News Release

Exchange Announces Margin Change for Natural Gas Basis and Index Swap Futures Contracts

Thu Oct 06 2005

NEW YORK, N.Y., October 6, 2005 — The New York Mercantile Exchange, Inc., announced today it would change the margins for its natural gas basis and index swap futures contracts at the close of business on October 7.

Margins on the first month of the Alberta basis swap futures contract will increase to $700 from $375 for clearing members, to $770 from $413 for members, and to $945 from $506 for customers. Margins on the second month will increase to $350 from $225 for clearing members, to $385 from $248 for members, and to $473 from $304 for customers. All other months will remain the same.

The margins on the first month of the Chicago basis swap futures contract will increase to $600 from $250 for clearing members, to $660 from $275 for members, and to $810 from $338 for customers. Margins on all other months will remain unchanged.

The margins on the first month of the Houston Ship Channel basis swap futures contract will increase to $1,000 from $525 for clearing members, to $1,110 from $578 for members, and to $1,350 from $709 for customers. Margins on all other months will decrease to $300 from $325 for clearing members, $330 from $358 for members, and to $405 from $439 for customers.

Margins on the first month of the San Juan basis swap futures contract will increase to $850 from $625 for clearing members, to $935 from $688 for members, and to $1,148 from $844 for customers. All other months will increase to $475 from $375 for clearing members, to $523 from $413 for members, and to $641 from $506 for customers.

The margins on the first month of the SoCal basis swap futures contract will increase to $900 from $625 for clearing members, to $990 from $688 for members, and to $1,215 from $844 for customers. All other months will increase to $475 from $375 for clearing members, to $523 from $413 for members, and to $641 from $506 for customers.

Margins on the first month of the Transco Zone 6 basis swap futures contract will increase to $350 from $250 for clearing members, to $385 from $275 for members, and to $473 from $338 for customers. Margins on the second month will increase to $550 from $500 for clearing members, to $605 from $550 for members, and to $743 from $675 for customers. The margins on the third to sixth month will increase to $800 from $500 for clearing members, to $880 from $550 for members, and to $1,080 from $675 for customers. Margins on the seventh to 12th months will increase to $150 from $100 for clearing members, to $165 from $110 for members, and to $203 from $135 for customers. The margins on all other months will increase to $100 from $75 for clearing members, to $110 from $83 for members, and to $135 from $101 for customers.

Margins on the first month of the Northwest Pipeline, Rockies basis swap futures contracts will increase to $750 from $625 for clearing members, to $825 from $688 for members, and to $1,013 from $844 for customers. Margins on the second month will increase to $500 from $325 for clearing members, to $550 from $358 for members, and to $675 from $439 for customers. Margins on the third and sixth months will increase to $500 from $300 for clearing members, to $550 from $330 for members, and to $675 from $405 for customers. The margins on the seventh to 12th month will increase to $225 from $175 for clearing members, to $248 from $193 for members, and to $304 from $236 for customers. Margins on all other months will increase to $125 from $100 for clearing members, to $138 from $110 for members, and to $169 from $135 for customers.

Margins on the first month of the Panhandle basis swap futures contract will increase to $900 from $800 for clearing members, to $990 from $880 for members, and to $1,215 from $1,080 for customers. Margins on all other months will increase to $500 from $400 for clearing members, to $550 from $440 for members, and to $675 from $540 for customers.

Margins on the first month of the Permian basis swap futures contract will increase to $1,200 from $800 for clearing members, to $1,320 from $880 for members, and to $1,620 from $1,080 for customers. Margins on all other months will increase to $500 from $475 for clearing members, to $550 from $523 for members, and to $675 from $641 for customers.

Margins on the first month of the Texas Eastern Zone M-3 basis swap futures contract will increase to $325 from $250 for clearing members, to $358 from $275 for members, and to $439 from $338 for customers. Margins on all other months will increase to $500 from $200 for clearing members, to $550 from $220 for members, and to $675 from $270 for customers.

Margins on the first month of the TCO basis swap futures contract will increase to $200 from $125 for clearing members, to $220 from $138 for members, and to $270 from $169 for customers. Margins on all other months will increase to $125 from $100 for clearing members, to $138 from $110 for members, and to $169 from $135 for customers.

Margins on the first month of the PGE&E Malin basis swap futures contract will increase to $1,200 from $875 for clearing members, to $1,320 from $963 for members, and to $1,620 from $1,181 for customers. Margins on all other months will increase to $500 from $400 for clearing members, to $550 from $440 for members, and to $675 from $540 for customers.

The margins on the first month of the PGE&E Citygate basis swap futures contract will increase to $1,300 from $925 for clearing members, to $1,430 from $1,018 for members, and to $1,755 from $1,249 for customers. Margins on all other months will increase to $500 from $475 for clearing members, $550 from $5723 for members, and to $675 from $641 for customers.

Margins on the first month of the NGPL Tex/OK basis swap futures contract will increase to $750 from $425 for clearing members, to $825 from $468 for members, and to $1,013 from $574 for customers. Margins on all other months will increase to $300 from $275 for clearing members, to $330 from $303 for members, and to $405 from $371 for customers.

Margins on the first month of the ANR Oklahoma basis swap futures contract will increase to $1,000 from $825 for clearing members, to $1,100 from $908 for members, and to $1,350 from $1,114 for customers. The margins on all other months will increase to $425 from $325 for clearing members, to $468 from $358 for members, and to $574 from $439 for customers.

Margins on the first month of the Sumas basis swap futures contract will increase to $1,000 from $625 for clearing members, to $1,100 from $688 for members, and to $1,350 from $844 for customers. Margins on all other months will increase to $575 from $450 for clearing members, to $633 from $495 for members, and to $776 from $608 for customers.

Margins on the first month of the NGPL Mid-Continent basis swap futures contract will increase to $900 from $250 for clearing members, to $990 from $275 for members, and to $1,215 from $338 for customers. The margins on all other months remain the same.

Margins on the first month of the Northern Natural Gas Demarcation swap futures contract will increase to $850 from $450 for clearing members, to $935 from $495 for members, and to $1,148 from $608 for customers. The margins on all other months remain the same.

Margins on the first month of the Northern Natural Gas Ventura, Iowa basis swap futures contract will increase to $750 from $425 for clearing members, to $825 from $468 for members, and to $1,013 from $574 for customers. Margins on all other months will increase to $350 from $275 for clearing members, to $385 from $303 for members, and to $473 from $371 for customers.

Margins on the first month of the CIG Rockies basis swap futures contract will increase to $1,800 from $1,575 for clearing members, to $1,980 from $1,733 for members, and to $2,430 from $2,126 for customers. Margins on the second month will increase to $500 from $375 for clearing members, to $550 from $413 for members, and to $675 from $506 for customers. Margins on the third to sixth months will increase to $450 from $250 for clearing members, to $495 from $275 for members, and to $608 from $338 for customers. The margins on the seventh to 12th months will increase to $300 from $125 for clearing members, to $330 from $138 for members, and to $405 from $169 for customers. Margins on all other months will increase to $200 from $100 for clearing members, to $220 from $110 for members, and to $270 from $135 for customers.

Margins on the first month of the Waha basis swap futures contract will increase to $1,100 from $725 for clearing members, to $1,210 from $798 for members, and to $1,485 from $979 for customers. Margins on all other months will increase to $350 from $325 for clearing members, to $385 from $358 for members, and to $473 from $439 for customers.

Margins on the first month of the Tetco Eastern South/STX basis swap futures contract will increase to $400 from $200 for clearing members, to $440 from $220 for members, and to $540 from $270 for customers. Margins on the second month will increase to $200 from $100 for clearing members, to $275 from $110 for members, and to $338 from $135 for customers. The margins on the third to sixth months will increase to $250 from $100 for clearing members, to $220 from $110 for members, and to $270 from $135 for customers. Margins on the seventh to 12th months will increase to $150 from $100 for clearing members, to $165 from $110 for members, and to $203 from $135 for customers. Margins on all other months will increase to $125 from $100 for clearing members, to $138 from $110 for members, and to $169 from $135 for customers

Margins on the first month of the Tetco ELA basis swap futures contract will increase to $150 from $75 for clearing members, to $165 from $83 for members, and to $203 from $101for customers. Margins on the second month will increase to $75 from $50 for clearing members, to $83 from $55 for members, and to $101 from $68 for customers. Margins on all other months will remain the same.

Margins on the first month of the Transco Zone 3 basis swap futures contract will increase to $180 from $75 for clearing members, to $198 from $83 for members, and to $243 from $101 for customers. Margins on all other months will increase to $75 from $50 for clearing members, to $83 from $55 for members, and to $101 from $68 for customers.

The margins on the first month of the ANR LA basis swap futures contract will decrease to $50 from $75 for clearing members, to $55 from $83 for members, and to $68 from $101 for customers. Margins on all other months will remain the same.

Margins on the first month of the Tennessee, Zone 0 swap futures contract will increase to $400 from $200 for clearing members, to $440 from $220 for members, and to $540 from $270 for customers. Margins on all other months will increase to $300 from $100 for clearing members, to $330 from $110 for members, and to $405 from $135 for customers.

The margins on the first month of the Tennessee, LA 500 basis swap futures contract will increase to $100 from $75 for clearing members, to $110 from $83 for members, and to $135 from $101 for customers. Margins on all other months will increase to $75 from $50 for clearing members, to $83 from $55 for members, and to $101 from $68 for customers.

The margins on the first month of the Questar basis swap futures contract will increase to $900 from $625 for clearing members, to $990 from $688 for members, and to $1,215 from $844 for customers. Margins on all other months will remain the same.

Margins on the first month of the Henry Hub index swap futures contract will decrease to $1,000 from $1,475 for clearing members, to $1,100 from $1,623 for members, and to $1,350 from $1,991 for customers. Margins on all other months will decrease to $50 from $125 for clearing members, $55 from $138 for members, and to $68 from $169 for customers.

The margins on the first month of the Chicago City Gate index swap futures contract will decrease to $2,000 from $3,450 for clearing members, to $2,200 from $3,795 for members, and to $2,700 from $4,658 for customers. Margins on all other months will remain unchanged.

Margins on the first month of the Houston Ship Channel index swap futures contract will increase to $1,500 from $950 for clearing members, to $1,650 from $1,045 for members, and to $2,025 from $1,283 for customers. Margins on all other months remain the same.

Margins on the first month of the Dominion index swap futures contract will change to $1,000 from $1,475 for clearing members, to $1,100 from $1,623 for members, and to $1,350 from $1,991 for customers. Margins on all other months will decrease to $100 from $125 for clearing members, to $110 from $138 for members, and to $135 from $169 for customers.

Margins on the first month of the Rockies index swap futures contract will increase to $1,575 from $1,250 for clearing members, to $1,733 from $1,375 for members, and to $2,126 from $1,688 for customers. Margins on all other months will increase to $175 from $125 for clearing members, to $193 from $138 for members, and to $236 from $169 for customers.

Margins on the first month of the TETCO M-3 index swap futures contract will decrease to $1,000 from $1,475 for clearing members, to $1,100 from $1,623 for members, and to $1,350 from $1,991 for customers. Margins on all other months will remain the same.

Margins on the first month of the Transco Zone 6 index swap futures contract will change to $1,200 from $1,475 for clearing members, to $1,320 from $1,623 for members, and to $1,620 from $1,991 for customers. Margins on all other months will remain the same.

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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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