05/31/2001
Corresponding rule changes for the COMEX Division have also been approved by the NYMEX Board of Directors and filed with the CFTC; the changes for the COMEX Division will be implemented at a later date.
Rule Amendments
The amendments generally require that in order to be used for such purpose, a money market fund must be approved by the NYMEX Board and also must comply with CFTC Regulation § 1.25. For purposes of original margin, the Exchange's Clearing House will value such money market fund shares at 95% of their market value. In addition, a Clearing Member's participation in any approved fund or any group of approved funds offered by the same issuer shall be limited to the greater of $250,000 or 25% of the Clearing Member's total original margin obligations. Finally, no more than 25% of the total assets of an approved money market mutual fund may be used to meet original margin obligations at the Exchange.
Exchange Policy on Money Market Funds
The NYMEX Board of Directors also recently adopted three additional guidelines that will be applicable to such funds. First, until further notice from the Exchange, the Board has determined to limit the number of money market funds available for this purpose to ten. Second, the Board will require that henceforth each fund applying for such status must have a minimum value of $5 billion. Finally, each fund further must provide for same day payment if notification is made by 3:00 p.m. on that day.
AMENDMENTS TO NYMEX RULE 9.05 ("MARGINS")
(Asterisks indicate additions; brackets indicate deletions.)
Rule 9.05. MARGINS
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(E) Clearing Members may meet original margin calls by depositing:
*(4) Shares in a money market mutual fund that complies with CFTC Regulation § 1.25 and that has been approved by the Board, subject to the following conditions:
(i) for purposes of original margin, such shares will be valued at 95% of market value;
(ii) a Clearing Member's participation in any approved fund or any group of approved funds offered by the same issuer shall be limited to the greater of $250,000 or 25% of the Clearing Member's total original margin obligations;
(iii) no more than 25% of the total assets of an approved money market mutual fund may be used to meet original margin obligations at the Exchange.*
[Shares of Brown Brothers Harriman & Co. Common Settlement Fund, valued at 95% of market value.]