Mercantile

The shareholders of the NYMEX Holdings Inc., and the New York Mercantile Exchange elected by a margin of 476 to 115 Pioneer Futures owner Vincent Viola as the new chairman of the board. Gordon Rutledge, Madeline Boyd, Gary Rizzi, J. Robert Collins, Kenneth Garland, Robert Steele and Harley Lippman also were elected to the board. In addition, a resolution was passed to add three equity holder representative positions to the board. An election for these positions will be scheduled shortly. Viola was vice chairman of the exchange from 1993 to 1996. Pioneer is currently a clearing member of both divisions of Nymex and the New York Board of Trade. Viola also served on the exchange board in the at-large category from 1987 to 1990. He is a graduate of the U.S. Military Academy at West Point and the New York Law School. In 1988, he formed the First Bank Group, which operates community banks in Dallas and the surrounding area. In 1998, he formed MV Technologies, a developer of fully integrated electronic platforms for trading futures, options, equities, and derivatives.

In an open letter to the governor of California, Vincent Viola,the new chairman of the New York Mercantile Exchange suggested thestate could solve its power price problems if it “promptly” turnedloose large customers and let them buy power for themselves,eliminated any monopoly, “be it the PX, Department of WaterResources, or the Independent System Operator,” and started usingfinancial instruments to protect consumers, rather than lock inlong-term, high-priced contracts.

The shareholders of the NYMEX Holdings Inc., and the New YorkMercantile Exchange elected by a margin of 476 to 115 PioneerFutures owner Vincent Viola as the new chairman of the board.Gordon Rutledge, Madeline Boyd, Gary Rizzi, J. Robert Collins,Kenneth Garland, Robert Steele and Harley Lippman also were electedto the board. In addition, a resolution was passed to add threeequity holder representative positions to the board. An electionfor these positions will be scheduled shortly. Viola was vicechairman of the exchange from 1993 to 1996. Pioneer is currently aclearing member of both divisions of Nymex and the New York Boardof Trade. Viola also served on the exchange board in the at-largecategory from 1987 to 1990. He is a graduate of the U.S. MilitaryAcademy at West Point and the New York Law School. In 1988, heformed the First Bank Group, which operates community banks inDallas and the surrounding area. In 1998, he formed MVTechnologies, a developer of fully integrated electronic platformsfor trading futures, options, equities, and derivatives.

New York Mercantile Exchange Chairman Daniel Rappaport hasannounced he will not seek reelection for a fifth term as chairman.Rappaport has been a member of the exchange since 1981 and servedas chairman since 1983.ÿ

The price roller coaster continued in the natural gas pit at theNew York Mercantile Exchange Thursday as traders went through themotions of checking the latest hurricane forecast and then tradedaccordingly. Yesterday that translated into selling, by trade andlocals alike, as they reduced their long exposure on the news thatDebby had weakened into a tropical wave.

The board of directors of the New York Mercantile Exchange hasamended plans to move up the start-up time for natural gas futurestrading because of the overlap with crude oil markets, which sharean options ring with natural gas. Daily gas futures trading nowwill commence at 9:30 a.m. rather than 9:45. The board hasscheduled expanded energy trading hours to begin with the Sept. 8trading session.

The New York Board of Trade (NYBOT) and the New York MercantileExchange (Nymex) have announced a settlement of the litigationbetween them relating to the suspension of a clearing member, Klein& Co. Futures, Inc., from NYBOT and its clearinghouse, the NewYork Clearing Corporation (NYCC).

The members of the New York Mercantile Exchange voted 97.5% infavor of a demutualization plan yesterday that will make the exchangethe first in New York to convert from a not-for-profit membershipstructure under New York law to a for-profit organization underDelaware law (see Daily GPI, May 5). Thedemutualization plan calls for the equity in the exchange to remainwith the seat-owners of its Nymex Division. “Today’s approval, is justthe first step in repositioning the Exchange as a 21st centurybusiness enterprise that will create and pursue profitable newopportunities, react rapidly and decisively in an increasinglycompetitive marketplace, and explore interest by outside investors,”said Exchange Chairman Daniel Rappaport. The plan has already receivedapproval from the Securities and Exchange Commission and the Exchangeanticipates approval shortly from the Commodity Futures TradingCommission. It is also seeking a favorable tax ruling from theInternal Revenue Service. A new stock-holding company named NymexHoldings, Inc., will be formed to own all of the economic interestsand most of the voting control in the for-profit membershipcorporation. Each existing Nymex Division membership will be convertedinto one share of common stock in Nymex Holdings. The Exchange is thelargest physical commodity exchange in the world, with volume reachingclose to 110 million contracts in 1999.

As if tethered to a bungie cord, natural gas prices bounced backyesterday at the New York Mercantile Exchange as temperatures alongthe East Coast soared into the 90s. Those record-setting readingsalong with stronger crude oil and physical natural gas prices gavetraders the opportunity to reclaim a large portion of last week’sprice slide. The June contract received the biggest boost, pushing14.5 cents higher to finish at $3.17.