06/21/2007
Clearing Member contributions to the Guaranty Fund are calculated on a quarterly basis and will continue to be based on a hybrid formula of Risk (85%) and Volume (15%). Please be advised that the minimum contribution required of each Clearing Member is being increased from $2 million to $2.5 million. This change, which will be codified in NYMEX Rule 9.03(B), will also become effective on June 30, 2007. Acceptable deposits include cash (U.S. Dollars), U.S. Treasuries, and shares of approved Money Market Mutual Funds. There is no maximum contribution level.
(Additions are bold/italicized; Deletions have a
Rule 9.03, Guaranty Fund
(A) Contributions
Each Clearing Member shall deposit, and keep deposited, with the Exchange the amount prescribed in Section (B) as a contribution to the Guaranty Fund. The monies, securities, and instruments so deposited shall collectively constitute a fund known as the "Guaranty Fund" and shall be used as provided in the Rules to reimburse the Exchange for any loss sustained by the Exchange as a result of the failure of any Clearing Member to discharge his obligations in accordance with the Rules. The Board of Directors shall determine the appropriate size of the Guaranty Fund.
(B) Schedule of Contributions
The amount required to be deposited by each Clearing Member shall be determined by a formula as recommended by the Clearing House Committee and approved by the Board of Directors. Such formula will include certain components of risk and volume and will be calculated by the Exchange staff on a quarterly basis, or more frequently if deemed appropriate. At no time will a Clearing Member's minimum contribution be below $2.
The amount deposited shall be in the form of any combination of:
(1) U.S. Dollars,
(2) shares of certain Money Market Mutual Funds as approved by the Board of Directors and subject to the provisions of NYMEX Rule 9.05 (E) (4),
(3) securities issued by the Department of the Treasury of the United States maturing within ten (10) years of the date of the deposit and guaranteed as to principal and interest by the United States government valued at ninety-five percent (95%) of par value.