Notice 560
November 4, 2008

Performance Bond Requirement Changes – Margin Rate Changes for Financially Settled Power Contracts

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As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed below. The rates are effective at the close of business on Wednesday, November 5th, 2008.

MARGIN RATE CHANGES FOR:

MARGIN RATE CHANGES FOR NYISO Zone A – Peak (KA), NYISO Zone G – Peak (KG), NYISO Zone J – Peak (KJ), Cinergy Hub LMP – Peak (EM), Michigan Hub LMP – Peak (HM), ISO New England Internal Hub – Peak (NI), ERCOT North Peak Swap Contract (MT), PJM Western Hub LMP Off – Peak Monthly (JP), Northern Illinois Hub – Off Peak (UO), AEP-Dayton Hub – Off Peak (VP), Cinergy Hub LMP – Off Peak (EJ) and Michigan Hub LMP – Off Peak (HJ)

Note: The revised margins are in bold

NYMEX Division Outright (Scan) Margins on NYISO Zone A – Peak (KA)

	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non-Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1	$2,000	$2,500	$2,200	$2,750	$2,700	$3,375
Tier 2	$2,000	$2,500	$2,200	$2,750	$2,700	$3,375
Tier 3	$1,500	$1,500	$1,650	$1,650	$2,025	$2,025
Tier 4	$1,000	$1,000	$1,100	$1,100	$1,350	$1,350

NYMEX Division Outright (Scan) Margins on NYISO Zone G – Peak (KG)

	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non-Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1	$4,000	$5,000	$4,400	$5,500	$5,400	$6,750
Tier 2	$2,500	$3,500	$2,750	$3,850	$3,375	$4,725
Tier 3	$2,000	$3,000	$2,200	$3,300	$2,700	$4,050
Tier 4	$1,000	$2,000	$1,100	$2,200	$1,350	$2,700

NYMEX Division Outright (Scan) Margins on NYISO Zone J – Peak (KJ)

	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non-Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1	$4,000	$5,000	$4,400	$5,500	$5,400	$6,750
Tier 2	$2,500	$3,500	$2,750	$3,850	$3,375	$4,725
Tier 3	$2,000	$3,000	$2,200	$3,300	$2,700	$4,050
Tier 4	$1,000	$2,000	$1,100	$2,200	$1,350	$2,700

NYMEX Division Outright (Scan) Margins on Cinergy Hub LMP – Peak (EM)

	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non-Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1	$6,000	$7,000	$6,600	$7,700	$8,100	$9,450
Tier 2	$4,000	$5,000	$4,400	$5,500	$5,400	$6,750
Tier 3	$3,000	$4,000	$3,300	$4,400	$4,050	$5,400
Tier 4	$2,000	$3,000	$2,200	$3,300	$2,700	$4,050

NYMEX Division Outright (Scan) Margins on Michigan Hub LMP – On Peak (HM)

	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non-Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
HM	$4,000	$5,000	$4,400	$5,500	$5,400	$6,750

NYMEX Division Outright (Scan) Margins on ISO New England Internal Hub – Peak (NI)

	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non-Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1	$4,000	$5,000	$4,400	$5,500	$5,400	$6,750
Tier 2	$4,000	$5,000	$4,400	$5,500	$5,400	$6,750
Tier 3	$3,000	$4,000	$3,300	$4,400	$4,050	$5,400
Tier 4	$2,500	$4,000	$2,750	$4,400	$3,375	$5,400

NYMEX Division Outright (Scan) Margins on ERCOT North Peak Swap (Platts Megawatt Daily) Contract (MT)

	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non-Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1		$8,000		$10,000		$8,800
Tier 2		$6,000		$8,000		$6,600
Tier 3		$5,000		$7,000		$5,500
Tier 4		$4,000		$6,000		$4,400

NYMEX Division Outright (Scan) Margins on PJM Western Hub LMP Off Peak Monthly (JP)

	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non-Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1	$3,000		$4,000		$3,300
Tier 2	$2,000		$3,000		$2,200
Tier 3	$1,500		$2,500		$1,650
Tier 4	$1,000		$2,000		$1,100

NYMEX Division Outright (Scan) Margins on Northern Illinois Hub – Off Peak (UO)

	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non-Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1	$3,000	$4,000	$3,300	$4,400	$4,050	$5,400
Tier 2	$2,000	$3,000	$2,200	$3,300	$2,700	$4,050
Tier 3	$1,500	$2,500	$1,650	$2,750	$2,025	$3,375
Tier 4	$1,000	$2,000	$1,100	$2,200	$1,350	$2,700

NYMEX Division Outright (Scan) Margins on AEP-Dayton Hub – Off Peak (VP)

	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non-Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1	$3,000	$4,000	$3,300	$4,400	$4,050	$5,400
Tier 2	$2,000	$3,000	$2,200	$3,300	$2,700	$4,050
Tier 3	$1,500	$2,500	$1,650	$2,750	$2,025	$3,375
Tier 4	$1,000	$2,000	$1,100	$2,200	$1,350	$2,700

NYMEX Division Outright (Scan) Margins on Michigan Hub LMP – Off Peak (HJ)

	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non-Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
HJ	$3,000	$4,000	$3,300	$4,400	$4,050	$5,400

NYMEX Division Outright (Scan) Margins on Cinergy Hub LMP – Off Peak (EJ)

	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non-Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1	$3,000	$4,000	$3,300	$4,400	$4,050	$5,400
Tier 2	$2,000	$3,000	$2,200	$3,300	$2,700	$4,050
Tier 3	$1,500	$2,500	$1,650	$2,750	$2,025	$3,375
Tier 4	$1,000	$2,000	$1,100	$2,200	$1,350	$2,700

Should you have any questions or require any further information, please contact ExchangeInformation@cmegroup.com.