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Cc: mary.cook@enron.com
Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable Bcc: mary.cook@enron.com X-From: Tana Jones X-To: Greg Whiting, Sarah Wesner X-cc: Mary Cook X-bcc: X-Folder: \Tanya_Jones_June2001\Notes Folders\All documents X-Origin: JONES-T X-FileName: tjones.nsf ----- Forwarded by Tana Jones/HOU/ECT on 06/04/2001 12:24 PM ----- =09exchangeinfo@nymex.com =0905/31/2001 11:30 AM =09=09=20 =09=09 To: tana.jones@enron.com =09=09 cc:=20 =09=09 Subject: (01-184) Reminder on Use of Money Market Funds as Original = Margin=20 Deposits on the NYMEX Division Notice # 01-184 May 31, 2001 TO: All NYMEX Division Members and Member Firms FROM: Neal L. Wolkoff, Executive Vice President RE: Reminder on Use of Money Market Funds as Original Margin Deposits on the=20 NYMEX Division DATE: May 31, 2001 =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D This Notice is a reminder regarding certain rule changes and related policy= =20 guidelines that will go into effect on June 1, 2001 for the NYMEX Division.= =20 The rule changes going into effect on June 1, 2001 on the NYMEX Division=20 allow shares of certain money market mutual funds to be acceptable for=20 purposes of original margin deposits. Corresponding rule changes for the COMEX Division have also been approved = by=20 the NYMEX Board of Directors and filed with the CFTC; the changes for the= =20 COMEX Division will be implemented at a later date. Rule Amendments The amendments generally require that in order to be used for such purpose,= a=20 money market fund must be approved by the NYMEX Board and also must comply= =20 with CFTC Regulation o 1.25. For purposes of original margin, the Exchange= =01,s=20 Clearing House will value such money market fund shares at 95% of their=20 market value. In addition, a Clearing Member=01,s participation in any app= roved=20 fund or any group of approved funds offered by the same issuer shall be=20 limited to the greater of $250,000 or 25% of the Clearing Member=01,s total= =20 original margin obligations. Finally, no more than 25% of the total assets = of=20 an approved money market mutual fund may be used to meet original margin=20 obligations at the Exchange. Exchange Policy on Money Market Funds The NYMEX Board of Directors also recently adopted three additional=20 guidelines that will be applicable to such funds. First, until further noti= ce=20 from the Exchange, the Board has determined to limit the number of money=20 market funds available for this purpose to ten. Second, the Board will=20 require that henceforth each fund applying for such status must have a=20 minimum value of $5 billion. Finally, each fund further must provide for= =20 same day payment if notification is made by 3:00 p.m. on that day. If you have any questions concerning this change, please contact Bernard=20 Purta, Senior Vice President, Regulatory Affairs and Operations, at (212)= =20 299- 2380; Arthur McCoy, Vice President, Financial Surveillance Section,=20 NYMEX Compliance Department, at (212) 299-2928; or Joseph Sanguedolce,=20 Director, Financial Surveillance Section, NYMEX Compliance Department, at= =20 (212) 299-2855. AMENDMENTS TO NYMEX RULE 9.05 (=01&MARGINS=018) (Asterisks indicate additions; brackets indicate deletions.) Rule 9.05. MARGINS * * * * (E) Clearing Members may meet original margin calls by depositing: *(4) Shares in a money market mutual fund that complies with CFTC Regulatio= n=20 o1.25 and that has been approved by the Board, subject to the following=20 conditions: (i) for purposes of original margin, such shares will be valued at 95% of= =20 market value; (ii) a Clearing Member=01,s participation in any approved fund or any group= of=20 approved funds offered by the same issuer shall be limited to the greater o= f=20 $250,000 or 25% of the Clearing Member=01,s total original margin obligatio= ns; (iii) no more than 25% of the total assets of an approved money market mutu= al=20 fund may be used to meet original margin obligations at the Exchange.* [Shares of Brown Brothers Harriman & Co. Common Settlement Fund, valued at= =20 95% of market value.] __________________________________________________ Please click on the link below to indicate you have received this email. " http://208.206.41.61/email/email_log.cfm?useremail=3Dtana.jones@enron.com&r= efdoc =3D(01-184)" Note: If you click on the above line and nothing happens, please copy the text between the quotes, open your internet browser, paste it into the web site address and press Return.
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