Notice to Members
Notice No. 394
11/14/2000
Palladium Futures Margin Rate Change for November 17th, 22nd, and 29th, 2000
 
Effective Date:
 Friday, November 17, 2000 (close of business)
Futures Contract:
Palladium Futures
Contract Months:
 November and December 2000 Contracts Only
Rate Change:
  


NYMEX Division Margins on Palladium Futures Contracts
Effective at Close of Business Friday, November 17, 2000
 Old New
Clearing Member (Maintenance Margin)
$15,000
$25,000
Member Customer (Initial Margin)
$16,500
$27,500
Non-Member Customer (Initial Margin)
$20,250
$33,750


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 November and December 2000 delivery months and other months, each spread which includes either one leg in the November or December 2000 delivery month will have its requirement (at the clearing member rates) calculated at $10,250 starting on November 17th. This figure is determined as follows:

Example At Clearing Member Rates
for November 17th Margin Change:
       
One Long December Palladium

(1 x $25,000)
=
$25,000

One Short March Palladium
(1 x $15,000)
=

-$15,000
Net Scan Risk
($25,000-$15,000)
=
$10,000
Spread Rate
(1x $250)
=
+ $250
Total Requirement
=
$10,250


Requirements for Spreads with One Leg in Designated Months
November and December
Back Months
Clearing Member (Maintenance Margin)
$10,250
$250
Member Customer (Initial Margin)
$11,275
$275
Non-Member Customer (Initial Margin)
$13,838
$338


Margin Rate Change for November 22, 2000
Effective Date: Wednesday, November 22, 2000 (close of business)

Futures Contract: Palladium Futures

Contract Months: November and December 2000 only

Rate Change:

NYMEX Division Margins on Palladium Futures Contracts
Effective at Close of Business Wednesday,
November 22, 2000
Old
New
Clearing Member (Maintenance Margin)
$25,000
$35,000
Member Customer (Initial Margin)
$27,500
$38,500
Non-Member Customer (Initial Margin)
$33,750
$47,250


Each spread which includes either one leg in the November or December 2000 delivery months will have its requirement (at the clearing member rates) calculated at $20,250 starting on November 22nd. This figure is determined as follows:

Example At Clearing Member Rates
for November 22nd Margin Change:
       
One Long December Palladium

(1 x $35,000)
=
$35,000

One Short March Palladium
(1 x $15,000)
=

-$15,000
Net Scan Risk
($35,000-$15,000)
=
$20,000
Spread Rate
(1x $250)
=
+ $250
Total Requirement
=
$20,250


NYMEX Division Margins on Palladium Futures Spreads
Requirements for Spreads with One Leg in Designated Months
November or December
Back Months
Clearing Member (Maintenance Margin)
$20,250
$250
Member Customer (Initial Margin)
$22,275
$275
Non-Member Customer (Initial Margin)
$27,838
$338


Margin Rate Change for November 29, 2000

Effective Date: Wednesday, November 29, 2000 (close of business)

Futures Contract: Palladium Futures

Contract Months: November and December 2000 only

Rate Change:

NYMEX Division Margins on Palladium Futures Contracts
Effective at Close of Business Wednesday,
November 29, 2000
Old
New
Clearing Member (Maintenance Margin)
$35,000
$45,000
Member Customer (Initial Margin)
$38,500
$49,500
Non-Member Customer (Initial Margin)
$47,250
$60,750


Each spread which includes either one leg in the November or December 2000 delivery months will have its requirement (at the clearing member rates) calculated at $30,250 starting on November 29th. This figure is determined as follows:

Example At Clearing Member Rates for
November 29th Margin Change:
       
One Long December Palladium

(1 x $45,000)
=
$45,000

One Short March Palladium
(1 x $15,000)
=

-$15,000
Net Scan Risk
($45,000-$15,000)
=
$30,000
Spread Rate
(1x $250)
=
+ $250
Total Requirement
=
$30,250


NYMEX Division Margins on Palladium Futures Spreads
New Requirements for Spreads with One Leg in Designated Months
November or December
Back Months
Clearing Member (Maintenance Margin)
$30,250
$250
Member Customer (Initial Margin)
$33,275
$275
Non-Member Customer (Initial Margin)
$40,838
$338


This notice supersedes all previous notices regarding outright margins for the NYMEX Division Palladium Futures Contract.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com