News Release

Exchange to Increase Margins for Natural Gas Basis, Index and Swing Swap Futures Contracts

Wed Dec 28 2005

NEW YORK, N.Y., December 28, 2005 — The New York Mercantile Exchange, Inc., today announced that it will increase the margins on its natural gas basis, index and swing swap futures contracts, effective at the close of business tomorrow.

Margins for first month of the Transco Zone 6 basis swap futures contract will increase to $1,200 from $600 for clearing members, to $1,320 from $660 for members, and to $1,620 from $810 for customers. Margins for the second month will increase to $1,100 from $550 for clearing members, to $1,210 from $605 for members, and to $1,485 from $743 for customers. Margins for the third to sixth months will decrease to $500 from $1,000 for clearing members, to $550 from $1,100 for members, and to $675 from $1,350 for customers. Margins for all other months will remain unchanged.

Margins for the first month of the Texas Eastern Zone M–3 basis swap futures contract will increase to $1,300 from $700 for clearing members, to $1,430 from $770 for members, and to $1,755 from $945 for customers. Margins for all other months will remain unchanged.

Margins for the first month of the Henry Hub index swap futures contract will increase to $3,000 from $2,000 for clearing members, to $3,300 from $2,200 for members, and to $4,050 from $2,700 for customers. Margins for all other months will remain unchanged.

Margins for the first month of the Chicago index swap futures contract will increase to $3,000 from $2,500 for clearing members, to $3,300 from $2,750 for members, and to $4,050 from $3,375 for customers. Margins for all other months will remain unchanged.

Margins for the first month of the El Paso/Permian index swap futures contract will increase to $3,000 from $1,575 for clearing members, to $3,300 from $1,733 for members, and to $4,050 from $2,126 for customers. Margins for all other months will remain unchanged.

Margins for the first month of the Houston Ship Channel index swap futures contract will increase to $3,500 from $2,300 for clearing members, to $3,850 from $2,530 for members, and to $4,725 from $3,105 for customers. Margins for all other months will remain unchanged.

Margins for the first month of the Panhandle index swap futures contract will increase to $3,500 from $1,700 for clearing members, to $3,850 from $1,870 for members, and to $4,725 from $2,295 for customers. Margins for all other months will remain unchanged. Margins for the first month of the Waha index swap futures contract will increase to $3,500 from $2,000 for clearing members, to $3,850 from $2,200 for members, and to $4,725 from $2,700 for customers. Margins for all other months will remain unchanged.

Margins for the first month of the PG&E Citygate index swap futures contract will increase to $2,800 from $1,600 for clearing members, to $3,080 from $1,760 for members, and to $3,780 from $2,160 for customers. Margins for all other months will remain unchanged.

Margins for the first month of the Rockies index swap futures contract will increase to $3,200 from $1,975 for clearing members, to $3,520 from $2,173 for members, and to $4,320 from $2,666 for customers. Margins for all other months will remain unchanged.

Margins for the first month of the SoCal index swap futures contract will increase to $3,000 from $2,200 for clearing members, to $3,300 from $2,420 for members, and to $4,050 from $2,970 for customers. Margins for all other months will remain unchanged.

Margins for the first month of the Sumas index swap futures contract will increase to $2,600 from $2,000 for clearing members, to $2,860 from $2,200 for members, and to $3,510 from $2,700 for customers. Margins for all other months will remain unchanged.

Margins for the first month of the TETCO M–3 and Transco Zone 6 index swap futures contracts will increase to $3,000 from $2,300 for clearing members, to $3,300 from $2,530 for members, and to $4,050 from $3,105 for customers. Margins for all other months will remain unchanged.

Margins for the Kern River and PG&E Citygate swing swap futures contracts will increase to $4,500 from $3,750 for clearing members; to $4,950 from $4,125 for members; and to $6,075 from $5,063 for customers.

Margins for the San Juan swing swap futures contract will increase to $4,000 from $3,500 for clearing members; to $4,400 from $3,850 for members; and to $5,400 from $4,725 for customers.

Margins for the SoCal swing swap futures contract will increase to $4,500 from $4,000 for clearing members; to $4,950 from $4,400 for members; and to $6,075 from $5,400 for customers.

Margins for the Sumas swing swap futures contract will increase to $4,300 from $3,000 for clearing members; to $4,730 from $3,300 for members; and to $5,805 from $4,050 for customers.

Margins for the TETCO M–3 swing swap futures contracts will increase to $4,600 from $4,000 for clearing members; to $5,060 from $4,400 for members; and to $6,210 from $5,400 for customers.

Margins for the Transco Zone 6 swing swap futures contracts will increase to $4,200 from $4,000 for clearing members; to $4,620 from $4,400 for members; and to $5,670 from $5,400 for customers.

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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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