News Release

NYMEX Holdings Reports Record Third Quarter Operating Revenues and Net Income, Diluted EPS Of $0.66

Thu Nov 01 2007

NEW YORK, Nov. 1 /PRNewswire-FirstCall/ -- NYMEX Holdings, Inc. (NYSE: NMX), parent company of the New York Mercantile Exchange, Inc. (NYMEX), today reported that total operating revenues for the third quarter ended September 30, 2007 rose 25% to a record $173.2 million compared to $138.3 million for the third quarter 2006. Net income for the third quarter 2007 increased 54% to a record $62.6 million compared to $40.7 million for the third quarter 2006. Diluted earnings per share for the third quarter 2007 were $0.66, based on 94.8 million shares outstanding, compared to $0.47, based on 81.6 million shares outstanding, for the third quarter 2006.

The Board of Directors approved a special dividend of $100 million, as well as its regular quarterly dividend of $0.10 per share on the Company's common stock. Both dividends will apply to shareholders of record as of the close of business on December 3, 2007, and payable on December 28, 2007.

For the nine months ended September 30, 2007, NYMEX reported record total operating revenues of $501.0 million, a 35% increase from $372.5 million for the first nine months of 2006. Net income rose 43% to $160.5 million, versus $112.5 million in the first nine months of 2006. Diluted earnings per share for the first nine months of 2007 was $1.69 versus $1.35 in the 2006 period, based on 94.8 million and 79.4 million shares outstanding, respectively. Excluding the one-time charge related to Optionable, which occurred in the second quarter of 2007, diluted earnings per share for the nine months was $1.85.

NYMEX Chairman Richard Schaeffer said, "We are excited to deliver a record quarter of operating performance and profitability as we continue to deliver on our strategic goals as well as our expense reduction program. Our third quarter results are highlighted by the continued reduction of our expense base, as shown by our record 71% pre-tax margin for the quarter. As a demonstration of the continuing strength of our business, we are pleased to declare this special $100 million dividend to shareholders, in addition to our regular quarterly dividend."

NYMEX President and Chief Executive Officer James E. Newsome stated, "During our record third quarter, we set multiple single day electronic trading volume records on the CME Globex® electronic trading platform, as well as numerous volume and open interest records in our benchmark contracts. We are pleased that we have had several million-contract days on CME Globex since we launched our physically-settled contracts last year. In addition, we have now launched electronic options contracts on all of our core energy and metals contracts on CME Globex, as well as on our NYMEX ClearPort® electronic clearing and trading platform, which is part of our strategy to provide multiple venues for our users to trade and clear contracts. We are gratified by the early success in electronic trading of options, as evidenced by trading sessions when as much as 20% of natural gas options has traded electronically. In our Dubai strategic venture, the physically settled Dubai Mercantile Exchange Oman sour crude oil contract has continued to show consistent growth in volume and open interest, and now commands virtually 100% of all trading and open interest for Middle East-based exchange traded crude oil contracts."

Comprehensive Enterprise Efficiency Plan

NYMEX management has announced an enterprise efficiency plan that is designed to enhance revenues and reduce costs, while taking into account the evolving business model of the Exchange. NYMEX remains committed to enhancing and expanding our leadership in global trading and clearing of derivatives through expansion of volume growth and distribution as well as leadership in introducing innovative new products. This plan includes the following key initiatives:

  --  NYMEX will implement revenue enhancements of approximately $50 million
      based on a new fee schedule to each of the NYMEX and COMEX Divisions
      applied to September 2007 average daily volume, and an increase in its
      market data fees from $50 per unit to $55 per unit, effective
      February 1, 2008, based on average market data units of 135,508 from
      September 2007.
  --  NYMEX will implement a substantial reduction in its current cost
      structure.  NYMEX expects the cost savings components of the plan to
      reduce its current operating expense base by approximately $22 million
      on an annual basis.  NYMEX will reduce its current workforce by
      approximately 120 positions over the next five quarters, or $10
      million on an annual basis, beginning immediately with 55 positions,
      and continuing through 2008.  As a result of these cost reduction
      initiatives, NYMEX expects to record a cumulative pre-tax charge of
      approximately $4.0 million for severance and related expense,
      beginning in the fourth quarter of 2007, and into 2008.
  --  NYMEX will retain leading real estate broker Cushman & Wakefield to
      evaluate a sale of its headquarters located at One North End Avenue in
      Lower Manhattan.  In the event the Company concludes a sale of its
      headquarters, NYMEX expects to reduce operating expenses by
      approximately $12 million on an annual basis, based on elimination of
      expense related to the facility.  NYMEX also will closely review its
      options with regard to the location of its existing staff and
      requirements for trading floor square footage.  While the timing for
      this process is difficult to predict, the Company expects to conclude
      this process during the third and fourth quarters of 2008.

Mr. Schaeffer concluded, "This plan represents a disciplined approach to our process of capturing the benefits of our migration from open outcry trading to electronic trading and will continue to position NYMEX as one of the most profitable and efficient exchanges. We continue to be committed to achieving our strategic goals to increase our trading and clearing volume, to expand distribution globally, to continue to innovate and launch new products, and to enhance and expand our leadership in global trading and clearing of physical commodity-based derivatives. We are extremely excited about the strength of our position, and ability to achieve our strategic goals, as well as greater profitability, which benefit our customers, employees and shareholders."

Dr. Newsome stated, "NYMEX is committed to doing what is necessary to streamline its operations and improve its performance for its customers and shareholders. The plan we are implementing arises from the transformative year that we have had at NYMEX, and is the result of management's continuing drive to create shareholder value. We are creating a streamlined team with a focus on growing our core business of clearing and risk management for the energy and metals industries, as well as taking aggressive steps to expand into new sectors. We look forward to reporting on our progress each quarter as we implement this plan."

New Slate of Environmental Markets Contracts

NYMEX also announced that it will be partnering with leading market participants to launch a broad slate of new emissions-related products, including European carbon instruments, restructured U.S. emissions compliance products, and new products for the U.S. carbon markets. NYMEX has worked extensively with utilities, hedge funds, investment banks, environmental brokers and environmental groups since March 2007 to establish a set of contracts that market participants need to effectively manage risk and gain direct exposure to the emissions markets. NYMEX intends to list this new slate of contracts on the CME Globex electronic trading platform and the NYMEX ClearPort Clearing platform by the end of the first quarter of 2008.

Third Quarter Results

Clearing and transaction fees rose 22% for the third quarter 2007 to $145.3 million compared to $119.2 million for the year ago period. An additional fee increase which applied to NYMEX Division and COMEX Division rates became effective August 1, 2007 and was in effect for two months of the third quarter. Market data fees increased 56% for the third quarter 2007, to $24.9 million versus $15.9 million for the third quarter 2006.

Average daily volume was 1.491 million contracts during the third quarter 2007, a 13% increase over the third quarter of 2006. NYMEX electronic trading volume on CME Globex averaged 686,916 contracts per day and represented a 249% increase over third quarter 2006 electronic trading volume, which included two months on NYMEX ACCESS® and one month on CME Globex. NYMEX floor-traded energy futures and options averaged 228,504 contracts a day for the third quarter of 2007, versus 528,030 contracts per day for the same period of 2006. COMEX electronic trading volume on CME Globex averaged 113,892 contracts per day, an increase of 1,325% over third quarter 2006 electronic trading volume. COMEX metals open outcry average daily volume was 36,352 contracts for the third quarter of 2007, versus 88,482 contracts per day for the same period of 2006. Average daily volume on NYMEX ClearPort was 351,286 contracts in the third quarter of 2007, as compared to 436,243 contracts in the same period of 2006. The remaining average daily volume of 73,910 per day consisted of other transactions which includes position transfers and exchanges.

Total operating expenses, excluding direct transaction costs of $24.7 million, were $40.5 million for the third quarter of 2007. This represents a 15% decrease from $47.5 million for the same period in 2006, driven primarily by the Company's cost cutting initiatives.

Income before provision for income taxes was $110.4 million for the third quarter 2007, compared to $75.3 million for the third quarter 2006. Pre-tax margin, defined as income before provision for income taxes divided by operating revenues, investment income and interest income from securities lending (net of interest expense/fees from securities lending and direct transaction costs), was 71% in the third quarter 2007, compared to 60% in third quarter 2006.

Nine Month Results

Clearing and transaction fees rose 34% for the nine months ended September 30, 2007 to $420.8 million, compared to $315.0 million for the year ago period. Market data fees were $71.4 million for the nine month period, versus $47.2 million for the nine months of 2006, an increase of 51%.

Average daily volume for the first nine months of 2007 was 1.466 million contracts, a 24% increase over the first nine months of 2006. NYMEX electronic trading volume on CME Globex averaged 631,029 contracts per day and represented a 361% increase over the nine-month period of 2006 electronic trading volume. NYMEX floor-traded energy futures and options averaged 270,935 contracts a day for the first nine months of 2007. COMEX electronic trading volume on CME Globex averaged 102,041 contracts per day, an increase of 729% over the first nine months of 2006 electronic trading volume. COMEX metals open outcry average daily volume was 44,453 contracts a day for the first nine months of 2007. Average daily volume on NYMEX ClearPort increased 8% in the first nine months of 2007 to 344,114 contracts, from 317,919 contracts in the comparable period of 2006. The remaining average daily volume of 73,610 per day consisted of other transactions which includes position transfers and exchanges.

Total operating expenses for the first nine months of 2007, excluding direct transaction costs of $73.1 million, were $126.7 million. This represents a 7% decrease from $136.0 million for the same period in 2006, driven primarily by the Company's cost cutting initiatives.

Income before provision for income taxes was $284.1 million for the first nine months of 2007, compared to $206.4 million for the same period of 2006. Excluding the one-time charge from Optionable, income before provision for income taxes was $310.1 million. Pre-tax margin was 63% in the first nine months of 2007, compared to 59% in 2006. Excluding the one-time charge from Optionable, pre-tax margin was 69%.

Investor Conference Call / Webcast Details

NYMEX will hold a conference call to discuss 2007 third quarter results today, November 1, 2007 at 8:00 AM Eastern Time. Those wishing to participate in the conference call can dial (866) 314-4865 (U.S. and Canada) or (617) 213-8050 (International), using the confirmation code 88824777. A live audio webcast of the call will also be available on the Investor Relations section of the NYMEX website at http://investor.nymex.com/. An archived version of the conference call will also be available within approximately 90 minutes of the conclusion of the call.

About NYMEX Holdings, Inc.

NYMEX Holdings, Inc. (NYSE: NMX) is the parent company of the New York Mercantile Exchange, Inc. (NYMEX), the world's largest physical commodity futures and options exchange. NYMEX offers futures and options trading in energy, metals and soft commodities contracts and clearing services for more than 320 off-exchange energy and metals contracts. Through a hybrid model of open outcry floor trading and electronic trading on CME Globex® and NYMEX ClearPort®, NYMEX offers crude oil, petroleum products, natural gas, coal, electricity, gold, silver, copper, aluminum, platinum group metals, and soft commodities contracts for trading and clearing virtually 24 hours a day. Further information about NYMEX Holdings, Inc. and the New York Mercantile Exchange, Inc. is available on the NYMEX website at http://www.nymex.com/.

Forward Looking and Cautionary Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to our future performance, operating results, strategy, and other future events. Such statements generally include words such as could, can, anticipate, believe, expect, seek, pursue, and similar words and terms, in connection with any discussion of future results. Forward-looking statements involve a number of assumptions, risks, and uncertainties, any of which may cause actual results to differ materially from the anticipated, estimated, or projected results referenced in forward-looking statements. In particular, the forward-looking statements of NYMEX Holdings, Inc., and its subsidiaries are subject to the following risks and uncertainties: the success and timing of new futures contracts and products; changes in political, economic, or industry conditions; the unfavorable resolution of material legal proceedings; the impact and timing of technological changes and the adequacy of intellectual property protection; the impact of legislative and regulatory actions, including without limitation, actions by the Commodity Futures Trading Commission; and terrorist activities and international hostilities, which may affect the general economy as well as oil and other commodity markets. We assume no obligation to update or supplement our forward-looking statements.

                  NYMEX HOLDINGS, INC. AND SUBSIDIARIES
         CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
                  (in thousands, except for share data)

                              Three Months Ended      Nine Months Ended
                                 September 30,           September 30,
  Operating Revenues           2007        2006        2007        2006
    Clearing and
     transaction fees        $145,259    $119,200    $420,826    $314,966
    Market data fees           24,892      15,927      71,392      47,221
    Other, net                  3,049       3,167       8,805      10,292
       Total operating
        revenues              173,200     138,294     501,023     372,479

  Operating Expenses
    Direct transaction
     costs                     24,685      16,645      73,105      31,582
    Salaries and employee
     benefits                  19,531      22,560      61,051      60,046
    Occupancy and
     equipment                  5,306       8,429      16,853      22,467
    Depreciation and
     amortization, net of
     deferred credit
     amortization               3,272       3,322      10,417      11,570
    General and
     administrative             4,590       4,569      14,232      15,199
    Professional services       5,159       3,278      13,267      10,811
    Telecommunications          1,536       1,263       4,376       4,754
    Marketing                     839       1,681       4,398       4,420
    Other expenses                220       2,366       2,063       6,716
       Total operating
        expenses               65,138      64,113     199,762     167,565

    Operating income          108,062      74,181     301,261     204,914

  Non-Operating Income and
   Expenses
    Investment income, net      4,873       2,936      17,713       5,750
    Interest income from
     securities lending        19,955      37,397      80,448      97,914
    Interest expense/fees
     from securities
     lending                  (18,811)    (36,536)    (77,836)    (95,435)
    Interest expense           (1,615)     (1,666)     (4,839)     (5,000)
    Losses from
     unconsolidated
     investments               (2,020)       (991)    (32,607)     (1,768)
       Total non-operating
        income and expenses     2,382       1,140     (17,121)      1,461

    Income before
     provision for income
     taxes                    110,444      75,321     284,140     206,375
    Provision for income
     taxes                     47,870      34,597     123,601      93,885

    Net income                $62,574     $40,724    $160,539    $112,490



  Proforma weighted
   average common shares
   outstanding and
   earnings per share
   retroactively
    adjusted to reflect
     the 90,000-for-1
     recapitalization on
     March 14, 2006:

  Earnings per Share
    Basic                       $0.66       $0.47       $1.70       $1.35
    Diluted                     $0.66       $0.47       $1.69       $1.35
  Weighted Average Number
   of Common Shares
   Outstanding
    Basic                  94,457,000  81,600,000  94,456,000  79,448,000
    Diluted                94,836,000  81,600,000  94,827,000  79,448,000



                  NYMEX HOLDINGS, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                              (in thousands)

                                             (Unaudited)
                                            September 30,      December 31,
                   Assets                       2007               2006
      Cash and cash equivalents                   $3,596           $18,631
      Collateral from securities
       lending program                           957,806         2,547,312
      Marketable securities, at market
       value                                     536,499           485,581
      Clearing and transaction fees
       receivable, net of allowance for
       member credits                             50,229            32,853
      Prepaid expenses                             7,578             7,009
      Margin deposits and guaranty
       funds                                      21,611            17,052
      Other current assets                        48,029            10,238
             Total current assets              1,625,348         3,118,676

      Property and equipment, net                177,332           183,193
      Goodwill and indefinite-lived
       intangible asset                          307,125           307,125
      Long-term investments                      111,054             3,008
      Other assets                                 7,150            11,929
             Total assets                     $2,228,009        $3,623,931

       Liabilities and Stockholders'
                   Equity
      Accounts payable and accrued
       liabilities                               $16,285           $14,854
      Accrued salaries and related
       liabilities                                18,634            13,688
      Payable under securities lending
       program                                   957,806         2,547,312
      Margin deposits and guaranty
       funds                                      21,611            17,052
      Income tax payable                          11,151             4,984
      Other current liabilities                   36,354            35,019
             Total current liabilities         1,061,841         2,632,909

      Grant for building construction
       deferred credit                           104,557           106,166
      Long-term debt                              80,281            80,281
      Retirement obligation                       11,964            12,367
      Other liabilities                           28,425            17,286
               Total liabilities               1,287,068         2,849,009

               Total stockholders'
                equity                           940,941           774,922
               Total liabilities and
                stockholders' equity          $2,228,009        $3,623,931


                           Non-GAAP Reconciliation

  The Company evaluates its financial performance using various measures.
  One  measure is to exclude one-time gains and losses from its results to
  arrive at a pro forma earnings per share amount.  Pro forma earnings per
  share is a non-GAAP (generally accepted accounting principles)
  performance measure, however, the Company believes that it is useful to
  assist investors in gaining an understanding of the trends and operating
  results of the Company's business.  Pro forma earnings per share should
  be viewed in addition to, and not in lieu of, the Company's reported
  results under U.S. GAAP.

  During the second quarter of 2007, the Company recorded a one-time charge
  related to its investment in Optionable, Inc. of approximately $26.0
  million that was recorded in losses from unconsolidated investments under
  the caption "Non-Operating Income and Expenses" on its consolidated
  statements of income.  The following is a reconciliation of U.S. GAAP
  results to pro forma results for the periods presented:


                                       (in thousands, except share amounts)
                                          Three Months      Nine Months
                                             Ended             Ended
                                       September 30, 2007 September 30, 2007
  Net income                                     $62,574          $160,539
     Add:  Impairment loss on
      investment in Optionable                       -              25,962
     Less:  Effective tax rate benefit
      of impairment loss on
                    investment in
                     Optionable                      -              11,293

  Pro forma net income                           $62,574          $175,208

  Earnings per common share on net
   income:
     Basic                                         $0.66             $1.70
     Diluted                                       $0.66             $1.69

  Pro forma earnings per common share
   on pro forma net income:
     Pro forma basic                               $0.66             $1.85
     Pro forma diluted                             $0.66             $1.85

  Weighted average common shares
   outstanding:
     Basic                                    94,457,000        94,456,000
     Diluted                                  94,836,000        94,827,000



                             Q3 2007   Q2 2007   Q1 2007   Q4 2006   Q3 2006
  Trading Days                   63        63        61        62        62


  Average Daily Volume (round turns, in thousands, difference is due to
                                rounding)

                             Q3 2007   Q2 2007   Q1 2007   Q4 2006   Q3 2006
  NYMEX Floor                   229       257       330       362       528
  NYMEX Electronic              687       608       597       368       197

  COMEX Floor                    36        42        56        76        88
  COMEX Electronic              114       101        90        16         8

  NYMEX ClearPort               351       309       373       302       436

  Other                          74        79        68        75        67
  Total                       1,491     1,396     1,513     1,199     1,324


          Gross Clearing and Transaction Revenue (in thousands)

                             Q3 2007   Q2 2007   Q1 2007   Q4 2006   Q3 2006
  NYMEX Floor               $20,824   $19,966   $23,664   $24,497   $36,097
  NYMEX Electronic           54,285    50,520    43,271    24,953    18,260

  COMEX Floor                 3,072     3,249     4,244     5,795     6,711
  COMEX Electronic           10,786     9,791     8,253     2,000     1,736

  NYMEX ClearPort            46,905    44,281    49,609    38,837    48,326

  Other                       9,387     9,583     9,136     8,683     8,069
  Total                    $145,259  $137,390  $138,177  $104,765  $119,200


                            Rates Per Contract

                             Q3 2007   Q2 2007   Q1 2007   Q4 2006   Q3 2006
  NYMEX Floor                 $1.45     $1.23     $1.18     $1.10     $1.10
  NYMEX Electronic             0.97      1.02      0.89      0.70      1.07

  COMEX Floor                  1.34      1.24      1.25      1.23      1.22
  COMEX Electronic             1.16      1.19      1.20      1.99      3.35

  NYMEX ClearPort              1.67      1.72      1.66      1.58      1.36

  Other                        2.02      1.92      2.19      1.88      2.00
  Total Net RPC                1.28      1.29      1.24      1.17      1.25
        Direct Cost            0.27      0.28      0.26      0.24      0.20
  Gross RPC                   $1.55     $1.56     $1.50     $1.41     $1.45

SOURCE: NYMEX Holdings, Inc.

CONTACT: Investors, Keil Decker, +1-212-299-2209, or Media, Anu
Ahluwalia, +1-212-299-2439

Web site: http://www.nymex.com/

Corporate Communications

+1 312 930 3434
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