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Nymex Makes Changes to Natural Gas Futures Related Margins

With natural gas futures prices plummeting over the past week, the New York Mercantile Exchange, Inc. (Nymex) said Wednesday that it was decreasing the margins for natural gas futures, Henry Hub swap futures, Henry Hub penultimate swap futures, Nymex miNYTM natural gas futures, and natural gas swing swap futures contracts at the close of business on Friday.

Through Tuesday of this week, January natural gas futures dropped $4.758 from the contract's all-time high of $15.780, which was recorded on Dec. 13.

The margins on the first month of the natural gas futures contract will decrease to $14,000 from $15,500 for clearing members, to $15,400 from $17,050 for members, and to $18,900 from $20,925 for customers. Margins on the second month will decrease to $14,000 from 16,000 for clearing members, to $15,400 from $17,600 for members, and to $18,900 from $21,600 for customers. Margins on the third month will decrease to $8,000 from $15,500 for clearing members, to $8,800 form $17,050 for members, and to $10,800 from $20,925 for customers.

The margins for the fourth to 14th months will decrease to $7,000 from $8,000 for clearing members, to $7,700 from $8,800 from $7,700, and to $9,450 from $10,800 for customers. Margins on the 15th month will decrease to $4,500 from $7,000 for clearing members, to $4,950 from $7,700 for members, and to $6,075 from $9,450 for customers. Margins on the 16th to 27th months will decrease to $3,500 from $6,750 for clearing members, to $3,850 from $7,425 for members, and to $4,725 from $9,113 for customers. Margins on the 28th to 47th months will decrease to $3,000 from $4,500 for clearing members, to $3,300 from $4,950 for members, and to $4,050 from $6,075 for customers. Margins on the 48th to 62nd months will decrease to $2,500 from $3,000 for clearing members, to $2,750 from $3,300 for members, and to $3,375 from $4,050 for customers. Margins for all other months will remain unchanged.

The margin rates on the first month of the Henry Hub swap and Henry Hub penultimate swap futures contracts will decrease to $3,500 from $3,875 for clearing members, to $3,850 from $4,263 for members, and to $4,725 from $5,231 for customers. The margins on the second month will decrease to $3,500 from $4,000 for clearing members, to $3,850 from $4,400 for members, and to $4,725 from $5,400 for customers. Margins on the third month will decrease to $2,000 from $3,875 for clearing members, to $2,200 from $4,263 for members, and to $2,700 from $5,231 for customers.

Margins on the fourth to 14th months will decrease to $1,750 from $2,000 for clearing members, to $1,925 from $2,200 for members, and to $2,363 from $2,700 for customers. Margins on the 15th month will decrease to $1,125 from $1,750 for clearing members, to $1,238 from $1,925 for members, and to $1,519 from $2,363 for customers. Margins on the 16th to 27th months will decrease to $875 from $1,688 for clearing members, to $963 from $1,856 for members, and to $1,181 from $2,278 for customers. Margins on the 28th to 47th months will decrease to $750 from $1,125 for clearing members, to $825 from $1,238 for members, and to $1,013 from $1,519 for customers. Margins on the 48th to 62nd months will decrease to $625 from $750 for clearing members, to $688 from $825 for members, and to $844 from $1,013 for customers. Margins on all other months will remain unchanged.

Margins on the first month of the NYMEX miNYTM natural gas futures contract will decrease to $3,500 from $3,875 for clearing members, to $3,850 from $4,263 for members, and to $4,725 from $5,231 for customers. The margins for the second month contract will decrease to $3,500 from $4,000 for clearing members, to $3,850 from $4,400 for members, and to $4,725 from $5,400 for customers.

Nymex also reported that margins for the first month of the Henry Hub swing swap futures contract will decrease to $3,500 from $3,875 for clearing members, to $3,850 from $4,263 for members, and to $4,725 from $5,231 for customers.

The exchange also announced Wednesday that it will increase the margins on its natural gas basis, index and swing swap futures contracts, effective at the close of business Thursday. For an extended list of the margin increases, visit www.nymex.com.

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