Notice to Members
Notice No. 224 08/14/2002
Amendment to Default Rules to Acknowledge Crossmargin Agreement
Please be advised that NYMEX Rule 9.23 ("Protection of Clearing House") has been amended to allow for inclusion within our default proceedings the consideration of any monies associated with the current Cross-Margin Agreement with the Chicago Mercantile Exchange. (Additions are in BOLD) NYMEX Rule 9.23. PROTECTION OF CLEARING HOUSE (A) Clearing Member Assets If a clearing member fails promptly to discharge any obligation to the Clearing House, its margin on deposit with the Clearing House, its deposit in the Guaranty Fund, and any of its other assets under the control of the Exchange or the Clearing House shall be applied by the Clearing House to discharge the obligation. For purposes of this Rule the positions in the cross-margin account of a participating Clearing Member or its Cross-Margin Affiliate at a Cross-Margining Clearing Organization, and the margin deposited thereon, shall be considered an asset of the Participating Clearing Member available to the Exchange to the extent provided in the Cross-Margin Agreement between the Exchange and such Cross-Margin Clearing Organization. If the failure to discharge the obligation involves a default in the customer account of the clearing member, all of such assets (whether held for the proprietary or customer account) shall be available to discharge the obligation. If such failure involves a default in the proprietary account of the clearing member, only that portion of such assets as are held for the proprietary account shall be available to discharge the obligation. The clearing member shall immediately make up any deficiencies in its margin or its deposits in the Guaranty Fund resulting from such application.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com