release may contain forward–looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to our future performance, operating results, strategy, and other future events. Such statements generally include words such as could, can, anticipate, believe, expect, seek, pursue, and similar words and terms, in connection with any discussion of future results. Forward–looking statements involve a number of assumptions, risks, and uncertainties, any of which may cause actual results to differ materially from the anticipated, estimated, or projected results referenced in forward–looking statements. In particular, the forward–looking statements of NYMEX Holdings, Inc., and its subsidiaries are subject to the following risks and uncertainties: the success and timing of new futures contracts and products; changes in political, economic, or industry conditions; the unfavorable resolution of material legal proceedings; the impact and timing of technological changes and the adequacy of intellectual property protection; the impact of legislative and regulatory actions, including without limitation, actions by the Commodity Futures Trading Commission; and terrorist activities and international hostilities, which may affect the general economy as well as oil and other commodity markets. We assume no obligation to update or supplement our forward–looking statements.

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