Notice to Members
Notice No. 44
02/01/2001
Revised Copper Futures Margin Rate Change On February 2 and February 9, 2001, to Affect the February 2001 Contract Only
The following changes are applicable to the February 2001 futures contract only. This notice supercedes the January 31, 2001 notice that previously cited increases for both the February and March 2001 futures contracts.

MARGIN RATE CHANGE FOR FEBRUARY 2,2001
Effective Date: Friday, February 2, 2001 (close of business)
Futures Contract: Copper Futures
Contract Months: february 2001 Contract Only

COMEX Division Margins on February 2001 Copper Futures Contract

   
Clearing Member (Maintenance Margin) Old: $1,000 New: $3,000
Member Customer (Initial Margin) Old: $1,000 New: $3,000
Non-Member Customer (Initial Margin) Old: $1,350 New: $4,050


MARGIN RATE CHANGE FOR FEBRUARY 9,2001
Effective Date: Friday, February 9, 2001 (close of business)
Futures Contract: Copper Futures
Contract Months: February 2001 Contract Only

COMEX Division Margins on February 2001 Copper Futures Contract

   
Clearing Member (Maintenance Margin) Old: $3,000 New: $5,000
Member Customer (Initial Margin) Old: $3,000 New: $5,000
Non-Member Customer (Initial Margin) Old: $4,050 New: $6,750


Spread Margins

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. Note the outright margin level required for the February 2001 contract, and all subsequent contracts, are different. Spreading between differently margined contracts results in a higher spread margin than between equally margined contracts. Below are margin examples of certain spreads where the legs of the spread are margined differently.

Example of Clearing Member Rates for February 2,2001 Margin Change:

     
One Long February Copper HG
(1 x $3,000)
=
$3,000
One Short April Copper HG
(1 x $1,000)
=
-$1,000
Net Scan Risk
($3,000 - $1,000)
=
$2,000
Spread Rate
(1 x $420)
=
+$420
Total Requirement
=
$2,420


COMEX Division Margins on Copper Futures Spreads
Requirements for Spreads with One Leg in Designated Month

February
Other Months
Clearing Member (Maintenance Margin) $2,420 $420
Member Customer (Initial Margin) $2,420 $420
Non-Member Customer (Initial Margin) $3,267 $567


Example of Clearing Member Rates for February 9, 2001 Margin Change:

     
One Long February Copper HG
(1 x $5,000)
=
$5,000
One Short April Copper HG
(1 x $1,000)
=
-$1,000
Net Scan Risk
($5,000 - $1,000)
=
$4,000
Spread Rate
(1 x $420)
=
+$420
Total Requirement
=
$4,420


COMEX Division Margins on Copper Futures Spreads
Requirements for Spreads with One Leg in Designated Month

February
Other Months
Clearing Member (Maintenance Margin) $4,420 $420
Member Customer (Initial Margin) $4,420 $420
Non-Member Customer (Initial Margin) $5,967 $567
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com