Notice to Members
Notice No. 303 08/25/2000
Margin Rate Change for August 28th, 2000, for Palladium Futures
The margin rate increase for the September 2000 Palladium futures delivery month effective close of business Monday August 28, 2000, previously cited in Notice No. 00-300, has been suspended until further notice. Margins for the August and September 2000 futures delivery months, which were revised as of the close business August 24, 2000, are in effect. 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   Effective at Close of Business Thursday, August 24, 2000   Clearing Member (Maintenance Margin) $125,000. Member Customer (Initial Margin) $137,500. Non-Member Customer (Initial Margin) $168,750 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. 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 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 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