New York Mercantile Exchange And Shanghai Futures Exchange Sign Memorandum Of Understanding On Cooperation

The New York Mercantile Exchange, Inc., and the Shanghai Futures Exchange announced today that they have signed a memorandum of understanding to explore potential areas of cooperation that could mutually benefit the memberships of both exchanges.

These include:

• Cooperation in sharing information regarding physical delivery futures contracts, clearing procedures, and risk management.
• Cooperation in developing future lines of business.
• Cooperation in exploring the feasibility of each exchange licensing the other's products.

New York Mercantile Exchange Chairman Mitchell Steinhause said, "We are extremely pleased to pursue areas of common interest with the Shanghai Futures Exchange. As the world becomes a seamless marketplace, the convergence of key trading centers for physical commodities will become essential to market participants. We look forward to working with the Shanghai Futures Exchange to expand the availability of our products and services in this key market center."

Mr. Jiang Yang, chief executive officer of Shanghai Futures Exchange, said "Before the listing of fuel oil futures on SHFE, the signing of this MOU with New York Mercantile Exchange will help promote the development of futures trading on large-size commodities, such as energy, in China. From now on, both exchanges will not only have more similarities in product line but can also hope to find more common language in areas including market expansion and strategic planning."

About the New York Mercantile Exchange The New York Mercantile Exchange is the largest physical commodity exchange in the world, offering futures and options trading in energy and metals contracts and clearing services for off–exchange energy transactions. Through a combination of open outcry floor trading and the NYMEX ACCESS® and NYMEX ClearPortsm electronic trading platforms, a wide range of crude oil, petroleum product, natural gas, coal, electricity, gold, silver, copper, aluminum, and platinum group metals markets are available virtually 24 hours each day.

About the Shanghai Futures Exchange Shanghai Futures Exchange (SHFE) is the largest futures exchange in China. Merged by three futures exchanges of Shanghai in 1999, it now has three major commodity futures products (copper cathode, aluminum and natural rubber) that boast of regional and global significance. In late August, 2004, SHFE will list fuel oil contract that is the first energy-related futures contract in China.

SHFE is regulated by China's Securities Regulatory Commission (CSRC). At present, there are about 220 members, 80% of who are futures brokerage firms and 20% are proprietary members (i.e. those who trade merely for hedging purposes, like industrial manufacturers). SHFE is a fully electronic market and all the members place orders from the remote trading terminals or through the leased lines. For more details, please visit SHFE website at www.shfe.com.cn.