December 4, 2001
Notice No. 01-398

TO:		NYMEX DIVISION MEMBERS AND MEMBER FIRMS
		NYMEX DIVISION CLEARING MEMBERS

FROM:		J. Robert Collins, Jr., President

SUBJECT:	CORRECTION: REMINDER ON EFS REQUIREMENTS FOR NATURAL GAS
FUTURES
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_____

Previously, in Notice to Members #01-366, the Exchange announced a new
program that commenced on November 1, 2001 and that permits the exchange of
swaps for futures in Natural Gas futures contracts.  As an informational
follow-up to that notice, this notice includes the text of this EFS rule.

				AMENDMENTS TO NYMEX RULE 6.21A

(Asterisks indicate additions; brackets indicate deletions.)

 Rule 6.21A.  EXCHANGE OF FUTURES FOR, OR IN CONNECTION WITH, SWAP
TRANSACTIONS  (Pilot Program)

(A) (1) An exchange of futures for, or in connection with, a swap (EFS)
consists of two discrete, but related, transactions; a swap transaction and
a futures transaction.  At the time such transaction is effected, the buyer
and seller of the futures must be, respectively, the seller and the buyer of
the swap.  The swap component shall involve the commodity underlying the
futures contract (or a derivative, by-product or related product of such
commodity).  The quantity covered by the swap must be approximately
equivalent to the quantity covered by the futures contracts.  The swap
component of an EFS transaction must comply with the applicable CFTC swap
regulatory requirements.  The initial term of the pilot program shall be
three years from the effective date of this Rule 6.21A.

	(2) Eligible Contracts and Transactions.  EFS transactions may be
effected only for transactions in the Exchange's Brent crude oil futures
contract  * or in the Henry Hub Natural Gas futures contract (for a period
of six months following implementation of the pilot program for Natural Gas
EFS transactions) * .

(B)(1)  The report of an EFS transaction shall be given on the Floor of the
Exchange during the hours of futures trading.  (2) EFS transactions *
involving the Brent contract * are permitted until the close of trading on
the last trading day in the expiring contract month [of the applicable
contract(s)].  * (3) EFS transactions involving Natural Gas contract are
permitted until two hours after trading terminates on the last day of
trading in the expiring contract month. *

(C)  A report of such EFS transaction shall be submitted to the Exchange by
each Clearing Member representing the buyer and/or seller.  Such report
shall identify the EFS as made under this Rule and shall contain the
following information: a statement that the swap component of the EFS
complied with the applicable CFTC swap regulatory requirements at the time
the EFS was entered into between the buyer and seller, a statement that the
EFS has resulted or will result in a change of payments or other such
change, the kind and quantity of the futures, the price at which the futures
transaction is to be cleared, the names of the Clearing Members and
customers and such other information as the Exchange may require.  Such
report (form) shall be submitted to the Compliance Department by 12:00 noon,
no later than two (2) Exchange business days after the day of posting the
EFS on the Floor of the Exchange.

(D)(1) Each buyer and seller must satisfy the Exchange, at its request, that
the transaction is a legitimate EFS transaction.  Upon the request of the
Exchange, all documentary evidence relating to the EFS, including a master
swap agreement and any supplements thereto, shall be obtained by the
Clearing Members from the buyer or seller and made available by the Clearing
Members for examination by the Exchange.  Additionally, if the buyer or
seller is a Member/Member Firm, the Exchange may obtain the information
directly from such person(s).

(2) For [all NYMEX Division contracts] * the Brent contract *, no EFS that
is linked to or contingent upon entry into a second, offsetting swap
transaction may be transacted during Regular Trading Hours at any time that
NYMEX offers trading in its contracts, unless trading in a market is halted,
such as during a physical emergency.   * For the Natural Gas contract, no
EFS that is linked to or contingent upon entry into a second, offsetting
swap transaction may be transacted at any time. *

(3)	Failure by a buyer or seller, or its Clearing Member to satisfy the
Exchange that an EFS transaction is bona fide shall subject such buyer or
seller, if a Member/Member Firm, or the Clearing Member to disciplinary
action.  Such disciplinary action, depending on the gravity of the offense,
may be deemed to be a major offense of the Exchange's rules.  Further, if
the buyer or seller is not a Member/Member Firm, the Exchange may conduct a
hearing before the Business Conduct Committee to limit, condition or deny
access to the market.

(E) Each EFS transaction shall be posted by the Floor Members and cleared
through the Exchange in accordance with normal procedures and by the
Clearing Members involved.

(F)  All omnibus accounts and foreign brokers shall submit a signed EFS
reporting agreement in the form prescribed by the Exchange to the Exchange's
Compliance Department.  Such Agreement shall provide that any omnibus
account or foreign broker identified by a Clearing Member (or another
omnibus account or foreign broker) as the buyer or seller of an EFS pursuant
to Rule 6.21A(C), shall supply the name of its customer and such other
information as the Exchange may require.  Such information shall be
submitted to the Exchange's Compliance Department by 12:00 noon no later
than two (2) Exchange business days after the day of posting the EFS on the
Floor of the Exchange.  Failure by an omnibus account or foreign broker to
submit either the agreement or the particular EFS information to the
Exchange may result in a hearing by the Business Conduct Committee to limit,
condition or deny access of such omnibus account or foreign broker to the
market.