Notice to Members

Notice No. 410
10/28/2004

New York Mercantile Exchange to Launch Two Coal Swap Futures Contracts, one for Eastern Rail CSX and one for Western Rail PRB

Please be advised that the New York Mercantile Exchange, Inc., will launch two new coal futures contract which will be cash settled against the corresponding Platts OTC Broker Indexes published in Platts Coal Trader: the CSX Big Sandy/Kanawha 12,500 Btu/lb, 1% sulfur index; and the Powder River Basin (PRB) 8,800 Btu/lb, 0.8 lbs. Sulfur/MMBtu Index. These new Coal Futures contracts will be available on NYMEX ClearPort^sm Trading and Clearing beginning with the November 1, 2004 trading session, which starts at 7:00 PM, October 31, 2004.

The contracts will initially be listed for January 2005 through December 2007. With the launch of these new Coal Swap Contracts, all NYMEX Coal contracts will follow the same listing schedule. The schedule is that the months in the current year and the next two years are listed. At the termination of the December contracts for the current year, the contract months for the third year out will be listed.

Additional specifications are as follows:

Contract unit:

1,000 tons

Minimum tick:

$0.01/tons

Symbol:

QX for Eastern Rail CSX Coal Swap, and
QP for Western Rail PRB Coal Swap

Fees (per side) for Eastern Rail CSX Coal Swap (QX):

NYMEX ClearPort^sm Clearing Non-Member: $5.00/contract

Member: $4.35/contract

NYMEX ClearPort^sm Trading Liquidity Provider $3.50/contract, paid

Opposite Side: $7.00/contract, all inclusive

Cash Settlement Non-Member: $5.00/contract

Member: $4.35/contract

Fees (per side) for Western Rail PRB Coal Swap (QP):

NYMEX ClearPort^sm Clearing Non-Member: $2.50/contract

Member: $2.25/contract

NYMEX ClearPort^sm Trading Liquidity Provider $1.75/contract, paid

Opposite Side: $3.50/contract, all inclusive

Cash Settlement Non-Member: $2.50/contract

Member: $2.25/contract

Margins:
Margins will be applied in the same manner as the margin for the Central Appalachian Coal Contract (QL) and will be announced in a subsequent memo.

Should you have any questions or require any further information, please contact exchangeinfo@nymex.com