With winter cold settling in and natural gas futures prices rising, the New York Mercantile Exchange Inc. (Nymex) said Friday that it is increasing the margins for its natural gas futures, Henry Hub swap futures, Henry Hub penultimate swap futures, Nymex miNYTM natural gas futures and Henry Hub swing swap futures. The changes were to go into effect at the close of business Monday.

The margins on the first month of the natural gas futures contract will increase to $12,500 from $11,000 for clearing members, to $13,750 from $12,100 for members, and to $16,875 from $14,850 for customers. Margins on the second month will increase to $13,000 from $11,500 for clearing members, to $14,300 from $12,650 for members, and to $17,550 from $15,525 for customers. Margins on the third month will increase to $12,500 from $11,500 for clearing members, to $13,750 from $12,650 for members, and to $16,875 from $15,525 for customers. All other months remain unchanged.

The margin rates on the first month of the Henry Hub swap and Henry Hub penultimate swap futures contracts will increase to $3,125 from $2,750 for clearing members, to $3,438 from $3,025 for members, and to $4,219 from $3,713 for customers. The margins on the second month will increase to $3,250 from $2,875 for clearing members, to $3,575 from $3,163 for members, and to $4,388 from $3,881 for customers. Margins on the third month will increase to $3,125 from $2,875 for clearing members, to $3,438 from $3,163 for members, and to $4,219 from $3,881 for customers. All other months will remain unchanged.

Margins on the first month of the Nymex miNYTM natural gas futures contract will increase to $6,250 from $5,500 for clearing members, to $6,875 from $6,050 for members, and to $8,438 from $7,425 for customers. The margin rates on the second month will increase to $6,500 from $5,750 for clearing members, to $7,150 from $6,325 for members, and to $8,775 from $7,763 for customers.

Margins on the first month of the Henry Hub swing swap futures contract will increase to $3,125 from $2,750 for clearing members, to $3,438 from $3,025 for members, and to $4,219 from $3,713 for customers.

Nymex announced Monday that it is also reducing the size of its Nymex miNY natural gas futures, beginning with the February 2006 contract. The exchange said the contract will be reduced from 5,000 MMBtu to 2,500 MMBtu. The January 2006 NYMEX miNY natural gas futures contract (5,000 MMBtu) will expire on Dec. 27, at 2:30 p.m. EST. The February 2006 contract (2,500 MMBtu) will be listed for trading on Dec. 27, at 3:15 p.m. EST, for the trade date of December 28.

Clearing fees for one to 200 contracts traded will decrease to $0.32 from $0.63 for Nymex Division members, to $0.52 from $1.03 for Comex Division members, and to $0.65 from $1.25 for customers. Fees for 201 to 750 contracts traded will decrease to $0.19 from $0.38 for Nymex Division members, to $0.32 from $0.63 for Comex Division members, and to $0.65 from $1.25 for customers. Fees for 750 contracts or more will decrease to $0.08 from $0.15 for Nymex Division members, to $0.13 from $0.25 for Comex Division members, and to $0.65 from $1.25 for customers.

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