News Release

NYMEX Comments on CFTC Hearing on Oversight of Exchanges, ECMs

Tue Sep 18 2007

NEW YORK, Sept. 18 /PRNewswire-FirstCall/ -- The New York Mercantile Exchange, Inc. (NYMEX) commends the CFTC for seeking to obtain industry input at its public hearing today on unregulated exempt commercial markets or ECMs. Over the last few months, a broad and growing consensus has developed that certain products traded on ECMs and also on regulated futures exchanges are tightly linked and effectively result in one broader derivatives market. This new reality creates serious regulatory problems both for regulated exchanges as well as for the CFTC. The debate over the changes in the marketplace is now largely settled, the real question is the proper policy response.

NYMEX, along with some legislators and regulators, have concluded that there is a strong need for appropriate statutory change to provide effective regulatory oversight of markets that are of critical importance to U.S. consumers and to the overall economy. In NYMEX's view, the most effective response would be targeted and would require routine mandated large trader reporting and position accountability/limit requirements for certain ECM contracts that are linked to and functionally equivalent with regulated futures exchange contracts. Such ECMs also would be required to police their own markets. These statutory changes are necessary and would not negatively impact the price discovery and hedging functions provided by derivatives markets.

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.

SOURCE: The New York Mercantile Exchange, Inc.

CONTACT: Anu Ahluwalia, +1-212-299-2439, or Keil Decker,
+1-212-299-2209, both of The New York Mercantile Exchange, Inc.

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