Notice to Members
Notice No. 333
08/12/2005
Launch of Floor Trading in Natural Gas "Look Alike" Options (LN)
The Exchange will begin trading in Natural Gas, financially settled, look-alike (LN) options during regular trading hours (10:00 A.M. to 2:30 P.M.) on Monday, August 15, 2005. These options are currently cleared through the NYMEX ClearPortsm system and have specifications closely aligned with that of the floor traded Natural Gas (ON) options. Important differences include the financial settlement feature, the European exercise style, the strike price interval, and minimum price increment In addition, Henry Hub Swap (NN) and Henry Hub Penultimate Swap (NP) ClearPortsm futures contracts will be allowed to trade in appropriate ratios with the LN options. The initial listing will begin with September 2005 contract month. The following summarizes the main characteristics of these options:

Trading Unit:
Natural Gas “Look Alike” Options are Financially Settled. On expiration day, a Call option pays out the difference between the settlement price of the underlying futures contract less the strike price multiplied by 10,000 MMBtu, or zero, whichever is greater. On expiration day, a Put Option pays out the difference between the strike price and the settlement price of the underlying futures contracts multiplied by 10,000 MMBtu, or zero, whichever is greater
   
Exercise Style:
The options are “European Style” (Exercise only on Expiration) and financially settled on the close of business on Expiration Day.
   
Expiration Date:
Business Day immediately preceding expiration of Natural Gas (NG) futures contract.
   
Option Months to be Traded: There will be 72 consecutive monthly contracts initially beginning with the September 2005 Contract through August 2011.
   
Strike Price Intervals: Strike Prices will be listed at $.010 intervals.
   
Minimum Price Increment:
$.0001/MMBtu.
   
Clearing and Transaction Fees:
For Trading Floor transactions, Fees will be identical to that of other floor traded options. $.90 Financial Settlement Fee will be in place in lieu of Exercise Fee.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com