Notice to Members
Notice No. 300 08/23/2000
Palladium Futures Margin Rate Change For August 24th and 28th, 2000
Effective Date: Thursday, August 24, 2000 (close of business) Futures Contract: Palladium Futures Contract Months: August and September 2000 Contracts Only Rate Change: NYMEX Division Margins on Palladium Futures Contracts     Clearing Member (Maintenance Margin) Old: $100,000 New: $125,000 Member Customer (Initial Margin) Old: $110,000 New: $136,500 Non-Member Customer (Initial Margin) Old: $135,000 New: $168,750 This change will also have the effect of increasing the margin required of certain Palladium Futures spreads. Effective Date: Monday, August 28, 2000 (close of business) Futures Contract: Palladium Futures Contract Months: September 2000 Contract Only Rate Change: NYMEX Division Margins on Palladium Futures Contracts     Clearing Member (Maintenance Margin) Old: $125,000 New: $150,000 Member Customer (Initial Margin) Old: $137,000 New: $165,000 Non-Member Customer (Initial Margin) Old: $168,750 New: $202,500 This change will also have the effect of increasing the margin required of certain Palladium Futures spreads. Current systems calculate the margin requirement for spread positions by first determining the "Scan Risk" and then multiplying the number of spreads by a rate set by the Exchange. Scan Risk is determined by netting the outright margin required for each leg of a spread. Because there is a difference between the margin required for the August and September 2000 delivery months and other months, each spread which includes one leg in the August or September 2000 delivery month will have its requirement (at the clearing member rates) calculated at $110,250 starting on August 24th and $135,250 starting on August 28th. Example At Clearing Member Rates for August 24th Margin Change:       One Long August or September Palladium (1 x $125,000)= $125,000 One Short December Palladium (1 x $15,000)= -$15,000 Net Scan Risk ($125,000-$15,000)= $110,000 Spread Rate (1x $250)= + $250 Total Requirement = $110,250 NYMEX Division Margins on Palladium Futures Spreads New Requirements for Spreads with One Leg in Designated Months       Effective at Close of Business Thursday, August 24, 2000 August or September 2000 Back Months Clearing Member (Maintenance Margin) $110,250 $250 Member Customer (Initial Margin) $121,275 $275 Non-Member Customer (Initial Margin) $148,838 $338 Example At Clearing Member Rates for August 28th Margin Change:         One Long September Palladium (1 x $125,000)= $150,000 One Short December Palladium (1 x $15,000)= -$15,000 Net Scan Risk ($150,000-$15,000)= $135,000 Spread Rate (1x $250)= $250 Total Requirement = $135,250 NYMEX Division Margins on Palladium Futures Spreads New Requirements for Spreads with One Leg in Designated Months         Effective at Close of Business Thursday, August 28, 2000 September 2000 Back Months Clearing Member (Maintenance Margin) $135,250 $250 Member Customer (Initial Margin) $148,775 $275 Non-Member Customer (Initial Margin) $182,588 $338 Should you have any questions or require any further information, please contact exchangeinfo@nymex.com
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com