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NYMEX Holdings, Inc. announced today that, along with its exchange subsidiaries New York Mercantile Exchange, Inc. and Commodity Exchange, Inc., it has signed a transaction agreement with the COMEX Governors Committee regarding the COMEX Division member rights, including electronic trading rights.
In exchange for the termination of the COMEX Merger Agreement that NYMEX and COMEX entered into in 1994, each COMEX member will receive 8,400 shares of NYMEX common stock for each COMEX seat owned by such member, certain trading rights protections, and, as they were previously entitled under the COMEX Merger Agreement, a payment of $10 million, in the aggregate, from the proceeds of an initial public offering of NYMEX.
Completion of the transaction will entitle NYMEX to list all COMEX contracts and new metals contracts electronically for overnight and side-by-side trading. In addition, metals contracts may be listed for clearing on the NYMEX ClearPort® platform, and NYMEX will have the right to make electronic trading privileges available to third parties.
The transaction between NYMEX and COMEX is subject to a number of conditions, including COMEX member approval, NYMEX shareholder approval, and applicable regulatory approvals. As a result, there can be no assurance, of when, or if, this transaction will be completed.
This announcement shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.
