New York Merc Head Resigns in Reorganization

Rosemary T. McFadden, president of the New York Mercantile Exchange, has resigned as part of a reorganization of the world’s largest oil futures exchange. She will remain an adviser to the exchange.

McFadden, a 39-year-old lawyer and major figure in the futures industry, helped steer NYMEX through a period of rapid growth, changing it from a sleepy agricultural commodity exchange into a world futures powerhouse.

She was able to negotiate a cash severance package of more than $500,000, according to a source familiar with the deal.

NYMEX Chairman Z. Lou Guttman said that McFadden’s resignation, effective July 31, is part of a restructuring plan that will allow the exchange to better divide administrative responsibilities.

He said McFadden had been trying to handle the exchange’s internal and external affairs and that the NYMEX board felt she had become “overloaded” with work. “The job had become too big for one person to handle,” Guttman said.

In a statement, McFadden said, “It has been a rewarding and fulfilling experience to serve the exchange. The NYMEX Board feels I can better serve the exchange in my new strategic advisory capacity. I look forward to this opportunity.” McFadden was not available for further comment.

Her resignation, which was unexpected, comes at a time when NYMEX faces several public relations problems.

Earlier this year, federal investigators went to the exchange’s offices in Manhattan to gather records as part of an investigation into suspected trading abuses.

In addition, the exchange is under pressure from some members to modify the delivery terms of its crude oil contract, and to decide how it will participate in after-hours trading, a trend that is sweeping world markets.

R.P. Thompson, now executive vice president of NYMEX, will serve as interim president, managing internal affairs, until a replacement is found. Thompson is considered by some exchange sources as a likely candidate to succeed McFadden.