01/14/2002
Previously, a Clearing Member's participation in any approved fund or any group of approved funds offered by the same issuer was limited to the greater of $250,000 or 25% of the Clearing Member's total original margin obligations.
By comparison, the new rule amendments delete this restriction, in effect allowing a Clearing Member to meet 100% of its margin requirements with shares in one money market fund.
However, the Clearing Member's participation in any such fund will be limited to 5% of that money market fund.
With regard to Rule 9.05, the Exchange continues to require that a money market fund must be approved by the NYMEX Board and also must comply with CFTC Regulation ยง 1.25.
AMENDMENTS TO NYMEX Rule 9.05 (Margins)
(asterisk indicates additions; bracketing indicates deletion)
Rule 9.05 Margins
(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 ] * no more than 5% of that fund; *
(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.