In that capacity, Koch Metals, through its designated floor broker, will maintain a presence in the COMEX Division aluminum trading area and will quote a price at an agreed-upon bid/ask spread.
The SMM program is designed to build liquidity in developing markets. The initial term of the agreement will be for one year, with the opportunity for renewal in spring 2002. The Exchange’s aluminum futures market was originally launched on May 14, 1999.
“The Exchange strongly believes in the potential of our aluminum futures contract and is very optimistic about the role Koch Metals will play in establishing its success,” said Vincent Viola, Exchange chairman. “Our selection process for the specialist market maker was extremely thorough, and we are proud that it has resulted in the designation of this noteworthy firm, which is so highly regarded globally.”
“We are pleased to be appointed as the market maker,” said Frans Pettinga, managing director of Koch Metals. “We believe Koch Metals will be able to help the contract achieve the required liquidity to provide a viable risk management tool for the aluminum industry.” Koch Metals provides metals risk management globally using standard as well as exotic products.
The New York Mercantile Exchange is the world’s largest physical commodities exchange. In addition to aluminum, the Exchange offers a trading forum for such strategic products as crude oil, heating oil, gasoline, natural gas, electricity, platinum, gold, silver, and copper futures and options; propane and palladium futures; and options on the spreads between crude oil and heating oil and crude oil and gasoline, as well as certain stock index derivative products. In 2000, its trading volume totaled nearly 105 million contracts, with a notional value of approximately $3.2 trillion. For more information, visit www.nymex.com.
Koch Metals Division is a division of Koch Carbon, Inc., a subsidiary of Koch Industries, Inc. Another subsidiary of Koch Industries, Koch Metals Trading Limited, is an associate broker clearing member of the London Metal Exchange (LME). Koch Industries, based in Wichita, Kansas, owns a diverse group of companies engaged in trading, investment and operations around the world. Koch Industries companies employ 11,000 people worldwide and are involved in petroleum, asphalt, natural gas, gas liquids, chemicals, plastics, chemical technology products, asphalt products, minerals, fertilizers, ranching, pipeline operations and finance businesses, as well as a host of new, technology-oriented ventures. Koch Industries maintains long-term credit ratings of AA+ from Standard & Poor’s Rating Group and Aa1 from Moody’s Investors Service. More information is available at www.kochmetals.com or www.kochind.com.
