Under the terms of the settlement, all remaining third-party customers of Klein & Co. will be reimbursed for funds on deposit with Klein & Co. which were held at the time of the suspension.
"NYBOT and NYMEX have mutual interests in protecting the integrity of our respective exchanges and the trading environment for the public and members who trade on both floors," commented Mark D. Fichtel, president and CEO, NYBOT. "The dismissal of the lawsuit means that the 15 NYMEX members who were named plaintiffs in the litigation can now receive payment for the value of their accounts - a process voluntarily initiated by NYBOT's Board of Directors, immediately after Klein defaulted, with respect to the approximately 300 other non-defaulting customers of Klein & Co."
Neal Wolkoff, executive vice president of NYMEX, said, "We are delighted that this issue has been resolved to the satisfaction of all involved parties so we can now move forward with our regular business with preserved integrity."
The New York Board of Trade (NYBOT) is the parent company of the Coffee, Sugar & Cocoa Exchange, Inc. (CSCE) and the New York Cotton Exchange (NYCE). Through its two exchanges and subsidiaries and divisions, which include Citrus Associates, FINEX and the New York Futures Exchange (NYFE), NYBOT offers a variety of agricultural, financial and index products. The Cantor Exchange (CX), a joint venture with eSpeed, Inc., provides the first full-time electronic market for U.S. Treasury and Agency futures.
The New York Mercantile Exchange (NYMEX) is the largest physical commodity exchange in the world, with volume reaching nearly 110 million contracts in 1999. The futures and options contracts traded at the Exchange are based on such strategic commodities as oil, gold, silver, natural gas, electricity, copper, and aluminum.
