The NYBOT, which lost its entire 4 World Trade Center (WTC) trading facility in the September 11th terrorist attacks, has operated successfully out of its unique back up facility in Long Island City, Queens, New York, since that time. The Empire State Development Corporation and the New York City Economic Development Corporation recently granted NYBOT $23.3 million in aid as well as sales tax relief to help in the rebuilding of its trading facility in the Downtown Financial District.
"This is further proof that Lower Manhattan is back and better than ever as the financial capital of the world," Governor Pataki said. "This alliance between the New York Board of Trade and the New York Mercantile Exchange is another synergy that is making a difference as we work together to rebuild, renew and revitalize, and is a tribute to those NYBOT members who lost their lives on that tragic day."
The two exchanges have entered into a 10-year lease on more than 58,000 square feet of trading and office space. NYBOT's new trading floor, scheduled to open in September 2003, will be shared with the Comex Division of NYMEX. It will cover roughly 13,100 square feet and contain 13 trading pits, similar to NYBOT's original WTC trading floor. The exchange has embarked on a multi-staged plan to first rebuild the Comex Division's pits and booths, and secondly build NYBOT's new trading floor, both using the latest in floor and booth technologies.
"Today marks another major step in this area's recovery and signals the return of more than 3,200 jobs to Lower Manhattan," said Mayor Michael R. Bloomberg. "These proud employees will in turn help sustain thousands of restaurant and retail jobs in the neighborhood, further spurring Lower Manhattan's remarkable renewal as a 24-hour commercial and residential neighborhood. The Board of Trade has shown the tough and resilient spirit that makes New York City the greatest City in the world and with pride we say 'Welcome Home'."
NYBOT's trading facilities, back offices and data center were completely destroyed in the September 11th attacks. While the exchange headquarters was evacuated immediately after the first plane hit the North tower, four members of NYBOT lost their lives in other buildings in the Trade Center complex. Because the Exchange had established an emergency backup facility after the 1993 bombing of the World Trade Center, NYBOT was the first trading floor to re-open on September 17th. While operating out of its back-up facility, the NYBOT has seen its volume grow by 17% over the last year.
Immediately after the September 11th terrorist attacks, the NYMEX Board extended the offer to NYBOT to explore moving into its facilities on One North End Avenue, and the two exchanges began discussions towards that goal.
NYMEX Chairman Vincent Viola said "This is an auspicious occasion, not only for the futures industry, which will benefit from the efficiencies of having both New York futures exchanges under a single roof, but also the financial community of lower Manhattan which has been feeling the absence of this key component of our industry. I commend the patriotism of the NYBOT members who have perpetuated and grown their business in the interim, as well as our own members, especially on the Comex Division, who have cooperatively given up space and other conveniences for the good of our fellow commodities traders."
NYMEX moved into its headquarters in July 1997. After September 11th, the exchange was the first in New York to reopen trading when it launched its web-based NYMEX ACCESS® trading system on September 14th, and the first business to reopen west of Ground Zero, when it resumed floor trading on September 17th.
The New York Board of Trade, the world's largest "softs" commodities exchange, has been an integral part of the Wall Street community since the 1870s. The world looks to the NYBOT exchanges to price its Arabica coffee, sugar, cocoa, cotton and orange juice. The exchange also trades a variety of currency and index products.
"We are very grateful to have reached this day," said Charles H. Falk, Chairman and Interim President of the New York Board of Trade. "While we will always remember our friends and colleagues who were lost on September 11th, this new agreement with NYMEX will allow us to rebuild our historic marketplace and go forward. We're proud to make this move back downtown, where we belong, and I want to thank the state, local and federal groups for making this happen. Additionally, I would especially like to thank our colleagues at NYMEX for allowing us to share their facility."
The New York Mercantile Exchange is the largest physical commodity exchange in the world with 133,689,935 metals and energy futures and options contracts traded in 2002. The Exchange has been based in lower Manhattan for its entire 131-year history. Commodities traded on the exchange include crude oil, heating oil, gasoline, natural gas, propane, coal, gold, silver, copper, platinum, palladium, and aluminum.
The New York Board of Trade (NYBOT) is the parent company of the Coffee, Sugar and Cocoa Exchange, Inc. (CSCE) and the New York Cotton Exchange (NYCE). Through its two exchanges and their subsidiaries and divisions, NYBOT offers an expanding range of agricultural, currency and index products. Information about the New York Board of Trade can be found at www.nybot.com.
