NYMEX Comments on CFTC Hearing on Oversight of Exchanges, ECMs
18 September 2007 - 4:28PM
PR Newswire (US)
NEW YORK, Sept. 18 /PRNewswire-FirstCall/ -- The New York
Mercantile Exchange, Inc. (NYMEX) commends the CFTC for seeking to
obtain industry input at its public hearing today on unregulated
exempt commercial markets or ECMs. Over the last few months, a
broad and growing consensus has developed that certain products
traded on ECMs and also on regulated futures exchanges are tightly
linked and effectively result in one broader derivatives market.
This new reality creates serious regulatory problems both for
regulated exchanges as well as for the CFTC. The debate over the
changes in the marketplace is now largely settled, the real
question is the proper policy response. NYMEX, along with some
legislators and regulators, have concluded that there is a strong
need for appropriate statutory change to provide effective
regulatory oversight of markets that are of critical importance to
U.S. consumers and to the overall economy. In NYMEX's view, the
most effective response would be targeted and would require routine
mandated large trader reporting and position accountability/limit
requirements for certain ECM contracts that are linked to and
functionally equivalent with regulated futures exchange contracts.
Such ECMs also would be required to police their own markets. These
statutory changes are necessary and would not negatively impact the
price discovery and hedging functions provided by derivatives
markets. Forward Looking and Cautionary Statements This press
release may contain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act, with respect to
our future performance, operating results, strategy, and other
future events. Such statements generally include words such as
could, can, anticipate, believe, expect, seek, pursue, and similar
words and terms, in connection with any discussion of future
results. Forward-looking statements involve a number of
assumptions, risks, and uncertainties, any of which may cause
actual results to differ materially from the anticipated,
estimated, or projected results referenced in forward-looking
statements. In particular, the forward-looking statements of NYMEX
Holdings, Inc., and its subsidiaries are subject to the following
risks and uncertainties: the success and timing of new futures
contracts and products; changes in political, economic, or industry
conditions; the unfavorable resolution of material legal
proceedings; the impact and timing of technological changes and the
adequacy of intellectual property protection; the impact of
legislative and regulatory actions, including without limitation,
actions by the Commodity Futures Trading Commission; and terrorist
activities and international hostilities, which may affect the
general economy as well as oil and other commodity markets. We
assume no obligation to update or supplement our forward-looking
statements. DATASOURCE: The New York Mercantile Exchange, Inc.
CONTACT: Anu Ahluwalia, +1-212-299-2439, or Keil Decker,
+1-212-299-2209, both of The New York Mercantile Exchange, Inc. Web
site: http://www.nymex.com/
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