News Release

NYMEX to Change Margins for Natural Gas Basis Swap Futures Contracts

Tue Jul 08 2008

NEW YORK, N.Y., July 8, 2008 -- The New York Mercantile Exchange, Inc. today announced margin changes for some of its natural gas basis swap futures contracts, beginning at the close of business tomorrow.

Margins for the first month of the CIG Rockies; Northwest Pipeline, Rockies; and Kern River, Wyoming basis swap futures contracts will increase to $3,500 from $1,500 for clearing members, to $3,850 from $1,650 for members, and to $4,725 from $2,025 for customers. The margins for the second to sixth months will increase to $2,500 from $1,500 for clearing members, to $2,750 from $1,650 for members, and to $3,375 from $2,025 for customers. Margins for all other months will increase to $2,500 from $750 for clearing members, to $2,750 from $825 for members, and to $3,375 from $1,013 for customers. 

Margins for the first month of the Florida Gas Transmission Zone 3 basis swap futures contract will increase to $500 from $200 for clearing members, to $550 from $220 for members, and to $675 from $270 for customers. Margins for the second month will increase to $700 from $200 for clearing members, to $770 from $220 for members, and to $945 from $270 for customers. Margins for the third to sixth months will increase to $200 from $150 for clearing members, to $220 from $165 for members, and to $270 from $203 for customers. 

Margins for the first month of the Alberta basis swap futures contract will increase to $1,000 from $800 for clearing members, to $1,100 from $880 for members, and to $1,350 from $1,080 for customers. Margins for all other months will remain unchanged.

Margins for the first month of the Chicago basis swap futures contract will increase to $800 from $500 for clearing members, to $880 from $550 for members, and to $1,080 from $675 for customers. Margins for all other months will remain unchanged.  

Margins for the first month of the ANR Oklahoma basis swap futures contract will increase to $1,000 from $750 for clearing members, to $1,100 from $825 for members, and to $1,350 from $1,013 for customers. Margins for all other months will increase to $600 from $400 for clearing members, to $660 from $440 for members, and to $810 from $540 for customers.  

The margins for the first month of the San Juan basis swap futures contract will increase to $1,300 from $900 for clearing members, to $1,430 from $990 for members, and to $1,755 from $1,215 for customers.  Margins for the second month will increase to $1,000 from $500 for clearing members, to $1,100 from $550 for members, and to $1,350 from $675 for customers. The margins for all other months will remain unchanged.

Margins for the first and second months of the Sumas basis swap futures contract will increase to $1,000 from $750 for clearing members, to $1,100 from $825 for members, and to $1,350 from $1,013 for customers. Margins for the third to fifth months will increase to $700 from $600 for clearing members, to $770 from $660 for members, and to $945 from $810 for customers. Margins for all other months will remain unchanged.

Margins for the first month of the NGPL Mid-Con basis swap futures contract will increase to $1,000 from $600 for clearing members, to $1,100 from $660 for members, and to $1,350 from $810 for customers. Margins for the second month will increase to $800 from $400 for clearing members, to $880 from $440 for members, and to $1,080 from $540 for customers. Margins for the third to sixth months will increase to $500 from $300 for clearing members, to $550 from $330 for members, and to $675 from $405 for customers. Margins for all other months will remain unchanged.

The margins for the first month of the Texas Eastern Zone M-3 swap futures contract will increase to $3,000 from $400 for clearing members, to $3,300 from $440 for members, and to $4,050 from $540 for customers.  Margins for the second month will increase to $2,000 from $400 for clearing members, to $2,200 from $440 for members, and to $2,700 from $540 for customers. Margins for the third to sixth months will increase to $1,000 from $400 for clearing members, to $1,100 from $440 for members, and to $1,350 from $540 for customers. Margins for all other months will remain the same.

Margins for the first and second months of the Malin basis swap futures contract will increase to $900 from $500 for clearing members, to $990 from $550 for members, and to $1,215 from $675 for customers. Margins for the third to fifth months will increase to $800 from $400 for clearing members, to $880 from $440 for members, and to $1,080 from $540 for customers. Margins for all other months will increase to $500 from $250 for clearing members, to $550 from $275 for members, and to $675 from $338 for customers. 

Margins for the first and second months of the PG&E Citygate basis swap futures contract will increase to $900 from $500 for clearing members, to $990 from $550 for members, and to $1,215 from $675 for customers.  Margins for the third to 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 for all other months will remain the same.

Margins for the first and second months of the Northern Natural Gas Demarcation basis swap futures contract will increase to $900 from $600 for clearing members, to $990 from $660 for members, and to $1,215 from $810 for customers. Margins for the third to fifth months will increase to $750 from $400 for clearing members, to $825 from $440 for members, and to $1,013 from $540 for customers. Margins for all other months will increase to $300 from $250 for clearing members, to $330 from $275 for members, and to $405 from $338 for customers. 

Margins for the first and second months of the Ventura basis swap futures contract will increase to $900 from $600 for clearing members, to $990 from $660 for members, and to $1,215 from $810 for customers. Margins for the third to fifth months will increase to $750 from $250 for clearing members, to $825 from $275 for members, and to $1,013 from $338 for customers. Margins for all other months will increase to $300 from $250 for clearing members, to $330 from $275 for members, and to $405 from $338 for customers. 

Margins for the first month of the Panhandle basis swap futures contract will increase to $900 from $750 for clearing members, to $990 from $825 for members, and to $1,215 from $1,013 for customers. Margins for the second month will increase to $750 from $400 for clearing members, to $825 from $440 for members, and to $1,013 from $540 for customers. Margins for all other months will remain unchanged.

The margins for the first month of the El Paso Natural Gas Co. Permian Basin basis swap futures contract will increase to $1,200 from $750 for clearing members, to $1,320 from $825 for members, and to $1,620 from $1,013 for customers. The margins for the second month will increase to $1,000 from $400 for clearing members, to $1,100 from $440 for members, and to $1,350 from $540 for customers. Margins for the third to sixth months will increase to $750 from $300 for clearing members, to $825 from $330 for members, and to $1,013 from $405 for customers. Margins for the seventh to 12th months will increase to $500 from $300 for clearing members, to $550 from $330 for members, and to $675 from $405 for customers. Margins for all other months will remain unchanged.

The margins for the first month of the Centerpoint basis swap futures contract will increase to $1,100 from $750 for clearing members, to $1,210 from $825 for members, and to $1,485 from $1,013 for customers.  Margins for all other months will increase to $750 from $300 for clearing members, to $825 from $330 for members, and to $1,013 from $405 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.

 Contact: Anu Ahluwalia, 212-299-2439 or Brenda Guzman, 212-299-2436

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