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Date: Mon, 4 Jun 2001 14:16:26 -0700 (PDT)
From: soblander@carrfut.com
To: soblander@carrfut.com
Subject: (01-184) Reminder on Use of Money Market Funds as Original Margin
 Deposits on the NYMEX Division
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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
NYMEX Division

DATE:
May 31, 2001
===========================================================
This Notice is a reminder regarding certain rule changes and related policy
guidelines that will go into effect on June 1, 2001 for the NYMEX Division.
The rule changes going into effect on June 1, 2001 on the NYMEX Division
allow shares of certain money market mutual funds to be acceptable for
purposes of original margin deposits.

Corresponding rule changes for the COMEX Division  have also been approved
by the NYMEX Board of Directors and filed with the CFTC; the changes for
the 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 money market fund must be approved by the NYMEX Board and also must
comply with CFTC Regulation ? 1.25.  For purposes of original margin, the
Exchange's Clearing House will value such money market fund shares at 95%
of their market value.  In addition, a Clearing Member's participation in
any approved fund or any group of approved funds offered by the same issuer
shall be limited to the greater of $250,000 or 25% of the Clearing Member's
total original margin obligations. Finally, no more than 25% of the total
assets of an approved money market mutual fund may be used to meet original
margin obligations at the Exchange.

Exchange Policy on Money Market Funds
The NYMEX Board of Directors also recently adopted three additional
guidelines that will be applicable to such funds. First, until further
notice from the Exchange, the Board has determined to limit the number of
money market funds available for this purpose to ten. Second, the Board
will require that henceforth each fund applying for such status must have a
minimum value of $5 billion.  Finally, each fund further must provide for
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
Purta, Senior Vice President, Regulatory Affairs and Operations, at (212)
299- 2380; Arthur McCoy, Vice President, Financial Surveillance Section,
NYMEX Compliance Department, at (212) 299-2928; or Joseph Sanguedolce,
Director, Financial Surveillance Section, NYMEX Compliance Department, at
(212) 299-2855.

AMENDMENTS TO NYMEX RULE 9.05 ("MARGINS")

(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
Regulation ?1.25 and that has been approved by the Board, subject to the
following conditions:

(i)  for purposes of original margin, such shares will be valued at 95% of
market value;
(ii) a Clearing Member's participation in any approved fund or any group of
approved funds offered by the same issuer shall be limited to the greater
of $250,000 or 25% of the Clearing Member's total original margin
obligations;
(iii)     no more than 25% of the total assets of an approved money market
mutual fund may be used to meet original margin obligations at the
Exchange.*

[Shares of Brown Brothers Harriman & Co. Common Settlement Fund, valued at
95% of market value.]