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The New York Mercantile Exchange, Inc., a subsidiary of NYMEX Holdings, Inc. (NYSE: NMX), applauds the analysis and recommendations contained in the Commodity Futures Trading Commission's (CFTC) report to Congress issued earlier today. NYMEX has consistently maintained that regulatory reform is necessary in order to promote transparent, fair and orderly markets, and the Commission's report validates this approach.
Exempt commercial market's (ECM) contracts that serve a significant price discovery function trigger a number of public policy concerns and warrant a higher degree of CFTC oversight and regulation. NYMEX agrees with the CFTC's conclusion that these contracts should be subject to large trader reporting, position limits or position accountability, self-regulatory oversight obligations, and emergency authority for both the CFTC and for the ECM itself. These mechanisms have enabled NYMEX to provide market integrity and stability to the energy markets.
NYMEX President and Chief Executive Officer James E. Newsome said, "NYMEX not only commends the Commission for its hard work and thoughtful analysis in issuing this report, but strongly supports the approach the Commission has taken on oversight of the energy markets. As the preeminent exchange in the energy industry, NYMEX is pleased to continue to work with its regulator, the CFTC, and with the industry to establish best practices for the energy markets."
