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Nymex Lowers Natural Gas Futures Margins for a Change

After raising its natural gas futures related margins five times in a month to deal with escalating prices (see NGI, Sept 26), the New York Mercantile Exchange Inc. (Nymex) finally announced a decline in margins on Thursday. Nymex said it will decrease margins for its natural gas futures, Henry Hub swap futures, Nymex miNY natural gas futures, Henry Hub swing swap futures, and Henry Hub penultimate swap futures contracts, effective at the close of business Friday.

Margins on the first month of the natural gas futures contract will decrease to $13,000 from $16,000 for clearing members; to $14,300 from $17,600 for members; and to $17,550 from $21,600 for customers. The margins on the second month will decrease to $14,000 from $15,000 for clearing members; to $15,400 from $16,500 for members; and to $18,900 from $20,250 for customers.

The margins on the first month of the Henry Hub swap and Henry Hub penultimate swap futures contracts will decrease to $3,250 from $4,000 for clearing members; to $3,575 from $4,400 for members; and to $4,388 from $5,400 for customers. The margins on the second month will decrease to $3,500 from $3,750 for clearing members; to $3,850 from $4,125 for members; and to $4,725 from $5,063 for customers.

Margins on the first month of the Nymex miNY natural gas futures contract will decrease to $6,500 from $8,000 for clearing members; to $7,150 from $8,800 for members; and to $8,775 from $10,800 for customers. Margins for the second month will decrease to $7,000 from $7,500 for clearing members; to $7,700 from $8,250 for members; and to $9,450 from $10,125 for customers.

Margins on first month of the Henry Hub swing swap futures contracts will decrease to $3,250 from $4,000 for clearing members; to $3,575 from $4,400 for members; and to $4,388 from $5,400 for customers.

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