Message-ID: <11933712.1075860043199.JavaMail.evans@thyme>
Date: Thu, 7 Dec 2000 00:16:00 -0800 (PST)
From: exchangeinfo@nymex.com
To: mark.taylor@enron.com
Subject: (00-417) Exchange Board Approves Initial Product Slate for enymex
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M E M O R A N D U M

TO:     All New York Mercantile Exchange members

FROM: Neal Wolkoff, Executive Vice President

RE:        Exchange Board Approves Initial Product Slate for enymexsm

DATE:   December 7, 2000

Notice # 00-417
=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=
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=3D=3D=3D

The New York Mercantile Exchange, Inc.,  board of directors last night=20
approved a range of energy products for listing on enymex, the Exchange's=
=20
internet-based trading system, intended to be launched during the second=20
quarter of 2001.

These products were designed to replicate the most actively traded=20
over-the-counter energy instruments, introducing the added benefits of=20
clearing services; a neutral, centralized marketplace; and a highly=20
sophisticated technological platform.  While there may be additional produc=
ts=20
developed for introduction at launch, including more internationally based=
=20
contracts, and there will certainly be more shortly thereafter, these=20
contracts were selected as natural adjuncts to our established markets=20
because of their close relationships to these liquid benchmarks.

The contracts include:

   A West Texas Intermediate crude oil calendar swap contract

 A Henry Hub natural gas swap contract based on the final settlement price=
=20
for the Exchange's futures contract

 Spread calendar swap contracts based on the differential between Platts (a=
=20
division of The McGraw-Hill Companies) quoted prices for Gulf Coast unleade=
d=20
87 gasoline and the Exchange light, sweet crude oil and New York Harbor=20
unleaded gasoline futures contracts

 Spread calendar swap contracts based on the differentials between the Plat=
ts=20
quoted price for Gulf Coast Pipeline No. 2 heating oil and the Exchange lig=
ht=20
sweet crude oil and New York Harbor heating oil futures


 Basis swap contracts based on the differential between the final settlemen=
t=20
price for the Henry Hub natural gas futures contract and Inside FERC's Gas=
=20
Market Report quoted indexes for Henry Hub; El Paso San Juan Basin; Houston=
=20
Ship Channel; and Transco Zone 6

 Basis swap contracts based on the differential between the Exchange Henry=
=20
Hub natural gas futures contract and the Canadian Gas Price Reporter Albert=
a=20
spot month price (based on AECO C/NIT)

 Basis swap contracts based on the differential between the Exchange Henry=
=20
Hub natural gas futures price and the Natural Gas Intelligence quoted index=
=20
prices for Chicago City Gate and the southern California border

  Louisiana Light Sweet and West Texas Sour crude oil contracts

 A Dubai crude oil calendar swap

Terms and conditions include a unit size of 1,000 barrels for each of the=
=20
crude oil and petroleum product/crude oil spread contract; 42,000 gallons f=
or=20
each heating oil and gasoline contract; and 5,000 million British thermal=
=20
units (mmBtus) for each natural gas contract.  Prices will quoted in U.S.=
=20
dollars and cents per barrel, gallon or mmBtu.  Other specifications are:

West Texas Intermediate crude oil calendar swap

Termination of Trading:  The last business day of the month prior to the=20
contract month.

Delivery:  Financial, based on the average of the settlement price of the=
=20
first nearby light, sweet crude oil futures contract throughout the contrac=
t=20
month (example: the July 2001 contract will be based upon the average of th=
e=20
settlement prices for the August 2001 futures contract during July 2001 unt=
il=20
it ceases trading and the settlement prices for the September 2001 contract=
=20
for the remainder of the month)

Minimum Price Fluctuation: One cent per barrel

Henry Hub natural gas swap

Termination of Trading:  The third business day prior to the contract month=
.

Delivery:  Financial, based on the final settlement price of the Exchange=
=20
Henry Hub natural gas futures contract for the corresponding month

Minimum Price Fluctuation:  $0.001 per mmBtu

U.S. Gulf Coast unleaded 87 gasoline crack spread calendar swap

Termination of Trading:  The last business day of the month prior to the=20
contract month.

Delivery:  Financial, based on the average of the Platts U.S. Gulf Coast=20
unleaded 87 gasoline mean minus the settlement price of the first nearby=20
light, sweet crude oil futures contract throughout the contract month

Minimum Price Fluctuation: One cent per barrel

Unleaded 87 gasoline up-down calendar swap

Termination of Trading:  The last business day of the month prior to the=20
contract month.

Delivery:  Financial, based on the average of the Platts U.S. Gulf Coast=20
unleaded 87 gasoline mean minus the settlement price of the first nearby=20
Exchange New York Harbor unleaded gasoline futures contract throughout the=
=20
contract month

Minimum Price Fluctuation:  $0.0001 per gallon

U.S. Gulf Coast No 2 heating oil crack spread calendar swap

Termination of Trading:  The last business day of the month prior to the=20
contract month.

Delivery:  Financial, based on the average of the Platts U.S. Gulf Coast=20
pipeline No. 2 heating oil mean minus the settlement price of the first=20
nearby light, sweet crude oil futures contract throughout the contract mont=
h

Minimum Price Fluctuation: One cent per barrel

No. 2 heating oil up-down calendar swap

Termination of Trading:  The last business day of the month prior to the=20
contract month.

Delivery:  Financial, based on the average of the Platts U.S. Gulf Coast No=
.=20
2 pipeline mean minus the settlement price of the first nearby Exchange New=
=20
York Harbor No. 2 heating oil futures contract throughout the contract mont=
h

Minimum Price Fluctuation:  $0.0001 per gallon

Henry Hub natural gas basis swap

Termination of Trading:  The last business day prior to the contract month.

Delivery:  Financial, based on the Inside FERC Gas Market Report Henry Hub=
=20
index price minus the final settlement price of the Exchange Henry Hub=20
natural gas futures contract for the corresponding month

Minimum Price Fluctuation:  $0.001 per mmBtu



San Juan natural gas basis swap

Termination of Trading:  The last business day prior to the contract month.

Delivery:  Financial, based on the Inside FERC Gas Market Report El Paso Sa=
n=20
Juan Basin index price minus the final settlement price of the Exchange Hen=
ry=20
Hub natural gas futures contract for the corresponding month

Minimum Price Fluctuation:  $0.001 per mmBtu

Houston Ship Channel natural gas basis swap

Termination of Trading:  The last business day prior to the contract month.

Delivery:  Financial, based on the Inside FERC Gas Market Report Houston Sh=
ip=20
Channel index price minus the final settlement price of the Exchange Henry=
=20
Hub natural gas futures contract for the corresponding month

Minimum Price Fluctuation:  $0.001 per mmBtu

Transco Zone 6 natural gas basis swap

Termination of Trading:  The last business day prior to the contract month.

Delivery:  Financial, based on the Inside FERC Gas Market Report Transco Zo=
ne=20
6 index price minus the final settlement price of the Exchange Henry Hub=20
natural gas futures contract for the corresponding month

Minimum Price Fluctuation:  $0.001 per mmBtu

AECO/NIT natural gas basis swap

Termination of Trading:  The last business day prior to the contract month.

Delivery:  Financial, based on the Canadian Gas Price Reporter Alberta spot=
=20
month price for AECO C/NIT price minus the final settlement price of the=20
Exchange Henry Hub natural gas futures contract for the corresponding month

Minimum Price Fluctuation:  $0.001 per mmBtu

Chicago natural gas basis swap

Termination of Trading:  The last business day prior to the contract month.

Delivery:  Financial, based on the bid week price quoted for the Chicago=20
Citygate, under the Midwest heading in the Natural Gas Intelligence bid wee=
k=20
survey, minus the final settlement price of the Exchange Henry Hub natural=
=20
gas futures contract for the corresponding month

Minimum Price Fluctuation:  $0.001 per mmBtu

Socal natural gas basis swap

Termination of Trading:  The last business day prior to the contract month.

Delivery:  Financial, based on the bid week price quoted for the Southern=
=20
California border average, under the California heading in the Natural Gas=
=20
Intelligence bid week survey, minus the final settlement price of the=20
Exchange Henry Hub natural gas futures contract for the corresponding month

Minimum Price Fluctuation:  $0.001 per mmBtu

Louisiana Light Sweet crude oil futures

Termination of Trading:  Third business day prior to the 25th calendar day =
of=20
the month preceding the contract month.  If the 25th calendar is a=20
non-business day, trading terminates on the third day prior to the last=20
preceding business day.

Delivery:  Physical in St. James, Louisiana

Minimum Price Fluctuation: One cent

West Texas Sour crude oil futures

Termination of Trading:  Third business day prior to the 25th calendar day.=
 =20
If the 25th calendar is a non-business day, trading terminates on the third=
=20
day prior to the last preceding business day.

Delivery:  Physical in Midland, Texas

Minimum Price Fluctuation: One cent per barrel

Dubai crude oil calendar swap

Termination of Trading:  The last business day of the month prior to the=20
contract month.

Delivery:  Financial, based on the average of the Platts Dubai frontline me=
an

Minimum Price Fluctuation: One cent per barrel

=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=3D

Forward Looking and Cautionary Statements
 The New York Mercantile Exchange, Inc.,  has attempted, wherever possible,=
=20
to make statements in good faith by using words such as anticipate, believe=
s,=20
expects, and words and terms of similar substance in connection with any=20
discussion of its present and future operations within the industry. Any=20
forward-looking statements made by, or on behalf of the Exchange, involve a=
=20
number of risks, trends,  uncertainties, and other factors which may cause=
=20
actual results to differ materially, including; the Exchange=01,s receipt o=
f the=20
necessary Commodity Futures Trading Commission approval; timely performance=
=20
and cooperative effort of exchange and technology partners; and changes in=
=20
financial or business conditions at the Exchange.


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