Please be advised that the Exchange has reviewed these requests and has determined to provide our Clearing Members with the option of processing variation margin resulting from trading OTC options through either the existing house bank account currently on file with NYMEX or a new bank account opened with one of our approved settlement banks.

It should be noted that it is the intention of the Exchange to process the variation margin resulting from trading both customer and house OTC options through the current house bank account on file with NYMEX unless specifically instructed to do otherwise by each Clearing Member.

If a Clearing Member desires to process said variation margin through a bank account other than the current house account on file with NYMEX it must submit the attached banking resolution to the Exchange beforehand. (Please submit to the attention of Artie McCoy, Vice President of Financial Surveillance and Risk Management.)

It should be noted that all activity (customer and/or house) resulting from the proposed Exchange-Designated Pari-Mutuel Auctions is considered “non-regulated” for regulatory purposes and thus is not subject to segregation rules.