FRAMINGHAM (05/04/2000) - The board of directors of the New York Mercantile Exchange (Nymex) today announced that it has approved a new Internet-based commodities exchange that will initially focus on electronic trading of crude oil, petroleum products, natural gas and electricity.
"The global energy and metals community has expressed a strong need for an electronic (over-the-counter) platform that provides an open, independent and neutral marketplace," said Daniel Rappaport, the exchange's chairman, in a statement.
Nymex said it will try to transform the e-commerce venture, which will be called eNymex, into the premier global exchange for over-the-counter trading and clearing of a wide range of standardized physical commodity contracts.
The new venture will offer a single, Internet-based interface to both the over-the-counter market and the Nymex futures market by routing futures orders either to the trading floor or to the Nymex Access electronic trading system.
Nymex said it also hopes to pursue deals that would let the Internet-based exchange provide clearing services to other organizations. Also in the works is a credit structure that would enable Nymex floor members to participate in over-the-counter markets.
Although eNymex will initially trade contracts for only a limited number of products, trading eventually is expected to expand into other areas, such as coal and precious and base metals.